BUSINESS OPERATIONS – FEBRUARY 2019

ARPA Board Consents to Assignment of its Power Supply Agreement. In February 2013, ARPA entered into a Power Supply Agreement with Twin Eagle Resource Management (Twin Eagle) for approximately 65% of its power supply. The term of the ten-year Agreement was from February 1, 2015 through January 31, 2025. In late November of last year, Twin Eagle notified ARPA that they were requesting ARPA’s consent to assign the Agreement to the Public Service Company of Colorado (PSCo- a subsidiary of Xcel Energy).

ARPA agreed to consent to the assignment as there will be no discernable changes to the services ARPA receives from the Agreement and all the terms of the Agreement remain in place. The assignment must go through a regulatory approval process with the Colorado Public Utilities Commission and the Federal Energy Regulatory Commission before it becomes effective.

ARPA Board Continues to Evaluate Power Supply Proposals. At its January meeting, the ARPA Board received a report on the status of its power supply proposals from its consultant, JK Energy Consulting. The ARPA Board received responses from a Request for Proposals (RFP) for future power supply in which they requested pricing for power supply and related transmission services for both five-and ten-year terms beginning February, 2025. In addition, the Board continued its review of a proposal received from Tri-State Generation and Transmission in which Tri-State would assume responsibility for ARPA’s operations including power supply, transmission, and debt service through 2050. The ARPA Board authorized the General Manager, and its General Counsel, to continue pursuing negotiations and communications with Tri-State in conjunction with the responses received through the RFP process, and to update the member’s governing bodies on the status of the power supply discussions.

Summary of December UNAUDITED 2018 Financial and Operating Statements. During the month of December, power sales were just better than budget by $4,273. Total cost of goods sold were under budget $125,001. There were net revenues of $300,932 for the month. Year to date unaudited power sales were better than budget $1,939,988. Total cost of goods sold were over budget $370,873. There were net operating revenues of $4,977,208 for 2018. Member sales through December were better than 2017 by 3.5% and better than budget by 7.2%.

ARPA Board Adopts Resolution Designating Dates and Locations for Meetings in 2019. Subject to further notice, the regular meetings of the Board of Directors of the Arkansas River Power Authority will be held on the following dates in the designated member municipalities or by WebCast as indicated.

Next ARPA Meeting. The next regularly scheduled ARPA board meeting is Thursday, February 21, 2019 and will be held by WebCast. The meeting will begin at 9:00 AM. ARPA board meetings are open to the public. If any member of the public wishes to attend, please call Arvenia at 336-3496 for information on where to attend the meeting.

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