Lamar Pumps the Brakes On Proposal to Sell Utility

~Anne Boswell

Lamar City Council voted to table discussion on an item that would move the city closer to a sale of its electric utility to a rural electric cooperative.

It came from a meeting this summer where Southeast Colorado Power Association approached Lamar Light and Power with an interest to purchase them. As expected, the next step would be to do a study or evaluation of the utility. At Monday night's council meeting the item of discussion was an ask from the Co-op to the City to pay half of that study, which totaled $17,500. This would be equally split between the City of Lamar and Southeast Colorado Power Association (SECPA). There were some reservations about approving payment of that study right now, as is. One council member suggested the city could be left with the entire bill if SECPA decided not to pay.

Mayor Kirk Crespin added his concern to rushing the decision. "The value may come in at 500 million and Southeast Colorado Power might say whoa, that's too high for me, and back out but we don't know that."

Mayor Crespin said the city needs the study, however, to determine value and other aspects related to the possible sale.

Council voted to put the item on hold until the next meeting when a signed agreement with Southeast Colorado Power can be obtained assuring they would pay for half of the study.

Whatever is decided in the steps up to purchase would not be decided on by the Lamar City Council. The sale of Lamar Light and Power would have to go to a vote of the people. If approved, the sale would more than double the number of consumers that SECPA would be responsible for. As of April, 2024 there were 5,339 SECPA members (consumers). Lamar Light and Power serves roughly 5,700 customers.

In addition to the acquisition of Lamar Light and Power it seems SECPA is interested in another Prowers County utility. In recent SECPA board meetings this summer reports were given to the Southeast Colorado Power Association board of directors considering a desire to also purchase Granada's power system. According to the report, the Mayor of Granada was open minded to the transaction but an evaluation would still be coming by the same firm would who be doing the study for Lamar, Toth & Associates.

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