Archive for the ‘Monthly Summary’ Category

Thursday, April 8th, 2021

 

 

 

BUSINESS OPERATIONS – APRIL 2021

Las Animas Municipal Light & Power Honored With National Award For Outstanding Safety Practices: Las Animas Municipal Light & Power has earned the American Public Power Association’s Safety Award of Excellence for safe operating practices in 2020.The utility earned a first place award in the category for utilities with 15,000–29,999 worker-hours of annual worker exposure. Utilities that receive an APPA Safety Award have demonstrated that they have made the health and safety of their employees a core value. Designing and maintaining a top-notch utility safety program takes a lot of hard work and commitment. “Las Animas Municipal Light & Power values employee safety above all else,” stated Ron Clodfelter, Superintendent of Las Animas Municipal Light & Power. “We all recognize the importance of going home to our families each day; this is what drives our dedication to safety.” Well Done and Congratulations!

ARPA Power Supply Contracts Protect it from Electric Market Price Spikes: As the news continues to describe the cost impact to electric ratepayers caused by the February Polar Vortex, ratepayers served by ARPA’s six Members can rest easy. ARPA’s power supply was not affected by the high market prices that occurred during the February cold snap. Some Colorado utilities are reporting costs for February that include a “Fuel Cost Adjustment” of over 11 cents/kWh added to their bills. A second Colorado utility filed a report with the Colorado PUC that its customers could face a $552 surcharge to pay for the price spikes that occurred. The Colorado Attorney General is calling on the Federal Energy Regulatory Commission to investigate “windfall” profits that were made from the market spikes. ARPA’s power supply comes from three sources; wind generation, federal hydro-power allocations, and a purchase power contract that includes set pricing through 2024. This approach for power supply eliminates the risk of market price spikes and provided ARPA the opportunity to not only maintain stable rates, but to reduce rates by 2% in 2019 and 3.6% in 2021. ARPA continues to provide a dependable and competitively priced supply of wholesale electric power to its Members.

Update on the Dismantling of the LRP: The demolition of the Lamar Repowering Project is progressing. The baghouse demolition is complete as is the air-cooled condenser, main pipe rack, and a handful of buildings and enclosures. The demolition activities to the boiler are ongoing in anticipation of its complete demolition scheduled for later this spring. The utility structure and conveyor tube across Maple Street is scheduled for removal early in April. Maple Street will be closed for short periods of time during the removal process. The demolition completion date of early summer continues to remain on schedule.

Summary of February 2021 Financial and Operating Statements: During the month of February, revenue from power sales were better than budget by 5.1% and total cost of goods sold were over budget by 5.9%. Net Revenues from Operation for the month were $299,314. Year to Date revenues from power sales are right on budget and cost of goods sold are 1% over budget. Net revenues from Operation YTD are $611,832. Member Energy sales for February were 5.2% better than budget and 0.8% less than February 2020. Member Sales YTD are 0.6% better than budget and 1.8% less than 2020.

Next ARPA Meeting: The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, April 29, 2021. The meeting is scheduled to be held by GoToMeeting and conference call. The meeting notice and agenda will be posted on the ARPA website www.arpapower.org at least 24-hours in advance of the meeting.

Tuesday, March 16th, 2021

 

 

 

BUSINESS OPERATIONS – MARCH 2021

Polar Vortex No Match for ARPA Member Electric Systems: As the polar vortex swept through the ARPA communities and surrounding region this past February, many of our neighboring utilities and states experienced significant power outages that ranged from a few minutes to a few hours, and worse. Fortunately for the ARPA communities, the hard work and planning that our community owned electric systems do to “keep the lights on” paid off. The operating personnel from the cities and towns of Holly, La Junta, Lamar, Las Animas, Springfield, and Trinidad reported little, if any, outages despite temperatures that reached 25 below zero and included wind chill factors of negative 40. Kudos to our local electric utilities for their ongoing commitment to maintain service that keep our houses warm in the winter and cool in the summer, and our businesses operational despite the challenges from Mother Nature.

ARPA Provides Funding for Repurposing Power Generation Equipment to Agriculture Processing Equipment: ARPA reached an agreement with the City of Lamar and North Fork Grain to repurpose equipment that had previously been used for power generation. ARPA redirected funding that was to be used for the demolition of the coal storage domes, ash and limestone silos and associated conveyor systems located on the north side of its Lamar Repowering Project, to be used to support an agriculture facility proposed by North Fork Grain. North Fork Grain hopes to begin its operations at the repurposed north side in the summer of 2021.

