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.
9 comments:
Knowing the reasons for the increases, no. Thanks for explaining why.
The only outrage I feel is that anyone would take this article seriously. Shilling on behalf of the the oil industry may have gotten harder with the massive spill in the gulf, but apparently there is still no shortage of creative, shameless, corporate prostitutes willing to give it a try.
Oil - and electric - industry executives earn hundreds of times more than the average wage earner, but it's never enough, is it? While lower and middle class America still sends its kids to fight for the right of the shareholding class to collect their war dividends (higher defense and oil profits), the wealthiest one percenters spend billions every year convincing middle America it's all the fault of treehuggers, progressives, illegal immigrants, etc. And it's a good investment.... as a result their tax burden is half what it was in the 1950s.
Blaming anyone other than the wealthy, ruling class for any of society's major ills is a waste of time and, in fact, counter to the best interests of nearly everyone reading this blog. But I do have to give begrudging credit to those who somehow manage to convince Mr. & Mrs. America that it's all the fault of those who are born with nothing and work harder for less, instead of that tiny percentage whose share of the pie gets bigger and bigger every year. It's like listening to a guy talk his wife into apologizing to him after she found out he'd been cheating on her.
Next thing you know, they'll find a way to blame higher electric prices on people who don't use enough electricity. Yeah, that's it... conservation is creating a need for higher prices.
Maybe PNM realizes its in the buggy whip business, and that before long your roof will generate all the power you need...... and that's why they need to line their pockets now.
I'm trying to recall from the Albuquerque Journal article I read regarding this hike. Seems massive investment in infastructure was also planned mainly in the area of better distribution networks and smart technology. I get the feeling the EYE is holding out all the details on this one.
Renewable energy is the greatest farce ever played on the American public.
These "feel good" actions will drive us deeper into a recession and give environmental extremists more power.
I'm sick and tired of power grubbing politicians who think they know what's best over the objections of the people they serve.
We better remember in November!!
Regardless of how many Windmills and Solar Panels I put on my property the underlining fact is that I also am paying for PUBLIC works.
That includes City Hall, Museum, Aquarium, Zoo, Convention Center (Private Contractor and Maintenance).
They do not operate on Hamster wheels, and will pay for increases by raising my taxes and fees.
Would have hoped that the Enron scandal would have wised some people up to the connection between Government and Special Interests.
Nice one, Derek Bill. If you can't answer the argument, attack the messenger.
The fact is that our Legislature has voted for stupid policies that increase the price of power. Your little socialist screed doesn't answer that. Grow up you mooch.
And comparing me to Jesus - by calling me a Socialist - isn't "attacking the messenger"?
You may find the authoritarian dynamic to your liking, but don't try to pass yourself off as a thinking adult instead of an infantile sycophant.
The rich may have given up trying to make it in to heaven, but if you turn off the Fox Karaoke machine now you may be able to keep your brain from atrophying to the point where it will pass through the eye of a needle.
Letting someone else do your thinking for you just makes you anonymous in real life, too. Makes me wonder if you exist at all beyond the words on my screen.
So, according to Derek Bill, the issue isn't how poor decisions regarding energy are to blame for higher prices, it's all about those evil capitalists.
Hey DB, the next time you use progressive talking points, you should be sure to give proper accreditation so that you're not plagiarizing.
I'd be willing to bet that Marita has forgotten more on the subject of energy than you'll ever be able to learn.
To paraphrase your comment, the only outrage I feel is that anyone would think the way you do or take what you think seriously.
Next time, bring FACTS to dispute the topic and save the talking points for your next earth day party.
Derek Bill, you are hopeless. I didn't call you a socialist (although I would imagine that you would describe yourself as that), I called your post a socialist screed. Then you launch into more name-calling. Nice one, Derek Bill.
How about addressing the arguments for a change? That is, if you have an argument.
Post a Comment