LUB Sets 2019 Budget, Approves Annual Uncollected Fees

Lamar Light and Power Turbines

The Lamar Utility Board approved the budget for 2019 and approved the write-offs for uncollected fees for 2017 during their October 9^th board meeting.

The budget includes total revenues in excess of $16.9 million, $15.8 million from retail electric sales and the balance primarily from wind turbine production. Total operating expenses of almost $13.6 million are proposed which includes $9.6 million for power supply.  Additional expenditures include:  $1,176,580 for personnel costs, $1,659,592 for repairs and maintenance, the Wind Turbine Bond payment of $391,766 of which $344,854 is the principle payment, Charter Appropriations of $1,705,057 which is the full 12% of retail sales as allowed by the Charter to the City of Lamar and just over $1,000,000 in capital outlays covering contingency funding, vehicles, wind turbine parts and distribution line work.

The write-offs for uncollected bills are $64,185.22 which represents 0.43% of the Light Plant’s 2017 electric sales revenue of $14,879,365. The amount budgeted for write-offs is $70,000.  Lisa Denman, Board Accountant, remarked that the write-offs for the year are all residential listings.  These accounts have been turned over to a collection agency, but have not yet been collected.

Light Plant Superintendent, Houssin Hourieh, told the board that through the end of September the wind turbines have generated 8,573.16 MWH’s of electricity which is a 7% gain over the same period last year. The turbines have an average capacity factor of 27.89% which is also fractionally higher than last year by 0.11%.  The Springfield turbine continues to be the front-running in generation with 4,502.3 MWH’s produced with an average capacity factor of 45.78%  The plant’s wind turbine crew will perform annual maintenance on all of the five turbines later this month.  The next utilities board meeting is set for Tuesday, October 23^rd.

By Russ Baldwin