Lamar Utilities Board meeting of August 27, 2024

Minutes from the August 13, 2024 meeting were approved.  Purchase orders 630205 – 630232 were approved, which totaled $107,551.48.  The largest of these was $79,507.78 to Basler Services, LLC for a distribution system upgrade.  The payment of bills was also approved.  Total payment was $1,219,121.74.  Payment of $1,062,570.78 to ARPA was the largest.  Other large bills for this period were the aforementioned amount to Basler Servies, $22,914.00 to the City of Lamar, $19,060.57 to PERA, and $8,749.35 to WECS Electric Supply.

The first agenda item approved was the first amendment to ARPA Agreement for Purchasing Agent Services.  In 1997 the Lamar Utilities Board and ARPA executed an agreement for purchasing agent services for LUB’s CRSP power allocation.  This agreement terminates September 30, 2024.  This new amendment is specific to a new contract approved by LUB in 2018.  The approval of this agreement allows ARPA to include our CRSP allocation with ARPA’s other resources for services that include scheduling and billing that is provided by PSCO, soon to be Guzman Energy.

The next agenda item approved was for Bid #2049 to replenish stock inventory of 40-foot class II ductile iron poles.  Received were 3 bids, with the staff recommendation to accept the low bid from McWane for a total amount of $81,937.40.

The July 2024 Financial Report shows no significant changes to the balance sheet.  Cash is down $321,377 from June and accounts receivable increased by $256,782.  Total operation revenue for the month is $1,645,056 with operating costs of $1,474,403 resulting in gross operating income of $170,653.  When non-operating revenues and expenses are taken into consideration, there is a net loss for the month of $41,810.   Total operating revenues for the year are $8,619,956 and total operating costs are $7,997,407 resulting in gross operating income of $622,550.  When non-operating revenues and expenses are taken into consideration, there is a net loss of $542,944 year to date.  When compared to 2023, revenues from retail sales are up approximately $692,694 or 9% comparing July 2024 to July 2023 and overall operating expenses are up approximately $894,913 or 13%, resulting in a net loss of $542,944 for the year.

Board member Roger Stagner’s letter of resignation was read and accepted.  In it, Stagner said how much he’s enjoyed working on the Board and said “The employees of Light &Power are truly its best asset” and that often, the community fails to see the dedication they have.  Stagner has been asked to begin his term as Prowers County Commissioner for District 3 earlier than anticipated.

Superintendent Hourieh’s System Operating Report says that line crews have completed the replacement of 3 wooden poles with 3 40-ft class II ductile iron poles between LAMSO substation and Rd CC south of town, as well as a 40-foot wooden pole and two pole mount transformers in Bristol.  These were replaced after a severe thunderstorm occurred on August 13 around 3:45 pm.  The most recent severe storm for our area occurred at approximately 6:00 pm on Thursday, August 22, taking down 15 poles and causing scattered outages.  The storm generated wind gusts of over 80 mph. Power was fully restored within one day in the most severely hit area.  He also announced that budget discussion has begun.  The department is moving forward with the scheduled 4kv feeder protection relays upgrade, AMI metering system upgrade, distribution system upgrade, substations maintenance, wind turbines maintenance which includes bed plate inspection for all turbines and T-3 gearbox elastomer replacement and safety and training.

By Barbara Crimond