Archive for the ‘Monthly Summary’ Category

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.

Monday, April 6th, 2020

 

 

 

BUSINESS OPERATIONS – MARCH 2020

ARPA Scholarship Program. In 2000 the Arkansas River Power Authority Board of Directors established a College Scholarship Program. The Program is administered through our member municipalities of Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad, Colorado. The scholarship is awarded to one high school senior in each member municipality. The total scholarship award is $1,000 funded equally between ARPA and the member municipality. Over the past five years, ARPA and its members have funded approximately $36,000 towards scholarships for deserving students within their communities. Application forms, scholarship requirements, and eligibility criteria are available either through the counseling offices of the member high schools or at the local office of the electric utility. The ARPA Scholarship Program is an effort to give something back to the community by encouraging the higher education aspirations of our local students.

National Lineman Appreciation Day is April 18. This is a time to express our utmost appreciation to the great men and women that work so hard for us every day to keep the lights on. It’s our honor to celebrate the hard work, innovation, and dedication of Electrical Lineworkers who go out in the worst of weather to ensure our homes stay warm, our businesses remain open for business, and our medical facilities stand ready to provide their life-saving services. ARPA will be celebrating with our lineworkers from Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad for a job well done! Help us in the celebration with a #ThankALineman.

ARPA Operating Committee Discuss Training Opportunities. The Operating Committee scheduled its annual bucket truck rescue training for April 15 in Las Animas with the Las Animas Light and Power staff providing the training. This training is open to any department from our member communities that operate bucket trucks, including City and County parks and street departments. The Committee also scheduled its poletop and bucket truck rescue training to be held on April 16 in La Junta with the training to be provided by La Junta Municipal Utilities’ staff. This training is attended by the lineworkers from the ARPA communities. The training is held annually and is but one of several safety training courses attended by our member’s line crews. ARPA budgets $15,000 annually to help our members fund attendance at safety training opportunities.

Nominations Are Open for Annual Awards Program. In late 1994 ARPA instituted the ARPA Awards Program.
The awards include the Tom Pryor Award for exceptional contribution to publicly-owned electric power; the Gordon Robertson Award for distinguished service on the ARPA Board of Directors; and the ARPA Honor Roll of Merit for significant contribution to the mission of ARPA or the betterment of an ARPA member community. For information regarding nominations call the ARPA office at (719) 336-3496.

Summary of January 2020 Financial and Operating Statements. During the month of January, revenue from power sales were slightly less than budget and total cost of goods sold were under budget by 2%. Net revenue for the month was $279,957, and Member Energy sales for January were 2% better than budget.

Next ARPA Board of Directors Meeting. The next regularly scheduled meeting of the ARPA Board is Thursday, March 26 by WebCast and Conference Call. The meeting will begin at 9:00 AM. ARPA board meetings are open to the public. If any member of the public wishes to participate, please call Arvenia at 336-3496 for information on where to attend.

Monday, March 9th, 2020

 

 

 

BUSINESS OPERATIONS – FEBRUARY 2020

Town of Holly Appoints Mike Tanner to ARPA Board Of Directors. Mike Tanner, who recently accepted the position of Administrator for the Town of Holly, was appointed to a five-year term on the ARPA Board of Directors by the Holly Board of Trustees. Mr. Tanner moved to Holly from Barling, AR. He holds a Bachelor’s degree in Accounting/Business Administration and has fourteen years’ experience in municipal and/or governmental operations and finances. Welcome Mike!

Officer Elections Held at January Meeting. At the January meeting the Board of Directors held a special election of officers and elected Rick Stwalley (Las Animas) to the President position. Lorenz Sutherland (La Junta) was elected to the office of Vice President. Other officers include Gary Cranson, (La Junta) who currently serves as Treasurer, and staff member Arvenia Morris serves as Secretary. The officers will hold office until the next annual election in April. Congratulations to Rick Stwalley and Lorenz Sutherland, and thank you. We also wish to extend a thank you to David Willhite for his past service on the Board of Directors.

