County of Los Alamos - File #: CO671-23

• File #: CO671-23
• Version: 1
• Type: Code Ordinance
• Status: Introduction of Ordinance
• File created: 7/7/2023
• In control: County Council - Regular Session
• On agenda: 9/5/2023
• Title: Introduction of Incorporated County of Los Alamos Code Ordinance No. 02-351; An Ordinance Amending Chapter 40, Article III, Sections 40-121, 40-122, and 40-123 of the Code of the Incorporated County of Los Alamos Relating to Electric Rate Schedules, Customer Service Charges and Electric Energy Charges
• Presenters: Philo Shelton; Karen Kendall
• Indexes (Council Goals): Quality Excellence - Effective, Efficient, and Reliable Services, Quality Governance - Fiscal Stewardship, DPU FY2022 - 1.0 Provide Safe and Reliable Utility Services, DPU FY2022 - 2.0 Achieve and Maintain Excellence in Financial Performance
• Related files: CO671-23-b, CO671-23-a

Title
Introduction of Incorporated County of Los Alamos Code Ordinance No. 02-351; An Ordinance Amending Chapter 40, Article III, Sections 40-121, 40-122, and 40-123 of the Code of the Incorporated County of Los Alamos Relating to Electric Rate Schedules, Customer Service Charges and Electric Energy Charges

Recommended Action
I introduce without prejudice, Incorporated County of Los Alamos Code Ordinance No. 02-351, An Ordinance Amending Chapter 40, Article III, Sections 40-121, 40-122, and 40-123 of the Code of the Incorporated County of Los Alamos Relating to Electric Rate Schedules, Customer Service Charges and Electric Energy Charges.

Utilities Manager Recommendation
The Utilities Manager recommends that Council introduce this Code Ordinance.

Board, Commission or Committee Recommendation
The Board of Public Utilities approved this ordinance at their regular meeting of August 16, 2023 and recommends that Council introduce as presented.

Body
The Department of Public Utilities has not raised electric rates since 2015. The adopted FY2024 budget includes an 8% increase in revenue anticipating an electric rate increase. DPU contracted for an electric rate study and cost of service study. The proposed rates are based on the results of the rate study portion of the contracted work. DPU is proposing rate increases for both FY2024 and FY2025. The cost of service study is ongoing and DPU anticipates those results to impact rates in FY2026. Staff is developing a work plan on improving the billing software to offer more flexible usage rates such as time of use and/or demand charges to the electric rates which is planned to be implemented in FY 2026.

Background
Overview of Code Ordinance 02-351
· GDS Associates completed their rate study which is based on forecasting future revenue on a system-wide basis.
· GDS Associates and DPU are working together to complete the Cost-of-Service study which looks at the cost of providing services by customer classes inc...