Title
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 move that Council adopt 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 County Council adopt this Ordinance.
Board, Commission or Committee Recommendation
The Board of Public Utilities approved this Ordinance and recommends that Council adopt 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 schedul...
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