Los Alamos County sets two hearings on proposed water rate increases

A typical Los Alamos household using 6,000 gallons a month would see its total utility bill rise to $294.26 in FY2027, up from $278.92 in FY2026, if county officials approve the proposed water-rate increase now headed to two public hearings.

The first hearing is set for Wednesday, May 20, at 5:30 p.m. during the Board of Public Utilities meeting in room 330 on the third floor of the Los Alamos County Municipal Building, 1000 Central Avenue. The second will follow on Tuesday, June 30, at 6 p.m. in Council Chambers. Both meetings will be held in hybrid format with remote access available through the county’s rate-hearing link. If the ordinance clears the Board of Public Utilities, it will be introduced to the County Council on Tuesday, June 9.

The Department of Public Utilities says the rate proposal covers a two-year period and would require revenues to rise 8% each year during the FY2027 and FY2028 budget cycle to keep fund balances in line with county financial policy. The utility says the added revenue is needed for current operations and for cash reserves that will support future infrastructure maintenance and improvements. Officials say the higher rates are meant to help maintain a sufficient water supply for Los Alamos National Laboratory and new housing in White Rock and the Los Alamos townsite, while also paying for fire-suppression needs, leak reduction, water main-break reduction and safe drinking water compliance.

The pressure on the system is not abstract. County materials say the long-range water supply plan was last updated in January 2018 and is normally refreshed every 10 to 15 years or when demand changes significantly. Project pages also show Pajarito Well No. 3 was taken offline because of groundwater contamination, pushing the county to plan a new water supply well at Overlook Park. Other work is already under way, including $900,000 in water-production tank piping upgrades at Twin Tank scheduled from winter 2025 through summer 2026.

Affordability remains part of the county’s message. The Utilities Assistance Program exists for eligible low-income residential households, and it relies on voluntary community contributions because state law bars direct county or DPU funding. County documents also note that even a small bill increase can be hard on customers living on fixed incomes or through financial hardship.

Los Alamos has been through this process before. In 2022, the county presented a water-rate ordinance to the Board of Public Utilities on Sept. 21, sent it to the County Council on Sept. 27 and held a public hearing on Oct. 18. This year’s hearings will again be the public’s main chance to test the county’s case for higher rates against the daily reality of household budgets, business costs and the long-term condition of the water system.