The future of Monticello Utah’s electricity, and oddly enough — its golf course — hangs in the balance of an offer made by Empire Electric Association on Monday.

Empire’s board met yesterday morning to discuss an ultimatum delivered by the Monticello City Council, which voted last year not to renew a 20-year franchise with the co-op worth $1.3 million.

Since then, the purchase has been delayed by a citizen’s lawsuit and a rise in wholesale electricity rates.

Now Empire and the city of Monticello have been wrangling over needed electrical improvements to build a $2.5 million, 18-hole municipal golf course in Monticello, and restarted a discussion of renewing the franchise.

In a May 31 letter to Neal Stephens, general manager of Empire, the Monticello City Council gave Empire’s board of directors the option to meet their demands or lose the franchise.

The demands included absorbing the construction costs of wiring underground electricity to the golf course and a proposed housing development, upgrading the electrical system, and a deposit of $100,000 into an economic-development fund for the city.

After meeting Monday morning, Empire’s board rejected the city’s proposal and offered its own option. They decided to absorb up to $70,934 in extension improvement costs for the golf course they estimate will cost $146,013 to complete. They also offered to build a new substation near Monticello within the next 20 years.

The offer is good until June 21, 2001.

In May, the city rejected Empire’s original offer to construct the electrical work for the cost of $125,000. If the franchise was continued, the cost would be reduced to $57,000 — leaving some citizens speculating on the variation in price.

"Because we weren’t going to have the franchise, just under our regular extension policy, we would have picked up the $20,250. But if we have a franchise, and we know that there is some long-term commitment and we can recover some of those expenses that’s why we can pick up that balance," explained Stephens.

Meanwhile, the citizen’s lawsuit was appealed to the Utah Supreme Court after a district-court ruling in favor of the city. The court may not hear the case within a year, which could create even more problems for the city. The original contract to purchase Monticello’s power was voided because of the lawsuit. Another contract will die in November if the issue isn’t resolved.

Before wholesale electric rates rose, the deal was supposed to net the city $200,000 a year.

Work on the city’s golf course is also on hold until a suitable contract with Empire is negotiated.