Voting for utility rate increases was very painful. It was almost a perfect storm of events that backed us into a corner. There had not been a utility rate increase for a number of years. There was a year where it cost us over ten million dollars more than what we took in, and the cost of materials skyrocketed after Covid. We were faced with replenishing the reserve funds that we so heavily borrowed from, as well as the increased cost of materials to maintain the infrastructure.
There was a good deal of discussion on all of these issues. In the end, the board, as well as myself, begrudgingly voted to increase rates.
I voted no on entering into a contract with Foxtail Flats solar, and I voted no on the demand charge for electrical services.
I voted no on Foxtail Flats because there were too many unanswered questions. Thecontract is for Los Alamos County to purchase 100% of the power from Foxtail Flats,
whether we use it or not. We can sell it, but to whom? And whatever we sell, we might have to sell at a loss.
I voted no on the demand charges because I thought the rate increases were enough. The demand charges are meant to upgrade the infrastructure as people start
transitioning from gas to electric. But I find it rather odd that the County is encouraging people to switch to electric and then turning around and charging them for using more electricity.
The utility rate increases represent almost 20% since 2022. That’s quite a bit. Inflation since 2022 counts for about 14.6%, so the rate increases are still 5% over inflation. Still, it’s a lot.
Eric Stromberg
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