Update on the Dismantling of the LRP: The demolition of the Lamar Repowering Project has begun, starting with the demolition of the baghouse on the west side. From there they will move to the turbine/generator building, and the air-cooled condenser. Jackson Demolition, the contractor, is also working on non-structural demolition activities to the boiler in preparation for its demolition. The demolition work is anticipated to be complete by late spring or early summer this year.

Wind Turbine Generation for 2020 3rd Highest in 15 Years of Operation: During the year end operating report, it was noted that the wind generation for ARPA and Lamar Light and Power wind turbines was the 3rd highest since the turbines first full year of operation in 2005. The turbines were commissioned in the spring of 2004 and are approaching 16 years of operation. Typically, the five wind turbines produce between 7% and 8% of ARPA’s energy needs; however, for the months of March (11%), May (11%) and November (12%), the generation exceeded projections. ARPA’s power supply from wind for 2020 was an average of 9%.

Summary of January 2021 Financial and Operating Statements: During the month of January, revenue from power sales were 4.8% less than budget and total cost of goods sold were under budget by 3.7%. Net loss for January was $77,840. Member energy sales YTD are 3.6% less than budget.

Next ARPA Meeting: The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, March 25, 2021. Currently, the meeting is scheduled to be held face to face at the Cultural Events Center in Lamar. The meeting notice and agenda will be posted on the ARPA website www.arpapower.org at least 24-hours in advance of the meeting.

Tuesday, February 9th, 2021

 

 

 

BUSINESS OPERATIONS – JANUARY 2021

ARPA Retires its Power Revenue Refunding and Improvement Bonds Series 2010: ARPA directed UMB Bank, its bond trustee, to retire ARPA’s 2010 Bonds effective January 15, in the amount of $15,066,966. The retirement of the Bonds will reduce the Authority’s annual debt service by $1.23 million and was instrumental in ARPA’s ability to implement a 3.6% rate reduction in 2021.

Update on the Dismantling of the LRP: Jackson Demolition, the demolition contractor for the LRP, mobilized to the project site on January 11. Perimeter fencing around the demolition site has been installed and the process for removal of universal waste has begun. The Contractor is awaiting the demolition permit from the Colorado Department of Public Health and Environment (CDPHE), which will allow it to begin demolition of the Air Cooled Condenser, Baghouse, and Steam Turbine. The schedule anticipates completion of the demolition by mid-to late summer.

ARPA Board Considers Approval of 3rd Amendment to the Mutual Release and Settlement Agreement: At its January meeting, the Board approved the 3rd Amendment to the Settlement Agreement that was reached between the City of Lamar and ARPA in 2017. The Amendment was approved contingent on an effective date of February 9, 2021. The Amendment provides that ARPA will convey ownership of the power plant equipment and property located on the north side of Maple Street, to the City. In addition, ARPA will provide the funding originally budgeted for the north side demolition, to the City to be used for re-purposing, renovating or demolition of the equipment. In exchange, ARPA is released from all further obligations with respect to the equipment and property. In an effort to put the equipment back into production, ARPA has been working with the City and a private third-party, to repurpose the equipment into an agriculture related facility.

Summary of Unaudited December 2020 Financial and Operating Statements: During the month of December, revenue from power sales were 2.2% less than budget and total cost of goods sold were under budget by 23.2%. Net revenue for December was $290,364. YTD Total Revenues are 2.8% better than budget and cost of goods sold were 4% under budget. Net revenues YTD are $4,245,051 and member energy sales YTD are 4.2% better than budget.

ARPA Board Adopts Resolution No. 02-21 Designating Meeting Dates and Locations for 2021: The ARPA Board adopted a resolution establishing dates and locations for meetings in 2021. The schedule calls for 5 in-person meetings and 5 remote meetings. The first in-person meeting is tentatively scheduled for March 25. The Board understands it must be flexible, considering the pandemic, and an in-person meeting may be changed to a remote meeting depending on current circumstances. The Agenda for all meetings are posted on the ARPA website at least 24-hours in advance of the scheduled meeting.

