Los Alamos County Board of Public Utilities Work Session – September 2, 2026

The Board of Public Utilities (BPU) held a work session on September 2, 2026, to address water rate ordinance corrections, strategic planning updates, the Foxdale Flats business plan, a quarterly report, procedural rule revisions, and a discussion on utility data needs. The meeting included a public hearing and public comments.

Consent Calendar

• Approved the consent agenda (3-0) with routine items and staff report motions included in the minutes.
• Approved revisions to BPU procedural rules (4-0), including updates to section 3.3 (annual calendar moving uncollectible accounts resolution from August to September) and table of contents page numbers.

Public Hearing: Water Rate Ordinance 02-387

• Staff presented ordinance to correct effective dates in previously approved water rate increases. The ordinance includes the same rate increases for potable water, bulk delivery (LANL), irrigation, Pajarito Mountain service area, and non-potable rates. Increases take effect October 1, 2026, and a second increase on October 1, 2027.
• Board members asked about tiered rates (summer peak season has tiers: $7.53, $8.28, $9.10 per 1,000 gallons for single-family residential; non-peak is flat), the bulk rate schedule 8D (internal cost for water production to distribution, plus a separate LANL bulk rate set higher to cover fair share), and rate applicability for fire protection (commercial rate for hydrant meters).
• No public comment was offered.
• Motion passed 3-0 to recommend the ordinance to County Council for introduction and adoption.

Strategic Planning Update

• Staff (Kathy Darwin, Philo, Ben Ulbrick) presented a revised strategic plan with measurable objectives added to each focus area. Board provided input:
  • 5.4 (water resources): Add a sub-bullet for the long-term water plan (40-year plan approved by board, to be completed in the coming year).
  • 2.4 (cost of service studies): Concern about committing to studies without known costs; staff noted studies can be done internally or via consultants; timing to be discussed in budget.
  • 6.4 (ECA contract): Suggested simplifying bullets to “pursue short-term contract modifications as necessary and start discussion for follow-on agreement by 2031.” Board agreed to revise and consider moving to ongoing objectives.
• Board member noted that orthophoto (aerial photography) spelling should be corrected.
• Post-workshop survey feedback was summarized; one input still pending. Plan will return in two weeks for final approval.

Foxdale Flats Business Plan Update

• Ben presented options for managing excess solar generation (expected ~56,000 MWh/year, ~10-15% of total output) from the 170 MW solar + 80 MW/320 MWh battery facility, coming online FY28. Options: sell to CAISO EDAM, contract with another party, add more storage, use as much PV as possible and sell rest, or a mix.
• Key points: Solar PPA at $37.88/MWh (no escalator), battery at $13.50/kW-month (fixed), combined cost ~$74.79/MWh. Excess solar purchase cost ~$2.12M/year if curtailed.
• Board discussion emphasized reliability concerns (intermittency, weather, dispatchability) and caution about over-reliance on PV before operational experience. Preferences leaned toward retaining flexibility, using as much PV as possible initially, and avoiding large commitments to new lithium storage given falling costs and emerging technologies (e.g., energy dome, iron-air). Staff confirmed near-term approach: use as much PV, seek buyers for 10-50 MW of capacity, explore storage opportunities, and evaluate EDAM.
• No formal action taken; update provided for information.

DPU Fourth Quarter FY26 Quarterly Report

• Abby presented highlights:
  • Safety Employee of the Quarter: Patrick Moore (wastewater treatment).
  • Electric production: 12% of load from non-carbon resources for the year; April reached 19% from hydro.
  • Laramie River Station (LRS) had no generation in May and June; power was bid into SPP market.
  • Billing system transition still causing issues (extended billing periods, incorrect totals).
  • Revenue transfer ballot question (eliminating 5% transfer to general fund, currently redirected back to utilities) discussed; if passed, budgeting would change but overall utility fund would be simplified.
  • Staffing: new conservation coordinator hired; three employees earned five degrees.
• Board noted the report was well-presented and informative.

Discussion of Utility Data Needs

• Chair Gibson opened discussion on improving use of commodity and financial data for policy development, power planning, environmental tracking, and evaluating rate changes (e.g., time-of-use). Current challenges: data scattered across systems, lack of consistent formats, privacy constraints.
• Board members highlighted need for data quality, accessibility, and machine readability; suggested focusing on integrated resource planning evaluations and using the time-of-use rate evaluation as a test case.
• Public comment: James Warnicky (resident) provided feedback on IPRA data (codes missing labels) and expressed interest in more years of data. John Parchman (resident) suggested using AI tools like ChatGPT for analysis.
• Staff will continue to explore data management priorities and report back.

Key Outcomes

• Water Rate Ordinance 02-387: Recommended to council (vote 3-0).
• Strategic Plan: Revisions to be incorporated; final presentation in two weeks.
• Foxdale Flats: No decision; staff directed to continue pursuing flexible approaches and report progress.
• Quarterly Report: Accepted as information.
• Procedural Rules: Approved (4-0).
• Data Discussion: Ongoing; board to refine priorities.
• Public Comment: Comments noted on EV charging rates (suggested reduction from $0.58/kWh), electrical rate design, plug-in solar fees ($500 considered too high), and promoting batteries/microgrids.