Deal shutters Rio Tinto power plants

In a deal announced last week, the Utah Public Service Commission has approved a multi-year contract between Rio Tinto Kennecott and Rocky Mountain Power that will provide savings and stability for the mining company and the energy provider’s customers.

In a deal announced last week, the Utah Public Service Commission has approved a multi-year contract between Rio Tinto Kennecott and Rocky Mountain Power that will provide savings and stability for the mining company and the energy provider’s customers.

The agreement calls for Rio Tinto Kennecott to shut down three of its coal-burning power units more than a year ahead of schedule after negotiating a contract to continue receiving electricity from Rocky Mountain Power. 


“This is an important step in the state’s mission to continue improving air quality along the Wasatch Front,” said Colin Nexhip, Rio Tinto Kennecott interim managing director. “Shutting down our coal units will eliminate more than 3,500 tons of particulate and precursor emissions emitted annually from these facilities.”


“This agreement helps to provide rate stability for our customers and improves the air we breathe,” said Cindy A. Crane, Rocky Mountain Power president and CEO. “This agreement benefits our customers and helps keep Utah’s economy growing.” 


The contract took years of negotiations and substantial support from Gov. Gary Herbert and Sen. Stuart Adams to lay the groundwork for a beneficial agreement that met the needs of both companies while benefiting Utah, the companies said in a joint release.

As one of the largest copper producers in the United States, Rio Tinto Kennecott provides nearly 20 percent of country’s copper production. Kennecott’s Bingham Canyon Mine is one of the top-producing copper mines in the world, with production at more than 19 million tons annually.

Rocky Mountain Power provides electric service to more than a million customers in Utah, Wyoming and Idaho and is part of PacifiCorp, which has 1.8 million customers in six western states.