Lamar Utilities Board Views 1st Quarter Financial Report

The majority of the Lamar Utilities Board this past Tuesday was spent in executive session, reviewing an update on the WildEarth Guardian lawsuit, consideration of the purchase of mobile classrooms from Alta Vista Charter School and an update on the Repowering Project Outage. Information available on the Alta Vista classrooms show there are two double-wide modular units available. One measures 24’ x 64’ and the other is 24’ x 60’. Both are mid 1980s in age, in very good physical condition and are priced as is, where is. If the purchase is made, the modular’s will store the light plant library and document control functions, as well as the site for an instrument technician area and warehouse some parts requiring climate control.

Superintendent Rick Rigel presented an update on first quarter revenues for the light plant, stating they are up 3.8% over last year. This is attributable to a 1.7% on power sales and all customer classes are up 2%. Rigel said it has been a windy spring as shown by a 16% gain in wind production for non-operating revenues. Purchased power costs have increased by $600,000 year to date over 2010, reflecting a 29% increase. The superintendent said power costs through the ECA may be reduced given ARPA’s ability to purchase low-cost, short-term hydro power through August. He noted that residential and irrigation sales have dipped a bit but commercial and industrial sales are up over 3.8%.

The board tabled approval to purchase a man-lift until additional negotiations with the manufacturer are resolved. Rigel believed he can generate a lease to purchase contract for less than the current asking price of $161,000. The board approved purchase orders totaling $961,508.77 and paid bills in the amount of $222,444.58.

The wind turbine erected at the Prowers County Fairgrounds reduced the electric bill at the site by 37%, saving the county $680 for the year. The 5 kw turbine was commissioned in mid April, 22010 and produced 5,322 kWhs in the first year. The light plant is scheduling a meeting with the Prowers County Commissioners to review the operation and answer any of their questions.

by Russ Baldwin


Filed Under: CityEnergyLamarUtilities


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