County of Los Alamos - File #: CO0693-24.2

• File #: CO0693-24.2
• Version: 1
• Type: Code Ordinance
• Status: Public Hearing
• File created: 5/20/2024
• In control: Board of Public Utilities
• On agenda: 6/26/2024
• Final action: 6/26/2024
• Title: Approval and Recommendation of Incorporated County of Los Alamos Code Ordinance No. 02-359; An Ordinance Amending Chapter 40, Article III, Sections 40-151 and 40-152 of the Code of the Incorporated County of Los Alamos Relating to Gas Rate Schedules
• Presenters: Karen Kendall
• 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: CO0693-24.1, CO0693-24

Title

Approval and Recommendation of Incorporated County of Los Alamos Code Ordinance No. 02-359; An Ordinance Amending Chapter 40, Article III, Sections 40-151 and 40-152 of the Code of the Incorporated County of Los Alamos Relating to Gas Rate Schedules

Recommended Action

I move that the Board recommends Incorporated County of Los Alamos Code Ordinance No.  02-359; An Ordinance Amending Chapter 40, Article III, Sections 40-151 and 40-152 of the Code of the Incorporated County of Los Alamos Relating to Gas Rate Schedules and forward to Council for introduction and adoption.

Utility Manager's Recommendation

The Utility Manager recommends that the Board recommend Incorporated County of Los Alamos Code Ordinance No. 02-359 and forward to Council for introduction and adoption.

Body

The FY2025 adopted budget and FY2026 projection each included a 5.5% blended rate increase for gas. The Board and Council previously approved a 3% increase for FY2025 (effective Sept 2024) and a 2% increase for FY2026 (effective Sept 2025).  In determining projected rate increases, the ten-year projection takes into consideration expenditures and fulfilling the reserve target requirements within the required ten-year horizon. Since DPU's budget preparation, New Mexico Gas Company (NMGC) and Conoco Phillips have notified the County of increases in their transportation rates on both a per meter and variable basis. Additionally, The New Mexico Public Regulation Commission, Pipeline Safety Bureau performed the Operation and Maintenance Procedures & Emergency Plan audit in 2023.  The audit included review of records and procedures for the period from 2018 to 2022 and field inspection of the gas system.  The audit resulted in a list of notice of probable violations (NOPVs) that required a timely response to avoid these findings elevating to violations.  DPU has responded to each of the NOPVs which addressed updating procedures, new procedures, addressing items noted during fi...