Arkansas River Power Authority – Business Operations – October 2021

ARPA Board Reviews 2022 Budget: The ARPA Board of Directors reviewed its proposed 2022 budget at the September meeting. The proposed 2022 budget includes:

• Power Sales Revenues of $30.46 million

• Power Supply costs of $14.23 million

• Transmission costs of $3.5 million

• A&G costs of $1.3 million

• Debt Service costs of $8.27 million

ARPA’s 2022 Budget Hearing is scheduled for December 2, in La Junta at the Otero Junior College Student Center.

ARPA’s Six Member Systems-A bit of History: Holly: The Town of Holly purchased its municipal utility in 1949. The utility serves an area of approximately 24 square miles with 31 miles of distribution facilities. Holly manages and operates 1.8 MW of diesel generation for ARPA. La Junta: The La Junta municipal electric utility was created in 1939 and serves an area of approximately 10 square miles. La Junta operates approximately 55 miles of distribution line and 6.3 miles of transmission line. Lamar: The Lamar municipal electric utility has been in existence since 1920 and serves approximately 170 square miles, comprised of areas both within and outside the municipal boundaries. Lamar’s facilities include approximately 345 miles of distribution line and 36 miles of transmission line. Lamar operates and manages ARPA’s wind turbines. Las Animas: The Las Animas municipal electric utility was established in 1941 and serves an area of approximately 22 square miles. Las Animas’ facilities include about 50 miles of distribution line and 13 miles of transmission line. Springfield: The Springfield municipal electric utility was established in 1947 and serves an area of approximately two square miles. Springfield has approximately 26 miles of distribution line, which includes four miles of distribution line to the ARPA wind turbine in Springfield. Trinidad: The Trinidad municipal electric utility was established in 1949 and serves an area of approximately 9 square miles. Trinidad’s facilities include approximately 72 miles of distribution line.  Trinidad operates and manages 5.8 MW of diesel generation for ARPA.

Summary of August 2021 Financial and Operating Statements: During the month of August, revenue from power sales were 6.3% better than budget and total cost of goods sold were over budget by 1.5%. Net Operating revenue for the month was $827,483. Year to Date revenues from power sales are just under budget (0.3%) and cost of goods sold are 2.9% under budget. Net Operating revenues YTD are $4.1 million. Member Energy sales were 5.9% more than budget in August and 1.1% less when compared to August 2020. Member Sales YTD are 0.5% less than budget and 3% lower than 2020.

Next ARPA Meeting: The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, October 28, 2021. The meeting will be held in Trinidad at the Golf Course Clubhouse, 1415 Franklin D Azar Drive. The meeting notice and agenda will be posted on ARPA’s website (arpapower.org) under Public Notices and will also be posted in a designated location in each of the member cities at least 24 hours in advance of the meeting. ARPA board meetings are open to the public.