Title
Presentation of On Bill Financing Program and Possible Action
Recommended Action Motion
I move that the Board of Public Utilities receive the presentation regarding On-Bill Financing and direct no further action at this time.
-OR-
I move that the Board of Public Utilities direct staff to pursue On-Bill Financing program and return to the Board with additional program details.
Body
On-Bill Financing allows utility customers to pay for eligible energy improvements, such as heat pumps, electrical panel upgrades, heat pump water heaters, insulation, or other energy-efficient technologies, through their monthly utility bill instead of paying the full cost upfront. Costs are spread out over time, helping make upgrades more affordable while potentially reducing energy use, improving comfort, and reducing barriers to adopting more efficient technologies.
The concept aligns with broader County goals related to energy efficiency and electrification. Financing tools such as on-bill financing may provide customers with a mechanism to pursue upgrades that otherwise may be financially difficult to achieve due to high initial costs.
Staff have been working with the New Mexico Climate Investment Center and the Coalition of Sustainable Communities New Mexico to explore program concepts and potential funding structures. As discussed during the presentation, the intent would be for external financing partners to provide capital for any future program, and Los Alamos Department of Public Utilities would not act as the lender. The utility's role would primarily focus on education, coordination and billing administration should a program ultimately move forward.
The concept of on-bill financing was presented to the Environmental Sustainability Board (ESB) on May 21, 2026. No formal recommendation or action was taken by the Board. However, members generally expressed support for the concept and discussed its potential as a tool to help improve home energy efficiency, safety, and comfort while reducing financial barriers associated with energy upgrades. Members noted that the program could help remove barriers that often prevent residents from pursuing energy improvements. The Board also discussed several considerations requiring additional evaluation, including financing mechanisms, loan structures and terms, repayment processes, eligibility criteria, and overall program administration. Questions from the ESB are included at the end of Attachment A.
Staff are seeking direction regarding whether the Board of Public Utilities would like staff to further evaluate this opportunity as a potential mechanism to support electrification efforts, facilitate the transition from natural gas where appropriate, and encourage energy efficiency improvements in homes.
Fiscal and Staff Impacts
The New Mexico Climate Investment Center has identified a potential $1 million capital investment to provide seed funding for a future On-Bill Financing program. These funds could help support the initial financing pool for eligible energy efficiency and electrification upgrades. Additional grant funding would likely be needed to support program administration, outreach, coordination, and implementation activities to ensure the long-term success and sustainability of the program.
Attachments
A - On Bill Financing Presentation