Title
On Bill Financing Program Update
Recommended Action
I move that the Board of Public Utilities direct staff to pursue a Request for Information in order to further understand the viability of an On Bill Financing Program.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve the motion as presented.
Body
This is an update with additional research to support the development of an on bill financing program.
Over ten programs around the country have been researched and communicated with to see how their program components might fit into a program in Los Alamos County. Two potential program tracks have been developed; however, several pieces remain unknown at the moment and will hopefully gain more clarity with the recommended actions for BPU. Legally, it is a challenge to structure a program within the constraints of anti-donation. Financially, the challenge is to offer low interest loans and meet reserve and loan default responsibilities without significant risk to the County.
County staff recognize these challenges and believe pursuing a Request for Information would help provide clarity for the unknowns. The Request for Information would be directed at, but is not limited to, third-party program administrators/vendors and existing public power entities with similar programs.
DPU and Sustainability Office staff know this is an undertaking for the County and are working closely with County Finance, Procurement, and Legal during each step.
Alternatives
No immediate alternatives. If the board does not support on bill financing, work toward this initiative will cease. New Mexico legislation could consider supporting R-PACE (Residential Property Assessed Clean Energy) Program, which, if passed, could be brought before Council in an ordinance adoption to open R-PACE locally.
Fiscal and Staff Impact
To be determined. The on bill financing program would ideally be supported through a loan (for customer improvements) and a grant (for program administration) during the first year or two. Then the program could be self sustaining. The bulk of the program management would be contracted to a third party. Customer Care would process bills as usual. DPU staff would provide educational and promotion materials as needed.
Attachments
A - BPU Update OBF Program