Title
Introduction of Incorporated County of Los Alamos Code Ordinance No. 02-379; An Ordinance Amending Chapter 40, Article III, Sections 40-151, and 40-152 of the Code of the Incorporated County of Los Alamos Pertaining to Gas Service Rates
Recommended Action
I introduce, without prejudice, Incorporated County of Los Alamos Code Ordinance No. 02-379; An Ordinance Amending Chapter 40, Article III, Sections 40-151, and 40-152 of the Code of the Incorporated County of Los Alamos Pertaining to Gas Service Rates and ask the staff to assure that it is published as provided in the County Charter.
Utilities Manager's Recommendation
The Utilities Manager recommends that Council introduce this Code Ordinance.
Board, Commission or Committee Recommendation
The Board of Public Utilities reviewed this request at their work session on May 6, 2026 and recommends that Council introduce this Code Ordinance.
Body
The ten-year forecast for the gas utility presented with the FY2027 and FY2028 budget included a series of rate increases to generate the revenues needed to sustain current operations and to build the cash reserves required for future infrastructure investments. The proposed rate increases for the Gas Fund span two consecutive years: 29% in FY2027 and 17% in FY2028 for residential, multifamily, and commercial customers, and 30% in FY2027 and 19% in FY2028 for County and Schools customers.
During the rate analysis completed for the FY2027 and FY2028 budget, projected FY2026 sales revenue was estimated at $8.36 million. Due to a warmer winter and lower usage, current projections indicate sales revenue will be approximately $5.9 million-about $2.45 million below expectations. The FY2025 audited net income for the Gas Fund reflected a loss of $489,267, and the projected net loss for FY2026 is approximately $2.36 million.
For FY2027 and FY2028, we projected our sales in therms using a five-year average of 6.8 million therms. Based on the project...
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