Lamar Utility Board meeting of July 29, 2025

Vice-Chairman Jay Brooke chaired the meeting while Chairman Doug Thrall participated by phone.  Absent was Mayor Crespin. Minutes from the July 15 meeting were approved, as were Purchase Orders 631011 through 631041 which totaled $240,612.55, of which $230,555.75 needed board approval.  Transformer hot oil cleaning was the largest of these, at $105,059 to SD Myers, LLC.  Other large amounts were for Basler Services, LLC in the amount of $63,881.10 for a distribution system upgrade and Reelstrong, LLC for a new pole trailer costing $46,153.19 (this was approved at a prior meeting).  Bills totaling $1,063,426.59 were approved to be paid.  ARPA costs were $917,997.27 of this amount.

The June 2025 Financial Report was presented.  It included the balance sheet, income statement, year to date income and year to date monthly comparison to 2024.

Balance Sheet: There are no significant changes to the balance sheet.  Cash is up $73,220 from May and accounts receivable increased by $257,017.

Income Statement: The total operating revenue for the month is $1,371,073 with operating costs of $1,186,198, resulting in gross operating income of $185,875.  When the non-operating revenues and expenses are taken into consideration, there is a net income for the month of $17.,946.

YTD Income Statement: Total operating revenues for the year are $6,971,170 and total operating costs are $5,729,318, resulting in gross operating income of $1,241,852.  When the non-operating revenues and expenses are taken into consideration, there is a net income of $170,273 year to date. YTD comparison with last year shows that retail sales are down approximately $3,730 or less than 1% when comparing June 2025 to June 2024.  Overall operating expenses are down approximately $793,685 or 12%, resulting in a net income of $170,273 for the year.

The board approved a Generator Interconnection agreement with Clay Creek Energy, LLC for a 4.8 MW solar project that will be located southeast of Lamar.  ARPA has approved a Power Purchase Agreement (PPA) with Clay Creek (customer) for 25 years, which includes Lamar, La Junta, Las Animas and Trinidad’s projects.  The agreement stipulates a $400,000 system improvement to the cities for the interconnection commercial operation in 2026, with guaranteed energy production of 90% energy target.  Clay Creek will provide daily forecasts of unit availability.  A system impact study and all interconnection costs, cost of operation, and maintenance of sites is at Clay Creek’s expense.  Lamar will have full rights to environmental attributes.  Clay Creek shall operate, maintain, and control the generating facility at their own expense and is responsible for the proper synchronization of the generating facility to the utility electrical system.  In coordination, each party may remove from service any interconnection facility for maintenance, testing, or to install or replace equipment.  Mutual access rights: mutual authority in emergencies to preserve public health, reliability of the grid and to expedite restoration of service. The venue for any dispute shall be in Prowers County.

The board voted to award Bid #2066 for line materials needed to replenish stock inventory to Western United, who bid $9,934.60 which was considerably less then the other four bids.  Bid #2067 for ductile iron poles was awarded to McWane, who bid $87,170.56.  These iron poles are needed to replenish stock inventory and are used in high-burn areas.

Superintendent Hourieh’s System Operating Report stated that through the first half of 2025, our wind turbines have generated 4,301.74 megawatt hours of electricity at an average capacity factor of 28.34%.  This is about 2.19% lower than the same period last year.  The capacity factor was also lower by 4.0%.  When compared individually, T-3 has generated more than the other two turbines.  T-4, ARPA’s unit, ranked third in generation and T-5, Springfield’s unit, generated 2,898.04 megawatt hours of electricity.  This is about 6.94% higher than the same period last year, at an average capacity factor of 44.49%.  The line crew completed the upgrade of one mile of 3-phase, 25 kv overhead powerline on the east end circuit between County Roads 30 and 31 along County Road HH.  The upgrade included the replacement of twenty-five 20-foot wooden poles with class II ductile iron poles, 10-foot fiberglass crossarms, insulators, and line hardware.  On July 14, Lamar energized its 69 kv line west to supply 3 MW of power to SECPA’s Prowers Substation so that they could perform maintenance on their 69 kv line.  We supplied power for one week before the system was switched back to normal feed on July 21.

Jay Brooke submitted an application to serve a second term on the Lamar Utility Board.  This will be voted on by the Lamar City Council at its next meeting.  LUB Chairman Doug Thrall is submitting a letter of recommendation for Brooke to the City Council.

By: Barbara Crimond