By RALPH L. PHELPSThe proposed changes to restructure the Department of Public Utilities (DPU) have the potential to cause collateral damage that may not be evident as voters consider their positions on this Charter Change issue.
I have the perspectives of former County Councilor, former Chair of the Utility Board and of a senior manager for a public power utility in Nebraska, and also had the opportunity to participate on the first Charter Change Committee when we initially discussed the issue.
Since most of the obvious pros and cons will be discussed at the public forum, I want to share one perspective relative to my opening comment. As I have previously noted, electricity is considered by most folks to be as essential as air, water and food. Los Alamos has elected to provide not only its own electric power, but also water and gas. The ability to successfully fulfill this mission has been demonstrated for many years.
One element of this success, a most vital one, is strategic planning. While on the Board, I stressed the need to look ahead not just five, but 10 or more years and plan for meeting the projected needs of the community. Currently, there is a possibility that DOE/LANL may not renew the Electric Coordinating Agreement, leaving the DPU with a new mission, to broker energy on the open market. (This in itself requires a Charter change).
An essential element of strategic planning is stable and sufficient funding extending through the planning period. By design, the Utility Department handles large cash flows: ratepayers, bond issues, federal funds and potentially, market sales. Because DPU is a public utility, no shareholders are paid, and ratepayers benefit. Allocations are provided to the County General Fund in lieu of taxes.
The current Charter provides for independence of the utility funding, which directly contributes to the stability needed for effective strategic planning: large capital projects, required maintenance, projected staffing levels.
Any Charter Change which removes the independence of the Utility Board or of the utility funding and shifts these under the direct control of a Council and General Fund clearly places the execution of a strategic plan at risk. It becomes a great temptation to divert funds away from a strategically planned utility program to fill the wants of a political issue. Thus the concept of collateral damage.
So my recommendation is to vote NO on the proposed Charter Changes for the Utility Department, and enjoy the stable, low-cost and environmentally sensitive electric power the DPU provides to the community at a very reasonable cost, which comes from execution of sound, well-funded strategic plans.