By Roger Rael
The Raton Range
RATON — RPS board President Kathy McQueary says electricity rates will have to rise, although her explanation in a recorded interview, provided by KRTN, leaves residents without an estimate of what they could pay or a timetable for when increases might arrive.
McQueary, who described serving on the board for more than 30 years, said a power agreement comparable to the utility’s existing contract could cost 60% more if negotiated today. She did not identify the source or underlying calculations for that estimate during the interview.
The figure refers to the cost of a comparable power contract. It does not establish that customers’ electric bills would increase by 60%
Nevertheless, McQueary presented higher rates as an eventual necessity, whether the utility continues purchasing electricity or pursues its own generation.
“So either way, rates are going to have to go up,” she said.
That warning was not accompanied by a household bill comparison, a proposed rate schedule or a detailed explanation of alternatives being evaluated to control costs.
McQueary said the utility’s agreement with Guzman Energy began in 2021 and expires in 2030. She said discussions about future power arrangements are underway and described the existing agreement as having protected the community from increases experienced elsewhere.
However, the interview did not establish when residents would see a comparison of options, what those options might cost or how the public would participate in the decision.
Questions also remain about the financial arrangement involving Raton’s local generator.
McQueary said the 4.3-megawatt generating unit had operated during July and August and was operating at the time of the interview. She explained that local generation reduces the electricity Guzman must supply to Raton, allowing the company to direct other power to its customers.
The interview did not explain who pays the generator’s fuel and maintenance expenses, what compensation or credits Raton receives, or the arrangement’s net financial benefit to local customers.
Those terms are necessary to evaluate how the arrangement serves the people paying Raton’s electric bills.
McQueary also described a funding system governed by city ordinance that allocates revenue among operations, reserves, debt service, overhaul and capital needs.
She said the utility could transfer approximately $53,000 monthly into its capital fund this year, provided sufficient revenue remained after other requirements were met.
That explanation did not include current fund balances, actual capital transfers, or a comparison between available money and anticipated infrastructure expenses.
One expense discussed was approximately $250,000 for work involving the replacement of two poles. McQueary said specialized outside assistance was needed and that replacing both poles together avoided another outage. The utility already had replacement poles in stock, she said.
The interview provided no itemized breakdown of that expense. Invoices and work records would be needed to assess the cost.
The discussion establishes that the utility faces decisions about future power supplies and infrastructure. It does not establish that the board has mismanaged those responsibilities.
But McQueary’s warning leaves a consequential question unanswered: How much more could Raton residents be asked to pay, and what documented steps is the board taking to limit that increase?
Raton Public Service Board President Kathy McQueary says electric rates will likely rise. However, residents still don’t know by how much, when increases could occur, or what options are being considered to keep costs down.
