Lamar Utilities Board Notes End of Year Financial Report

Lamar Light Plant Repowering Project, East View

 The Lamar Utility Board December 2013 Financial Report indicated that total operating revenues for the year, year to date, are $13,145,197 and total operating costs are $11,431,003.  Gross operating income for the year was $1,714,194.  When the non-operating revenues and expenses are considered, there is a net loss of $19,851, year to date.  Light Plant Superintendent, Houssin Hourieh noted that the plant had to pay out of pocked expenses of about $325,000 for repair work to a wind turbine in 2013.  Comparing 2012 financials to 2013, December revenues from retail sales are down approximately $1,305,584 or 9%.  Overall operating expenses are down approximately 4% or $490,033 for the same time period. 

The board noted that metal shavings were collected from the T-3 wind turbine during a semi-annual maintenance program on all five turbines.  The shavings were discovered in the oil and as a result, the T-3 turbine was shut down.  This was a similar problem that was noted in the T-1 turbine that proved costly to repair the year before.  The plant is seeking quotes for a bore scope analysis to determine the cause of the metal shavings problem.  Cost estimates range from $7,828 to $2,000 and the board plans to opt in favor of the lowest cost estimate.  Hourieh said the turbine will be out of service for several weeks. 

Several power line replacement items were placed for bid and the board awarded the proposal to Western United for $19,255.30 for the stock inventory equipment.  The board went into executive session for legal advice on questions related to a report on multi-party mediation regarding the Lamar Repowering Project.  The next board meeting will be held Tuesday, May 13.

By Russ Baldwin