Lamar Utilities Board Sets ECA Rates for 2020

Members of the Lamar Utility Board attended their final meeting of 2019 to consider approval of a 2020 Electric Cost Adjustment to customer’s utility bills as well as approve a resolution adopting a modification to the annual charger appropriation adjustment tariff which is paid to the City of Lamar each year.

An earlier rate study conducted by Nebraska Municipal Power Pool, (NMPP), determined Lamar Light and Power should maintain the current electric cost adjustment (ECA) of $.0017 per kilowatt hour for 2020 to meet the wind turbine bonds minimum debt coverage ratio (DCR) of 1.25. A formal study will be conducted by NMPP in the spring of 2020.

Through the end of October, the wind turbines have generated 8,406.53 megawatts of electricity, about 8.86% lower than the same period last year. The turbines have an average capacity factor of 26.87% which is lower than last year by only a fraction, 0.28%. The Springfield turbine generated 4,084.76 megawatts of electricity through the same period with an average capacity factor of 37.48%. The annual maintenance check of the turbines has found metal shavings in the gearbox filter of turbine T-4, which is owned by ARPA. Lamar Light and Power is reviewing cost quotes to bore scope the gearbox.

The resolution that establishes the Charter Appropriations Adjustment for 2020 was approved as the Lamar City Council authorized the payment of $350,000 per year from the City’s General Fund to the Lamar Utilities Board to reduce electric rates paid by the Light Plant’s customers. The rate, $0.0166 per kilowatt hour, will go into effect with the January 1, 2020 billing. The 2020 Charter Appropriation will be $1,780,948 paid to the City of Lamar by the Light Plant/LUB.

In other action, the board reviewed purchase orders totaling $666,387.54 of which $651,516.33 required approval including a November payment estimate of $634,729.76 to ARPA for power purchases.

Per regulation from the Public Utilities Commission, the board set the 2020 interest rate paid on customer deposits as 2.33% per annum.

The next regularly scheduled Lamar Utility Board meeting will be Tuesday, January 14^th at Noon at the LUB offices.

By Russ Baldwin