ARPA December 2019 Business Operations Summary

ARPA Board Adopts 2020 Budget. At its December meeting, the ARPA Board approved its operating budget for 2020 in the amount of $26,412,190. The 2020 Budget supports the Board’s ongoing plan to accumulate sufficient cash to retire 2010 bonds when they become callable in 2020. The Budget will ensure funding for operations including adequate revenue recovery for debt service coverage, rate stability and funds for the Lamar Repowering Project disposition. The budget includes: • Revenues of approximately $31 million • Power supply cost of approximately $14.4 million  • Transmission expense of approximately $3.3 million  • A&G expenses of approximately $1.9 million • Debt Service payments of $9.5 million

Wholesale Rate Review. The Board of Directors reviewed the wholesale rate for 2020 and the rate will remain the same as last year which included a rate decrease from 2018. The Board did adopt Resolution No. 06-19, to modify the Wholesale Rate Tariff Volume VI to update language for the Avoided Cost Rate formula. The Avoided Cost Rate is the rate ARPA will provide for energy produced from renewable energy resources.

Summary of October 2019 Financial and Operating Statements. During the month of October, revenue from power sales were better than budget by 3.4% and total cost of goods sold were over budget by 3.1%. Net revenue for the month was $310,910. Year to Date revenues are 5.5% better than budget and cost of goods sold are 2% over budget. Net revenues YTD are well above budget at $4,097,180. Member Energy sales for October were just a bit more than 2018 and 4% better than budget. Member Sales YTD are about 4.7% better than budget.

City of Trinidad Appoints Carlos Lopez to ARPA Board Of Directors. Carlos Lopez, currently a member of the Trinidad City Council, has been appointed to the ARPA Board of Directors by the Trinidad Mayor and City Council. Carlos’ term on the City Council expires in early January as he did not seek re-election to City Council in order to run for Colorado state senator in 2020 for Senate District 35. Welcome Carlos!

ARPA 2020 Meeting Dates, Times and Locations. The ARPA Board adopted Resolution 09-19 (shown above) that established the meeting dates, times and locations for 2020. The next regularly scheduled ARPA board meeting is Thursday, January 30, 2020 and will be held by WebCast. The meeting will begin at 9:00 AM. ARPA board meetings are open to the public. If any member of the public wishes to attend, please call Arvenia at 719-336-3496 for information on where to attend the meeting.