Los Alamos utilities outline multi‑year repairs, staffing and procurement challenges in asset‑management review

The Board of Public Utilities heard a comprehensive asset‑management briefing from Department of Public Utilities staff on major maintenance needs, planned capital projects and staffing challenges that the department says will shape next year’s budget.

The presentation, led by James Allred of the department’s asset management program, summarized condition assessments and near‑term capital plans across water, wastewater, gas and electric operations. Allred and other staff described a mix of predictable replacement work and several larger, less predictable repairs that have forced the department to defer some projects while seeking loan support.

The discussion focused on three near‑term items: water distribution projects tied to an upcoming Public Works street repaving (Trinity Drive), an application to the New Mexico Rural Infrastructure program for up to $2,000,000 (with a possible $500,000 grant component) to group deferred wastewater projects, and a single high‑priority replacement at the wastewater plant later considered for formal award (a belt press; see separate vote summary).

Staff said Trinity Drive water‑line work will be coordinated to take advantage of a planned mill‑and‑overlay and “road diet” by Public Works, and that an older water main dating to the 1940s in that corridor will be partially replaced while the road is under construction. Allred told the board that initial estimates for the Trinity waterline were about $575,000 but said the actual work this year will likely be about half that amount after more detailed scoping.

Wastewater crews reported a string of deferred projects (blower building, UV system work, motor control centers and aeration basin repairs) that staff hope to package under the state loan if awarded. Allred said the plan is to bring several of the deferred items together under a single loan application and to stage work if necessary so the department can proceed within available funds.

On water distribution, staff described an increase in valve failures and water leaks tied in part to the system’s mix of vintages, and said crews will increase valve maintenance and “valve exercising” to try to reduce emergency responses. The department said it will not request additional full‑time equivalents in FY26 but will use reorganized supervision and a training pipeline to raise productivity.

Gas distribution work emphasized cathodic protection and an expanded inspection and recordkeeping campaign. Staff said they had an audit in December and that crews performed well; they also noted ongoing monitoring needs for the master‑metered Elk Ridge system.

Electric generation and production work included updates on El Vado (Elvado/Elvato in the presentation) reservoir timing and the Bureau of Reclamation’s plans to raise water levels for limited generation as early as the upcoming spring. Staff said they are debating whether to defer a large controls upgrade at El Vado until staff can test the new controls under live operating conditions.

Across units, lead times and supply‑chain constraints remain a material scheduling risk, staff told the board. Large transformers and some specialty electrical items still have long lead times (12 months or more for large three‑phase units in some cases); overhead cable availability has improved. Staff said they are accepting refurbished equipment in some cases to reduce cost and lead time.

Board members asked about staffing and budgeting. Staff replied they will try to shift resources internally and use targeted overtime and contractor work for near‑term needs, and that the FY26 budget presentations in February and March will show the specific funding proposals.

Public comment included former board member Steve Cobin, who urged clearer onboarding materials for new board members and said rooftop solar policy debates from recent years left some customers with “bad information.” Cobin told the board he drafted a short set of data sheets he believes would help new members track recurring items, and said rooftop solar created distributional effects that remain a concern.

Staff said the asset‑management findings inform the FY26 capital plan and that they will return with more detailed budget figures in the coming months.