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Company to gather hard numbers for hydro plant
by Ashley Langston
Nov 17, 2010 | 193 views | 0 0 comments | 3 3 recommendations | email to a friend | print
PAROWAN – The city council voted last Thursday to approve Dominion Engineering Associates of Murray as a consultant for the Center Creek hydro plant.

City Manager Shayne Scott said the contract the council approved gives Dominion license to gather hard numbers by getting bids for the plant. The city has been referring to it as a “feasibility study,” he added.

The staff and power board feel confident that if the plant’s refurbishing was to cost $1.25 million or less it would be able to generate enough electricity to pay for the bonding involved, Scott said.

The council also approved a resolution authorizing electric bonds. This would refinance the city’s current bonds for its power system and could include funding for the refurbishment of the Center Creek hydro plant.

The council authorized not more than $7 million, but Scott said they are expecting just more than $5 million. Marc Edminster, of Lewis Young Robertson & Burningham, said he didn’t have the hard numbers in front of him, but just refinancing the current power bonds would save the city a substantial amount of money.

Scott said the council’s authorization at last Thursday’s meeting did not obligate the city to go through with the new bonds, but did get the wheels in motion.

The council also discussed an increase in sewer rates for non-residential buildings. Scott said he sent out letters to all Parowan businesses after the discussion at the Oct. 28 meeting. He had only received phone calls from a handful of companies and none of them had seemed too concerned with the proposal.

The sewer rate increase was moved to the next meeting for a vote.

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