Utility Sale Update

I’m sure many of you are interested in an update on the potential utility sale by now. Earlier I posted that I would address several questions to give you perspective into many of the considerations of any potential transaction. The reason those posts have not yet been shared with you is because there have been changing circumstances that have required a considerable amount of time and focus to work through. The change is being primarily driven by Rocky Mountain Power now showing an interest in purchasing our electric utility. Logistically, Rocky Mountain Power’s interest in purchasing the electric utility has changed the dynamic of this transaction. With two potential bidders, the City Council will likely be faced with a significant decision at the August 19th City Council meeting. If City Council decides to award the sale of the utility to one of the bidders, the decision will ultimately rest with you the voters. The sale will become a ballot question for November’s election and you will be able to tell us whether or not to continue with the transaction. You will notice that I have not spoken about Questar Gas, and the reason is because there is no state statute that specifically governs the sale of a municipal gas utility. The sale of the gas utility will depend on the sale of the electric utility because the bonds are tied together and must be paid off together. If the City Council passes a resolution to award a bid on the electric utility and the public votes to approve the sale, then the City will move forward with negotiating formal agreement for each transaction. If residents vote to not sell the electric utility, or if the City Council does not pass a resolution approving one of the bids, then it is likely that neither of the utilities will be sold in the immediate future. I am certain you have more questions and I will be doing my very best to answer them. This is an evolving process and I will provide updates as we have new information. I apologize for not being more responsive on the questions I have committed to answering earlier. Ironically, it has been the utility sale that has prevented me from answering questions about the utility sale. Sincerely, Christopher Pengra