County of Los Alamos - File #: CO671-23-b

• File #: CO671-23-b
• Version: 1
• Type: Code Ordinance
• Status: Public Hearing
• File created: 7/7/2023
• In control: Board of Public Utilities
• On agenda: 8/16/2023
• Final action: 8/16/2023
• Title: Incorporated County of Los Alamos Code Ordinance No. 02-351; An Ordinance Amending Chapter 40, Article III, Sections 40-121, 40-122, and 40-123 of the Code of the Incorporated County of Los Alamos Relating to Electric Rate Schedules, Customer Service Charges and Electric Energy Charges
• Presenters: Philo Shelton; Karen Kendall
• Indexes (Council Goals): * 2022 Council Goal - Investing in Infrastructure, DPU FY25 - 2.0 Achieve and Maintain Excellence in Financial Performance, DPU FY2020 - 1.0 Provide Safe and Reliable Utility Services
• Related files: CO671-23-a, CO671-23

Title
Incorporated County of Los Alamos Code Ordinance No. 02-351; An Ordinance Amending Chapter 40, Article III, Sections 40-121, 40-122, and 40-123 of the Code of the Incorporated County of Los Alamos Relating to Electric Rate Schedules, Customer Service Charges and Electric Energy Charges

Recommended Action
I move that the Board approve Incorporated County of Los Alamos Code Ordinance No. 02-351, An Ordinance Amending Chapter 40, Article III, Sections 40-121, 40-122, and 40-123 of the Code of the Incorporated County of Los Alamos Relating to Electric Rate Schedules, Customer Service Charges and Electric Energy Charges, and forward to Council for Introduction and Adoption.

Utilities Manager Recommendation
The Utilities Manager recommends that the Board approve Incorporated County of Los Alamos Code Ordinance No.02-351.

Body
The Department of Public Utilities has not raised electric rates since 2015. The adopted FY2024 budget includes an 8% increase in revenue anticipating an electric rate increase. DPU contracted for an electric rate study and cost of service study. The proposed rates are based on the results of the rate study portion of the contracted work. DPU is proposing rate increases for both FY2024 and FY2025. The cost of service study is ongoing and DPU anticipates those results to impact rates in FY2026. Staff is developing a work plan on improving the billing software to offer more flexible usage rates such as time of use and/or demand charges to the electric rates which is planned to be implemented in FY 2026.

Introduction to Council: September 5, 2023
Council Public Hearing: September 26, 2023

Background
Overview of Code Ordinance 02-351
GDS Associates completed their rate study which is based on forecasting future revenue on a system wide basis
GDS Associates and DPU are working together to complete the Cost of Service study which looks at the cost of providing services by customer classes. They will present the results of this ...