Next ARPA Meeting: The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, February 25, 2021. The meeting notice and agenda will be posted on the ARPA website www.arpapower.org at least 24-hours in advance of the meeting.

Wednesday, January 20th, 2021

 

 

 

BUSINESS OPERATIONS – DECEMBER 2020

ARPA Board Adopts 2021 Budget: At its December meeting the ARPA Board of Directors approved its operating budget for 2021 in the amount of $24,790,124. The 2021 Budget supports the Board’s goal to retire its 2010 bonds and to reduce its energy rate by approximately 3.6%. The budget as adopted, will ensure funding for operations, rate stability, and disposition of the Lamar Repowering Project. The budget includes:
• Revenues of approximately $30.41 million
• Power supply expense of approximately $14 million
• Transmission expense of approximately $3.6 million
• A&G expense of approximately $1.4 million
• Debt Service expense of $8.3 million

ARPA Board Authorizes the Retirement of ARPA’s 2010 Bonds- Reduces Annual Debt Service by $1.23 Million: The ARPA Board of Directors adopted a Resolution authorizing the redemption of the Authority’s Power Revenue Improvement Bonds, Series 2010. The retirement of the Bonds, with an outstanding principal amount of $14.8 million, is anticipated to be complete by mid-January and will reduce the Authority’s annual debt service by $1.23 million. This is a critical element in the Authority’s long-term financial plan to reduce rates while keeping ARPA on strong financial footing.

Update on the Sale/Dismantling of the LRP: ARPA’s Board of Director’s received an update on the demolition process for its Lamar Repowering Project. The demolition of the power plant is expected to begin on the south side of Maple Street in early January 2021. The south side phase of the demolition is expected to be complete by spring of 2021. A proposal from the City of Lamar for repurposing and re-using the North Plant equipment and domes is still under consideration.

Operating Committee: The managers of the electric departments from the ARPA members (Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad) met in early December. The committee discussed the COVID-19 Protocols that would be implemented in the event a mutual aid situation would arise. The ARPA members have a long history of providing mutual aid to each other for major storm outages and large construction projects. The pandemic could trigger a mutual aid incident of a different nature, as it could impact the health and availability of line crews to perform even day-to-day operations. The committee discussed an approach that will allow mutual aid to be implemented, while ensuring the safety of the crews. The plan will implement COVID-19 protocols, including separation of crews, use of proper personal protective equipment, and enhanced communications between crews. The ARPA members are confident that regardless of the circumstance, mutual aid between utilities will be conducted in a safe and professional manner.

Summary of October 2020 Financial and Operating Statements: During the month of October, revenue from power sales were slightly above budget and total cost of goods sold were under budget by 4.7%. Net revenue for October was $245,599. YTD Total Revenues are 4.7% better than budget and cost of goods sold were 1.1% under budget. Net revenues YTD are $3,837,069 and member energy sales YTD are 5.4% better than budget.

Next ARPA Meeting: The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, January 28, 2021. The meeting notice and agenda will be posted on the ARPA website www.arpapower.org at least 24-hours in advance of the meeting.

Tuesday, November 17th, 2020

 

 

 

BUSINESS OPERATIONS – NOVEMBER 2020

ARPA Board Adopts New Wholesale Rate Tariff- Energy Rate Reduced 3.57%:  The ARPA Board of Directors adopted a new rate tariff that includes an energy rate reduction of 3.57% at its October meeting. The reduction in ARPA’s energy rate is a result of ARPA’s ability to retire its 2010 Bonds of $14.8 million early next year. Retiring the bonds will reduce ARPA’s annual debt service costs by $1.25 million. The reduced rate will take effect January 1, 2021. This is the 2nd rate reduction the Authority has implemented within the last two years.

 ARPA’s 2021 Budget Available for Public Inspection: The ARPA Board of Directors reviewed its proposed 2021 budget at its October meeting. The proposed 2021 budget is currently available for inspection by the public in the city clerk’s office in the cities and towns of Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad. Any interested elector in an ARPA member community or electricity consumer of an ARPA member may file objections to the proposed budget at any time prior to its final adoption. Any public comment or questions concerning the proposed 2021 budget should be directed to Rick Rigel, General Manager, at 719-336-3496. ARPA’s 2021 Budget Hearing is scheduled for December 3, in La Junta at the Otero Junior College Student Center and by GoToMeeting. Due to COVID-19 the location of the meeting could be changed. The Public Notice for the meeting will be posted on the ARPA website at least 24-hours prior to the meeting.

