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PACIFICORP OFFERS TO BUY DESERET G&T'S SHARE OF HUNTER PROJECT

 SALT LAKE CITY, Nov. 16 ~PRNewswire~ -- PacifiCorp (NYSE: PPW) said today it has offered to buy Deseret Generation and Transmission Cooperative's (Deseret G&T) share of the Hunter electric power project located in central Utah. Deseret's 25-percent share of Hunter unit 2 produces nearly 100 megawatts of power.
 "Acquiring additional ownership interest in the Hunter project is part of our continuing effort to keep our electricity prices low," said Verl Topham, president of PacifiCorp's Utah Power division. "It's a proven power source located within our service area, integrated with our transmission system, and consistent with our least cost plan for power system development," he added.
 PacifiCorp's least cost plan, called RAMPP, identifies and evaluates alternative actions that can be taken to meet future electrical demands in the most cost-effective manner.
 "This proposal offers significant benefits to the customers and shareholders of PacifiCorp, and to the members of Deseret G&T," said Dennis Steinberg, vice president of PacifiCorp's Power Systems and Development department. "While it brings a new source of power to PacifiCorp at a price which compares very favorably with that paid for generation in Arizona and Colorado, it also represents a sale by Deseret at a price substantially above its net investment," he added.
 PacifiCorp purchased a 350-megawatt unit at the Cholla generating station in Arizona from Arizona Public Service in 1991. Earlier this year, the company acquired 243 megawatts at the Craig and Hayden projects in northeastern Colorado as part of a multi-company resolution of the bankruptcy of the Colorado-Ute Electric Association.
 The three-unit Hunter project is located near Castle Dale in Utah's Emery County. The plant, capable of generating 1,185 megawatts, was completed in 1983. PacifiCorp is the principal owner of the project with 1,003 megawatts.
 "With maintenance and operations responsibility for Hunter, PacifiCorp is uniquely positioned to keep costs under control and to ensure that Hunter remains a low-cost, reliable source of electricity," declared Chuck Adams, senior vice president and head of PacifiCorp's Power Supply division.
 Deseret purchased 157 megawatts of the second unit shortly after its completion in 1980, and later sold 58 megawatts to the Utah Associated Municipal Power Systems. In response to power requests from industrial customers, Deseret in 1985 completed construction of the 400-megawatt Bonanza power plant in northeastern Utah. Low oil prices coupled with the national economic downturn left Deseret with a significant power surplus.
 Sale of its interest in Hunter would reduce Deseret's debt burden for the next few years until increased customer demands and improved wholesale markets develop, according to Merrill Millett, general manager of Deseret G&T.
 Fuel for the Hunter project comes from the nearby Cottonwood underground coal mine operated by Energy West, a PacifiCorp subsidiary. "Hunter's fuel cost is less than 1 cent per kilowatt hour, and because we're burning low-sulphur coal, Hunter is a very attractive source of power," said Adams.
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 CONTACT: Dave Mead of Utah Power & Light, 801-220-2445; or Mike Nelson of PacifiCorp, 503-731-2125; or Kenneth D. Fisher of Deseret Generation and Transmission Cooperative, 801-566-1238
 (PPW) CO: PACIFICORP; DESERET GENERATION AND TRANSMISSION
 COOPERATIVE


IN: OIL SU: TNM ST: UT

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Publication:PR Newswire
Date:Nov 16, 1992
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