Dropping weight does make a big difference ... I know having done it myself going from around 290 to mid 190's (I'm 5'11" tall).
My specialty is TT's and flatter road races that hopefully have some wind so break-aways can form. I'm still too large to compete in climbing races, though I'm not a slow climber by most peoples standards ... just not fast enough to accelerate with the smaller guys on steep climbs. Over time, accelerating more weight over and over wears you out compared to smaller guys.
With that said ... to answer your question:
1) Lower weight will give you lower rolling resistance with your tires, thus increasing your speed in a TT (or other race)
2) Lower weight will give you less frontal area, thus increasing your speed in a TT (or other race)
3) Lower weight will allow for better positioning on the bike (no belly in your way), thus increasing your speed in a TT (or other race) and allowing for better comfort as well, which will help with longer races
4) Lower weight will allow for more blood flow to your muscles (i.e. the body won't be supplying as much blood to body fat) for better endurance and power
5) Lower weight will increase your W/Kg which will help with climbing ... but not make much of a difference in the flats. I can tell a big difference going from 200 to 190 when it comes to climbing and even the smaller rollers like you are talking about.
Basically ... lower weight is very good when it comes to cycling
I did read somebody talking about losing the weight before working on power, because people need food and recovery to build power and you need to eat less to lose weight. This is actually a falsehood for most people and I've talked to several coaches that have confirmed this.
The reality is the increased riding to lose weight, while watching what you eat ... tends to increase power and lower weight at the same time ... particularly for those overweight and building fitness. If you had been riding for 5 years and had a great base already but needed to lose 5 pounds ... then you might lose power, but in your case, it's highly unlikely.
Again as a base of reference ... when I dropped my weight, I cut calories down to a -1500 per day deficit and put power on during the same time. So major calorie deficit and increase in power because I was riding a lot and hard, which increased my power.
Basically ... cut the calories, ride lots, use focused training and your times will increase as you go along. It does make a HUGE difference in the end.