Future Power Supply Discussion: The ARPA Board received a preliminary draft Request for Proposal (RFP) requesting options for power supply to replace an existing power supply contract that expires on January 31, 2025. The RFP includes various options for power supply resources that will provide approximately 65% of the Authority’s power supply needs. The new power supply will replace ARPA’s existing power supply contract with Public Service Company of Colorado. The current schedule anticipates that the RFP will be issued to interested parties the week of November 2, with the Board of Directors initial review of responses at its January 28, 2021 meeting.

Update on the Sale/Dismantling of the LRP: ARPA’s Board received an update on the demolition process for its Lamar Repowering Project. The demolition of the power plant is scheduled to begin in mid-November. The Engineering firm of Burns and McDonnell is managing the demolition for the Authority. During its October meeting, the Board was advised of a proposal from the City of Lamar of a party interested in repurposing and re-using the North Plant equipment and domes. Discussion on the proposal is ongoing; however, the completion date for the entire dismantling of the Plant remains on schedule for the summer of 2021.

Summary of September 2020 Financial and Operating Statements: During the month of September, revenue from power sales were better than budget by 2.3% and total cost of goods sold were under budget by 5.9%. Net revenue for the month was $256,642. YTD Total Revenues are 4.7% better than budget and cost of goods sold were 0.7% under budget. Net revenues YTD are $3,662,132. Member Energy sales for September were 12.6% less than 2019 and just better than budget. Member Sales YTD are about 6% better than budget.

Next ARPA Meeting: The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, December 3, 2020. The meeting notice and agenda will be posted on the ARPA website www.arpapower.org  at least 24-hours in advance of the meeting.

Thursday, October 22nd, 2020

 

 

 

BUSINESS OPERATIONS – OCTOBER 2020

ARPA to Issue a Request for Proposal (RFP) for Power Supply: The ARPA Board of Directors, at its September meeting, authorized the General Manager to engage JK Energy Consulting to develop a RFP for power supply that would begin February 1, 2025, to replace an existing power supply contract that expires January 31, 2025. That power supply contract is with the Public Service Company of Colorado (Xcel Energy) and provides approximately 60-65% of ARPA’s power supply needs. ARPA also has a long-term contract with the Western Area Power Administration for federal hydro-power that provides approximately 35% of its power supply, and member wind generated power rounds out the remaining power supply needs. Results of the RFP could be expected as early as March-April 2021.

ARPA Board Reviews 2021 Budget: The ARPA Board of Directors reviewed its proposed 2021 budget at its September meeting. The proposed 2021 budget includes:

  • Power Sales Revenues of $30.4 million that includes a rate reduction of approximately 3.5%
  • Power Supply costs of $14.0 million
  • Transmission costs of $3.56 million
  • A&G costs of $1.6 million
  • Debt Service costs of $8.3 million

ARPA’s 2021 Budget Hearing is scheduled for December 3, in La Junta at the Otero Junior College Student Center.

ARPA Board Continues to Evaluate its Options to Retire its 2010 Bonds: The ARPA Board received cost projections for Year-End 2020 that indicates ARPA’s ability to retire its 2010 Bonds of $14.8 million. Retiring the bonds will reduce annual debt service cost by approximately $1.25 million. Projections indicate this will allow ARPA to take a decrease in its energy rate of 3.57% beginning in 2021.

Demolition of the Lamar Power Plant Remains On-Schedule:  The ARPA Board received an update on the demolition process for its Lamar Repowering Project. The demolition of the power plant, located at Lamar, is scheduled to begin in late October-early November and be complete by summer of 2021. The Engineering firm of Burns and McDonnell is managing the demolition for the Authority.

Summary of August 2020 Financial and Operating Statements: During the month of August, revenue from power sales were better than budget by 10.8% and total cost of goods sold were over budget by 4.4%. Net revenue for the month was 63% better than budget. YTD Net Revenues are 49% better than budget and cost of goods sold were right on budget. Net revenues YTD are $3,405,491. Member Energy sales for August were 0.5% less than 2019 and 11.2% better than budget. Member Sales YTD are about 6.7% better than budget.

Next ARPA Meeting: The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, October 29, 2020. The meeting notice and agenda will be posted on the ARPA website (arpapower.org) at least 24-hours in advance of the meeting.

