Archive for the ‘Monthly Summary’ Category

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.

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.