Los Alamos County sets final hearing on proposed gas rate changes

A typical Los Alamos household would see its annual gas bill rise from $67.45 to $78.53 starting July 1, 2026, if county leaders approve the latest rate package, with a second increase to $86.93 set for July 1, 2027. That makes Tuesday’s hearing the last formal chance for residents to weigh in before the decision is finalized.

Los Alamos County has scheduled the second and final public hearing on the proposed gas rate changes for 6 p.m. Tuesday in Council Chambers at the Los Alamos County Municipal Building, 1000 Central Ave. Residents can attend in person or join online through the county’s remote rate-hearing link.

At issue is Ordinance 02-379, which would amend the natural gas service rate schedule to close the gap between the Department of Public Utilities’ operating costs and the revenue collected from gas customers. The current structure includes a monthly service charge and a commodity charge made up of a fixed cost recovery charge and a variable cost-of-gas charge. The county says the pass-through system, which was implemented in 2013, keeps the variable portion tied to the San Juan Index and recalculated monthly, with a minimum of $0.11 per therm.

Under the proposal, the fixed service charge for a small meter would rise from $14.25 a month to $15.53 on July 1, 2026, and then to $16.93 on July 1, 2027. The large-meter charge would increase from $41.25 to $44.96, then to $49.01. The fixed cost recovery consumption charge would move from $0.34 per therm to $0.48 next year and $0.58 the following year.

County officials say the rate change is tied to the utility’s fiscal year 2027 budget and fiscal year 2028 projections, and to the county charter requirement that the gas utility operate on a compensatory basis. The ordinance says current rates will not meet that standard unless they are raised to cover projected revenue requirements. The county also says the gas fund balance deficit is projected to reach $1.5 million by the end of fiscal year 2026 on June 30.

The utility says the increase is being driven in part by softer customer usage. Average residential consumption has fallen from 75 therms a month historically to 70 therms over the last five years, a drop the department says has cut gas revenues by 6.7% year over year. If the ordinance is not adopted, the county warns it may have to curtail gas system maintenance and replacements, weakening reliability and forcing a larger future increase. The hearing comes after the Board of Public Utilities approved the final proposed ordinance on May 6 and recommended it advance to County Council, which formally introduced it on May 19.