Summary of December UNAUDITED 2019 Financial and Operating Statements. During the month of December, revenue from power sales were less than budget by 1.5% and total cost of goods sold were under budget by 30.4%. Net revenue for the month was $305,637. Year to Date revenues from power sales are 3.8% better than budget and cost of goods sold are 1.7% under budget. Net revenues YTD are just better than budget at $4,654,670. Member Energy sales for December were 1% less than 2018 and right on budget. Member Sales YTD are about 4.2% better than budget.

Wind Turbine Generation Slightly Less in 2019 Compared to 2018. During the year end operating report, it was noted that the wind generation for ARPA and LUB wind turbines was down a bit from 2018 (approximately 3.8%). We have seen a reduction in generation over the past several years as the wind turbines approach their end of useful life. Looking back over the past ten years, the output of the turbines was in excess of 20,000 mega-watthours (MWh) from 2009 through 2014. Since then the output has remained fairly steady, but at a lower level of about 19,000 MWh. The turbines were commissioned in the spring of 2004 and are approaching 16 years of operation. They produce between 7% and 8% of ARPA’s energy needs.

Next ARPA Board of Directors Meeting. The next regularly scheduled meeting of the ARPA Board is Thursday, February 27 by WebCast and Conference Call. 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 719-336-3496 for information on where to attend the meeting.

Friday, January 3rd, 2020

 

 

 

BUSINESS OPERATIONS – DECEMBER 2019

ARPA Board Adopts 2020 Budget. At its December meeting, the ARPA Board approved its operating budget for 2020 in the amount of $26,412,190. The 2020 Budget supports the Board’s ongoing plan to accumulate sufficient cash to retire 2010 bonds when they become callable in 2020. The Budget will ensure funding for operations including adequate revenue recovery for debt service coverage, rate stability and funds for the Lamar Repowering Project disposition.
The budget includes:
• Revenues of approximately $31 million
• Power supply cost of approximately $14.4 million
• Transmission expense of approximately $3.3 million
• A&G expenses of approximately $1.9 million
• Debt Service payments of $9.5 million

Wholesale Rate Review. The Board of Directors reviewed the wholesale rate for 2020 and the rate will remain the same as last year which included a rate decrease from 2018. The Board did adopt Resolution No. 06-19, to modify the Wholesale Rate Tariff Volume VI to update language for the Avoided Cost Rate formula. The Avoided Cost Rate is the rate ARPA will provide for energy produced from renewable energy resources.

Summary of October 2019 Financial and Operating Statements. During the month of October, revenue from power sales were better than budget by 3.4% and total cost of goods sold were over budget by 3.1%. Net revenue for the month was $310,910. Year to Date revenues are 5.5% better than budget and cost of goods sold are 2% over budget. Net revenues YTD are well above budget at $4,097,180. Member Energy sales for October were just a bit more than 2018 and 4% better than budget. Member Sales YTD are about 4.7% better than budget.

City of Trinidad Appoints Carlos Lopez to ARPA Board Of Directors. Carlos Lopez, currently a member of the Trinidad City Council, has been appointed to the ARPA Board of Directors by the Trinidad Mayor and City Council. Carlos’ term on the City Council expires in early January as he did not seek re-election to City Council in order to run for Colorado state senator in 2020 for Senate District 35. Welcome Carlos!

ARPA 2020 Meeting Dates, Times and Locations. The ARPA Board adopted Resolution 09-19 that established the meeting dates, times and locations for 2020. The next regularly scheduled ARPA board meeting is Thursday, January 30, 2020 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 719-336-3496 for information on where to attend the meeting.

Tuesday, November 19th, 2019

 

 

 

BUSINESS OPERATIONS – NOVEMBER 2019

ARPA- 40 Years and Counting: In the early 1970’s managers of southeastern Colorado municipal electric generating systems came together and began discussing the most immediate problems facing their electric utilities, price and availability of fuels. The managers eventually formed a combined utility organization called the Arkansas River Municipal Systems (ARMS), to work collectively on solving their common problems. In April 1975 ARMS evolved into a non-profit corporation and this organization was named the Arkansas River Power Authority. About that time the Colorado General Assembly enacted a power authority bill that enabled non-profit entities to become power authorities and political subdivisions of the state once they adopted an organizing intergovernmental contract (RE: ARPA’s Organic Contract). 40 years ago, in November 1979, ARPA, the non-profit organization, was dissolved and became a separate governmental entity and political subdivision of the state of Colorado, as it is known today.

