COUNTY NEWS RELEASE

Customers of the Los Alamos Department of Public Utilities (DPU), particularly those with natural gas service at their homes, are encouraged to tune into or attend a public hearing for gas rate adjustments on Wednesday, May 6, at 5:30 p.m.

The hearing will be held during the Los Alamos Board of Public Utilities (BPU) work session in room 330 on the 3rd floor of the Los Alamos County Municipal Building at 1000 Central Avenue. The meeting will be held in a hybrid fashion so anyone wishing to join remotely may do so using the link https://ladpu.com/ratehearing.

The DPU is proposing changes to its natural gas rate that are intended to close the gap between budgeted operational costs and the revenues that cover those costs. An introduction of the proposed rate ordinance was presented at the Board of Public Utilities meeting on April 1. The proposed ordinance is posted on the DPU’s Rates and Fees webpage at https://www.losalamosnm.gov/Services/Public-Utilities/Rates-and-Fees

If approved by the BPU, the proposed ordinance will be introduced to the Los Alamos County Council on Tuesday, May 19, followed by a second public hearing on Tuesday, June 9.

Historically, DPU’s gas rate averages have shown the typical customer using 75 therms monthly. With recent warming of annual temperatures, however, that average has begun to drop. In the past five years, the average customer has used 70 therms monthly. With this decrease, the rate components intended to cover the utility’s operational costs are not generating enough revenue to do that.

The proposed rate increase combined with the reduced residential consumption of 70 therms forecasts an annual average residential gas bill of $78.53 starting July 1, 2026. If adopted, a second-rate increase will occur on July 1, 2027, and the annual average residential gas bill will be $86.93. The current residential annual average gas bill is $67.45.

If the ordinance is not adopted, the DPU will need to curtail gas system maintenance and replacements. Such an action will impact system reliability and eventually prompt a more urgent and substantial rate increase.

Additionally, the BPU’s financial guidance requires DPU to build cash reserves for each utility fund to ensure the department can meet operational needs, handle system retirement obligations, meet debt service requirements, and handle unanticipated system failures or disruptions. The rate proposal lays the foundation for funding required reserves starting in FY2030.

Answers to frequently-asked-questions about the proposed rate change can be found on DPU’s website under the Proposed Rate Changes section header at https://ladpu.com/rates.

·         Wed., May 6, 5:30 p.m.: Public hearing at BPU

·         Tues., May 19, 6:00 p.m.: Formal introduction at County Council

·         Tues., June 9, 6:00 p.m.: Public hearing at County Council.