In the late 1970s when the Arkansas River Power Authority first began providing low cost power to member communities, an industry climate of looming deregulation and competition for customers was a long way off.
Now, as the winds of change move forcefully through the electric utility industry, ARPA is positioned to meet member energy requirements well into the next century. The utility recently completed an integrated resource plan, analyzing its energy supply resources and demand-side requirements into the year 2014.
Based in Lamar, Colo., the authority includes the Colorado cities of Holly, La Junta, Lamar, Las Animas, Springfield, and Trinidad, along with Raton, N.M.
In 1994, ARPA provided more than 282,000 megawatthours to its member utility systems. Maximum load in 1995 was 60,488 kilowatts. During the last 5 years, the load has increased 7.2 percent.
IRP projects growth
In its IRP, ARPA projected total member energy requirements of 400,000 MWh by the year 2014 and an annual maximum load of 75 megawatts. Member utilities are projected to add an average of 62 new residential consumers per year from 1994 to 2014, representing an average annual growth rate of only 0.4 percent.
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Small commercial consumer needs are expected to expand at an average annual rate of 1.1 percent during the next 20 years. A large commercial customer in Las Animas experienced considerable growth in recent years; but, overall, this sector should only increase at a slower 1 percent per year.
The number of irrigation consumers has slowly declined, and projections indicate a loss of one irrigation customer per year over the next two decades. Loads from street and highway lighting and security lights are projected to increase about 1 percent per year.
To meet load requirements, ARPA purchases about 24 percent of its power from Tri- State Generation and Transmission Association, 36 percent from Western, and 40 percent from member-system generation. Three member generating units currently operate regularly. Member-owned generation comprises about 32 MW of diesel, 36 MW of steam units, and another 7 MW of standby steam units.
No sizable investment
The age of the member-system generating plants is a major concern. Approximately 41,400 kW (more than half the existing capacity) is more than 30 years old. A little less than half of that is more than 40 years old.
Even so, ARPA plans to meet load requirements without a sizable investment in generating facilities. Adding new capacity can be deferred for several years; but, gradual replacement will eventually be required to ensure reliability, the IRP states.
Analysis of member-owned generating capacity showed that, with the exception of Holly and Las Animas, each member system maintains sufficient capacity to meet peak demand if the usual energy supply is interrupted. However, this will change with load growth. For example, Raton's load demand by the year 2000 will exceed its capacity by about 1,500 kW.
Capacity additions in the foreseeable future will be limited to backup needs in the event of transmission outages, replacement of aging generation equipment, and as an alternative solution to transmission limitations in southeast Colorado. Diesel, small-cycle combustion turbine, and combined cycle units offer the best potential to meet supply requirements, according to the IRP.
Use of renewable energy does not appear feasible for meeting power requirements at this time. Solar technologies cannot provide the backup service that ARPA needs to compensate for a limited transmission system. Other forms of renewable energy mostly offer base capacity, instead of peaking power.
Technical assistance offered
ARPA provides its members with technical assistance and coordination to encourage demand-side management. Some member cities currently conduct energy audits and offer limited demand-side management programs.
A comprehensive menu of demand-side measures is available to member-systems. Various measures within the following general areas were evaluated for their potential to meet energy and demand:
ARPA determined that a water heater program may be beneficial as a conservation alternative. It recommended that member systems offer customers a complete set of measures including tank and pipe wraps, faucet aerators, low-flow showerheads, and reduced temperature settings where possible.
Two other programs were reviewed. A proposed freezer replacement program was not recommended. With 1993 mandated standards, there should be substantial reductions in the energy use of these appliances without utility intervention. Commercial lighting measures were not found to be cost-effective at this time. Occupancy sensors on existing lighting may be effective if program costs can be reduced.
(For more information, contact Alice Tousley at (719) 336-3496.)
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Customers of Arkansas River Power Authority member utilities rate system reliability as the most critical component of utility services. Responding to a survey, customers ranked five areas of utility operations: rates, power interruptions, restoration of power after outages, responding to customers' problems, and communication with customers. The survey was part of ARPA's integrated resource planning process (see related article). ARPA will incorporate the survey results into its 2- and 5-year actions plans. While some customers desire other energy services, these types of programs do not have a high priority when compared to reliability, according to survey results. Respondents rate their municipal utilities as excellent to good in each of the five categories, with only slight variations between each area. Most respondents agree that their municipal system charges lower rates than neighboring utilities and that electricity is a good value when compared with other products. They believe their municipal system is committed to providing excellent service, and the staff act professionally. Of the customers responding to the survey, 63 percent are residential customers and 37 percent are commercial/industrial customers. Seventy-two percent of the customers have received electricity from their utility for at least 5 years. Customer comments were summarized into four basic conclusions:
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