The initial members of the power authority were the Colorado communities of La Junta, Lamar, Las Animas, Trinidad, Walsenburg, and Raton, New Mexico. Two Colorado municipalities joined later, Springfield in 1982 and Holly in 1985. Today ARPA provides wholesale power and energy requirements to much of the same members- Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad. The reasons for maintaining this strong, cohesive group of public power utilities remains as important today as it did 40 years ago.

ARPA Board Reviews 2020 Budget: The ARPA Board of Directors reviewed its proposed 2020 budget at its October meeting. The 2020 budget is not only designed to accrue adequate funding for operations, but also to accumulate cash to retire 2010 bonds when they become “callable” in 2020. Retiring the bonds will reduce ARPA’s annual debt service by $1.2 million and is anticipated to result in a rate decrease in the 2021-2022 time frame. The proposed budget includes:

  • Power Sales and Revenues $31.0 million
  • Power Supply costs               $14.4 million
  • Transmission costs               $3.35 million
  • A&G costs                                  $1.86 million
  • Debt Service costs                    $  5 million

ARPA’s 2020 Budget Hearing is scheduled for December 5, in La Junta at the Otero Junior College Student Center at 11:00 AM. If any member of the public wishes to review ARPA’s 2020 budget it is currently available for inspection in the city clerk’s office in Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad.

Summary of September 2019 Financial and Operating Statements: During the month of September, revenue from power sales were better than budget by 16.6% and total cost of goods sold were over budget by 5.1%. Net revenue for the month was $564,509. Year to Date revenues are 4.6% better than budget and cost of goods sold are 1.9% over budget. Net revenues YTD are well above budget at $3,786,270. Member Energy sales for September were 11.5% more than 2018 and 15.3% better than budget. Member Sales YTD are about 4.7% better than budget. Wind generation was 10% of the power supply resources for September.

Next ARPA Meeting: The next regularly scheduled ARPA board meeting is Thursday, December 5, 2019. The meeting will be held in La Junta, Colorado. ARPA board meetings are open to the public.

Monday, October 14th, 2019

 

 

 

BUSINESS OPERATIONS – OCTOBER 2019

Future Power Supply Considerations: During the legislative session of 2019, the State legislature passed a handful of new bills that will most certainly have an impact on future power supply options and cost. The legislation included goals to reduce Green House Gas (GHG) by 26% by 2025 and 50% by 2030. It is generally believed that utilities within the state will have to consider significant reductions in generation from their coal fired power plants, to meet those goals. The legislation also included a “social cost” of carbon, which will also impact how generation from fossil fuel plants are managed. To further complicate the issue, at least in the near term, the rules that will prescribe how utilities may be able to manage the directives will not be completed until the summer of 2020 at the earliest. In light of the current level of uncertainty surrounding the implementation of the legislation, and the impact it will have on power generation within the state, the ARPA Board unanimously voted to wait 2-3 years before issuing a Request for Proposal (RFP) for future power supply options. Currently ARPA has a contract for approximately 65% of its power supply through January of 2025 with the Public Service Company of Colorado (Xcel Energy) and a long-term contract with the Western Area Power Administration for the vast majority of its remaining power supply needs.

ARPA Board Reviews 2020 Budget: The ARPA Board of Directors reviewed its proposed 2020 budget at its September meeting and will keep rates at their current level. The Board decreased its wholesale rate by 2% for 2019, after several years of stable rates with no rate increases. The Board is also evaluating opportunities to retire a portion of its long-term debt, which could trigger an additional decrease in rates for 2021.

The proposed 2020 budget includes:
• Power Sales Revenues of $31.0 million
• Power Supply costs of $14.4 million
• Transmission costs of $3.25 million
• A&G costs of $1.92 million
• Debt Service costs of $9.5 million

ARPA’s 2020 Budget Hearing is scheduled for December 5, in La Junta at the Otero Junior College Student Center.

Summary of August 2019 Financial and Operating Statements: During the month of August, revenue from power sales were better than budget by 11.7% and total cost of goods sold were over budget by 7.7%. Net revenue for the month was $726,155 which was 50% better than budget. Year to Date revenues are 4% better than budget and cost of goods sold are 1.5% over budget. Net revenues YTD are well above budget at $3,221,761. Member Energy sales for August were 8.5% more than 2018 and 11.7% better than budget. Member Sales YTD are about 3.4% better than budget.

