Monday, April 29, 2013

L.A. vote may push Utah’s IPP from coal to mostly natural gas

The Intermountain Power Agency is talking to the city of Los Angeles and other customers about converting much of the coal-fired Intermountain Power Plant to run on cleaner but more expensive natural gas by 2025. The Los Angeles City Council voted unanimously for a plan to wean the city away from coal within 12 years. The agreement signals that the council’s first choice is to replace most of IPP’s coal power with natural gas-fueled generating units that would be constructed at the facility near Delta.

The natural gas units would be financed the same way the original project was paid for ­— by issuing bonds that would be repaid by customers out of future sales of electricity from the plant. Some estimates have put the conversion cost as high as $500 million. Salt Lake Tribune