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UAMPS presents financial ‘wellness check’ for Los Alamos electric utility; finds stronger reserves but lingering operational shortfalls
Summary
UAMPS consultants told the Board of Public Utilities that Los Alamos' electric utility showed much stronger cash reserves following a 2024 settlement but still lacks consistent operating margins and has debt‑coverage and capital‑reinvestment gaps that the board and staff must address through rates and capital planning.
Representatives from the Utah Associated Municipal Power Systems (UAMPS) presented a member‑level financial review of Los Alamos’ electric utility at the Board of Public Utilities meeting on March 5.
Mason Baker, CEO and general manager of UAMPS, said the review is part of a periodic benchmarking and “financial wellness check” UAMPS provides to members when the association evaluates financing for shared projects. Shauna Scholes, who led the analysis, told the board the review focused on typical utility financial metrics including days cash on hand, rate of return, debt‑service coverage, debt‑to‑equity and capital reinvestment.
Scholes said the utility’s days‑cash‑on‑hand improved materially after a 2024 settlement and that the settlement funds, while partly restricted, are available for utility operations. She told the board that “typical range is 90 to a hundred and 50 days” for days‑cash‑on‑hand; Los Alamos moved from below industry norms into a more robust position after the settlement. Scholes also said historically the utility has not consistently covered operating expenses with operating revenue and noted a long period without regular rate increases; she cited that the utility had not had routine increases for many years though staff later clarified there had been increases in the last two years after a longer pause.
On debt and capital metrics, Scholes said the utility’s debt‑to‑equity ratio is relatively low (about 23%), which is not a leverage concern, but the age of system and capital‑reinvestment metrics suggest more investment is needed to return the net‑asset age toward an industry midpoint. Scholes recommended incremental, staged rate adjustments and noted that non‑operating items such as a large 2023 asset write‑off and the 2024 judgment skewed coverage ratios in some years.
Mason Baker said the review is intended to help Los Alamos benchmark practices and provide context for future project financing; Jackie Combs, UAMPS managing director of member relations, attended and noted the program’s long standing with members.
Los Alamos staff and UAMPS presenters and board members discussed rate design, reserve policy and capital‑investment timing during a broad conversation that followed the presentation. Staff emphasized the review covered the electric utility only and that some standard state calculations differ from UAMPS’ formulas for debt‑service coverage.
The presentation concluded with discussion of next steps: staff will use the benchmarking information while finalizing FY‑26 budget recommendations and a set of proposed ordinances and rate adjustments that the board will consider for introduction on March 19 with hearings to follow in April and May. No formal board action was taken on the UAMPS report at the meeting; it was an informational presentation.
