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City proposes 9% electric rate increase amid budget challenges and neighbor comparisons

February 05, 2025 | Los Alamos, New Mexico


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City proposes 9% electric rate increase amid budget challenges and neighbor comparisons
In a recent work session held by the Los Alamos County Board of Public Utilities, officials discussed a proposed electric rate increase that could significantly impact local residents. The recommendation includes a 9% increase set to take effect on July 1, 2025, which would raise the average residential electric bill from $83.25 to approximately $90.75. This increase is part of a broader strategy to address ongoing budgetary challenges and restore cash reserves ahead of anticipated electrification costs.

The proposed rate hike is still below the Consumer Price Index (CPI) for the same period, but it reflects a growing trend of rising utility costs in the region. Comparatively, the average residential rate in neighboring communities is currently $81.11, with the potential for further increases as other utilities adjust their rates in response to market conditions.

During the meeting, officials outlined a timeline for the budget process, with a preliminary budget presentation scheduled for February 19 and a final adoption expected by March 19. Public hearings will follow in April, leading to the implementation of the new rates by July.

The discussion also touched on the introduction of a time-of-use rate structure, which would allow customers to save on their bills by using electricity during off-peak hours. However, this proposal is still in the early stages, and further analysis will be conducted to ensure it meets the needs of the community.

Additionally, the board examined the energy usage patterns of low-income households, finding that their consumption levels were comparable to those of their neighbors. This insight will inform future discussions on equitable rate structures and potential support for vulnerable populations.

As the board moves forward with these proposals, residents are encouraged to stay informed and participate in upcoming public hearings to voice their opinions on the changes that could affect their utility bills and overall community sustainability.

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Scribe from Workplace AI
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