Twin City power plant to shut down July 1
 
By Patrice St. Germain
patrices@thespectrum.com
 
HILDALE - With $20 million in outstanding debt, the Twin City power plant, which until January 2004 provided power for Colorado City and Hildale, will formally close down July 1, prompting the lay-off of at least four power department employees.

Power manager Lorin Fischer said the wholesale price of natural gas, which fuels the plant, has gone from $1.40 per decatherm when the plant first opened in January 1997 to $6.50 per decatherm.

"We lost functionality at $2.50," Fischer told the Hildale City Council at its meeting Tuesday morning. "We are planning on mothballing the plant."

With the exception of three months last summer, the plant has been sitting idle since January 2004. Because the plant will formally close down, Fischer said two employees would be laid off at the generation plant, along with another two working in accounting. A lineman also may be laid off.

Fischer said one person would remain at the plant to keep things in running condition if the plant is needed for emergencies, and the power company is seeking to restructure the payments with bondholders. Fischer expects a meeting with the bondholders to take place in the next 10 days. Last year, only one principal payment was made on the debt to keep the company solvent.

Although the power company still provides power to the two cities, it is purchasing power through other sources.

The good news is that because the power company has offered prepaid meters to customers, the number of late payments is down 6 percent. Fischer said about 100 homes are now equipped with the prepaid meters, and the number of late payments is down to 44 percent. Customers' payments had come in late at a rate of 50 percent a few months ago.

During the four-hour city council meeting, the council unanimously appointed Jonathan Roundy to the position of acting police chief. Roundy is the brother of Sam Roundy, who lost his authority in Utah after an investigation by the Police Officers Standards and Training group.

While approving the 2005-2006 tentative budget for the city, power departments and water departments, the council briefly discussed offering health insurance to city employees.

Colorado City does have health care for its employees, but Hildale, which only has part-time employees, does not.

After looking over the budget, the council wasn't inclined to offer health benefits at this time.

The council approved a budget of $1.1 million for the city's general operating fund, which includes administration, accounting, engineering, fire inspection, streets and highways, and parks. That also includes the police and fire departments, which operate under an interlocal government agreement with Colorado City. The 2005-2006 budget includes a 2 percent cost-of-living increase for city employees.

The council also approved the budgets of the water, wastewater, generation and gas distribution funds, which operate jointly with Colorado City. Those budgets, for Hildale, come to about $2.3 million.
 
TheSpectrum.com
Originally published June 15, 2005
 
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