Salt Lake City Foreign Trade Zone Launch Event

May 14, noon to 1:30 p.m. at the Grand America Hotel - Imperial Ballroom B. {More details}

Feature Story

Rocky Mountain Power Serves EDCUtah as an Investor and Consultant

We live in an electricity-centered society and no one knows that more than A. Richard Walje, president of Rocky Mountain Power (RMP), a division of PacifiCorp.

While RMP is not the only electricity-provider in the state--some of EDCUtah's municipal investors generate their own electricity as members of the Utah Associated Municipal Power Systems (UAMPS), a public agency that provides wholesale electric energy on a nonprofit basis to community-owned power systems—the utility is a key player in economic development and therefore, has a crucial role in EDCUtah's economic development game plan.

"One of the first questions to be asked in nearly every economic development project is 'What infrastructure is available?'" says Jeff Edwards, EDCUtah president & CEO. "We've come to depend on Rocky Mountain Power for reliable power, in adequate supply, at some of the lowest utility rates in the country. These factors give us a distinct advantage when competing for business relocation or expansion projects. The state's economic development posture wouldn't be nearly so positive without a healthy, vibrant utility company like RMP."

Having adequate electrical service at low cost is, indeed, a critical economic development driver in Utah, perhaps more so than many citizens, businesses and communities understand. Yet few industries are experiencing greater outside pressures from environmental forces, public policy decisions, changing standards and changing technologies—all of which can seriously affect rates, supply and infrastructure.

Supply, Capacity and Infrastructure

"Rocky Mountain Power is probably going through more changes than the company has ever experienced," says Walje. "Nonetheless, we are a healthy organization. We are well-positioned for the future and committed to keeping our rates as low as possible." From an economic development perspective, Walje says RMP focuses on four key components:

• Rates
• Supply
• Capacity
• Infrastructure

With regard to rates, RMP has been able to maintain its position as one of the nation's most affordable providers of electricity, with an average price per kilowatt-hour of 6.26 cents compared to a national average of 9.1 cents per kilowatt-hour.

To address supply issues, Walje says RMP is investing approximately $6 billion in new transmission projects to bring new power supplies to areas with the greatest needs. The company is currently running a new, high voltage transmission line from Downey, Idaho to Salt Lake City. Another new transmission project will bring wind-generated power from Wyoming to the Wasatch Front. Overall, he says Utah is positioned well in regard to electrical supply, reliability and infrastructure for the foreseeable future, however, once the economy heats up he expects another gas-fired power plant will be required to meet demand.

Parenthetically, Walje says RMP was preparing to build another gas-fired power plant in Vineyard, like one that is currently in operation there, however, as the economy slowed electrical demand dropped three to seven percent, thus delaying the need to build the new plant.

One of the greatest needs for infrastructure, and thus a big economic development challenge in the state, is increasing the power supply to Utah's rural communities. "The question is always, 'Who will pay for the infrastructure?'" Walje says. "They need the infrastructure for economic development, but often have a difficult time justifying the investment. On the other hand, Utah's population centers have more load growth, so electrical distribution costs can be spread across a greater number of customers." Legislation passed by the Utah Legislature this year may help alleviate that problem, paving the way for more affordable delivery of power to rural areas of the state.

Renewable Energy

Utah has long been the beneficiary of low-cost electricity generated by coal-fired power plants. However, while coal remains plentiful, Walje says concerns over global warming and public policy decisions make the risk/reward ratio too great to build new coal-fired plants. Consequently, the company is heavily involved in renewable energy projects from geothermal and wind sources and is currently looking at solar power generation. RMP was actually one of the first companies to develop a utility-size geothermal power generation unit at the recently expanded Blundell geothermal facility northeast of Milford and is looking at the potential for further expansion there. The company's sister unregulated company CalEnergy operates several geothermal plants near the Salton Sea, 80 miles east of San Diego, California. .

RMP made a significant investment in wind power from Wyoming—"the best wind-quality state in the Intermountain West," says Walje—and is the third largest owner of wind turbines in the country. The utility is currently working to bring wind-generated power from Wyoming to the Wasatch Front. What's more, four national reports have identified RMP and sister company Pacific Power as leaders in providing electricity from renewable sources and programs that let their customers directly support renewable energy and increased energy efficiency. The combined company ranks in the top three nationwide among all wind project owners, and in the top three in wind power portfolios among investor-owned utilities.

