The New Mexico Supreme Court denied a request to determine the constitutionality of the Energy Transition Act (ETA) on Tuesday. The decision was released without an opinion. In August, the advocacy nonprofit New Energy Economy (NEE) filed a writ of mandamus asking the Court to rule on whether portions of the ETA are unconstitutional. The writ alleges that wording in the ETA removes the Public Regulation Commission’s (PRC) regulatory oversight of Public Service of New Mexico (PNM) and proposed rate increases. New Energy Economy’s executive director, Mariel Nanasi, announced the court decision at a panel discussion in Santa Fe Tuesday evening.
“We believe the ETA is unconstitutional, especially in regards to its eviscerating the regulatory authority [of the PRC],” Nanasi said.
A group of organizations filed a lawsuit in state Supreme Court this week that alleges the Energy Transition Act is a deregulation law for PNM, and are challenging provisions in the law as unconstitutional. The suit from New Energy Economy, a Santa Fe-based advocacy nonprofit, and six other groups claims the ETA removes some of the authority given to the Public Regulation Commission (PRC) to regulate the Public Service Company of New Mexico (PNM) and its proposed rate increases associated with its fossil fuel assets. PNM is an investor-owned utility that operates as a monopoly in parts of New Mexico. As a utility, the company has an obligation to serve its customers—the ratepayers—in the most efficient manner and at the lowest possible cost. But as a publicly-traded company, PNM also has an obligation to its shareholders to generate profit.
Enchant Energy, the company that plans to turn the San Juan Generating Station near Farmington into the world’s largest carbon capture system, responded to criticisms made in a recent report, blasting the proposal. NM Political Report spoke with the Institute for Energy Economics and Financial Analysis (IEEFA) report author Karl Cates about his concerns for the proposal last month. RELATED: Energy think tank blasts carbon capture proposal for San Juan coal plant
Enchant Energy addressed a number of issues raised by the IEEFA report in a document posted to the company’s website in late July. The company reiterated its belief that the proposed carbon capture system offers a cost-effective, low-emission solution to keep the coal-fired San Juan Generating Station open. “Contrary to the IEEFA assertion, Enchant Energy is not making hard and fast ‘presumptions,’” the company said, pointing to a pre-feasibility study the company commissioned earlier this summer from global engineering firm Sargent & Lundry.
The Legislature has moved to Gov. Michelle Lujan Grisham’s desk a controversial bill designed to dramatically increase the amount of renewable energy used to produce electricity in New Mexico while also helping the Public Service Company of New Mexico recoup its investments in the coal-burning San Juan Generating Station near Farmington. Following a three-hour debate Tuesday, the House passed Senate Bill 489 by a margin of 43-22. It was a mostly party-line vote, with almost all Democrats in favor of the bill and almost all Republicans voting against it. The measure goes now to Lujan Grisham, who has enthusiastically supported it. How PNM’s electrical rates will be affected was a major point of contention during debates over the bill in the Legislature.
A bill aimed at shutting down the coal-burning San Juan Generating Station and strengthening New Mexico renewable energy standards survived a rambling 3 1/2-hour filibuster and other parliamentary maneuvering by opponents in the state Senate on Wednesday night. But one victim of the games on the Senate floor was the annual House vs. Senate basketball contest at the Santa Fe Indian School gym, an annual benefit for the University of New Mexico’s Comprehensive Cancer Center. The Senate team had to concede and return to the Capitol, some members arriving in the Senate chamber still wearing basketball gear, because the debate on Senate Bill 489 — dubbed the Energy Transition Act — went on well into the night. State Sen. Cliff Pirtle returned to the Senate floor wearing his jersey for the House-Senate basketball game and the rules-mandated tie.