Thursday, September 10th, 2020

 

 

 

BUSINESS OPERATIONS – SEPTEMBER 2020

ARPA Board Reviews Preliminary 2021 Budget: A preliminary budget was presented to the ARPA Board of Directors at its August 27 meeting that anticipates a rate decrease for 2021. The proposed decrease in the energy rate for 2021 will reduce ARPA’s rate by approximately 3%. The budget includes total revenues of $30.4 million, power supply costs of $14 million, transmission costs of $3.5 million, and A&G costs of $1.6 million. Debt service will be reduced by approximately $1.2 million to an annual cost of $8.3 million. The budget also includes achieving a 1.31x debt service coverage and full funding for bond reserve accounts as required by ARPA’s bond covenants.

Financial Projection for YE 2020: Based on the current year-end projections and financial position, it is our goal to retire the 2010 bonds of $14.8 million when they become callable in October. This will reduce the annual debt service expense by approximately $1.2 million. Current projections indicate that with the retirement of the bonds, ARPA will be able to implement a reduction in its energy rate beginning in 2021.

Update on the Sale and Dismantling of ARPA’s Lamar Power Plant: The ARPA Board of Directors authorized the General Manager to negotiate an Engineering, Procurement, and Construction (EPC) contract with Burns and McDonnell for engineering services for the demolition of ARPA’s Lamar Power Plant. The demolition contractors, that are bidding on the demolition work, participated in an on-site project inspection in mid-August. Bid responses and contractor selection is currently scheduled for the week of September 21.  The current schedule calls for work to begin in early to mid-October and be completed by the end of June 2021.  For questions regarding the demolition process, please call or email ARPA General Manager, Rick Rigel, at (719) 336-3496, or at rrigel@arpapower.org.

Resolution No. 03-20: Due to uncertainties related to COVID-19, the Board of Directors adopted Resolution No. 03-20 that establishes that the remainder of the meetings in 2020 (and January 2021) shall be conducted by WebCast and Conference Call. The dates for the meetings are August 27, September 24, October 29, December 3 and January 28, 2021. The starting time for all the meetings is 9:00 AM. If any member of the public wishes to participate in the meetings you may contact the ARPA office at 719-336- 3496 for information on where to attend.

Summary of July 2020 Financial and Operating Statements: During the month of July, revenue from power sales were better than budget by 11.1% and total cost of goods sold were over budget by 1.1%. Net revenue for the month was $833,653. Year to Date revenues from power sales are 4.9% better than budget and cost of goods sold are 0.7% under budget. Net revenues YTD are $2,629,522. Member Energy sales for July were 1.3% better when compared to July 2019 and 12.6% better than budget. Member Sales YTD are 3.9% better than 2019 and 5.9% better than budget.

Next ARPA Board of Directors Meeting: The next regularly scheduled meeting of the ARPA Board is Thursday, September 24. The meeting notice will be posted on ARPA’s website under Public Notices and will also be posted in a designated location in each of the member cities at least 24 hours in advance of the meeting. ARPA board meetings are open to the public.

Thursday, June 11th, 2020

 

 

 

BUSINESS OPERATIONS – JUNE 2020

ARPA Scholarship Program: In 2000 ARPA established a College Scholarship Program that awards a $1,000 scholarship to one high school senior in each of the high schools served by ARPA members. The Program is administered through the member municipalities of Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad. The scholarships are funded equally between ARPA and its members. Congratulations to the following individuals on receiving the scholarship for the 2020-2021 school year: Holly: Jackson Kalma; Lamar: Alexander Higbee; McClave (Lamar): Trace Cox; La Junta: James Reeder; Trinidad: Keirstin Garrison; Wiley (Lamar): Maura Smith; Las Animas: The City of Las Animas awarded a scholarship to three students, each receiving $700. Those students were: Madison Gonzales, Cutter Nichols and Steven Salazar, Jr. Good luck in your future endeavors!

Additional Scholarship Funding: Because the COVID-19 pandemic upset the flow of the typical conclusion to the school year, and especially the eagerly anticipated graduation ceremonies, the ARPA Board of Directors voted to provide a $500 scholarship to all of the students who submitted a scholarship application for 2020. This will provide scholarship funding to an additional thirteen students across the ARPA membership.

