Title
Approval & Recommendation of 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 the Board recommend Incorporated County of Los Alamos Ordinance No. 02-365 and forward to Council for introduction and adoption. I further move that staff publish as provided in the County Charter.
Alternate Action - Elimination of Time of Use & Residential Demand
I move that the Board recommend 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 with time of use and residential demand rate structure removed and forward to Council for introduction and adoption. I further move that staff publish as provided in the County Charter.
Note: if the alternate motion is made, the ordinance will be introduced with the yellow highlighted sections removed. See attached.
Utilities Manager's Recommendation
The Utilities Manager recommend that the Board recommend this Ordinance with Time of Use and Demand rates because it encourages conservation and transition to renewable resources while meeting system funding needs, and forward to Council for introduction and adoption.
Body
Staff has made a series of presentations to the Board providing financial snapshots of the Electric Distribution Fund and the need for increased rates for FY2026 and FY2027. Staff presented to the Board of Public Utilities on February 5th and March 5th. UAMPS 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) charges range from $15 and $25 per month"
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 July 1, 2026.
Information is also posted on the website: <https://www.losalamosnm.us/Services/Public-Utilities/Rates-and-Fees>
Proposed Schedule
May 6 County Council Code Ordinance Introduction
June 10 County Council Public Hearing
Alternatives
If this ordinance is not approved, revenues will not be sufficient to match budgeted FY2026 revenue which will directly impact cash balances, reserves and operations. For the new rates structures, introducing and approving this ordinance will assist in the design and implementation of the time of use and residential demand rates and minimize the cost of implementation.
Fiscal and Staff Impact/Planned Item
The revenues for FY2026 budget assume a rate increase and will only be achieved if the new rates are approved.
Attachments
A - Code Ordinance 02-365 Electric Rates
B - Rate Approval Presentation
C - Frequently Asked Questions - Elec Rate
D - Frequently Asked Questions - TOU-Demand
E - Publication Notice CO 02-365