Lamar Utility Board Reviews Portions of 2013 Budget

Lamar Light and Power Plant

The System Operating report from the Lamar Utilities Board indicates that Platte River Power Authority plans to end the contract with the board and ARPA for the purchase of Renewable Energy Certificates, effective the end of this month.   Light Plant Superintendent Houssin Hourieh said Platte River is not taking the option to extend the contract on a quarter by quarter basis.  For the first three quarters of the year, Lamar Light and Power received payments of $13,328, $12,365 and approximately $13,000 for the third quarter.  Hourieh said the payments were treated as income by the plant, but there is such a soft national market at this time for REC’s, Platt River Power is no longer purchasing them.  He said there isn’t much likelihood that a new buyer will be found for the Certificates for the plant, issued in 2003, versus newer Certificates which are available.

 The Light Plant will receive full coverage for insurance claims submitted for tornado and wind damage to electric distribution lines from this past summer.  The reimbursement from CIRSA comes to $147,948.74 for tornado damage and wind damage was $25,504.58.  Crews have been installing Raptor Guard Wildlife deterrents on distribution lines located on open range such as the wind turbine line.  Hourieh stated that as there are no trees on the open plains surrounding the power poles, most birds will perch on any available lines.

The Proposed LUB Capital outlays and the Repowering Project funding were briefly discussed during Tuesday’s meeting, September 11.  The 2013 Budget is still in progress at this point with $200,000 set aside as contingency funds for capital outlays and $125,000 allocated for wind turbine maintenance.  Hourieh told the board increased costs for turbine repair has been noted over the past several years.  Contingency funds and outlays combined total $1,070,500.  Some of the costs will be shared 50/50 with ARPA, Arkansas River Power Authority on the Repowering Project.  $50,000 has been marked down for 2013 plans for boiler testing on Unit 8 on the coal plant and $104,500 for miscellaneous equipment purchases.  In other financial news, net operating income revenue for July is $146,183 and net income year to date is $771,735.  When compared to 2011, retail sale revenues are up approximately 12% or $854,136.  The board approved purchase orders of $1,206,642.11 and bills totaling $173,203.26.  The board adjourned into executive session for legal advice pertaining to specific legal questions.

By Russ Baldwin