PacifiCorp and Deseret Generation sign 20-year power agreement

SALT LAKE CITY, Utah — PacifiCorp has signed a 20-year electric power purchase agreement with Deseret Generation & Transmission Cooperative, with power to be delivered from Deseret's Bonanza Plant, a coal-fired power plant located 40 miles southeast of Vernal, Utah.

The contract will deliver 100 megawatts at PacifiCorp's daily option beginning June 1, 2005 and continue through September 30, 2024. The cost of the power from Deseret is competitive with the market alternatives and other available resources in PacifiCorp's Request for Proposal (RFP). A megawatt of generating capacity can serve the electric demand of approximately 500 typical homes. PacifiCorp operates as Utah Power in Utah and Idaho.

Deseret Generation, with offices in South Jordan, Utah, is the majority owner of about 430 megawatts of electric generation capacity at its Bonanza coal plant, and 105 megawatts of the Hunter Unit 2 coal plant, near Castle Dale, Utah, where Utah Power is the majority owner.

Deseret was a bidder in Utah Power's RFP 2003-A process, but was not selected in that process. However, Deseret approached PacifiCorp outside of the RFP process and the parties were able to reach agreement on an economic supply agreement.

"PacifiCorp is pleased to enter into this long-term power purchase agreement with Deseret G&T," said Stan Watters, PacifiCorp senior vice president. "This purchase will economically provide our system with needed power supply from a proven generation source located within Utah."

In addition to the daily option for dispatch, the contract provides PacifiCorp an additional option to adjust the schedule during the day of delivery and/or during the hour of delivery. Deliveries of electricity by Deseret are contingent on the availability of Bonanza and transmission via Deseret's 345-kilovolt transmission facilities from the Bonanza plant to Utah Power's Mona substation, near Mona, Utah.