Los Alamos Board of Public Utilities Regular Meeting - October 21, 2026

The Board of Public Utilities (BPU) met on Wednesday, October 21, 2026. The meeting included a lengthy debate on a 15-year software contract renewal, a revised presentation on APPA financial benchmarking data, and standard board and status reports.

Consent Calendar

• Approval of Minutes: The board approved the minutes for the September 2 (Work Session) and September 16 (Regular Session) meetings.
• Tank 4A Waterline Repair: The board recommended approval of Task Order No. 16 with Dub-L-EE for $460,000 (including a 15% contingency and NMGRT) to repair a blowout in an 18-inch transmission waterline in Two Mile Canyon. The item was forwarded to the County Council for approval.
• Smartphone Meter Reading (SPMR) Contract Extension: The board recommended Amendment No. 2 to the SPMR agreement, extending it by 15 years through 2033, with a total not-to-exceed amount of $362,000. Board members expressed strong reluctance, criticizing the up-to-10% annual cost escalator clause and the eleventh-hour nature of the request, which left the board with no practical alternative. Staff acknowledged a breakdown in contract oversight, noting the agreement was not properly tracked or flagged for renewal. The board voted 3-0 to approve the extension but directed staff to return 120 days before the 2027 renewal date to present a formal transition plan to an alternative system.

Public Comments & Testimony

• No members of the public offered oral or written comments during the meeting.

Department Business

• Utility Comparison APPA Data (Item 7.a): Joann Gentry and Richard Valerio presented significantly revised financial benchmarking data. The revisions corrected previous errors (double-counted O&M expenses) and adjusted for the distorting effect of the one-time Uniper settlement. Key findings included high O&M costs ($0.127 per kWh sold), a lean current ratio (1.40), and an operating ratio above 1.0, indicating a financial loss prior to the implementation of new time-of-use rates. Chair Gibson deferred a deep-dive discussion, noting the board needed time to absorb the corrected figures before tying them to FY28 budget preparations.

Board Business & Reports

• Chair's Report: Chair Gibson reminded members to submit their annual self-evaluations by October 27.
• Utilities Manager's Report: Deputy Utility Manager Gentry summarized the report in place of an absent Philo Shelton. Topics included pump skid delays for the Jemez snowmaking project, the discovery that the White Rock substation transformer was too large for the original plans, and an update on staffing vacancies.
• County Manager's Report: Anne Laurent reported that County Council members had received feedback that Level 3 EV charging rates are too expensive and inquired about potential rate incentives. She also noted the introduction of an ordinance for LEDA and MRA support for a new development.
• ESB Liaison Report: The board was updated on the Environmental Sustainability Board's activities, including a full board and planning for the 2027 work plan.

Status Reports

• Electric Reliability: Staff corrected a previously mislabeled outage month; the correction resulted in no net change to the annual SAIDI metric.
• Accounts Receivable: Accounts over 90 days past due remained generally stable. Write-offs older than four years remain technically collectible if the customer returns, with funds returning to the utility fund rather than the general fund.
• Risk & Safety: A typographical error was flagged regarding electrical distribution hours worked in August (listed as 22,196.8 instead of an expected value near 2,000). Staff committed to correcting the report.

Key Outcomes

• Votes: Consent agenda approved 3-0.
• Directives: Staff must return 120 days before the 2027 SPMR renewal date with an alternative. Staff must share the corrected APPA data memorandum with absent board members. The board will schedule an in-depth review of the APPA data to guide budget strategy.
• Next Steps: The agenda review meeting was scheduled for Friday, October 23. Upcoming November meetings will address EV rate structures, the DPU fee schedule, and the board's annual evaluation.