The Utah Inland Port Authority has approved support for a battery storage system project for the Northwest Quadrant area of Salt Lake City.
The action smooths the way for Dominguez Energy Storage LLC, a subsidiary of NextEra Energy Resources LLC, to develop the 200-megawatt system, to be adjacent to the Rocky Mountain Power Terminal Substation.
UIPA has approved an annual property tax rebate available upon project completion and running for up to 25 years, contingent on the facility’s operational status and adherence to certain conditions, including minimal water usage and a corporate stewardship plan.
UIPA’s incentives committee reviewed and recommended the rebate in May 2024. When the $314 million project was presented to the UIPA board at the time, Glenn Shober, project director at NextEra, said the company had similar projects in 38 states.
Dominguez Energy Storage aims to store electricity during peak times and release it when needed, reducing the need for costly and often less environmentally friendly power generation and also generating savings for the power producer that are ultimately passed to consumers.
Shober has said the project will serve not only the Salt Lake area but also provide an energy resource for industries with around-the-clock operations.
“Battery energy storage is being requested more frequently by grid operators like Rocky Mountain Power,” Shober said. “This project will support the entire region by providing crucial capacity, especially during peak load times.”
UIPA says the project will help move the nation toward energy independence and promote a more sustainable energy mix for the region.
“The battery energy storage system in the Northwest Quadrant would be significantly beneficial to the future growth of industry in the area, and particularly those industries that are really power-intensive and have a critical need for that consistent power delivery,” said Ben Hart, UIPA’s executive director.
NextEra is one of the largest electric power and energy infrastructure companies in North America. It owns Florida Power & Light Co., the nation’s largest electric utility that serves about 12 million people in that state. NextEra and its affiliated entities are involved in natural gas, nuclear and renewable energy and battery storage.
Publicly traded and based in Florida, NextEra Energy in July reported net income of $2.028 billion, or 98 cents per share, for the second quarter. That compares with $1.622 billion, or 79 cents per share, for the year-earlier quarter. Operating revenues totaled $6.7 billion in the most recent quarter, up from $6 billion a year earlier.