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Holly Trustees Receive ARPA Update

 

 

Rick Rigel, General Manager of the Arkansas River Power Authority, (ARPA) briefed the Holly Trustees on the organization’s latest efforts for negotiating a bond sale to Tri State G & T during the Trustees’ first meeting of 2019, held this past Wednesday, January 2nd.

“It’s been almost a year since ARPA and Tri-State proposed the sale of bonds to defease outstanding debts and their proposal for a 10% rate reduction for our members,” he stated, adding that several issues have developed that have put a halt on future forward motion for a sale.

Rigel explained that ARPA has several low-priced power purchase contracts with WAPA, Western Area Power Administration and the Tri-State power supply price structure included blending the WAPA allocations into their rate. WAPA officials said that was not an appropriate avenue to account for the federal hydro-power and calculations needed to be developed to specifically identify how the power supply was divided and allocated on the bills to all ARPA members.  Rigel said Tri-State had to develop a new model for rate calculations which took several months to accomplish.

Several of the six municipal ARPA members took issue with the 5% limitations imposed by Tri-State on the percentage of renewable energy sources they could develop for their communities, along with the terms of their contract, extending to 2050. Rigel said that has been a sticking point that has not been resolved at this time and because all six communities need to agree unanimously on the Tri-State agreement, it will be difficult to bring all members on board.

In view of some lowered electric power costs, ARPA conducted a Request for Proposal for power purchase agreement bids from some major suppliers and received some competitive prices. Rigel said negotiations are underway with leading candidates for some long term agreements, perhaps through 2035, for reduced rates which would be passed along to its customers.  Because of these new developments, the contract with Tri-State is basically on hold while some new opportunities are being explored.

In other action, the Trustees approved Resolution 2019-1 designating The Holly Shopper as the official newspaper for general circulation and re-appointed Phil Malouff as Town Attorney, Kim Verhoeff as Municipal Judge, Sheriff Zordel as Town Marshall and maintained Tony Garcia, Corey Stephens and Jacob Holdren as the Finance Committee members. The Trustees will also begin a search for a representative to the ARPA board.  The agreement for power pole use by SECOM was also approved.  The next regular Trustees meeting is set for Wednesday, February 6th at 7pm.
By Russ Baldwin

 

 

 

Filed Under: City of HollyConsumer IssuesFeaturedPublic SafetyUtilities

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