Net Metering

RMP is also actively promoting "net metering," which is a program that allows customers with their own generation facilities, such as solar or wind generation, to "bank" their surplus electricity with the electric utility. The banked surplus is then applied against the amount of electricity supplied by the utility to the customer. Walje says net metering measures the difference between the electricity a customer buys from RMP and the electricity the customer generates using its own solar, wind or other acceptable renewable generating equipment. With net metering, the customer uses the electricity it generates first, reducing what it would normally buy from RMP. What's more, if a customer generates more electricity than it uses, the excess goes through the electric meter and into the power grid.

Aside from being a good corporate citizen, Walje says being the primary source of electricity for Utah makes it imperative for RMP to serve Utah as both an investor and consultant to EDCUtah. "Outside of EDCUtah, few organizations recognize the impact of economic development on our power infrastructure, or the influence of our power infrastructure on economic development," he says. "For example, data centers are huge consumers of electricity and can significantly impact our power supplies. One data center may require between 50 and 150 megawatts of power. Add four of them to an area and you've nearly maxed out a 500 megawatt gas-fired power plant."

"EDCUtah couldn't have a better partner or Utah a better stakeholder in economic development than Rocky Mountain Power," says Edwards. "With the expertise, resources and desire to make Utah a prime economic development location, we continue to be in an ideal position as a state, thanks in part to Rocky Mountain Power."

Investor Spotlight:
Rocky Mountain Power

As part of PacifiCorp, one of the lowest-cost electricity producers in the United States, Rocky Mountain Power (RMP) and sister company Pacific Power provide more than 1.7 million customers in six western states with reliable, efficient electric energy. The company is working to meet growing energy demand while protecting and enhancing the environment and has been recognized for its leadership in renewable energy from wind and geothermal sources.

Over the past three to four years the utility has improved its reliability by 20 percent and enjoyed some of its best operational successes ever, says RMP President A. Richard Walje. While the utility's corporate headquarters location is Portland, Oregon, there are actually more company executives and senior managers located in Utah, Walje adds. PacifiCorp and its subsidiaries are owned by Mid-American Energy Holdings, a Berkshire Hathaway Company.

With 2,500 Utah employees based in 47 locations in Utah, RMP is one of the state's largest employers and thus pays significant taxes every year: $14.3 million in payroll taxes on a $198 million payroll and $38 million in property taxes on $6.9 billion of Utah assets. The company also purchased about $800 million in products and services in Utah last year.

RMP is also a great corporate citizen, generously contributing about $1.5 million annually to health, welfare, arts and educational programs in the state through corporate donations and the Rocky Mountain Power Foundation. What's more, it is one of EDCUtah's founding members and supports EDCUtah's economic development efforts as both an investor and consultant. "Economic development is important to our business and it is important to our customers," says Walje. "We feel it is part of our civic obligation and want our customers and the communities we serve to be healthy and vibrant. We are also proud of how much our employees participate in community affairs."

Through RMP's support, EDCUtah is able to host site selectors and business clients in its world-class office space in the One Utah Center, in downtown Salt Lake City. Furthermore, Walje serves on EDCUtah's executive committee, while Bill Comeau, RMP's director of community development, serves as a liaison between the two organizations.

"EDCUtah is a first class, well run organization," Walje says. "It is important to our business that EDCUtah is successful."

In the News

British conglomerate breaks ground on distribution center
In the midst of a nationwide recession, Tooele County got a major shot in the arm yesterday as global manufacturing giant Reckitt Benckiser broke ground on a massive distribution center near Miller Motorsports Park that's expected to create 100 new jobs. (Tooele-Transcript) (Deseret News) (Salt Lake Tribune) (Utah Pulse)

USTAR researcher testifies before US Senate, urging Congress to fund accelerated R&D for algae biofuels
Testifying before Congress, Utah State University researcher Jeff Muhs urged greater federal research investment in development of mass-scale technology to create algae biofuels. (Utah Business Magazine)

Falcon Hill sub-contractors outreach attracts over 160 interested suppliers
The Davis Conference center was filled with representatives from over 160 small Utah businesses who had gathered to learn about the Falcon Hill National Aerospace Research Park which is to be located on 550 acres of Hill Air Force Base land along Interstate 15. (Utah Business Magazine)

Progress made on Utah wind farm
Mountain West Energy Resources from the Salt Lake Valley is requesting a zone change from agricultural to industrial on Antelope Road in the Escalante Desert for 158 acres in its first phase of a 32- turbine wind farm. (Spectrum)

Army to test unmanned Warrior planes at Dugway
As the U.S. military slowly shifts from piloted planes to unmanned drones, Utah has received a new indication that it will have a big stake in the future. (Salt Lake Tribune) (Deseret News)

Ogden recognized for 'American values'
Mayor Matthew Godfrey said Ogden garnered its 100th mention in a national magazine Thursday, described by Newsmax Magazine as fifth in the nation among cities "that best embrace core American values." (Standard-Examiner)

