Eagle Mountain to sell its gas, electric utilities
Eagle Mountain City has reached tentative agreements to sell its gas and electric utilities by year's end, cutting the city's debt load in half.
Mayor Christopher Pengra said Wednesday the northern Utah County city of 24,000 plans to sell its gas system to Questar Gas Co. and its electric utility to South Utah Valley Electric Service District, pending city council approval.
A meeting to discuss the proposal is scheduled for June 19 at 7 p.m. at Frontier Middle School, 1427 Mid Valley Road.
The city's website, http://www.eaglemountaincity.com, includes a question-and-answer page, a utility cost-comparison calculator and information about current rates.
When the agreements are finalized, Pengra said the city will cut roughly $26 million in gas and electric bond debt, a reduction of more than 50%. Eagle Mountain would retain about $6 million in gas fund balance and the energy department building.
Questar will pay almost $12 million to acquire the 15-year-old gas system and its 126 miles of lines, said spokesman Darren Shepherd.
It's a good investment, said Craig Wagstaff, executive vice president of Questar Gas, noting Eagle Mountain has 6,000 homes and substantial room to grow. The city is the state's third largest geographically, covering 44 square miles.
"The purchase will provide Questar Gas with operational advantages and a good return on our investment," he said.
Eagle Mountain will shift its electric utility assets to the South Utah Valley district, which is publicly owned and provides power to cities in the county's southern end.
Adding Eagle Mountain strengthens the district by broadening its base, said chairman Blair Hamilton.
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