Lamar Utility Board Covers Finances on June Agenda

Lamar Light and Power Turbines

The Lamar Utilities Board approved $37,608.28 in purchase orders this past Tuesday, June 28^th, from a total of $48,432.54.  The board paid bills for May amounting to $895,434.58 of which $803,263 was for the monthly power purchase from Arkansas River Power Authority.

Light Plant Superintendent Houssin Hourieh told the board six bids were submitted and three received for line materials to replenish stock inventory. The low bid came from Wesco Denver for $26,445.50 with delivery expected within 8 to 10 weeks.

The Board’s May 2022 Financial report showed cash is down $44,469 from April and accounts receivable decreased by $38,588.  Total operating revenue for the month is $1,024,450 with operating costs of $1,039,592 for a gross operating loss of $15,143.  When the non-operating revenues and expenses are factored, there is a net loss for the month of $251,638.

Total operating revenues for the year are $5,179,267 and total operating cost are $4,812,992 resulting in gross operating income of $366,274.  When the non-operating revenues and expenses are taken into consideration there is a net loss of $353,443 year to date.  When compared to 2021 revenues from retail sales are up approximately $12,966 or less than 1% comparing May 2022 to May 2021 and overall operating expenses are up approximately $241,914 or 5%, resulting in a net loss of $353,443 for the year.

Board members voted their approval of a settlement agreement with Southeast Colorado Power Association related to the power provider serving the light plant’s May Valley Water Association (MVWA) Well #7 from March 202 to August 2021.  The total for the 17 months was $16,824.15.  Each party paid their own court costs and legal fees.

Hourieh noted the light plant’s line crew installed two 40-foot, Class 2 wooden poles that replaced a failed pole-testing, power pole which was also burned.  The crew completed the annual ARPA bucket and pole top rescue training held in La Junta June 22^nd.
By Russ Baldwin