Lyons utility faces projected 9% shortfall as transmission costs rise
Draft utility-board minutes project a 9% shortfall and estimate that higher transmission rates could add $12,000 a month, as town officials prepare the next budget.
Lyons’ electric utility faces a projected 9% shortfall, while transmission rates under the Southwest Power Pool are described as 50% higher than rates under the town’s previous arrangement, according to draft minutes from the Lyons Utilities and Engineering Board.
The minutes estimate the higher transmission costs could add $12,000 per month. They also say the town should avoid being “in deficit mode” before moving to time-of-use electric rates, which officials said could initially create a shortfall.
The minutes come from the board’s Sept. 2 meeting and are included in the agenda packet for its scheduled Sept. 16 meeting. The rates previously came through the Western Area Power Administration’s Loveland Area Projects system.
Officials discussed possibly ending the town’s $100,000 annual budget for undergrounding electric utilities. The minutes describe that as an option, not an approved reduction, and say the town has made little progress because of consumer costs and limited interest.
Jim Kerr was identified as preparing a report for the Board of Trustees during the budget process. The final budget is expected in late October. No rate increase, time-of-use schedule, meter change or spending reduction had been approved in the available record.