Energy board discusses reliance on market purchases ahead of Foxtail Flats launch

In a recent meeting of the Los Alamos County Board of Public Utilities, discussions centered on the county's current energy supply dynamics and future challenges. The meeting, held on April 16, 2025, highlighted the complexities of power purchasing and the implications for the community as it navigates energy demands.

A key topic was the county's reliance on real-time energy purchases until the anticipated Foxtail Flats project becomes operational. Ben Ulbrich, a representative from the utilities department, explained that the county currently meets most of its electric load through a 40-megawatt power purchase agreement, which is set to expire in February 2026. This agreement is crucial as it provides a stable energy supply, but the county's energy needs fluctuate seasonally. For instance, the unusually warm weather in March and April has led to a surplus of power, resulting in the county sometimes selling excess energy back to the market, albeit at a loss due to low market prices.

Ulbrich emphasized that the situation is nuanced, with energy consumption patterns significantly influenced by seasonal changes. The county's energy strategy is not solely dependent on the Foxtail Flats project; rather, it reflects broader community needs and the evolving landscape of energy generation and distribution. The board members acknowledged that changes in energy demand, including the impact of distributed solar systems, are already affecting the distribution network, necessitating adjustments to how energy is managed.

The discussions also touched on the importance of understanding demand charges, which are fees that reflect the costs associated with energy consumption spikes. These charges are essential for maintaining the stability of the distribution system, especially as more residents adopt solar energy solutions.

In summary, the meeting underscored the complexities of energy management in Los Alamos County, highlighting the need for strategic planning as the community prepares for future energy demands. The board's ongoing discussions will be critical in shaping the county's energy landscape, particularly as the expiration of the current power purchase agreement approaches. As the community looks ahead, the interplay between local energy projects and market dynamics will remain a focal point for the Board of Public Utilities.