Los Alamos County Board of Public Utilities Work Session - June 3, 2026

The Board of Public Utilities (BPU) held a work session on June 3, 2026, at 5:30 PM in the Municipal Building, Room #330 (or Council Chambers). The meeting included presentations on the hexavalent chromium plume and on-bill financing, as well as action items on a collective bargaining agreement, a power purchase agreement, the Utilities Assistance Program, a FEMA grant, and an initial review of the BPU's annual presentation to County Council. Formal action was taken on several items after suspending procedural rules.

Consent Calendar

• The Board unanimously approved the agenda as presented (4-0).

Public Comments & Testimony

• No public comments were offered during either public comment period.

Discussion Items

New Mexico Environment Department (NMED) Update on the Hexavalent Chromium Plume

• Caitlin Martinez (NMED Ground Water Quality Bureau) presented an update on the hexavalent chromium contamination originating from LANL’s historical discharges (1956-1972) into Sandia and Mortandad Canyons. The plume has spread horizontally and vertically in the aquifer, with recent detections on Pueblo de San Ildefonso lands at monitoring well SIMR-3 showing concentrations of 98.9 ppb (May 2026), 90 ppb (March 2026), and 72.9 ppb (October 2025). The regulatory standard is 50 ppb.
• NMED issued Administrative Compliance Orders in February 2026 citing violations of the NM Water Quality Act and Hazardous Waste Act, including failure to meet water quality standards and failure to implement corrective measures beyond facility property. LANL halted hexavalent chromium plume workshops after the orders, and NMED urged resumption.
• The Independent Technical Review Team (December 2024) concluded that LANL’s interim measures do not hydraulically control the plume and that injections likely expanded the plume. The Board discussed the lack of progress, the need for data on plume boundaries, and potential alternative remediation approaches (e.g., land application, infiltration galleries). LANL has not implemented the IRT recommendations to date.

Presentation of On-Bill Financing Program

• Abbey Hayward (Public Relations Manager) and Angelica Gurule (Sustainability Manager) presented the concept of on-bill financing, which allows utility customers to pay for energy efficiency upgrades (e.g., heat pumps, insulation, panel upgrades) through their monthly utility bill. The program would be capitalized by the New Mexico Climate Investment Center (offering $1 million seed funding) and administered by a third-party, with DPU’s role limited to billing and coordination. Approximately 86% of Los Alamos households rely on natural gas for heating, contributing 32% of community greenhouse gas emissions.
• The Board discussed potential barriers (default risk, contractor pricing, administrative costs) and the need for a pilot program. The Environmental Sustainability Board had expressed general support but raised questions about loan structure, compliance with the anti-donation clause, and default consequences.

Approval of the Collective Bargaining Agreement (CBA) with UAPP Local 412

• Joann Gentry and Bernadette Martinez presented the proposed five-year CBA (July 1, 2026 – June 30, 2031) covering plumbers, pipefitters, and water/wastewater operators. Key changes include a new GWS Alternate Standby crew (12 hours straight-time pay per week, 60-minute response time), extended rest periods (8 to 10 hours after a 16-hour shift), and staggered salary increases cumulatively ranging from 9% (Trainee) to 21.5% (Senior Pipefitter) over the term. The first-year fiscal impact is approximately 2.9% of wages, with a five-year average wage increase of ~14%. No changes to PERA contributions. The agreement was ratified by the union on May 26, 2026. The Board forwarded it to County Council for approval.

Approval of Power Purchase Agreement (PPA) for July 2026

• Ben Olbrich requested approval of a PPA not to exceed $4,725,000 plus gross receipts tax ($5,059,000 total) to supply ~60,000 MWh of power to the Los Alamos Power Pool for July 2026. The indicative price is $63/MWh, with a 25% contingency ($78.75/MWh). The current PPA with Mercuria expires June 30, 2026. The Board approved and forwarded to Council.

Annual Review of the Utilities Assistance Program (UAP)

• Joann Gentry reviewed the UAP, which provides winter assistance (October–March), year-round assistance for seniors/disabled, and one-time hardship assistance. Current minimum/maximum monthly assistance is $20/$158. Due to rate increases (electric, gas, water, sewer), staff proposed raising the minimum to $22 and maximum to $174, effective after rate ordinances are approved. The one-time assistance maximum remains $350. The fund balance as of April 2026 was $27,011. The Board received the report; formal changes will be brought back in July.

Department of Public Utilities Quarterly Report for FY26 Q3

• Abbey Hayward presented highlights from the Q3 report (January–March 2026). Key points: SAIDI (reliability) at 76 minutes (goal 60 minutes); distributed generation at 3.1 MW residential; 562 solar customers; natural gas sales 30% lower than prior year due to warm winter, necessitating rate adjustments; the Rep’d chatbot saved an estimated 305 staff hours since inception; and several infrastructure projects (e.g., Abiquiu draft tube repair, Elk Ridge gas system completion, Jemez Mountain Fire Protection Project). The Board noted the report.

Approval of Budget Revision 2026-80 for FEMA Grant – Jemez Mountain Fire Protection Project

• James Martinez and Joann Gentry presented a FEMA Hazard Mitigation Grant Program award of $2,632,746.18 (75% federal share) for electrical undergrounding, with a local match of $842,770.27 (total $3,475,516.45). The project will bury 4.3 miles of overhead power line along Camp May Road to reduce wildfire risk. The Board approved the budget revision and authorized the County Manager to sign the sub-grant agreement.

Initial Review of BPU Annual Presentation to County Council

• Chair Robert Gibson presented a draft presentation for the July 14, 2026 Council meeting, focusing on major challenges (water rights, natural gas phase-out, electric supply/transmission, distribution upgrades, financial challenges). Board members suggested adding a highlight of $1.2 million in savings from contractor efficiencies on the Jemez project and referencing the electrification study. The final version will be approved at the June 17 regular session.

Key Outcomes

• Suspended procedural rules to allow formal action (approved unanimously).
• Directed staff to pursue on-bill financing program development (motion passed 3-1; Member Stromberg dissented).
• Recommended approval of the CBA with UAPP Local 412 to County Council (approved unanimously).
• Approved a Power Purchase Agreement for July 2026 up to $4,725,000 plus GRT, forwarded to Council (approved unanimously).
• Approved Budget Revision 2026-80 for the FEMA grant and accepted the sub-grant agreement, authorizing the County Manager to sign (approved unanimously).
• No formal action taken on the UAP review or quarterly report; further updates to follow.
• The BPU annual presentation to Council will be finalized at the June 17 regular meeting.