Title
Update on the New Mexico Municipal Energy Acquisition Authority (NMMEAA) Natural Gas Supply Agreement
Body
On May 7, 2019, the County Council was presented with and approved resolution No. 19-05, continuing Los Alamos County’s natural gas purchases through the New Mexico Municipal Energy Acquisition Authority (NMMEAA) for a five-year term. The end of that term is approaching, and the Department of Public Utilities (DPU) is preparing for another five-year term renewal, henceforth the “2025 renewal”. The process this time is similar to the 2019 renewal, as described in the BACKGROUND INFORMATION section below.
The NMMEAA Board held meetings in November and December to once again select The Majors Group to act as the Board’s Financial Advisor for the renewal, and to prepare and approve a NMMEAA ordinance for the renewal, with this ordinance being attached to this agenda item. Please note that the ordinance is for NMMEAA and does not bind the County. The Board of Public Utilities and County Council must approve of the renewal terms to continue participating in the 2025 renewal. The NMMEAA gas supply participants, consisting of Los Alamos County, the City of Farmington, and Las Cruces, are currently planning on considering approval of the 2025 renewal as soon as early as February 2025, but this date may slip. The discount amount under the 2025 renewal will be known only immediately before the approval and may be different than the current discount of $0.295/Dekatherm.
In 2009 the County's NMMEAA daily gas delivery quantities were selected to match 80% of the average historical monthly metered gas consumption. An updated calculation using metered monthly gas consumption over the past 5-years shows significant reductions in average monthly gas consumption for ten months and increases for two months. DPU plans on changing the NMMEAA delivery quantities to match the 5-year averages, as shown in attachment B - 20250115 Comparison of current and proposed n...
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