Gas rate change addresses operational costs

Published on April 02, 2026

Blue natural gas flame on a gas stove burner

The Los Alamos Department of Public Utilities (DPU) is proposing changes to its natural gas rate intended to close the gap between budgeted operational costs and the revenues that cover those costs.

An introduction of the proposed rate ordinance will be presented at the Los Alamos Board of Public Utilities (BPU) work session on Wednesday, April 1, at 5:30 p.m. in Council Chambers at the Los Alamos County Municipal Building as well as online via Zoom. A public hearing is scheduled for the BPU work session on Wednesday, May 6.

Because DPU is a community-owned utility, BPU meetings are open to the public and held in a hybrid fashion so that citizens can attend in person or online. Both meetings will be held at 5:30 p.m. in Council Chambers at the Los Alamos County Municipal Building, as well as online at https://ladpu.com/BPULiveProceedings. The proposed ordinance is posted on the DPU’s Rates and Fees webpage at https://ladpu.com/rates.

If approved by the BPU, the proposed ordinance will be introduced to the Los Alamos County Council on Tuesday, May 19, followed by a second public hearing on Tuesday, June 9.

Historically, DPU’s gas rate averages have shown the typical customer using 75 therms monthly. With recent warming of annual temperatures, however, that average has begun to drop. In the past five years, the average customer has used 70 therms monthly. With this decrease, the rate components intended to cover the utility’s operational costs are not generating enough revenue to do that.

The proposed rate increase combined with the reduced residential consumption of 70 therms forecasts an average residential gas bill of $78.53 starting July 1, 2026. If adopted, a second-rate increase will occur on July 1, 2027, and the average residential gas bill will be $86.93. The current residential average gas bill is $67.45.

If the ordinance is not adopted, the DPU will need to curtail gas system maintenance and replacements. Such an action will impact system reliability and eventually prompt a more urgent and substantial rate increase.

Additionally, the BPU’s financial guidance requires DPU to build cash reserves for each utility fund to ensure the department can meet operational needs, handle system retirement obligations, meet debt service requirements, and handle unanticipated system failures or disruptions. The rate proposal lays the foundation for funding required reserves starting in FY2030.

Answers to frequently-asked-questions about the proposed rate change can be found on DPU’s website under the Proposed Rate Changes section header at https://ladpu.com/rates.

  • Wed., April 1, 5:30 p.m.: Informal introduction of proposed ordinances at BPU
  • Wed., May 6, 5:30 p.m.: Public hearing at BPU
  • Tues., May 19, 6:00 p.m.: Formal introduction at County Council
  • Tues., June 9, 6:00 p.m.: Public hearing at County Council.
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