SANTA FE, N.M. – A continuing dispute over rate hikes by Public Service Company of New Mexico is back before the Public Regulation Commission tomorrow.

PNM had planned to use a January 1 ratepayer hike to recover hundreds of millions of dollars in upgrades at its Four Corners plant until the PRC backed an environmental group's claim that its financial analysis and risk assessment were flawed.

Mariel Nanasi, executive director of the advocacy group New Energy Economy, successfully argued that spending at the generating station would be "imprudent" and consumers should not have to pay investment costs at the coal-fired plant.

"You can't spend that much money and not do a valid financial analysis because ratepayers must be held harmless for the imprudent decisions of utility management," she says.

PNM is asking the commission to adopt an earlier agreement to increase residential customer rates by nearly nine percent over the next two years. The utility company has said it may divest from the Four Corners plant by 2031.

Utilities are allowed to seek rate increases from customers when they make reasonable investments in their facilities. But the PRC found that PNM's investment in Four Corners was "unjust, unreasonable and violates the law."

Nanasi argues that the finding makes the current rate hike request contrary to the public interest.

"The law is that ratepayers should not be saddled with costs as a result of utility management malpractice, and that's really what's at stake here," she warns.

New Energy Economy has been calling on PNM to divest from coal and convert to a renewable-energy portfolio for more than a decade.

But Nanasi says as long as the utility's shareholders make money when the company invests in capital improvements at its existing plants the move toward clean energy will be slowed.

"A dirty old coal plant is going to require more capital expenditures than clean solar and wind," she says. "So, the utility would rather have dirty old fossil fuels that they have to keep on investing in and that's in fact what they did in this case."

The PRC's public meeting will be held in Santa Fe's PERA building near the Roundhouse at 9:30 A.M. tomorrow.


get more stories like this via email

The construction of more solar farms in the U.S. has been contentious but a new survey shows their size makes a difference in whether solar projects are favored by neighbors.

South Dakota's largest solar installation, the Wild Springs project in New Underwood, began operations in March and covers more than 1.5 square miles. The survey showed projects under 100 megawatts are generally favored by neighbors, while larger ones like Wild Springs are unpopular.

Kristi Pritzkau, finance officer for the City of New Underwood, said the construction traffic was tough on the town of just over 600 but the project's builder, National Grid Renewables, is giving back to the community.

"They had to use our well, so they paid for the water, and they paid for a new pump for it, too," Pritzkau pointed out. "They've been really great with the city."

Prtizkau noted the company donated to the town's pool and Lions Club and has created a school scholarship program, all part of the more than $500,000 of charitable giving it has promised in the project's first 20 years of operation. It is also expected to bring in $12 million of tax revenue to the county in the same time frame.

Sioux Falls-based Missouri River Energy Services has plans to build a new solar project near Brookings and build a transmission line from South Dakota into Minnesota.

Tim Blodgett, vice president of member services and communications for the company, said federal grant programs and tax credits provide incentives and South Dakota produces more energy than it can use.

"With the development of more wind, the development of solar, there's a lot planned right now to get these resources out of this area," Blodgett explained. "Into Minneapolis and other places where there's larger demand for the energy."

Currently, more than half the state's power generation comes from wind, followed by hydropower.


get more stories like this via email

Virginia officials support the Environmental Protection Agency's new emissions rule. The federal clean truck standards will reduce emissions by up to 60% in 2032 and prevent 1-billion metric tons of carbon pollution. Transportation is the largest source of greenhouse gas emissions in Virginia and nationwide.

Phillip Jones, Newport News Mayor, said the new rule helps end the city's environmental disparities.

"We have a very large multiple coal company in downtown Newport News in the southeast part of our community," he said. "That's going to lead to higher rates of asthma for that community. There's a lot of air-quality issues in downtown Newport News."

Jones noted the city has taken steps to reduce emissions. The city's school district has been using propane-powered buses and Newport News is purchasing alternate energy-powered vehicles. He added any opposition to this work centers on larger upfront costs, but the long-term benefits are worthwhile. The EPA's rule goes into effect in 2027.

Transportation agencies are also working to cut emissions. Hampton Roads Transit has been working to cut emissions with cleaner buses.

Sibyl Pappas, chief engineering and facilities officer with Hampton Roads Transit, said the agency's upcoming bus maintenance facility furthers its emissions-reduction goals.

"It's very near where Dominion Energy is bringing offshore wind onshore. So, we've talked with Dominion about buying wind power. So, potentially, those buses are zero emissions at the tailpipe and zero emissions at the generation point," Pappas said.

The facility will open in 2029 and be net zero-ready upon completion. While HRT had some hiccups with electric buses, Pappas feels the EPA rule encourages climate-smart initiatives for all economic sectors.

As state budget negotiations continue, groups fighting climate change are asking California lawmakers to cut subsidies for oil and gas companies rather than slash programs designed to slow global warming.

Gov. Gavin Newsom's current proposal would cut oil and gas tax breaks by $22 million this year and $17 million the following year.

Barry Vesser, COO for The Climate Center, a nonprofit advocacy group, would like to see all subsidies eliminated.

"Oil and gas companies are one of the drivers of climate change, so we should not be making their profit margins bigger by providing public subsidies, and making it harder for renewables to compete against them," Vesser argued.

Gov. Newsom has also proposed to cut funding for climate-friendly programs helping lower-income families buy an electric vehicle or switch from gas to electric appliances.

Kevin Slagle, vice president of strategic communications for the Western States Petroleum Association, said in a statement, "California's already tough business climate is pushing companies to the brink. Removing incentives will drive California straight into the arms of more expensive foreign oil, ramping up costs for everyday Californians who can least afford it."

Vesser countered the threat of higher gas prices is a red herring.

"There's a lot that goes into calculating how much the cost of gas is, and this is not even pennies on the dollar," Vesser contended.

The state Senate's early action proposal estimated the budget deficit will be between $38 billion and $53 billion. The governor is expected to release new details on his budget priorities in mid-May. The Legislature must pass a balanced budget by June 15.