BUSINESS OPERATIONS – APRIL 2020

COVID-19 and Utility Operations. It is important to ARPA and its member utilities that our customers maintain access to reliable energy during this public health emergency and as such, the ARPA member utilities are changing their normal work routines in order to effectively serve their communities. The changes are geared to establishing a method to serve their customers and protect the health of their employees. Normal work routines now include working from home whenever possible, limiting exposure between the public and utility crews, limiting exposure between the crews themselves by alternating and staggering schedules, and observing social distancing rules.

In addition, the member’s utility operations are holding conference calls to exchange ideas and to discuss how mutual aid between member utilities would occur in the event lineworkers and/or plant employees would become ill or be required to quarantine. ARPA members have a Mutual Aid and Assistance Agreement in place that pledges assistance between the ARPA member municipalities of Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad. Upon request by an ARPA member, Mutual Aid will be enabled for personnel, equipment and expertise for emergency work.  The ARPA members have a long history of helping each other in times of distress and these times are no exception.  The ARPA members are well positioned to continue the reliable electric service that their customers have come to expect.

Governor Issues Executive Order Suspending Utility Disconnects. On March 20th, Governor Polis issued Executive Order D2020 012 that suspended utility disconnects due to late or non-payments for residential and small businesses that are affected by the COVID-19 virus. The Order is in effect until April 20th but may be extended for an additional thirty-days. The Order also waives late payment fees and reconnect fees for those impacted utility accounts. The ARPA members have implemented plans to comply with the Governor’s Order, and also have information regarding low income energy assistance and payment plans. Please call your local utility office for additional information.

ARPA Board Receives Report on Financial Compliance.  Aarin Ritter, Manager of Finance and Accounting for ARPA advised the Board that ARPA is in compliance with all the provisions of its 2010 and 2018 bond covenants, including its debt service coverage and bond account funding.  All financial filings are current and have been posted on the Municipal Securities website at https://dataport.emma.msrb.org.

Summary of February 2020 Financial and Operating Statements. During the month of February, revenue from power sales were better than budget by 6.2% and total cost of goods sold were over budget by 3.6%. Net revenue for the month was $164,154. Year to Date revenues from power sales are 2.8% better than budget and cost of goods sold are 0.8% over budget. Net revenues YTD are $444,111. Member Energy sales for February were 2.7% more than 2019 and 7.7% better than budget. Member Sales YTD are 0.9% more than 2019 and 4.7% better than budget.

Next ARPA Board of Directors Meeting. The next regularly scheduled meeting of the ARPA Board is Thursday, April 30. Due to the current COVID-19 issue, the Board will determine if it can meet in-person or if the meeting must be conducted via webcast. The final decision will be posted on ARPA’s website www.arpapower.org and will also be noticed to the public.  ARPA board meetings are open to the public.

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