Next ARPA Meeting: The next regularly scheduled ARPA board meeting is Thursday, October 31, 2019. The meeting will be held by WebCast and Conference Call and will begin at 9:00 AM. ARPA board meetings are open to the public.

Monday, September 16th, 2019

 

 

 

BUSINESS OPERATIONS – SEPTEMBER 2019

ARPA Board Reviews Preliminary 2020 Budget: A preliminary budget was presented to the ARPA Board of Directors at its August 29 meeting that anticipates no rate increase for 2020. The budget includes total revenues of $30.9 million, power supply costs of $14.4 million, transmission costs of $3.25 million, and A&G costs of $1.96 million. Debt service will continue at an annual cost of $9.5 million. The budget also includes achieving a 1.35x debt service coverage and full funding for bond reserve accounts as required by ARPA’s bond covenants.

Budget Hearing: The proposed 2020 budget will be available for inspection beginning November 4 at the City Clerk’s office in each member city. Any interested elector in an ARPA member community or electricity consumer of an ARPA member (Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad, Colorado) may register objections to the proposed Budget prior to its final adoption. The ARPA Board of Directors will hold a public hearing on the proposed Budget at the Otero Junior College Student Center, 2001 San Juan, La Junta, CO., on Thursday, December 5, 2019, beginning at 11:00 AM.

Financial Projection for YE 2019: Following a cooler May and June, sales in July rebounded, and are about 2% above budgeted sales through July. ARPA is conservatively projecting a year-end cash increase of $1.9 million. ARPA’s bond reserve accounts are fully funded and debt service coverage at the end of July is 1.40x.

Summary of July 2019 Financial and Operating Statements: During the month of July, revenue from power sales were better than budget by 11.2% and total cost of goods sold were over budget by 6.8%. Net revenue for the month was $817,499 which was 46% better than budget. Year to Date revenues are 2.7% better than budget and cost of goods sold are right on budget. Net revenues YTD are well above budget at $2,495,606. Member Energy sales for July were 1% more than 2018 and 11.2% better than budget. Member Sales YTD are about 2% better than budget.

City of Lamar Appoints Roger Stagner to ARPA Board Of Directors: Roger Stagner, Mayor for the City of Lamar, has been appointed to the ARPA Board of Directors by the Lamar City Council. Roger is a lifelong resident of Lamar and was appointed to finish out the term of John Sutherland who recently retired. Welcome Roger!

Bond Counsel to Provide Analysis on Integration of Project Based Contracting: The Board authorized the General Manager to engage Bond Counsel to provide an analysis as to whether an alternative business model would be a feasible approach for future power supply options for ARPA members. ARPA’s current contracts and resulting rate structure is an “all requirements” which obligates ARPA to obtain, sell and deliver the wholesale electric power and energy requirements that each municipality requires for the operation of their respective municipal electric systems. It also obligates the municipal members to receive and purchase from ARPA all power and energy it requires for operation of their respective municipal electric systems.

Next ARPA Meeting: The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, September 26, 2019. The meeting will be held in Trinidad, Colorado at the Holiday Inn, 3130 Santa Fe Trail Drive, beginning at 10:00 AM. ARPA Board of Director meetings are open to the public.

Thursday, August 15th, 2019

 

 

 

BUSINESS OPERATIONS – AUGUST 2019

Rick Klein, City Manager for the City of La Junta, was named to ARPA’s Honor Roll of Merit: The Arkansas River Power Authority Honor Roll of Merit is presented to a person or organization that makes a significant effort and unselfish contribution either to the mission and purpose of ARPA or to the betterment of an ARPA member community. Rick Klein, the City Manager of La Junta, was officially presented the 2018 Honor Roll of Merit for his excellent leadership capabilities, well-thought-out feedback and insight from a city managers perspective, to the ARPA Board of Directors. Over his career, Rick has spearheaded countless projects and area and state initiatives that not only improved City facilities and programs, but also reached beyond City and state boundaries. His most current project, preservation of the Southwest Chief, is a prime example of the passion and steadfast commitment he brings to projects that benefit not only La Junta, but all the Southeast Colorado communities. Rick commented that nothing is accomplished in a vacuum, change is inevitable and emphasized the power of teamwork and sticking together. Congratulations Rick!

