Lyons board member estimates 9% electric-rate increase amid rising transmission costs

Lyons Utilities and Engineering Board member Jim Kerr estimated that a 9% electric-rate increase would be needed to cover transmission costs, in addition to inflation adjustments. Draft minutes from the board’s Oct. 7 meeting say staff reported that transmission costs rose about 123% from April to August, after Lyons joined the Southwest Power Pool in May, the town’s Oct. 21 agenda packet shows.

The board’s draft Oct. 21 agenda scheduled discussion of 2027 electric rates and a rate-setting recommendation. The records available before that meeting did not show an approved rate change.

Draft minutes from the board’s Sept. 2 meeting compared Southwest Power Pool transmission rates with the town’s previous arrangement through the Western Area Power Administration’s Loveland Area Projects system. They described the new rates as 50% higher and estimated an additional $12,000 a month. The minutes also said the town should avoid being “in deficit mode” before moving to time-of-use electric rates, which officials said could initially create a shortfall. They identified Kerr as preparing a report for the Board of Trustees during the budget process and said the final budget was expected in late October, the town’s Sept. 16 agenda packet shows.

The Oct. 7 minutes also discussed leaving the town’s $100,000 annual undergrounding allocation unspent to cover most of the transmission-cost increase. Earlier minutes described ending the allocation as an option, not an approved reduction, and said the town had made little progress on undergrounding because of consumer costs and limited interest. The Oct. 7 minutes likewise record no decision to change the allocation.