Finance on the Agenda as LUB Closes 2016

Two action items on the Lamar Utility Board’s agenda dealt with finances for the approaching year. Board members unanimously passed the annual resolution for the Charter Appropriation Adjustment Tariff.  The appropriation for 2017 is $1,610,223 and is derived from a formula involving the amount budgeted to the City of Lamar for the next year which is divided by the total number of kilowatt sales per hour from the preceding 12 months.  The number of hours was 86,044,245 and the new rate will be $0.0187 per kilowatt hour.  Based on sales, this will reflect a $20,000 decrease to the city for its 2017 budget.

On a split vote, with board member Michael Horning voting no, the board approved an electric cost adjustment for customers for 2017. The funds will be used to meet the wind turbines bond’s minimum debt coverage ratio.  Light Plant Superintendent, Houssin Hourieh, told the board that if the ECA was not approved, the plant would be in a technical default with the bond covenant.  Procedures allow that the ECA will be in effect for one year when the cost of power or other emergencies are greater than, or projected to be greaterthan 10% of the budgeted purchased power cost.  The Electric Cost Adjustment was set at $0.0145 per/kwh for all rate schedules to meet that requirement.  The cost to customers will be approximately $7.25 a month.  On a question from Horning, Superintendent Hourieh said the information is a matter of public record and can be viewed online from the LUB’s/Light Plant website.

The financial report on revenue and sales of electricity through November showed retail revenues are approximately 2.46% higher than in 2015. Total sales of KwH’s of electricity are approximately 2.68% higher than 2015.  Year to Date commercial sales are up 4.08%, irrigation sales are 6.68% higher than last year and residential sales are up approximately 0.29%.

The board went into executive session for specific legal questions regarding the Net Metering Policy. The next board meeting is scheduled for Tuesday, January 10, 2017.

By Russ Baldwin