LAS CRUCES, NM – The Las Cruces City Council approved a new utility rate-setting process.
The new process includes two amendments that were approved by the City Council. The first stipulates that if a gradual rate adjustment is approved, the Las Cruces Utilities Council (LCU) may authorize an annual increase of no more than five percent.
The second amendment is that if a full implementation rate adjustment is approved, the LCU Board may authorize an increase based on the consumer price index, public input and City Council approval.
According to the Las Cruces city government, the new rate-setting process comes after a series of rate reviews were completed in 2022. After analysis, LCU staff determined that an update to the previous rate-setting process adopted in 2016 was necessary.
In addition, the new rate-setting process provides guidance by clarifying the appropriate methodologies to be used, the order of rate reviews, approaches and indices to be referenced to ensure a comprehensive rate review.
The revised rate-setting process also clarifies the role of the LCU Board of Directors in reaching out to customers, gathering feedback and incorporating customer input.
The new rate-setting process continues to recognize that any utility rate-setting process must incorporate industry-accepted methodologies.
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