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Idle power plant to be sold

The Arkansas River Power Authority has contracted a global asset recovery firm based in Princeton, N.J., to help assist in the sale of the idled Lamar Repowering Project.

Last month ARPA’s board of directors passed a resolution authorizing Rick Rigel, ARPA general manager, to execute a contract with International Process Plants. the contract with International follows an extended study by ARPA concerning the most economic options for the power facility which has not operated since November 2011. Currently ARPA is spending approximately $120,000 each month to keep the plant in “cold standby.”

ARPA owns the Lamar Repowering Project and contracts with Lamar Utilities Board/Lamar Light and Power to operate the plant.

In 2014, the ARPA board adopted a resolution concluding that it would be economically beneficial to decommission or dispose of the failed project’s assets.

that since a boiler at the power plant has been unable to operate in compliance with the air emissions limits, the board, over the course of the last several months, has explored numerous alternatives for the nonperforming plant.

In related news,Colorado Springs power plant fire to lead to electric rate hike.

ARPA hired HDR Engineering to research companies and options for selling the plant assets, including an evaluation of prospective asset recovery companies and equipment brokers. national Process Plants will attempt to sell the plant as a complete unit, including the boiler, 18 MW steam turbine, and associated coal handling and ancillary systems.

“This approach represents the most value that can be recouped from the failed plant,” an ARPA official said in a statement.

The Lamar Repowering Project has been generating more controversy than power since ARPA dedicated the $153 million expansion to the Lamar power plant in 2008.

In 2003, the utility began planning to convert Lamar’s gas-fired power plant, built in 1972, to a coal-fired plant. The conversion came in part because of skyrocketing natural gas prices and because a contract with Tri-State Energy to supply the authority’s power needs was not being renewed.

After several years the project has seen delays, rising costs, shutdowns and other setbacks. The project also has produced lawsuits from environmental groups.

ARPA provides wholesale electricity to its member communities of Holly, La Junta, Lamar, Las Animas, Springfield and Trinidad.

This article was written by ANTHONY A. MESTAS from The Pueblo Chieftain, Colo. and was legally licensed through the NewsCred publisher network.

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