PacifiCorp builds top wind portfolio and renewable energy program while keeping rates low
PacifiCorp is leading the way nationally in developing and promoting renewable energy while also keeping prices as low as possible for its 1.7 million customers. (Press Release)

InVectus BioMedical device tops in Grow Utah Ventures contest
InVectus BioMedical's Daisy Clip was named the first-place winner in Grow Utah Ventures' "Concept to Company" contest for medical devices. (Deseret News)

Governor Huntsman and Delegation Members Travel to Israel
The cornerstone of the vibrant U.S.-Israel economic relationship is the 1985 Free Trade Agreement (FTA) which has during the last 20 years enabled a major expansion of U.S.-Israel bilateral trade. (Utah Pulse) (Salt Lake Tribune)

Jordan Landing continues to grow
Foursquare Properties owner and operator of Jordan Landing is pleased to announce Jordan School District will be locating its office to the Jordan Landing Office Complex. (Utah Business Magazine) (Deseret News)

Workforce Services names best companies to work for
In one of the most difficult economies in history, there are still some great places to work. The state Department of Workforce Services on Monday announced its annual list of Utah's best companies to work for, the winners of the 2009 Work/Life Awards. (Deseret News)

Utah company takes lead in fixing Hubble telescope
The final mission to the Hubble Space Telescope successfully launched Monday with scores of tools on board to repair the aging space observatory. Utah's ATK built the rockets that launched the shuttle into space, and also designed more than 100 tools specially adapted to make repairs in space that NASA hadn't planned doing while in orbit. (Salt Lake Tribune)

SLC trade conference highlights Utah strength
Trade experts and local business officials will converge next week to network and discuss what has been a rare beacon of light in an otherwise dreary economy. (Standard-Examiner)

BRAG awarded $85K U.S. grant
The Bear River Association of Governments will receive $85,478 in grant dollars from the U.S. Commerce Department's Economic Development Administration this year. Funding will be used to continue a comprehensive economic development planning program. (Logan Herald-Journal)

Op-Ed: Time to transform Utah's energy-producing future
Anyone who knows Utah knows the power of wind, water and sun. You can see that power in Utah's sculpted arches of stone, in our majestic mountains capped with snow, and in the cracked earth of our deserts. (Salt Lake Tribune)

Summer Tourism looks to be strong
With Cedar City residents and visitors gearing up for festival season and National Tourism Week starting Monday, tourism numbers are increasing for the summer months despite the downturn in the economy. (Spectrum)

UTA will get $90 million in stimulus funds for Mid-Jordan line
The Utah Transit Authority will receive $90.1 million in federal stimulus money to build the Mid-Jordan line of light rail. (Deseret News)

MMP will break even by 2011
The Miller family remains committed to Tooele County and Miller Motorsports Park, and plans to put the track in the black soon, according to Greg Miller, CEO of the Larry H. Miller Group. (Tooele-Transcript)

Calendar

May 14
Salt Lake City Foreign Trade Zone Launch Event, noon to 1:30 p.m. (Grand America Hotel - Imperial Ballroom B). {More details}

May 27
EDCUtah Board meeting (Sheraton Salt Lake City)

May 17-20
ICSC (Las Vegas)

May 18-21
SAMPE (Baltimore)

May 18-21
BIO (Atlanta)

June 3
EDCUtah Golf for Grants Match Grant Tournament (Eaglewood Golf Course in North Salt Lake). This is the main fundraiser for EDCUtah's Community Match Grants Program. Sponsorship opportunities for 2009 are limited to investors in EDCUtah and are now available. Please call Arthur Franks, membership director for EDCUtah at (801) 323-4242 to secure your sponsorship opportunity!

June 3
"Future of Fuels" Lunch with Leo Science Lecture, noon to 1:30 pm at the Salt Lake City Public Library Main Branch, 210 East 400 South - 4th floor. To register or more details, visit www.theleonardo.org/lunch or call 801-531-9800.

June 11
Quarterly Investor Update Meeting and Reception, 4-6 p.m. {Details here}

June 16
New Investor Orientation (EDCUtah)

June 17
Executive Committee Meeting (EDCUtah)

July 20
OIA Thought Leader (TBD)

July 21-24
Outdoor Retailer Summer Market (SL Convention Center)

August 10-13
AUVSI (Washington, D.C.)

EDCUtah Investors

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Board of Trustees

The EDCUTAH Economic Review is a weekly publication of the Economic Development Corporation of Utah. It is distributed to EDCUTAH partners and selected other government and civic organizations interested in Utah's economic development.

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