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Lehi Power Navigates Growth and Rising Costs After a Century of Independence

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Lehi Power Navigates Growth and Rising Costs After a Century of Independence
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Lehi City Power is working to maintain independence and affordability while managing significant growth and rising costs, according to a report published October 16, 2026. The municipal provider currently serves 33,000 active connections and is navigating shifts in energy production and regulatory requirements.

Key takeaways

  • Lehi Power serves 33,000 active connections and manages a peak load that reached 167 megawatts in summer 2025.
  • New EPA regulations and the loss of coal-based baseload production have increased costs for the utility.
  • The Lehi City Council adopted recommendations for annual 5% rate increases to manage rising expenses.
  • The utility maintains lower rates than the state average, with residential rates around 11 cents per kilowatt-hour.

Lehi City Power continues to prioritize municipal independence as it manages rapid growth and rising operational costs, according to a report published October 16, 2026. The utility provider, which was established after Mayor Joseph Broadbent sought alternatives to rising streetlighting rates in 1925, now serves nearly 100,000 residents in a growing suburb.

The utility has seen a massive shift in electricity demand over the decades. Brent Thomas, Lehi’s assistant power director, noted that peak usage in 1993 was three megawatts during the winter, whereas summer 2025 reached a system peak of 167 megawatts due to air conditioning needs. While the city owns a plant capable of generating 21 megawatts, most electricity is sourced from Utah Associated Municipal Power Systems (UAMPS), a joint-action agency involving 57 other cities and nearby states. This includes a partnership in the Nebo plant located in Payson.

Rising costs have been driven by new EPA clean air regulations that make it difficult to build new coal facilities, leading to the shutdown of many coal plants. Because coal previously provided the baseload production, the city has had to transition to more expensive renewable sources like solar and wind, which do not provide a consistent baseload. To manage these expenses, the city has adjusted fees: the monthly customer charge rose from $2.50 in 2022 to $5 in 2024 and reached $10 by 2026. Additionally, a 1.7 cent purchased power adjustment clause fee was implemented in 2023. Conversely, the residential energy charge for kilowatt-hours dropped from 10 cents in 2024 to 8.6 cents in 2026.

To maintain efficiency, Lehi Power employs 43 full-time staff and utilizes an electrical model developed ten years ago to assist with engineering and troubleshooting. The department also uses a natural gas peaking plant to reduce costs during expensive peak times. Following a study by an independent entity, the Lehi City Council adopted recommendations to implement annual rate increases of 5% per year to keep pace with rising costs.

The current management structure fulfills the vision of founder Joseph Broadbent, who wanted a system governed by elected public officials rather than outside stakeholders. Thomas stated the department continues to seek technological innovations to streamline processes and stay ahead of regional development.

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