Utility Board Reviews Customer Rate Classification

Lamar Light and Power Plant

The Lamar Utility Board held a shortened meeting on Tuesday, November 27, due to lack of a quorum as several members were out of town. Without a quorum, no action could be taken on any agenda items, although board members discussed several points of concern.

Light Plant Superintendent Houssin Hourieh recapped the board’s prior decision regarding rate increases and rate classification as recommended by NMPP, Nebraska Municipal Power Pool following a comprehensive rate study for the light plant’s customers. Hourieh stated that the ECA, Electric Cost Adjustment and proposed June, 2013 rate hike was abandoned in favor of a 2.5% rate increase which went into effect this November.

NMPP also proposed a reclassification of General Service Large Class power users. Hourieh said there are three classes with changes taking place in two of them, the primary and secondary power users which covers seven customers. The primary power user, Colorado Beef will see a 2.9% reduction in rates over a year and the other six will see a 4.3% reduction in rates with a variance for summer and winter rates. Those six are the hospital, Safeway, Walmart, Dragon Enterprises, the Lamar High School and Lamar Community College. Hourieh said this will mean a $71,000 loss of revenue for next year which will be taken from the Light Plant reserve funds. An increase in rates may be forthcoming in the year after, but nothing was certain at this time. Hourieh added that the older rate classifications will also come under review about this time next year to see if any rate adjustments are required.

Hourieh also noted that the coal cars which were lined on the tracks east of Lamar are now gone as the Light Plant’s lease with Western Coal has expired and the rail cars were moved back to the Pueblo area. Utility Board members were looking at November 30 or December 3 as a make up date for their next meeting with enough members present to vote on agenda items.

By Russ Baldwin