Provo Power outlines plans for hydro and solar projects amid budget discussions

Provo City Council is making strides towards enhancing its energy sustainability and financial stability, as discussed in their recent work meeting on April 8, 2025. A key highlight was the announcement of a new hydroelectric project in Diamond Fork Canyon, which is expected to generate between 16 to 30 megawatts of power. This initiative aims to bolster the city’s hydroelectric capacity, particularly during drought conditions when water supply is critical.

The council also reported significant progress in reducing the city’s carbon footprint, achieving a 29% reduction by the end of last year, far exceeding the initial goal of 15% by 2030. This achievement underscores Provo's commitment to sustainability and environmental responsibility.

In terms of financial management, the council is proposing a rate increase of 3% to maintain operational stability and support upcoming capital projects. This increase is designed to be revenue-neutral for most residential customers, as adjustments will be made to the tiered pricing structure. The first tier will see a reduction in rates, while higher usage tiers will experience slight increases. This strategy aims to encourage energy conservation among larger users while ensuring that the average customer does not face a significant bill increase.

The council also discussed the importance of maintaining a healthy fund balance, projected to be around $41 million, which is crucial for funding future projects and ensuring financial resilience. The proposed budget includes a $3 million increase in revenue, primarily driven by the rate adjustment and anticipated growth.

Additionally, the meeting touched on the ongoing impact fee study, which aims to ensure that development costs are adequately covered. The council is actively working on adjusting these fees to reflect current economic conditions and operational costs.

As Provo City continues to navigate its energy and financial landscape, these discussions and decisions are pivotal in shaping a sustainable and economically viable future for its residents. The council's proactive approach in addressing energy needs and financial health reflects a commitment to responsible governance and community welfare.