ARPA Operating Committee Accepts Bid for Equipment Inspections- Reviews Safety Training Funding: ARPA entered into an agreement on behalf of its members for electric line equipment inspections for the years 2019-2021. The inspections will occur in October of each year at each member system location. Types of equipment inspected include bucket trucks, digger derrick equipment, hot sticks, rubber live line tools, covers and personal ground sets. The Operating Committee also reviewed safety training funds that are provided by ARPA. Funding is available for hot-line schools, meter training, and general field operations training. Funds can also be used to attend conferences provided by organizations such as APPA (American Public Power Association) and RMEL (Rocky Mountain Electric League).

Summary of June 2019 Financial and Operating Statements: During the month of June, revenue from power sales was less than budget by 5.7% and total cost of goods sold were under budget by 8.8%. Net revenue for the month was $481,803 which was 8% better than budget. Year to Date revenues are 0.5% less than budget and cost of goods sold approximately 1% under budget. Net revenues YTD are well above budget at $1,670,608

ARPA Board Receives Introduction to Project Based Rate Structure: John Krajewski of JK Energy Consulting provided a presentation to the Board on Project Based Rate Structure, and associated contracting, that is a business model used by some Joint Action Agencies. ARPA would continue to be responsible for its existing resources, compliance with its bond covenants, and member Power Supply Agreements. The Board took the presentation under advisement.

Twin Eagle Contract Assignment: Earlier this year, ARPA consented to the assignment of its Twin Eagle Partial Requirements Agreement (PRA) to Public Service Company of Colorado (PSCo), a highly rated, investor owned utility and subsidiary of Xcel Energy. The assignment went through a regulatory approval process with the Colorado Public Utilities Commission and the Federal Energy Regulatory Commission. The regulatory review and approval process has now concluded. Effective July 16, PSCo assumed ARPA’s PRA. All terms, including the pricing in the Agreement, remain in place. The PRA is for approximately 65% of ARPA’s power supply. The term of the ten-year Agreement is from February 1, 2015 through January 31, 2025.

Next ARPA Meeting: The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, August 29, 2019. The meeting will be held in Holly, Colorado at the Holly Senior and Community Center, 129 S. Main Street, beginning at 10:00 AM. ARPA Board of Director meetings are open to the public.

Thursday, June 27th, 2019

 

 

 

BUSINESS OPERATIONS – JUNE 2019

Standard & Poor’s Ratings Services (“S&P”) Affirms ARPA’s Credit Rating:  S&P’s Ratings Services affirmed its ‘BBB‘ long-term rating and underlying rating on the Arkansas River Power Authority’s power revenue bonds. The outlook is stable. S&P’s view is that during the next two years, member rates and energy demand will remain relatively stable based on ARPA’s long-term power supply contracts. The rating also reflects ARPA’s strengths and weaknesses. Strengths identified a recent resolution of member litigation, a purchase power agreement that will provide power at a competitive rate through at least 2024; and cost certainty given that most expenses are known and fixed for the next several years. Weaknesses included member rates that are above state averages (although rate increases are projected to be minimal over the next few years); high debt ratios, and participating member municipalities’ limited service area economies. To view the full Standard & Poor’s Rating Report go to: http://www.arpapower.org/docs/Standard_&_Poors_ARPA_14-May_2019.pdf

ARPA Holds its Election of Officers: At its meeting on May 30, the ARPA Board of Directors, by resolution, elected the following individuals into office for the next 12 months. Those officers include: David Willhite (Holly), President; Rick Stwalley (Las Animas), Vice President; Gary Cranson (La Junta), Treasurer; and Arvenia Morris, (Staff), Secretary.

 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 2019-2020 school year: Holly: Amy Bitar; Lamar: Giselle Sanchez; McClave (Lamar): Jordan Parker; La Junta: Caitlyn Dieckmann; Trinidad: Jasmine Abeyta; Las Animas: Alyssa Melendez; Wiley (Lamar): Blake Wilson. Good luck in your future endeavors!

