Title
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 Council adopt 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 ask staff to ensure that it is published in summary form.
Utility Manager's Recommendation
The Utilities Manager recommends that Council adopt Incorporated County of Los Alamos Code Ordinance No. 02-359.
Board, Commission or Committee Recommendation
The Board of Public Utilities approved Code Ordinance No. 02-359 at their regular session on June 26, 2024 and recommends that Council adopt as presented.
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 ...
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