by Marita Noon
New Mexicans are rallying to fight a rate increase proposed by PNM—
the largest electrical system in the state. It would be the third major increase in recent years. Previous increases raised rates for some customers by as much as
24%. A PNM representative told business leaders that this one would be “big.” It is:
21.2%.
New Mexico, a poor state by all indicators, will have to pay almost 50% more in 2011 for their electricity than they did in 2007. We all accept a gradual cost increase for most everything in life, but double in less than five years? David King, chairman of the New Mexico Public Regulation Commission (PRC) calls the rate increase a “hot potato” saying that he’s received “a flood of calls from ratepayers.”
How can this be? In a state like New Mexico, this will leave people freezing in the dark!
While PNM is the easy target, their actions are, at least in part, the result of the people we voted into office—both on the state and the national levels.
In 2009 and the New Mexico State Legislature unanimously passed a bill that upped the percentage of electricity generated by renewables by 2011 from the current
mandate of 6% to 10% with 15% by 2015 and 20% by 2020—and renewables cost more. On my current PNM bill I am paying between $.07-.10 a kwh. Yet, if I have solar panels on my roof and produce more solar than I can use,
PNM will pay me $.13-.15. So if PNM is paying more for solar power than they are charging me for electricity—they are in trouble.
The PRC is also considering a plan from PNM that would add
80 megawatts of solar to their system to help them meet state-mandated renewable energy standards—for which PNM says they will “defer the costs associated with the renewable resources as regulatory assets on its balance sheet.” So that increase will come at a later time—meaning additional increases!
Third district Congressman Ben Ray Lujan was chairman of the PRC when he, along with Commissioner Jason Marks, pushed hard to get the legislature to increase the percentage of energy that comes from renewables. They really shoulder responsibility for the increases.
If you are unhappy with a nearly 50% rate increase, get ready to be outraged! More is coming. This time at the hand of New Mexico’s Senator Jeff Bingaman.
As Chairman of the Energy and Natural Resources Committee, New Mexico’s beloved Senator Domenici was always front and center of the energy debate—pushing for energy. Sadly, he retired and Jeff Bingaman became the Chairman. He has a totally different view and style.
Senator Bingaman has not been getting a lot of face time in the 24-hour news cycle, but he has been quietly
working behind the scenes to make energy more expensive. He has a bill that has already passed the Natural Resources Committee markup that would increase renewable electricity and is
now writing a power-plant only carbon cap bill.
Following the Tuesday energy meeting at the White House, President Obama and Senator Kerry indicated that it wasn’t really about CO2 as they are willing to shelve their carbon trading scheme, but as Obama said, he wants a bill that will “raise the cost of burning oil and coal.” Senator Kerry suggested limiting carbon emission on electric utilities—which will require expensive carbon sequestration equipment and/or more renewables. As we have seen first-hand in New Mexico, these increased costs will be passed on to the ratepayer.
It hasn’t worked out well here in this poor state, but our “energy” Senator is working to put the entire country through the same thing. He has drafted legislation to limit emissions from the electric power sector. Unless Americans want to be freezing in the dark, each and every person had better make their voice heard. Wake-up and learn a lesson from New Mexico. Do not let our Senator double your energy bills!
There is never a good time to intentionally raise the cost of the single item that is central to everything that makes America uniquely American—and now, with an economy teetering on the brink of disaster, is the worst possible time. Any Senator, any Congressman, any state legislator, who votes to raise energy costs is simply unAmerican. He or she doesn’t deserve our vote.
I’m outraged. Are you?
Marita Noon is the Executive Director at CARE (Citizens' Alliance for Responsible Energy), the New Mexico nonprofit organization advocating for citizens’ right to energy that is abundant, available, and affordable. CARE works on energy issues state, region, and nation wide. Find out more at www.responsiblenergy.org.
----- Correction -----
We were contacted by the author regarding an error in the above post. Originally Ms. Noon indicated that New Mexicans would pay almost "double in 2011." Actually, New Mexicans will pay almost 50% more in 2011 than they did in 2007. The post has been corrected above.