LUB Continues Power Project for Hemp Farm

Lamar Light Plant Crushed Coal Conveyer

Lamar Light Plant Superintendent, Houssin Hourieh, informed utility board members, work continues with Nature’s Alternative Farms, LLC (NAF), owned and operated by Bill Grasmick and Karl Nyquist, on from three to five megawatts of electric load for the McClave facilities.

Hourieh explained the power will supply greenhouses and processing facilities for hemp. He said NAF decided to go with the General Service Large Power Primary Service rate option. This choice will allow the light plant to install two primary metering p9ints on its 25kv system and NAF will procure, install and maintain the transformers, high voltage conductors and associated accessories. He told the board electricity should be provided by the end of the year.

The plant’s line crew completed construction of 600 feet of line that will power a 500 KVA padmount transformer for approximately 600 hp of conveyers at Prowers Aggregates east of Lamar at the gravel pit works.

The board approved $79,897.26 in purchase orders out of a total of $94,380.43. Of that amount, $31,548 was for an order of forty-foot, class 2 wooden poles. The board also approved payment of bills amounting to $723,172.51 of which $634,729.76 went to ARPA for power purchases.

The October 2019 financial report showed cash is up $86,152 from September and accounts receivable decreased by $289,270. The total operating revenue for the month is $1,235,188 against operating costs of $975,265 for gross operating income of $259,923. Total operating revenues for the year are $11,940,049 and total operating costs are $10,632,236 for gross operating income of $1,307,812. When the non-operating revenues and expenses are factored, there is a net loss of $570,819 year-to-date.

Comparing 2018 financial numbers to 2019, retail sales revenue is off by 11% or $1,494,262. Overall operating expenses are down, under 1% or $48,823. Hourieh explained the absence of the ECA, Electric Cost Adjustment as well as low power demand this past May and June contributed to the lower figure. He told the board a rate study for 2020 is currently underway.

This was the first utility board meeting attended by Kirk Crespin, new Mayor of Lamar. Crespin replaces former Mayor Roger Stagner as the liaison to the Lamar City Council. He remarked that he intends to contact the candidates who applied for consideration for the open council seats might be interested in the vacant seat on the Lamar Utility Board.

The final meeting of the Lamar Utilities Board will be Tuesday, December 10^th.

By Russ Baldwin