ARPA Board adopts 2025 budget at December 2024 meeting

ARPA Board Adopts 2025 Budget: At its December 5, 2024, meeting the ARPA Board of Directors approved its operating budget for 2025 in the amount of $22,797,964. There will be an 8% rate reduction for 2025. This follows on the heels of two previous rate decreases, 3.57% in 2021, and 2% in 2019. The 2025 budget includes:

• Revenues of approximately $28 million
• Power supply expense of approximately $12 million
• Transmission expense of approximately $3.9 million
• A&G expense of approximately $1.4 million
• Debt Service expense of $8.2 million

Meet ARPA’s Newest Board Member: Jay Brooke was appointed to the ARPA Board of Directors by the City of Lamar in October 2024. Jay also serves on the Lamar Utilities Board, having been a board member since 2020. Jay has served on numerous boards including Cornerstone Resource Center, Domestic Safety Resource Center, Colorado Rural Health Center, Colorado Community Health Network, and Caring for Colorado Foundation. Thank you, Jay, for serving your community, and welcome to the ARPA Board of Directors.

The Board of Directors Adopts a New Wholesale Rate: At its December 5 meeting, the Board adopted a new wholesale rate that includes a base rate decrease and an “Incremental Rate” designed to encourage new load growth and to provide ARPA members a tool for building new load in the member municipalities.  The rate will go into effect in January 2025.

Summary of November 2024 Financial and Operating Statements: During the month of November, revenue from power sales were 3.1% better than budget as Member sales were almost 4% better than budget. Total cost of goods sold was over budget (7.1%), net revenue for the month was $202,928. Year to Date revenues from power sales are better than budget by 1.7% and cost of goods sold are on budget. Net revenues Year to Date are $4.2 million. Wind generation was 7% of the power supply resources in November and ARPA credited back over 19,000 kWh to its Members for Rooftop Solar customers.

Next ARPA Meeting: The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, February 27, 2025. The meeting will be held in La Junta at the Otero College Student Center, 2001 San Juan. The meeting notice and agenda will be posted on ARPA’s website (arpapower.org) under Board Meetings 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.

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