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New Power Purchase Agreement Will Mean Electric Bill Savings

 

 

ARPA, Arkansas River Power Authority, and its six member communities, has been in negotiations to end a Power Purchase Agreement with Twin Eagle in favor of a newer, lower cost agreement with Tri State G & T. The Lamar City Council decided in favor of engaging the Polsinelli law firm to represent the city’s interests in these negotiations.  The decision was made following an executive session held by the Lamar City Council on Monday, April 23rd.

Mayor Roger Stagner said the new agreement will mean ARPA electric customers will realize up to $12.1M over the next ten years in new savings. Stagner also mentioned the new development will not impact the settlement the City reached with ARPA for the $350,000 annual payment to the City over the next 26 years, nor the additional cash settlement of $2M the city received in that settlement earlier this year.  The Lamar Utility Board was charged by the city to find a means by which customers of Lamar Light and Power could be repaid out of those annual payments.

“This is moving on the fast track,” said Lamar City Administrator, John Sutherland who said the agreement, if all goes well, should be in effect by May 31st.  Mayor Stagner suggested the council hold a public forum-work session on Monday, April 30th to allow the public to ask any questions on the new development, probably at the Cultural Events Center and more specific announcements on that will be forthcoming.  When asked who contacted who first on this new development, Mayor Stagner replied, “Lamar.”

In effect, the new power purchase agreement will mean the end of ARPA, as the outstanding construction bonds required to build the Lamar Repowering Project will be purchased by Tri State G & T. Stagner said it will take about a year for ARPA to tidy up any loose ends before the transition is complete.  It hasn’t been determined yet just how much ARPA customers will save on their monthly electric bill, the one item almost every customer will want to know.

By Russ Baldwin

Filed Under: City of HollyCity of LamarCity of WileyConsumer IssuesEconomyEventsFeaturedUtilities

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