The City of Delta is in the final stages of acquiring about 80 Delta-Montrose Electric Association customers on Garnet Mesa. The affected service territory lies between 5th and 7th streets, and adjoins DMEA territory previously acquired by the city.
By state statute, once the city exercises its right to acquire territory, DMEA must be compensated for loss of revenue for existing and new services for a 10-year period. Previously, DMEA requested a lump sum payment. This time, utilities director Steve Glammeyer explains, payment will be made annually. City staff will track the revenue received annually and pay DMEA 25 percent of the gross revenues, as required by state statute.
The first payment of $100,194 includes $73,398 for facilities and $26,796 to compensate DMEA for its man-hours. That's well under the amount budgeted for 2015, since the city anticipated the lump sum payment.
Glammeyer advised councilmembers that the city will begin another round of acquisitions shortly after 2016.