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LUB Ponders Accepting Springfield Wind Turbine

 

Lamar Light and Power Turbines

Several bids for various power poles were entertained by the Lamar Utilities Board during their June 26th meeting.  Forty-five, 40 foot poles from McFarland Cascade were approved at $36,945; an assortment of 12, 55 foot and 50 foot steel poles were bid with Electrotech providing the low price at $22,652.  Lamar Light Plant Superintendent, Houssin Hourieh explained these will be used in high burn areas; a two year supply of 30, 35 and 55 foot wooden poles was awarded to the bid from McFarland for $37,360.

Purchase orders in the amount of $790,623.00 and payment of bills in the amount of $1,058,060.35 were approved by the board.

The utility board’s May 2018 Financial Report indicates cash is up $53,180 from April and account receivable increased $53,314. The total operating revenue for the month is $1,142,574 with operating costs of $1,062,664 resulting in gross operating income of $79,910.  When the non-operating revenues and expenses are taken into consideration there is a net income for the month of $26,011.

Total operating revenues for the year are $5,723,388 and total operating costs are $4,777,181 resulting in gross operating income of 4946,207. When the non-operating revenues and expenses are taken into consideration, there is a net income of $322,829 to date.  When compared to 2017 revenues from retail sales are up approximately $67,916 or 1% comparing May 20178 to May 2017 and overall operating expenses are up approximately $247,983 or 5% resulting in a net income of $322,829 for the year.

Sales of electricity through May 2018 are down approximately 0.44% when compared to the same period in 2017. Residential sales were down approximately 0.12%; irrigation sales were up approximately 0.48% and commercial/industrial sales were down 1.10%.  These three customer classes represent an estimated 96% of total system sales.

Hourieh said the Springfield membership to ARPA, Arkansas River Power Authority, declined to accept the wind turbine in that community as a part of the asset negotiations in the Power Purchase Agreement. As this move would be a deal breaker to the six member communities in their choice to align themselves with Tri-State G & T as a future power supplier, all the ARPA members are seeking a way to remedy the situation.  Hourieh suggested to the Lamar Board, they accept the turbine, mindful that on the plus side, it produces more electricity than the other three turbines located in Lamar.  At the same time, replacement of such items as the core generator is a costly venture, in the neighborhood of $350,000.  The turbines are also dated in the number of years of production they have left.  Board members said they would review the pros and cons of the proposal.

By Russ Baldwin

Filed Under: City of LamarConsumer IssuesEconomyFeaturedUtilities

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