BOUNTIFUL — It’s way too early to know for sure, but Bountiful Light & Power rates could see a hike in the next year or two.

That possibility was presented to the city council, Tuesday night, in a presentation by Power & Light Director Allen Johnson.

As a $25 million bond issue is contemplated to renovate the main 200 West power substation, that would stretch existing financial ability, he said.

It will include two new turbines that could, if necessary, operate around the clock, and provide cleaner energy, Johnson said.

“With a $17.5 million power budget, that would cost us about $1.8 million to pay off per year,” he said of a bond. “That could mean (a power rate increase) as high as 10 percent,” he said.

Beyond that, a new power source must be secured shortly to assure adequate power supply for the summer of 2011 and beyond, the power executive said.

“We’re in pretty good shape for 2010. But our Deseret Power Generation (contract) expires in late 2011,” he said. “That’s on our doorstep.

“We’re not totally framed up for 2011. We have to make sure we have enough power for the summer of 2011, that it’s taken care of,” Johnson emphasized.

The project came before the city council to fulfill the requirement of a “notice of intent for power plant update.” That will now be forwarded to the State Division of Air Quality, which must sign off on plans.

Their response should be received within four to six months, Johnson said, adding the plant upgrade could be ready within 18 months.

“This project is one that is out of our control,” said City Manager Tom Hardy. “We need a state permit.”

But of the project, he said, “We think it will improve air quality, provide a greener source. Any time you burn natural gas, it is significantly cleaner (than coal).”

Hardy said its emissions should be half that of previous levels.

“We have a lot more natural gas than had previously been thought, over 100 years in national reserve,” Hardy said. “I’m excited about this project. The more independent we are (energy-wise), the better.”

Speaking of renewable power-type or other resources, Johnson said it would take up to 11 years to permit and build a new nuclear plant.

“Solar power is getting more predictable, but wind power is probably the most reliable,” Hardy said.

tbusselberg@davisclipper.com