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As you may know, Murray City owns and operates its own electrical power system. Established in 1913, Murray City Power has offered reliable, inexpensive electricity to its 20,000 metered customers. The autonomy of having its own power system allows Murray to respond quickly to outages, provide stable rates, and have local control of management and staff.
Murray City Power has an impressive variety of power sources. Our mix of sources has been the envy of many other municipal power systems throughout the State (there are more than 40 other municipally owned systems in Utah). Murray City Power receives or generates power from the following facilities:
- Colorado River Storage Project (CRSP) which is the federal dam system in the Colorado River Basin
- Hunter power plant (coal plant near Price, Utah)
- Intermountain Power Agency plant (coal plant near Delta, Utah)
- Cottonwood hydro (small plant near the mouth of Little Cottonwood Canyon)
- Natural gas turbine plant (three turbines located here in the city on 4800 South)
- Salt Lake County landfill plant (a methane captured facility located on 6030 California Avenue)
- Transjordan Landfill plant (a methane captured facility located on the Old Bingham Highway in southwest Salt Lake County)
- Wholesale power market which could include large scale solar and wind generation, purchases from other entities or through the UAMPS organization, which is a joint action agency of which the Murray is a member.
Each of these plants add value to the Murray City portfolio. Murray City Power staff attempts to schedule these resources each hour of the day to better match our customers’ needs in the most cost-efficient manner. Unfortunately, the cost for these resources has escalated dramatically during this winter season. Murray City Power has seen monthly power costs double over expected winter projections. Other municipal power systems in the state, and in adjoining states, have also seen similar increases in wholesale power.
The causes for the drastic increases in power seem to be focused on a ‘perfect storm’ of weather, plant closures, and fuel restrictions. They include:
1- Lake Powell levels have dropped due to drought. Murray is paying 60% more for 60% less energy to the meter from Glen Canyon Dam.
2- Coal deliveries to the Hunter and IPA plants has lessened supplies by 50%. We haven’t been able to get coal on the ground at these facilities.
3- Coal supply issues at the mine itself has caused supply issues. The Lila Canyon Mine fire is impacting Murray’s coal supply line.
4- Natural gas pipeline restrictions have affected natural gas deliveries in the western US.
5- Natural gas storage leading into the season has been problematic.
6- Unprecedented natural gas prices reached $60 MMBTU, where $6 MMBTU was the norm.
7- Supply chain delivery for photovoltaic panels for the Red Mesa, large scale solar plant in the Four Corners has been delayed.
We are working through the budgetary ramifications of the most recent month’s costs. But the stability and reliability of your electricity are not at issue. The power will be to your light switch when you need it.
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