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Lamar Utility Board Reviewing Long Term Power Contract

 

Lamar Light Plant Superintendent, Houssin Hourieh, outlined a 33 year contract proposal between the board and WAPA, Western Area Power Administration during the board’s October 24th meeting.  When asked by board member, Michael Horning, why it was for so long a duration, Hourieh replied, “Because we get a great rate.”  The superintendent explained this was a contract renewal with WAPA, which when approved, will run until 2057.  The current contract will be in effect until 2024.  “They want to give us time to review the new proposal for any review and comments,” he explained.

The terms of the new agreement for hydroelectric power delivery is almost the same is the current one, with 2,477KW in the winter season and 2,039 delivered in the summer season at $5.18 per kilowatt of billing demand and 12.19 mills per KWH of energy use. Hourieh explained that ARPA handles the billing side of the contact while the WAPA rate is not blended into ARPA’s.  Instead, it is a straight pass through to Lamar.

Hourieh recounted a tour he took of a 40 acre solar farm under development for SECPA in Vilas, Colorado this past Friday. “It will be a 5 megawatt solar farm for Renewable Energy Resources and it’s expected to be completed by next month and will deliver 24.9 KV from 18,000 solar panels.  That should be enough to power Las Animas,” he explained.  Each of the panels can generate 325 watts apiece and the site will be contracted to deliver power for 25 years at a flat rate.  Hourieh said ARPA, Arkansas River Power Authority, has been discussing power generation from solar farms.

The September financial statement showed cash was up $313,269 in August and accounts receivable increased by $333,529. Total operating expenses, YTD, are $11,595,888 and total operating costs are $9,355,194 for a gross operating income of $2,240,694.  When the non-operating revenues and expenses are taken into consideration there is a net income of $992,860 year to date.

The next LUB meeting is set for November 14th.

By Russ Baldwin

Filed Under: City of LamarConsumer IssuesEconomyFeaturedUtilities

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