Title
Incorporated County of Los Alamos Code Ordinance No. 02-365; An Ordinance Amending Chapter 40, Article III, Sections 40-121, 40-122 and 40-123 Relating to Electric Rate Schedules, Electric Customer Service Charges and Electric Energy Charges
Recommended Action
I move that Council adopt Incorporated County of Los Alamos Code Ordinance No. 02-365; and ask staff to assure that it is published in summary form.
Utilities Manager's Recommendation
The Utilities Manager recommends that Council adopt Incorporated County of Los Alamos Code Ordinance No. 02-365 as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities approved this code ordinance at a Public Hearing held on April 16, 2025 and recommends that Council adopt Incorporated County of Los Alamos Code Ordinance No. 02-365 as presented.
Body
Staff has made a series of presentations to the Board of Public Utilities (BPU) providing financial snapshots of the Electric Distribution Fund and the need for increased rates for FY2026 and FY2027. Staff presented to the BPU on February 5th and March 5th. Utah Associated Municipal Power Systems (*UAMPS) staff also presented a Financial Assessment of the Electric Fund and made rate observations which included 1) "the utility doesn't seem to have consistent rate adjustments, resulting in operating losses" and 2) "National average (residential customer) service charges range from $15 and $25 per month." (*Note: Los Alamos County is a member of UAMPS. This full-service interlocal agency provides comprehensive wholesale electric energy services on a non-profit basis to community-owned power systems throughout the Intermountain West.)
The proposed FY2026 budget includes a 9% increase in FY2026 and an 8% increase in FY2027. The changes to the existing electric rates would be in effect on July 1, 2025 and July 1, 2026.
The Board of Public Utilities and staff have also had a series of public meetings discussing residential time of use and residential demand rate designs. The Board directed staff to
implement both time of use and residential demand billing capabilities either in the existing or new billing software program. Staff included $250,000 in the FY2026 budget to update the existing software to allow for the new rate designs. There is a minimum of 12 months for the implementation. The new rate design which includes time of use and residential demand would not take effect until no sooner than July 1, 2026.
Information is also posted on the website: https://www.losalamosnm.us/Services/Public-Utilities/Rates-and-Fees.
Alternatives
If this ordinance is not approved, revenues will not be sufficient to match budgeted FY2026 revenue which will directly impact cash balances.
Fiscal and Staff Impact/Planned Item
The revenues for FY2026 assume a rate increase and will only be achieved if the new rates are approved.
Attachments
A - Incorporated County of Los Alamos Code Ordinance No. 02-365
B - Notice of Publication CO 02-365
C - Frequently Asked Questions - Electric Rate Ordinance
D - Frequently Asked Questions - Time of Use and Residential Demand
E - Electric Rate Ordinance Presentation