ARPA Board Reviews 2019 Audit: ARPA auditor, Ronny Farmer, rfarmer, llc, presented and briefed the Board on the 2019 Audit. Operating revenue from sales for its fiscal year ended December 31, 2019, was approximately $28.8 million which was slightly lower than 2018 sales due in part to a rate decrease that ARPA implemented for fiscal year 2019. Operating income for 2019 was $4,494,949. There were total revenues of $31,705,663 and total expenditures of $27,210,714 in 2019. The 2019 Audited Financial Statements can be viewed on the ARPA website under Financials.

Summary of April 2020 Financial and Operating Statements: During the month of April, revenue from power sales were better than budget by 1% and total cost of goods sold were under budget by 2%. Net revenue for the month was $183,177. Year to Date revenues from power sales are 0.8% better than budget and cost of goods sold are 2.2% under budget. Net revenues YTD are $846,068. Member Energy sales were 1.9% better compared to April 2019 and 1.9% better than budget. Member Sales YTD are 0.1% less than 2019 but still 2.5% better than budget.

Next ARPA Board of Directors Meeting: The next regularly scheduled meeting of the ARPA Board is Thursday, July 30. Due to the current COVID-19 issue, the Board will determine if it can meet in-person or if the meeting will be conducted via webcast. The meeting notice will be posted on ARPA’s website under Public Notices and will also be posted in a designated location in each of the member cities at least 24 hours in advance of the meeting. ARPA board meetings are open to the public.

Thursday, May 14th, 2020

 

 

 

BUSINESS OPERATIONS – MAY 2020

ARPA Board Holds its Annual Election of Officers: The ARPA Board of Directors held officer elections at its meeting on April 30. Board Members elected to continue serving as officers through April 2021 include Rick Stwalley (Las Animas), President; Lorenz Sutherland (La Junta), Vice President; Gary Cranson (La Junta), Treasurer; and ARPA staff member, Arvenia Morris, Secretary. Rick Stwalley has been on the ARPA Board of Directors since January 2010. He served as Vice President from April 2011 until a special election in January 2020 at which time he was elected President. Lorenz Sutherland has represented La Junta on the ARPA Board since October 2014. He was elected to fill the office of Vice President in January 2020. Gary Cranson has been on the ARPA Board since February 2017 and was first elected Treasurer of the Board in May 2019. Gary also serves on the La Junta Utilities Board.

ARPA Members Response to COVID-19. ARPA member utilities are continuing to work with split crews and split shifts, and/or reduced hours. With the Governor’s safer-at-home order, the member utility crews’ safety practices will remain in place such as social distancing where possible and face coverings where necessary.

Burns and McDonnell Engaged as Owner’s Engineer: ARPA entered into an agreement with Burns and McDonnell for engineering services for the dismantling, removal from site, and demolition of the Repowering Project located in Lamar.  The Engineering firm will also act as Owner’s Engineer in the event the plant is sold.  Current plans call for the dismantling and removal process to be performed in three phases. The first phase is the northside coal handling facilities located north of Maple Street. Equipment included in this phase is the coal conveyor system, coal crusher and limestone storage. The second phase is the boiler and steam turbine generator. This equipment is located on the south side of Maple Street. This is the most comprehensive of the phases and includes the coal day storage silos, boiler control system, emission control systems including the stack, baghouse, and air-cooled condenser. Phase three is the final phase and includes the coal storage domes and associated equipment.

Summary of March 2020 Financial and Operating Statements. During the month of March, revenue from power sales were less than budget by 3.5% and total cost of goods sold were under budget by 8.4%. Net revenue for the month was $218,780. Year to Date revenues from power sales are 0.7% better than budget and cost of goods sold are 2.3% under budget. Net revenues YTD are $662,891. Member Energy sales for March were 4.4% less than 2019 and 1.5% less than budget. Member Sales YTD are 0.8% less than 2019 but still 2.7% better than budget.

Next ARPA Board of Directors Meeting. The next regularly scheduled meeting of the ARPA Board is Thursday, May 28. Due to the current COVID-19 issue, the Board will determine if it can meet in-person or if the meeting will be conducted via webcast. The meeting notice will be posted on ARPA’s website arpapower.org/public-notices/and will also be noticed to the public.  ARPA board meetings are open to the public.

Tuesday, April 7th, 2020

 

 

 

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.