County of Los Alamos - File #: CO0643-22-a

• File #: CO0643-22-a
• Version: 1
• Type: Code Ordinance
• Status: Introduction of Ordinance
• File created: 5/20/2022
• In control: Board of Public Utilities
• On agenda: 6/15/2022
• Final action: 6/15/2022
• Title: Introduction of Incorporated County of Los Alamos Code Ordinance No. 02-329; 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: Heather Garcia
• Indexes (Council Goals): * 2022 Council Goal - Investing in Infrastructure, DPU FY2020 - 1.0 Provide Safe and Reliable Utility Services, DPU FY2020 - 3.0 Be a Customer Service Oriented Organization that is Communicative, Efficient, and Transparent
• Related files: CO0643-22-b

Title
Introduction of Incorporated County of Los Alamos Code Ordinance No. 02-329; 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 introduce, without prejudice, Incorporated County of Los Alamos Code Ordinance No. 02-329; 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 Recommendation
The Utilities Manager recommends that the Board of Public Utilities introduce this Ordinance.

Body
The ten-year forecast for the gas utility presented with the FY2023 budget included a series of rate increases to generate revenues needed for current operations and to build cash reserves necessary for future infrastructure needs. Rate increases proposed in the Gas fund were three consecutive years of eight percent increases, followed by five percent in FY 2026. The Gas Rate schedule has been unaltered since 2016, in which the commodity rate was decreased from .29 cents per therm to .23 cents per therm. Prior to this change, in 2013, the commodity rate was decreased from .55 cents per therm. The gas rates for service charges have not been changed since 2009. It the latest iterations of analysis, large increases to costs due to inflation and supply chain shortages have greatly impacted fund balances. Staff feels confident the short to mid-term rate trajectory proposed in the FY2023 budget are appropriate for the four-year horizon at least and is thus proposing a multi-year rate adjustment at this time. Four years projected rate increases are included in the ordinance proposed.

The advantages to implementing the multi-year proposal are numerous. Importantly, it provides for the rate adjustments to scheduled and effective with advanced notice to customers. It allows our customers to plan and budget for future antici...