Los Alamos BPU introduces electric rate ordinance including time‑of‑use and residential demand charges

The Board of Public Utilities on March 19 introduced County of Los Alamos ordinance 0-2-365, a proposed change to Chapter 40, Article 3, that would raise electric rates and add new residential time‑of‑use and demand charges. The introduction schedules a public hearing for April 16, when the board will consider substantive action and whether to forward the ordinance to County Council.

The draft ordinance would increase electric rates by 9% effective July 1, 2025, and an additional 8% effective July 1, 2026, and add a new rate design for residential customers that combines time‑of‑use pricing with a residential demand charge. Karen Kendall, Department of Public Utilities staff, summarized the history of rate design work that led to the ordinance and said the department recommended introducing the ordinance as written, including the time‑of‑use and residential demand components. "The utility manager does recommend the board introduce the code ordinance as presented, including the time of use and residential," Kendall said.

Board members spent much of the introduction reviewing procedure and timeline. Chair Sherry Gibson described why the staff combined two previously separate ordinances into one to meet publication rules and noted staff had highlighted the sections that implement time‑of‑use and demand charges so the board could later remove them if it preferred. Gibson said the utility manager will present final amendments at the April 16 hearing.

Board members asked technical and implementation questions. One member asked how many customers had opted out of the advanced metering infrastructure; staff answered "140 approximately." Utility Manager Philo Shelton and staff explained that while much of the utility’s power is purchased under fixed contracts, market purchases and new resources such as the Foxtail Flats project affect hourly costs; staff said Mercuria’s fixed contract ends in early 2026 and Foxtail Flats was expected to begin service near that time.

A member of the public raised concerns about low‑income and senior households facing higher bills under a peak pricing system. Mrs. Rosenbaum said, "Peak hours, meaning 5 to 11. My concern is what about all of us that need to cook dinner?" Chair Gibson responded that the board was aware of those concerns and that the rate design assumes customers will manage some high‑use appliances and shift charging and other load where possible.

Staff told the board the department has budgeted $250,000 for software and implementation costs to connect meters to billing and execute the new rate design and that the billing vendor and AMI vendor were coordinating for implementation.

Because this was an introduction, no final board vote on the ordinance took place. The ordinance record and staff report will be the subject of the April 16 public hearing and any substantive board action.

The board set the public hearing for April 16 and directed staff to present final amendments then. Council introduction is scheduled for May 6 with a council hearing planned June 10. The ordinance, if approved following the hearings, would put the first set of new electric rates into effect July 1, 2025, and the second set July 1, 2026.

Context: The board has discussed time‑of‑use and residential demand rates in multiple work sessions since 2023 and contracted with consultants (GDS) to study cost of service and alternate rate designs. Staff emphasized the recommendation to keep the combined ordinance for publication compliance but flagged the yellowed paragraphs in the draft that could be removed if the board preferred to defer implementation of time‑of‑use and demand charges.

Looking ahead: The board will take public testimony and may amend the ordinance at the April 16 hearing before deciding whether to forward it to County Council.