Title
Approval of Modification 26 to Extend the Contract Term by One-Hundred and Twenty-Days of the Electric Coordination Agreement (ECA) between the Incorporated County of Los Alamos and the United States Department of Energy (DOE)
Recommended Action
I move that the Board of Public Utilities recommend Council approve Modification 26 to the Electric Coordination Agreement (ECA) between the Incorporated County of Los Alamos and the Department of Energy (DOE).
Utilities Manager's Recommendation
The Utilities Manager recommends that Board approve the motion as presented.
Body
The Power Pool was established through the Electric Coordination Agreement (ECA) between Los Alamos County and The Department of Energy in 1985. (Note: In 2002 the National Nuclear Security Administration was established as a branch of the Department of Energy and took over responsibility for the ECA. The acronyms NNSA, DOE, and LANL may be used interchangeably throughout this discussion). Through the contract, both parties contribute the power from, and costs of, each of the respective "Pool Approved Resources" into the pool, and those costs are then allocated back to the parties pro rata according to each party's usage. The contract has been renewed continuously since 1985. Historically the County has contributed approximately 75% of the resources, while the Lab has accounted for approximately 80% of the load.
The proposed Modification (MOD) 26 adds one hundred and twenty (120) days to the current agreement's expiration date of March 31,2026. If approved, then the new expiration date will be July 31, 2026. This extension will allow time for DOE to complete their contracting process to present back to the County.
The Los Alamos Power Pool met on March 11, 2026, and approved this MOD 26.
Progress on the New ECA
On December 19, the DPU received a draft-final ECA from the DOE just before the holidays. BPU formed a working group to review the ECA and held a couple of meetings over the holiday period. The ECA is the agreement that guides Los Alamos Power Pool cost share arrangements. The original ECA was written in 1985, and its continuation requires updated terms and conditions under the new ECA. This is proving to be a larger task than simply renewing the old agreement. The DPU has retained Kutak Rock to assist the County in review of the new terms and conditions, ensuring fair allocation of costs and risks that the County is taking in this partnership. Also, staff are working with the DOE staff and its consultant on the 10-year contract value since this was underestimated. There will need to be another four-month extension (July 31, 2026) as we finalize the new ECA this fiscal year.
Alternatives
The Board could elect not to accept the proposed MOD 26, and the current agreement would expire March 31, 2026.
Fiscal and Staff Impact/Planned Item
There is no immediate staff or fiscal impact.
Attachments
A - ECA MOD 26