Title
Asset Management Team (AMT) - Capital Improvement Plan (CIP) Budgets
Body
A high-level overview of the rational, risk and justification applied to prepare the 10-year capital improvement plan for the various Department of Public Utilities cost centers is provided below.
Electric Production
The FY2027 & FY2028 projects will address items needing immediate attention.
- Wicket gate servos (hydraulic rams) are original equipment and have been refurbished once. They are constantly leaking and vendors are reluctant to refurbish with any confidence. FY2026 purchase 4 new servos and budget in FY2027 $200,000 for the contractor to install the servos.
- FY2027 El Vado controls and synchronizer upgrades.
- February 2026 we will re-issue the request for proposals for a third-party condition assessment. The condition assessment will shape the 10-year capital improvement plan next year.
Electric Distribution
The FY2027 and FY2028 projects will continue to replace both overhead and underground system features based on their frequency of failure and current condition assessments.
- Much of the overhead maintenance work will be in coordination with the preparation required to string fiber for the county Broadband Initiative. While working a line for Broadband, we will make use of the mobilization to perform necessary overhead maintenance.
- FY2028 will be the first proposed bond issue to complete the EA-4 Powerline replacement and other distribution system improvements.
- Throughout the 10-year capital improvement plan overhead and underground distribution replacements will be complete. All improvements will be designed to accommodate the anticipated increase in electric demand identified in the Electrification Study.
- Recommendations from the Electrification Study completed in 2025 have been incorporated in the 10-year capital improvement plan. Specifically, the East Gate Substation and Feeder design in FY 2027 and construction in FY 2030.
Gas Distribution
The 10-year capital improvement plan for the gas system does not have any major rehabilitation, expansion or replacement projects identified in the next 10 years. After 20 years of aggressive improvements from 2002 to 2022 to replace old steel lines, construct a high-pressure loop connecting the mesas, reconstructing the border stations and multiple capacity improvements throughout the Los Alamos and White Rock systems, the focus has shifted to maintenance of the existing systems. A moderate amount of capital funds are budgeted in the 10-year capital improvement plan, ranging from $100,000 to $220,000, to address unknown issues that may arise.
Water Distribution
The first five years of the 10-year capital improvement plan include a large waterline replacement project that will be coordinated with a roadway repaving project. These projects are coordinated with the Public Works department where both the waterlines and paving are in poor condition. These projects are funded by the “profit transfer” funds that are provide to the DPU as a budget option during the county overall budget approval. There are some additional water line replacement projects throughout the 10-year capital improvement plan that will be funded by Water Trust Board funds.
Water Production
Over the past 6 years the capital investment in the water production system has been heavily focused on rehabilitation of the wells and supervisory controls and data acquisition (SCADA). In the past couple of years, the focus has shifted to replacement of old and failing water transmission lines. In the 10-year capital plan in the upcoming budget we will continue to rely heavily on grants and low-interest loans from the New Mexico Environment Department (NMED) to replace transmission lines, rehabilitation of booster stations and tank refurbishment. The planning, design, and construction of a new well in White Rock at Overlook Park will show up for the first time in this year’s budget. This well will be a replacement well for Pajarito Well No. 3, which is offline due to chromium groundwater pollution. We are pursuing federal funding through our congressional representatives for this replacement well.
Wastewater Treatment
The capital improvements proposed are minimal given the good condition of the new White Rock plant and recent investments in equipment at the Los Alamos plant. In addition, the available capital funds are limited as we will begin payment on the loan for the White Rock plant fiscal year 2027.
Wastewater Collection
A shift in the proposed 10-year capital plan from investment in refurbishment of lift stations to replacing and/or rehabilitating existing clay sewer pipelines. This shift is a direct result of the increased issues with the clay pipelines and the resulting overflows and claims resulting from the clay pipe failures. We will leverage grants and low interest loans from the NMED to aggressively address problem areas.
Alternatives
None.
Fiscal and Staff Impact
None
Attachments
A - 10-Year Capital Improvement Plan
B - FY2027 and FY2028 Project Narratives