County of Los Alamos - File #: CO0745-26.2

• File #: CO0745-26.2
• Version: 1
• Type: Code Ordinance
• Status: Public Hearing
• File created: 2/6/2026
• In control: Board of Public Utilities
• On agenda: 5/6/2026
• Title: 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
• Presenters: Joann Gentry
• Indexes (Council Goals): Quality Excellence - Effective, Efficient, and Reliable Services, Quality Governance - Fiscal Stewardship, DPU FY26 - 1.0 Provide Safe and Reliable Utility Services, DPU FY26 - 2.0 Achieve and Maintain Excellence in Financial Performance
• Related files: CO0745-26.1

Title
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 move that the Board of Public Utilities recommend that Council adopt 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.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve the motion as presented.
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 projected decrease in therm sales and the proposed rate increases for FY2027 and FY2028, the gas fund is expected to reach a positive cash flow in FY2029. We anticipate beginning to fund cash reserves in FY2030 and fully funding those reserves by FY2032.

The proposed rates are...