LUB Approves Transformer Rewiring Project

Lamar Light and Power Offices

The Lamar Utility Board approved $301,192.75 in purchase orders from a total of $313,747.45 during its Tuesday, August 23^rd meeting.  The approval orders included $157,000 to rewind a failed transformer which had been discussed by the board in an earlier meeting.  Superintendent Houssin Hourieh said his research showed quotes between $130,000 to $165,000 compared to buying a new 5mva transformer for $200,000, but that size would not fit in all of the plant’s substations.  A 10mva would fit, but its cost was $390,000.  The accepted quote was from High to Low Voltage LLC of Colorado for the rewind of the failed unit.  The board ratified a phone poll which gave approval for the project.  Once rewound and tested, it will serve as a spare for any of the substations.  Estimated time of delivery is 57 weeks.

The board also approved payments totaling $1,346,354.96 for the month including a payment for power consumption from ARPA for $1,079,916.84 which is the first time this season that power purchased exceeded one million dollars.  It was noted that ARPA reached that amount three times in 2021, due primarily to a hot summer.

The board discussed actions for the 2023 budget along with the LUB capital outlay for next year.  Hourieh said the plant is moving forward with the scheduled 4.16kv feeders protection relays, AMI metering system upgrade and the distribution system upgrade.  Hourieh and LUB accountant, Lisa Denman noted that due to lack of materials and equipment, purchases made in 2022 may not be delivered and paid for until the next year which will make it more difficult to balance the books when moving into the new year.

The board approved an irrigation contract with Doug and Brad Lubbers for a 67hp irrigation pump which is located south of CRPP and Highway 287.  The cost of the annual minimum payment for electricity is $670.

The monthly financial statement shows cash is down $85,350 from June and accounts receivable increased by $222,232.  Total operating revenue for the month is $1,474,144 with operating costs at $1,470,966 resulting in gross operating income of $3,178.  When the non-operating revenues and expenses are considered, there is a net loss for the month of $160,325.

Total operating revenues for the year ate $7,930,987 and total operating costs are $7,557,273 for a gross operating income of $373,713.  When the non-operating revenues and expenses are considered, there is a net loss of $609,436, year to date.
By Russ Baldwin