Gov. Michelle Lujan Grisham and several environmentalist groups on Thursday praised legislation aimed at ensuring the shuttering of the coal-burning San Juan Generating Station near Farmington and establishing ambitious targets for pushing New Mexico toward more reliance on renewable energy sources. The bill is intended to soften the financial hit both to the community surrounding the aging power plant and to Public Service Company of New Mexico, the state’s largest utility and majority owner of the plant, which is a major source of employment in Northwestern New Mexico. State Sen. Jacob Candelaria, D-Albuquerque, on Thursday introduced the 83-page Energy Transition Act, which proposes to allow PNM to recover investments through selling bonds that would be paid off with a new “energy transition” charge for customers. It also seeks to provide funds to assist and re-train workers who lose jobs from the shutdown and sets a 2030 deadline for investor-owned utilities and rural electric co-ops in the state to derive 50 percent of their power from renewable sources such as solar and wind energy. “The bill lays out the road map that will lead New Mexico from a fossil-fuel-based economy to a green economy,” Candelaria said in an interview.
A bill aimed at easing economic woes of New Mexico communities hit by the closing of large power plants might make it harder to shut down coal-burning operations, some environmentalists said Friday. House Bill 325, introduced this week by House Minority Whip Rod Montoya, R-Farmington, would require the state Public Regulation Commission to consider the economic effects on communities when deciding cases involving the shuttering of large power sources such as the San Juan Generating Station in northwestern New Mexico. The bill — which is scheduled to be heard Saturday by the House Judiciary Committee — also would require a utility to build any replacement power source in the same community as the facility it plans to close. “My bill is about trying to help my community,” Montoya said Friday. He said that about 45 percent of local tax revenue used by the school district in Kirtland comes from the power plant, while another 8 percent comes from the nearby San Juan coal mine.
After a Senate committee last week poured cold water on a bill allowing Public Service Company of New Mexico to sell bonds to pay for the expenses of shutting down a coal-burning plant in San Juan County, a Farmington legislator has introduced a new bill aimed at easing the impact of the plant’s closure on county residents and government institutions. House Minority Whip Rod Montoya, R-Farmington, told The New Mexican on Thursday that his legislation, House Bill 325, would require the state Public Regulation Commission to consider the economic effects on communities when deciding cases involving the shutdown of large power sources, such as the San Juan Generating Station. The bill also would require a utility to build any replacement power source in the same community as the facility it is planning to close. Many proponents of the original measure tied to PNM, Senate Bill 47, argued during a lengthy hearing Saturday that it would offer aid to residents of San Juan County who heavily rely on jobs at the power plant and a nearby coal mine that supplies it. “The school district in Kirtland, New Mexico, gets about $37 million a year from the power plant,” Montoya said Thursday.
A Senate committee dealt a blow to Public Service Company of New Mexico on Saturday by voting to stall a bill allowing the utility to sell bonds to pay for the early closing of a coal-burning power plant in northwestern New Mexico. The Senate Conservation Committee voted 5-4 to table Senate Bill 47, known as the Energy Redevelopment Bond Act. The vote followed a more than three-hour hearing, which drew a packed crowd to the Senate chambers. Proponents argued the measure would boost renewable energy in the state while offering aid to residents of San Juan County who heavily rely on jobs at the power plant and a nearby coal mine that supplies it. Opponents, however, painted it as a bailout for PNM and said it would weaken state regulators’ oversight of the utility.
A bill scheduled to come before the Senate Conservation Committee on Saturday has some environmental groups and the state’s largest electric utility facing off over financing the retirement of a coal-fired power plant. If passed, the bill would create a bond financing mechanism allowing Public Service Company of New Mexico, or PNM, to recover “stranded” costs associated with its planned closure of the San Juan Generating Station near Farmington. The bill would allow the utility to form a subsidiary that could issue low-interest “energy redevelopment bonds” and recover more than $300 million. Senate Bill 47 is sponsored by Albuquerque Democratic Sen. Jacob Candelaria, an attorney, and Republican Sen. Steven Neville, a real estate appraiser from Aztec. Its counterpart, House Bill 80, is also a bipartisan bill, sponsored by Rep. Roberto Gonzales, D-Ranchos de Taos, and Republican Minority Whip Rod Montoya, a miner from Farmington.