Title
Approval of Department of Energy (DOE) - Los Alamos County (LAC) Resource Pool Budget Revision for Fiscal Year 2017
Recommended Action
I move that the Board of Public Utilities approve the 2017 Resource Pool budget revision as presented and forward to the County Council for its approval.
Staff Recommendation
Staff recommends approval of this 2017 Resource Pool Budget revision.
Body
The Electric Coordination Agreement (ECA) between the County and the Department of Energy requires that a revision to the current year budget be prepared and approved by the contracting parties “if warranted by changes in circumstances”. In practice, this has historically been done when unbudgeted expenditures or cost increases exceeding $50,000 in a single line item or expenditure category are identified and approved by the operating committee. The following items have been identified as meeting this criterion and driving the need for a budget revision.
1. San Juan Mine Reclamation Funding- An additional $1,061,081.00 funding is required to adjust to revised funding levels required by the latest Mine Reclamation Cost Study completed and adopted by the Mine Reclamation Oversight Committee in September of last year. We are required under the San Juan agreements to fully fund by December 31, 2017, but LANL desires to fully fund in this LANL fiscal year, so we are including $707, 387.33 this LAPP fiscal year, and will include the remainder in the next regular 24-month budget.
2. El Vado- $800,000.00. This is to account for the additional costs of the El Vado rewind project. This is the additional funding beyond what has already been budgeted to complete the project. We are estimating $500k to $800k will close out the project, but are recommending budgeting at this time for the higher amount to avoid potentially having to revisit this item again later.
3. PV Site Lead Acid Battery Replacement- $60,000.00. Twelve cells in the lead acid battery failed and need replaceme...
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