Los Alamos plans electric rate increases to address operating losses

Los Alamos County's Board of Public Utilities has proposed significant changes to electric rates, including a 9% increase set for July 1, 2025, and an additional 8% increase planned for July 1, 2026. These adjustments are part of a broader strategy to address ongoing financial challenges within the electric distribution system, which has faced operating losses for several years.

During the meeting held on April 16, 2025, board members discussed the necessity of these rate increases, citing inflation and rising costs of equipment as primary factors. Some electric distribution costs have surged by as much as 400%, impacting the overall financial health of the utility. Despite previous rate increases, the electric fund reported net losses of $3.1 million in fiscal year 2023 and $1.4 million in fiscal year 2024.

In addition to the rate hikes, the board is considering the implementation of time-of-use and residential demand rates, which are designed to be revenue neutral. This means that while rates may increase, the overall revenue generated will remain stable, helping to mitigate the financial strain on the utility.

The board emphasized that these discussions have been ongoing for nearly two years, with multiple presentations and public discussions aimed at ensuring transparency and community engagement. The proposed changes are expected to be presented to the council for further consideration.

The meeting also highlighted the importance of utility assistance programs, which have provided financial support to local families. In the past year, the Low-Income Home Energy Assistance Program (LIHEAP) and the Utility Assistance Program (UAP) collectively assisted over 100 households in Los Alamos.

As the board moves forward with these proposals, the community will be closely monitoring the implications of the rate increases and the potential changes to billing structures. The next steps will involve further discussions with the council and continued outreach to residents to ensure that the utility's financial stability aligns with the needs of the community.