Los Alamos County Board of Public Utilities Work Session - February 4, 2026

The Board of Public Utilities (BPU) held its monthly work session at 5:30 PM on Wednesday, February 4, 2026, in the Municipal Building Council Chambers, with Zoom participation. Vice Chair Matt Heavner chaired in person; Chair Robert Gibson participated remotely, along with Utilities Manager Philo Shelton and Council Liaison Ryn Herrmann. The board suspended its work-session procedural rules so formal action could be taken, approved the agenda, and then heard presentations on the March 2026 power supply contract, distribution electrification, the 10-year capital improvement plan, and customer service survey results.

Agenda and Procedural Action

• The board voted 5-0 to suspend procedural rules for the work session, allowing formal action.
• The board voted 5-0 to approve the February 4, 2026 agenda.

Public Comments & Testimony

• Joni Ahrens, representing Concerned Citizens for Nuclear Safety, said she could not access the WSPP.org document referenced in the Tenaska PPA materials and received a server error. She asked that all documents tied to a county expenditure of more than half a million dollars for roughly one month of power be readily accessible. Staff offered to follow up by email.
• No public comments were made during the second public comment period.

Presentation: Short-Term Power Purchase Agreement with Tenaska

• Deputy Utility Manager Ben Olbrich requested approval of a short-term PPA with Tenaska Power Services Co. to serve the Los Alamos Power Pool in March 2026.
• The current PPA with Mercuria expires February 28, 2026. About 22 MW are needed for March, and DPU received two offers and selected the lower-priced one.
• Estimated cost is $423,112.80 before gross receipts tax (GRT), plus a 25% contingency of $106,000.00, for a subtotal of $529,112.80; GRT of 7.0625% adds $37,368.59, for a total of $566,481.39. The final price can move with market prices until execution.
• Olbrich explained that the agreement will be executed under the WSPP master agreement dated October 31, 2025, with a confirmation letter prepared immediately before signing. WSPP is a membership organization with a FERC-accepted master agreement whose members include Los Alamos County and Tenaska.
• Olbrich noted the estimated price is roughly $30/MWh, down from about $78/MWh under the Mercuria contract; forward curves suggest higher prices later in 2026.
• Board questions covered WSPP membership, why purchases are limited to one-month increments under the current ECA, and the fallback of daily market purchases if no PPA is in place.
• The board voted 5-0 to recommend Council approval of the PPA.

Presentation: Distribution and Electrification Plan Implementation

• Dennis Astley, Deputy Utility Manager-Electric Distribution, gave an informational update on work related to the 2025 Distribution System Electrification Study.
• The study found asset replacement costs will be more significant than system improvement costs; most of the distribution system has sufficient capacity, but age is the primary concern.
• Residential electric use has risen about 2% per year on average over the last 10 years despite energy-efficiency gains, while residential gas use appears to have declined.
• Suggested improvements already underway or planned include adding a line superintendent, improving the Milsoft power-flow model and GIS alignment, updating Rule E-5 for Volt-VAR control and balcony solar, designing the East Gate Substation, upgrading the EA-4 line and White Rock substation transformers, studying demand-side management, developing an asset replacement plan, preparing an Integrated Resource Plan, assessing cross-departmental synergies, and recruiting an engineering project manager.
• Underground cable and switchgear replacement are major focus areas; many 1970s-era direct-buried cables and undersized secondary services need upgrading.
• Broadband make-ready work is being coordinated with overhead system maintenance; broadband identified the first seven sections in White Rock, with 20 sections total planned. Work includes pole replacements, crossarm replacement, anchor installation, and removal of open-wire secondaries.
• The 10-year CIP covers underground residential distribution replacements in neighborhoods such as Piedra Loop, Los Pueblos, Quemazon, Sandia, Grand Canyon/Bryce/Richard Court/Rover, La Senda, Tewa/Otowi/Nambe Loop/Santa Clara, Oakwood Loop, Sage Loop, Kimberly Loop, and Trinity. East Gate Substation construction is planned for FY2030.
• Board discussion addressed future capacity needs, a possible policy discussion on undergrounding, cost implications, and the need to align system goals with service reliability rather than simply following the study.