 ARPA Board Adopts Resolution to Continue Negotiations with Tri-State: The Board adopted a resolution that commits the membership to ongoing efforts in completing negotiations with Tri-State for power supply services including transmission service, and defeasement of ARPA’s debt.  The resolution directs the general manager and attorney to continue negotiating with Tri-State, with a view to reaching agreement on a Purchase Power Agreement and Defeasance Agreement. It also directs management to confer with bond counsel to ensure any action taken complies with ARPA’s bond covenants.

 ARPA Board Reviews 2018 Audit: ARPA auditor, Ronny Farmer, rfarmer, llc, presented and briefed the Board on the 2018 Audit. Operating revenue from sales for its fiscal year ended December 31, 2018, was approximately $29.7 million which was almost 4% better than revenues for the Authority’s fiscal year 2017.  Operating income for 2018 was $13,426,852. There were total revenues of $42,556,614 and total expenditures of $29,129,762 in 2018. To view the full audit, go to: http://www.arpapower.org/docs/ARPA_-_2018_Final.pdf

 Summary of April 2019 Financial and Operating Statements: During the month of April, revenue from power sales was less than budget by 1.4% and total cost of goods sold were just under budget by 0.2%. Net revenue for the month was $210,917 which was significantly better than budget. Year to Date revenues are approximately 1.3% better than budget and cost of goods sold 2% over budget. Net revenues YTD are well above budget at $907,308.

Next ARPA Meeting: The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, July 25, 2019. The meeting will be held in La Junta, Colorado at the Otero Junior College Student Center, 2001 San Juan, beginning at 10:00 AM. ARPA Board of Director meetings are open to the public.

Thursday, June 27th, 2019

 

 

 

BUSINESS OPERATIONS – APRIL/MAY 2019

ARPA Member’s Line Crews Help With Lineworker’s Rodeo. Nine lineworkers from ARPA utility members helped the Colorado Springs Utilities prepare for the annual American Public Power Association’s Lineworker’s Rodeo. The Rodeo is designed to highlight the work lineworkers perform to “keep the lights on” with a friendly competition that draws Public Power utility crews from across the nation. Lineworkers from Las Animas, La Junta, Lamar, and Trinidad joined forces with the lineworkers from Colorado Springs Utilities to set approximately 200 poles for the estimated 400 lineworkers who participated in the event.

 ARPA Members Celebrate Lineworker’s Appreciation Day. The line crews from the ARPA communities gathered together on April 18th to not only celebrate Lineworker’s Appreciation Day, but to also participate in a critical safety training exercise- pole-top hurtman and bucket truck rescue. The lunch barbecue and safety training attended by some 27 lineworkers from the six utilities was not only an opportunity for the line crews to get better acquainted, but also to work together as they are often called to do. The ARPA communities rely on Mutual Aid between their respective utilities in times of storms and upset conditions as they strive to “keep the lights on” regardless of the weather and regardless of the conditions.

ARPA Board Receives Report on Financial Compliance. During the summer of 2018, the ARPA Board successfully refinanced approximately $120 million of its debt. The refinancing of the bonds provides significant savings for ARPA rate payers and included certain provisions for bond compliance purposes. One of those provisions includes an annual report to the Board. Aarin Ritter, Manager of Finance and Accounting for ARPA advised the Board that ARPA was in compliance with all the provisions of the bond covenants including the debt service coverage, and that all bond accounts are fully funded. In addition, Ritter reported that the bond funds are all held in approved accounts with the bond trustee, UMB Bank, and that all financial filings are current and have been posted on the Municipal Securities website.

Summary of March 2019 Financial and Operating Statements. During the month of March, revenues from power sales were better than budget by 1.8% and total cost of goods sold were over budget by 1.4%. Net revenues for the month were $218,042 which was significantly better than budget. Year to Date revenues are approximately 2.1% over budget and cost of goods sold approximately 2.7% over budget. Net revenues YTD are well above budget at $696,436.

Next ARPA Meeting. The next regularly scheduled meeting of the ARPA Board of Directors is Thursday, May 30, 2019. The meeting will be held in Springfield at the Longhorn Steakhouse beginning at 10:00 AM. The meeting is open to the public.