Letter to the Editor: ARPA – No Determination of the Future of the Lamar Power Plant

 ARPA Media Release

Recently there have been news articles that suggest that the Arkansas River Power Authority (ARPA) Board of Directors have decided to demolish the Lamar Power Plant.  That is not accurate; the ARPA Board has not made a decision regarding the future of the plant.  A settlement that resolved a lawsuit between the City of Trinidad, ARPA and Syncora Guarantee addressed the fact that within 60 days of finalizing the studies regarding the future operations of the plant, the ARPA Board of Directors will determine what the best economical option for the plant is, and act accordingly.  The studies are being performed by third party consultants and are expected to be finalized within the next few weeks.

In addition, the settlement also provided that Syncora will pay Trinidad $600,000 as a partial reimbursement of their legal expenses and once at least five of the six ARPA members have reaffirmed their contract obligations to ARPA, Syncora will pay a pro rata share of $2.035 million directly to the ARPA member communities who approve the reaffirmation.  These funds may be used by the member cities to provide, among other things, rate relief for their retail electric customers.

ARPA provides wholesale electricity to its member communities of Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad. ARPA owns the Lamar Repowering Project and contracts with Lamar Utilities Board/Lamar Light and Power to operate the plant.