Lamar Utility Board Sets 2012 Fees, Reviews November Sales

The Lamar Utilities Board passed two resolutions at their first meeting of the year, Tuesday, January 10.  The first resolution set the interest rate on customer deposits for 2012 as stipulated by the PUC, Public Utilities Commission.  The rate, 0.34% is the same as in 2011.  The second resolution sets the rate for the City of Lamar Charter Appropriation Adjustment for 2012.  It remains the same as the previous year at $0.0151, or just above cent and a half.  The figure will go into effect with the February 1st billing and is derived by dividing the CAA for 2012, $1,455,234 by kilowatt hour sales from the preceding 12 months of energy sales. 

In other action, the Utility Board voted to approve the rent to purchase agreement for a 135 foot manlift currently used by the light plant.  The final purchase price on the equipment will be $78,000.  Eight pieces of equipment on the lift were upgraded or replaced by the seller prior to the sale.  Chief accountant, John Davis, explained to the board that due in part to a seasonal downturn in sales, and factoring in revenues and expenses, the plant showed a net loss of $200,067 for last November.  He said last year’s loss for the same period was twice the current amount.  The Year to Date income statement showed total operating revenues for the year at $12,618,460 and costs are $11,179,876.  When non-operating revenues and expenses are taken into consideration, there is a net loss of $125,512 YTD.  Light Plant interim superintendent Houssin Hourieh said current power supply negotiations between Tri State and ARPA will help stabilize power purchase costs while the light plant remains offline. 

Some insurance costs relating to the spring grassland fires were turned over to CIRSA, amounting to $157,426.31.  This is for damage done to the electrical system east of Fort Lyon last year.  The cost for the western portion of repair and damages was considerably higher as it entailed a rented swamp buggy which was needed to reach burned power poles in the swampy area.

By Russ Baldwin

Filed Under: BusinesscommunityEconomyEnergyFestivalLamarPublic SafetyUtilities


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