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Commission approves rate increases for Camino Real regional utility to avoid insolvency

November 15, 2025 | Doña Ana County, New Mexico


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Commission approves rate increases for Camino Real regional utility to avoid insolvency
Doña Ana County commissioners voted Nov. 14 to adopt a rate study recommendation that raises service rates for the Camino Real regional utility (CRU) and implements ongoing 3% annual increases to stabilize the utility’s finances.

Assistant County Manager Stephen Lopez presented the rate study and said CRU’s cash balance could be depleted by April if revenue did not increase. He described recent infrastructure failures and maintenance shortfalls and said CRU lacked sufficient reserves to cover large system repairs or to secure bonds for capital work without higher operating revenue.

Lopez offered a concrete example: a residential customer’s base charge would rise from about $20 per month to about $27 per month under the new schedule. Commissioners said they were reluctant to impose the large percentage increase on ratepayers but concluded that CRU’s financial position left few alternatives.

Commissioner Sanchez and others criticized long‑term operational choices—such as reliance on third‑party contractors—while staff said a lack of historical cost comparisons made it difficult to determine whether alternative operations would have been cheaper. The board approved the resolution (2025‑145) to adopt the rates, which must also be approved by Sunland Park as part of the joint powers structure before implementation.

The county will continue planning for the CRU dissolution while CRU implements the rate changes to maintain operations and essential repairs.

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