Longmont Power & Communications (LPC) is a nonprofit community enterprise.

Weve been providing electricity to Longmont since January 1912 after local citizens, unhappy with the high rates and poor service of an out of town utility, waged a successful legal battle for the right to serve their own electricity needs. Today were known in the electric industry as a public power utility. Public power utilities are operated by local governments as a public service. Our mission is to deliver reliable electricity at a reasonable cost. Public power utilities like ours provide a lot of hometown advantages. We are driven by public service, not profit. We exist to serve you our fellow citizens and neighbors. Our loyalty is to our customers, not to shareholders. We help make Longmont a good place to live and work. We follow democratic principles, with an elected City Council as our policy board that has open public meetings every Tuesday at 7 p.m. We are accountable to you, not a board of directors in another city or country. In response to community interest, we have committed more utility resources to energy efficiency, renewable energy and environmental programs. In 2008, 23.4% of the electricity used in Longmont came from non-fossil resources. And we are working with other city departments to develop a long-range environmental plan for community sustainability. LPC is your utility. We encourage you to share your views on our policies and operations with us. Tom Roiniotis, Director Longmont Power & Communications

(as compared to 2007)

Customers: 36,231 (1% increase) Residential: 33,609 Commercial: 2,611 Industrial: 11 Financial Data: Revenues: $45.3 million (7.9% decrease) Total expenses: $46.0 million (5.5% decrease) Energy load: 830,491 MWh energy consumed (1.6% decrease) 137.1 MW peak demand, winter (6.9% increase) 178.2 MW peak demand, summer (0.3% decrease) Distribution system: 582 line miles 433 miles underground; 149 miles overhead 6 substations 45 main distribution circuits Service area: 47 square miles (unchanged) 28 within city limits 19 outside city: Hygiene, Lyons, Apple Valley In 2008, LPC: Implemented a residential solar electric rebate program with $100,000 in matching grant funds from the Governors Energy Office. Extended the number of work days without a lost time accident to 596. Trimmed or removed 2,340 trees to clear 18 miles of overhead electric lines. Provided 83 residential and commercial energy audits. Repaired 2,146 pedestal lights and replaced more than 3,000 pedestal light bulbs.

PRESORT STANDARD US POSTAGE PAID LONGMONT, CO PERMIT 19

To Our Valued Customers

2008 Facts and Figures

POWER & COMMUNICATIONS

2008 Report to the Community

Longmont Power & Communications 1100 South Sherman Street Longmont, CO 80501

Printed on recycled paper certi ed by FSC, SFI and Rainforest Alliance

www.ci.longmont.co.us/lpc 303.651.8386

Longmont

Connecting our Community

LPC Rates Lowest in Colorado

LPC electric rates were the lowest in Colorado and among the lowest in the nation in 2008. Longmont residential, commercial and industrial rates all ranked the lowest among 51 Colorado utilities. LPCs average electric rate for all customers was 37% less than the Colorado average and 45% less than the national average in 2008. Average Electric Rates
5.4 7.0 8.6

Load Growth
The demand for electric power in Longmont declined slightly from 2007 to 2008. Over the past five years the number of LPC customers has increased 5.4% while the Citys annual energy consumption increased by 7.5% and the maximum demand (the highest amount of electricity required to meet customer needs during a one-hour period) increased by 7.3%.
850,000
Megawatt Hours

Finances
LPC had total revenues of $45.3 million in 2008, 4% under budget and a decrease of 8% from 2007. Total expenses were $46.0 million, 11% under budget and 6% less than 2007. The Electric Fund reserve balance decreased by $0.8 million, or 8%, to $9.2 million. LPCs electric fund expenses are in six major categories: purchased electric power, distribution system costs, administrative costs, capital costs, franchise fee payments and transfers to the City general fund for services and other contributions. Purchased power is 73 of every electric fund expense dollar. Although purchased power is LPCs largest expense, our power costs are relatively low compared to other utilities. Electric distribution system operations Expenses Per Dollar and maintenance is 73- Purchased Electric Power our next largest 11 - Distribution System expense (11), followed by 6 - Franchise Fee to General Fund payments to the 5 - Administrative & Other Costs City general 3 - Transfers to General Fund fund (9).
2 - Capital

