$5.5-Billion Power Plant Under Review

Construction of a third unit at the Intermountain Power Project may not be too far off, said Reece D. Nielsen, board chairman of the Intermountain Power Agency.

The IPA in May authorized formation of a committee to study further development of the IPP site and to consider a third unit.

The IPA is an organization of 23 Utah municipal utilities formed to finance, construct and operate the $5.5-billion power project near Delta, Utah. There are another 13 municipal or rural utilities participating in the project, which sends most of its power to California.

Addressing the organization’s annual meeting, Nielsen said the decision to construct a third unit will depend in part on demand.

“Maybe the third unit is not as far away as we think it might be,” Nielsen said.

He said most current project participants will not need additional power from the IPP before the year 2000.

“Politically the climate is favorable for construction of the third unit. Or at least it was favorable until the Wyoming coal issue raised its ugly head a few weeks ago,” Nielsen said.

He was referring to recent statements by Stephen P. Crouch, fuel supply engineer for Los Angeles City Department of Water and Power, that IPP will test underground bituminous coal from southern Wyoming and western Colorado.

The IPA contracted with the Los Angeles Department of Water and Power, the largest of the participating utilities, to serve as project manager and operating agent to build and operate the project.

Crouch’s statement produced an outcry from Utah Gov. Norm Bangerter, who threatened legal and economic sanctions against the IPP if it reneges on an agreement to buy only Utah coal to fuel its two 800-megawatt power plants.

The IPP, which employs 623 people, supplies about one-third of the electricity for Los Angeles.