Los Alamos County Board of Public Utilities Work Session – March 4, 2026

The Board of Public Utilities (BPU) held a work session on Wednesday, March 4, 2026, at 5:30 PM in the Municipal Building, Council Chambers, Los Alamos, NM, with remote participation via Zoom. Chair Gibson called the meeting to order and welcomed Dennis Ansley, the new permanent deputy utility manager for electric distribution. The agenda included an NMED update on the chromium plume at Los Alamos, the DPU FY2025 annual report, a review of the proposed FY2027 budget and cash reserve guidelines, and the annual water system update. The board approved the agenda unanimously and took no other formal votes.

Public Comments & Testimony

• No members of the public provided comment in person or via Zoom during either public comment period.

Discussion Items

NMED Chromium Plume Update

• Mike Peterson (Hazardous Waste Bureau) and Caitlin Martinez (Ground Water Quality Bureau) presented the update. Peterson reviewed plume history, showing that pre-interim-measure contamination at R50 exceeded the state action level of 50 parts per billion (ppb) and approached the Pueblo de San Ildefonso boundary.
• After interim measures, extraction wells operated in the plume center and northeast, with injection wells along the expected plume boundary. NMED noted that monitoring at some wells later used for injection had shown chromium concentrations of 60 to 100 ppb.
• The new SIM-3 monitoring well on Pueblo de San Ildefonso property was drilled in August/September 2025. Zonal sampling indicated the highest screening-level concentrations in the lower zones, approximately 73 and 62 ppb, prompting NMED to work with the Office of the State Engineer on a dual-screen well design with a lower screen at 1,027–1,047 feet. Peterson said the results were unexpected and did not align with model-based assumptions of hydraulic control in the southern plume area.
• Well construction is nearly complete; after aquifer testing and a constant-rate test, initial regulatory samples will be collected, and SIM-3 will enter the regular monthly sampling schedule. NMED said it will work with Pueblo de San Ildefonso on next steps.
• Regarding interim operations, NMED said it has not authorized reinjection of treated groundwater but supports continued extraction and treatment with disposal through other permitted mechanisms, such as the existing land application discharge permit. NMED clarified that its pause applied to reinjection authorization, not to extraction. A proposed first action discussed was one extraction well at about 60 gallons per minute, with permitted land application capacity of 350,000 gallons per day.
• Martinez discussed adaptive site management using RCRA FIRST and ITRC guidance. Goals include iterative work plans, use of metrics, stakeholder collaboration, and periodic reassessment of the conceptual site model. She also noted the state’s concern that injection above contamination could drive plume migration downward or laterally. A stakeholder group includes Los Alamos County, Pueblo de San Ildefonso, NMED, DOE, Office of the State Engineer, and the Department of Indian Affairs.
• Board members asked about model validation, plume migration timelines, and drinking water protection. NMED responded that long-term predictive modeling carries uncertainty and that the state prefers to adapt as new data arrive. A county representative noted that drinking water testing has not shown elevated chromium in county wells, and NMED said monitoring wells are intended to provide early warning before receptor impacts.

DPU Annual Report – Fiscal Year 2025

• Catherine D'Anna, Public Relations Manager, presented the annual report for July 1, 2024 through June 30, 2025. She noted the report is required by the county charter and was prepared after Council approval of the ACFR.
• Highlights included five awards earned in FY2025, 100 employees, 29 employee promotions (six of them twice), new impact-by-the-numbers pages, and performance measures for electric, gas, water, and wastewater.
• A board member flagged that the natural gas section used a target of a 10% reduction in therms per capita per heating degree day, which is not the board-established goal, and that the underlying data showed natural gas use per heating degree day has been essentially constant since 2002, indicating zero progress toward the 2030 milestone. Staff acknowledged the error and said the report would be corrected and re-uploaded within a few days.

Proposed FY2027 Budget and Cash Reserve Guidelines

• Joann Gentry, Deputy Utility Manager for Finance and Administration, presented cash reserve guidelines supporting the FY2027 budget review. Guidelines include an operations reserve of 180 days of operating expenses, capital expenditure reserves based on depreciation plus 2.5%, a contingency reserve for the largest single piece of equipment, a debt service reserve, and a rate stabilization reserve in electric and water distribution funds.
• Restricted cash totals from the ACFR were approximately $25.9 million: $19.72 million in electric, $1 million in gas, $4.6 million in water, and $652,000 in wastewater.
• Gentry said financial performance varies by fund; the electric distribution fund is under pressure because sales were lower than anticipated, and staff has shifted revenue forecasting to a five-year historical average. Board members discussed the need for longer-term financial planning, including eventual transition away from natural gas infrastructure.

Annual Water System Update

• Clay Moseley, Deputy Utility Manager for GWS Services, presented the annual water system update. He described aging infrastructure challenges, including approximately 84 pressure-reducing valves (PRVs), many from the late 1960s. Poorly functioning PRVs contributed to water hammer and line breaks during fire hydrant testing; some PRVs were repaired in-house, while others required full replacement.
• Water sales have declined, attributed in part to a wet FY2025 and demographic changes such as fewer large families in the county. Staff is working to improve meter accuracy and reduce non-revenue water.
• Capital and maintenance work include water line replacements following Public Works projects in the Denver Steels and Aspen School areas, well and booster station upgrades, a SCADA transition, replacement of an electrolysis chlorination system at Parrito Booster 2, and non-potable water connections for golf course and school fields.
• Moseley reported an October 2025 failure of an 18-inch transmission line in Two Mile Canyon, requiring continuous pumping to maintain contract tanks; a redundant steel line was placed in service, and Parker Construction will soon begin slip-line repair of the failed line.
• In response to board questions, Moseley discussed vertical motor bearing life, maintenance coordination with LANL on electrical metering, and a recent arc flash incident involving LANL electricians at a county well station.

Key Outcomes

• The board approved the agenda as presented by a 5-0 vote; no other formal motions were made.
• Staff will correct and re-upload the DPU FY2025 annual report to fix the natural gas goal chart.
• NMED and DOE will continue with SIM-3 aquifer testing, initial regulatory sampling, and monthly monitoring, and will work through adaptive site management toward a possible restart of extraction and treatment.
• The water utility will proceed with the Two Mile Canyon 18-inch transmission line repair and continue PRV, hydrant, meter, and well/booster replacement work.
• Chair Gibson asked board members to keep staff informed of travel plans to maintain a quorum; Matt Heavner canceled upcoming travel and will attend the next meeting in person.