Power Resources
Platte River Power Authority, owned by the municipalities of Longmont, Ft. Collins, Estes Park and Loveland, provides reliable, low-cost and environmentally responsible electricity. Longmonts mayor Ownership and the LPC director Fort Collins Longmont represent the City 48% 26% on Platte Rivers Board of Directors. Platte River had electric generation capacity of about 920 MW in 2008. Resources include: Rawhide Energy Power Sources Station - 280 MW Coal - 70.2% coal and 388 MW Hydropower - 19.8% natural gas Other - 3.9% Yampa Project Renewable - 3.6% 154 MW coal Natural Gas - 2.5% Medicine Bow Wind Project - 8 MW wind Western Area Power Administration 90 MW hydropower In 2008, LPC received about 23.4% of its electricity from non-fossil fuel sources, including hydropower, wind and landfill gas.
Estes Park 5% Loveland 21%

Energy Information Administration Average retail price per kWh February 2009

Average rate all sectors Industrial

9.8

Annual Energy Consumption

843,820 830,491

4.4

6.6

825,000 800,000
795,174

823,009

Commercial

5.4

8.6

10.3

Residential

6.1

10.2

11.4

775,000
772,203

2
United States

4
Colorado

Cents per Kilowatt Hour

LPC

10

12

750,000

2004

2005

2006

2007

2008

LPC Honored for Reliability

LPC is one of only 84 electric utilities to receive Reliable Public Power Provider (RP3) recognition from the American Public Power Association in 2008 for providing consumers the highest level of reliable and safe electric service. More than 2,000 public power utilities operate nationwide. The RP3 designation recognizes community owned utilities that demonstrate proficiency in four key areas: reliability, safety, training and system improvement. Criteria within each category are based on sound business practices and signify a utilitys commitment to customers, the community and employees for safe and reliable delivery of electricity.

LPC and its partners provided energy efficiency incentive programs in 2008 that will save an estimated 1.1 million kilowatt-hours, more than 750 tons in greenhouse gas emissions and about $65,000 in customer utility costs each year. Highlights include: 18 residential solar rebates approved for $162,000 28,353 CFL bulbs sold at price discounts of $35,952 2,542 LED light packages sold at price discounts of $6,014 825 ENERGY STAR clothes washer and dishwasher rebates of $41,250 13 commercial efficiency rebates of $43,616 Maximum Demand
180
Megawatts

Capital Improvement Program

A Capital Improvement Program (CIP) is an important tool for planning, maintaining and building electric system infrastructure. In 2008, LPC had three CIPs with a total budget of about $2.5 million. Only $822,000, or 33%, of the CIP budget was used primarily due to a slowdown in new construction. LPC completed 15 projects to add or improve street lighting ($129,000) and 40 projects to improve electric distribution system operations and reliability ($221,000). We also completed 187 customer projects to install or upgrade electric infrastructure ($472,000). Customers pay the full cost for new or upgraded electric service and an Electric Community Investment Fee for distribution system improvements.

Renewable Energy Mix

All LPC customers get 3.6% of their electricity from renewable sources. In addition, more than 650 customers purchased 6.4 million kWh of renewable energy on a voluntary basis in 2008. Green-e

Energy

178.7

175 170 165 160

166.1 172.7 171.8

178.2

C E R T I F I E D LPCs voluntary Renewable Energy program is certified Green-e. That means the energy meets minimum environmental and consumer protection standards established by the nonprofit Center for Resource Solutions. Electricity purchased in Renewable Mix the voluntary program is 100% renewable and Wind - 88% includes wind and Landfill landfill gas. gas - 12%

2004 2005 2006 2007 2008