SANTA CLARA — Santa Clara will be paying a bit more for electricity from a solar power plant still being constructed in Northern Utah. But city officials pointed out it is still a lot less than the city is paying for its own power generation.
The Santa Clara City Council voted unanimously Wednesday to increase the amount it will be paying per kilowatt hour for electricity from the under-construction Steel Solar 1A power plant in Plymouth, Utah, which is along Interstate 15 and as close to Utah’s northern border with Idaho as St. George is to Arizona.
When Santa Clara signed with operator Steel Solar LLC to receive 2.5% of the solar farm’s peak 40 megawatt capacity in December 2020, it was for the cost of $31.45 per megawatt hour. However, after the operator cited inflation and supply concerns, it asked for an increase to $34.66 per MWh.
Even then, Santa Clara Power director Gary Hall said that’s a bargain compared to the cost to the city for generating power at its own generator station.
“Because of gas prices, we’re paying about $76 for each megawatt we produce,” Hall said.
Council member Ben Shakespeare noted the price disparity as a reason behind his yes vote.
“It still appears to be a reasonable rate,” Shakespeare said of power from the Steel Solar 1A plant, expected to start operating in September 2023.
The vote was 4-0, with council member Jarett Waite absent.
Santa Clara is not the only Southern Utah city that will be utilizing the Northern Utah solar farm.
According to Cache Valley Daily, the 40 MW Steel Solar 1B plant, to be built next door and opening three months after 1A, will be providing 61% of the power it is generating to St. George and 14.4% to Washington City.
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