Los Alamos County Board of Public Utilities Regular Meeting – September 16, 2026

The Board of Public Utilities (BPU) met on September 16, 2026, at 5:30 PM in the Municipal Building Council Chambers. The meeting included approval of a consent agenda, a presentation on the Extended Day-Ahead Market (EDAM), a discussion on utility reliability, and approval of a contract amendment and power purchase agreements. All votes were unanimous (4-0) with one board member absent (Jennifer Hollingsworth joined remotely for part of the meeting). The meeting adjourned around 8:30 PM.

Consent Calendar

• Meeting Minutes Approval: Approved minutes from the August 5, 19, and 21, 2026 meetings as presented.
• Agreement with Black & Veatch (AGR26-60): Approved a $674,958.33 contract for engineering services for condition assessments at the Abiquiu and El Vado hydroelectric plants. The vote included a contingency of $75,000 and a budget revision (2027-20).
• DPU Mission, Vision, Values, and FY28 Strategic Goals: Approved the updated mission, vision, values, and FY2028 strategic goals and objectives.
• Budget Revision 2027-01A (Carryovers): Approved $14,507,148 in expenditure carryovers and $3,619,826 in revenue carryovers from FY2026 to FY2027, with a net fund balance decrease of $10,887,322.
• EA-4 Powerline Grant Application: Approved staff to apply for a New Mexico Capital Development Program grant for the EA-4 power line replacement, with a 25% match ($1,250,000) to be budgeted if awarded.
• Power Purchase Agreements (Item 4.f) – Moved to Department Business: See Discussion Items.

Public Comments & Testimony

• No public comments were made during the two public comment periods (start of meeting and before adjournment). No remote commenters raised hands.

Discussion Items

• Power Purchase Agreements (PPA) for October 2026 – March 2027: Ben Olbrich, Deputy Utility Manager-Power Supply, presented a request to authorize up to $18,509,400 (plus gross receipts tax) for competitively selected power purchase agreements to serve Los Alamos Power Pool load. The need arises because Foxtail Flats solar/battery plant is not yet online. The six-month period allows staff to reassess needs after Foxtail Flats production begins (expected April 2027) and to prepare for EDAM entry in October 2027. The amount is within the FY2027 budget. The board approved the motion (4-0).
• EDAM Presentation by UAMPS: Mason Baker (General Manager) and Matthew Hastings (Assistant General Manager) of Utah Associated Municipal Power Systems (UAMPS) presented lessons learned from the May 1, 2026 EDAM launch. Key points:
  • EDAM goals are sound but results have been mixed; members with dispatchable resources benefit, while those reliant on market purchases face significant cost increases (36% average, 40-70% for some members).
  • Resource Sufficiency Evaluation (RSE) is critical; Los Alamos is “capacity-light” and must engage early in PNM’s tariff development (PNM joins EDAM October 2027).
  • UAMPS experienced operational burdens (staff, settlements) and market liquidity issues with power marketers.
  • Recommendations include hiring an EDAM consultant, deciding on a Scheduling Coordinator, and modeling RSE impacts.
  • Board members asked about rotating mass requirements and the role of the Laboratory’s combustion turbine. The presentation emphasized proactive engagement with PNM.
• Reliability Discussion (After Action Outage Report): Deputy Utility Managers Dennis Astley (Electric) and Clay Moseley (Gas, Water, Sewer) reviewed August 2026 outages and service issues:
  • Electric: SAIDI (System Average Interruption Duration Index) for the 12-month period ending August 2026 was 114 minutes (benchmark 60 minutes). August outages included a mysterious underground fault on Quemazon Road (multiple blown fuses, suspected bad switches) and a failed 1970s vintage direct-bury cable on Piedra Loop. Planning to replace live-front switches and shorten secondary runs. Discussion included long-term replacement of aging underground cable.
  • Gas/Water/Sewer: August saw 40 gas leaks and 42 gas smell calls due to higher mercaptan concentrations in the “virtual pipeline” gas supply. Many leaks were minor but led to red tags on customer appliances. One major third-party damage incident occurred when a contractor struck a steel gas line (Atomic Fiber project). Water leaks (8) were routine. Sewer backups (12) included root intrusion at one location. The board noted the safety concern and staff’s increased awareness.
• Amendment No. 1 to Services Agreement AGR25-925 (Andritz Hydro): James Martinez (Deputy Utility Manager-Engineering) presented a request to increase the contract by $81,771.75 (plus tax) for tariff fees related to the Abiquiu Hydroelectric Plant draft tube replacement. The original contract ($576,531.57) did not anticipate tariffs on imported steel. A $87,190 budget revision is needed to cover the shortfall from Electric Production fund reserves. The board approved (4-0).

Key Outcomes

• Approved: Consent agenda items (4.a–4.e) as presented (4-0).
• Approved: Power Purchase Agreements up to $18,509,400 plus GRT for Oct 2026–Mar 2027 (4-0). The motion was moved by Member Heavner and seconded by Member Nakhleh.
• Approved: Amendment No. 1 with Andritz Hydro Corp. for $663,720.70 total contract amount, including tariff fees, and Budget Revision 2027-22 for $87,190 (4-0). The motion was made by Member Stromberg and seconded by Member Heavner.
• No Action: Reliability discussion and EDAM presentation were informational only.
• Future Items: The board will engage in PNM tariff comment process, continue reliability improvement planning, and address rooftop solar connection charges at a future meeting (per Member Stromberg’s request).