Light Plant Customers Will See Electric Rate Drop in 2013

Lamar Light and Power Plant

Electric rates should be dropping by 7% for Lamar Light and Power customers, based on kilowatt per hour usage.  Lamar Light Plant Superintendent, Houssin Hourieh reviewed the new rate schedule in the 2013 budget for Lamar Utility Board members during their Tuesday, November 13 meeting.  A rate increase of 2.5% will be in effect, but that impact will be negated by the elimination of the 12% ECA, Electric Cost Adjustment.  In addition, seven major power purchasers will see additional rate reductions, based on a power purchase classification recommended by NMPP, Nebraska Municipal Power Pool, which conducted a long-term rate study for the light plant.  One business operation rated ‘primary’ will see a 2.9% drop and six others, rated ‘secondary-large’ will see a 4.3% drop in rates in November.  Both ARPA, Arkansas River Power Authority and WAPA, Western Area Power Administration are holding their rates flat for 2013, but Phil Euler, NMPP representative, who attended Tuesday’s meeting, said he expects WAPA rates to reflect a 5% increase for 2014-2018.  Last year, and this past summer, the utility board was approached by major power purchasers who expressed concern over the rates they were being charged and how the current rate structure could impact future business growth in Prowers County and the region.  The board will take action on a rate structure resolution at their next meeting, November 27. 

The board approved writing off uncollectible accounts for 2011 of $41,431.30, which represents 0.3% of their 2011 revenues of $13,721,703.  The budget for write offs is $50,000.  The previous write off approved by the board was for $50,972.51 for 2010, which shows a significant decrease over the past year. 

In other financial news, cash is up $423,022 from August at the Light Plant, of which $175,000 was CIRSA insurance reimbursement from the summer tornado.  Gross operating income for the year to date is $2,189,112 and net income is $1,140,829.  Retail sales revenue is up 10% compared to this same time last year and overall operating expenses are down approximately 1%.  Some Light Plant customers in Wiley, McClave, Big Bend and at Colorado Beef experienced a five hour power outage on November 2 when a truck struck one of their west end main circuit poles. 

The utility board finished the meeting in executive session to discuss personnel matters.  The next scheduled meeting will be at noon on Tuesday, November 27.

By Russ Baldwin