Presentation: Asset Management Team - Capital Improvement Plan Budgets

• James Alarid and James Martinez presented the FY2027 and FY2028 capital improvement plan budgets.
• FY2027 highlights include $200,000 for Abiquiu wicket gate servo replacement; $2,485,000 for electric distribution, including $1,500,000 for White Rock URD replacement, $450,000 for overhead system replacement, $35,000 for the shared DP Road staging area, and $500,000 for East Gate Substation design; $135,000 for gas distribution; $1,235,000 for water distribution; $3,635,000 for water production; and $2,185,000 for wastewater treatment and sewer collection.
• FY2028 highlights include $1,050,000 for El Vado repairs and controls; $9,450,000 for electric distribution, including $4,000,000 for EA-4 Power Line replacement; $110,000 for gas distribution; $1,300,000 for water distribution; $5,220,000 for water production, including Pajarito Well No. 3 test drilling; and $4,150,000 for wastewater treatment and sewer collection.
• Discussion covered the DP Road staging area, which would also provide fenced contractor laydown space; replacement of Pajarito Well No. 3 after contamination of the existing well; uncertainty around El Vado dam and hydro plant investments; and the need for a deeper board discussion of hydro projects.

Presentation: Transactional Survey Report (July-December 2025)

• Public Relations Manager Catherine D'Anna presented the semiannual survey conducted by GreatBlue Research.
• There were 136 responses in the second half of 2025, with a margin of error of +/-8.37% at the 95% confidence level. Full-year 2025 participation was 303 respondents, the highest since 2022.
• Respondents were predominantly residential; only 5 commercial customers responded. More than 67% lived in one- or two-person households, 55% in Townsite, 80% owned their homes, 49.3% had been DPU customers for at least 20 years, and 37% for 10 years or less.
• Billing questions and payments/pay arrangements were the top reasons for contact; 2025 was the first year payments/pay arrangements ranked above billing questions. About 17 of 136 respondents reported electric questions.
• The share of customers needing multiple contacts to resolve issues fell from 31% in the first half of 2025 to 19% in the second half. Average ratings of DPU representative characteristics rose from 84.4% to 93.3%, with four ratings at 94% or higher. About 74% of respondents interacted with Customer Care Center representatives.
• DPU added tap pads at the Customer Care Center to make it easier for in-person customers to complete the survey.

Business: ECA Forum Travel, B&C Luncheons, and Farmers Market

• Utilities Manager Philo Shelton asked for a board member to attend the 2026 Energy Communities Alliance (ECA) New Nuclear Forum in Augusta, Georgia, April 21-23, 2026. The board approved travel expenses for Member Eric Stromberg to attend.
• Board members volunteered for 2026 Boards & Commissions luncheons: Eric Stromberg on March 5, Charlie Nakhleh on May 14, Robert Gibson on September 10, and Jennifer Hollingsworth on November 12.
• Board members volunteered for Farmers Market booth dates: Jennifer Hollingsworth on May 21, Robert Gibson on June 25, Charlie Nakhleh on July 23, Vice Chair Matt Heavner on September 24, and Eric Stromberg on October 22. No booth in August due to the County Fair.

Key Outcomes

• Approved the agenda and suspended procedural rules for the work session.
• Voted 5-0 to recommend Council approval of the Tenaska short-term PPA for March 2026, totaling $566,481.39 including GRT and contingency.
• Approved BPU member travel for Member Stromberg to the 2026 ECA Forum.
• Scheduled board member attendance at B&C luncheons and Farmers Market dates.
• Informational items on electrification implementation, the CIP budget process, and the transactional survey required no formal action.
• Board members discussed scheduling future discussions on undergrounding policy and on the future of El Vado and hydroelectric investments.