Valley Bank of Utah has loaned the city of Santa Clara $1.4 million to buy Utah Power and Light Co. facilities in the community, said a city spokesman.
Mayor Guy Bird said the city can pay back the loan without raising power rates. The money had been placed in an account with the Southern Utah Title company, and will be repaid in nine years.City officials have a 15-year agreement to purchse 5,000 kilowatts of power from Idaho Power Co. beginning in April, said Bird.
"Utah Power and Light has agreed to complete severance by April 18 when the power switch over to Santa Clara begins," said Bird.
About 4 percent of Santa Clara's power will come from Deseret Generation and Transmission and from the Utah Association of Municipal Systems for one year.