Energy Transition Act

Supreme Court declines to rule on constitutionality of ETA

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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.

Energy Transition Act

Suit alleges ETA a ‘deregulation law’ for PNM

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A group of organizations filed a lawsuit in the 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.

El Paso Electric

PRC rushes to approve solar project

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ALBUQUERQUE, N.M. — A hearing for a proposed community solar project near Las Cruces is scheduled for next month, even after El Paso Electric attempted to withdraw its proposal. New Mexico’s Public Regulation Commission has put the hearing on its calendar, despite opponents’ successfully arguing that the original proposal showed favoritism to the utility company over independent solar contractors. Mariel Nanasi, executive director of the group New Energy Economy, said when utilities are given an automatic advantage by the PRC, customers don’t get the lowest price for solar energy. “The law is, you’re supposed to get the most cost-effective among feasible alternatives,” Nanasi explained. “Well, one of the other alternatives is to allow independent power producers to compete against the utility – and when they do, they’re often much cheaper.”

El Paso Electric

NM renewable energy group awaits conflict-of-interest decision

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SANTA FE, N.M. – New Mexico needs more affordable solar, but a renewable energy group says two members of the Public Regulation Commission have a conflict of interest and should not be allowed to participate in the decision. Mariel Nanasi, an attorney with New Energy Economy, says commissioners Sandy Jones and Lynda Lovejoy should not vote on a PRC solar contract decision because they’re up for re-election and they received campaign contributions from the company. The PRC will decide on an application by El Paso Electric to purchase a $4.5 million solar farm to be built by Affordable Solar. The company’s registered lobbyist is also the campaign consultant for Jones’ and Lovejoy’s re-election bids. Nanasi maintains the two commissioners should recuse themselves from the decision.

San Juan Generating Station

Bill to ease plant closing impact heads to House floor

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In a case of strange political bedfellows, a conservative lawmaker from San Juan County and the leader of a Santa Fe environmental group not known for compromising came together Tuesday to back a bill aimed at easing the economic woes of New Mexico communities hit by the closing of large coal-burning power plants. The House of Representives voted 44-25 to pass Rep. Rod Montoya’s House Bill 325, designed to help a large school district keep most of its tax base if Public Service Company of New Mexico closes the San Juan Generating Station by 2022. To become a reality, the measure would also have to clear the Senate before the Legislature adjourns at noon Thursday. “Are you going to refer to me as an environmentalist activist,” Montoya joked with a reporter Tuesday. Endorsing the bill was Mariel Nanasi, executive director of New Energy Economy, a Santa Fe-based non-profit that has fought many PNM rate increases and other proposals before the state Public Regulation Commission.

2018 Legislative Session

Proposed law on power plant closings draws critics

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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.

Environmental Project

NM’s PRC to decide $150 million coal plant reimbursement

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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.

2017 legislative session

Bill would ask utilities to choose least costly energy alternative

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State Sen. Joe Cervantes wants to ensure that electric companies in New Mexico are getting the best prices for their power sources, and he wants the state to use more renewable energy. The Las Cruces Democrat this week introduced a bill that would require publicly owned electric utilities to choose the least-costly alternative when proposing purchases of new energy sources. “This begins with the recognition that the price for renewable energy is falling dramatically,” Cervantes told The New Mexican on Friday. “So the goal behind this legislation would be to try to encourage a competitive market, which is emerging with renewable energy.” Currently, Cervantes said, investor-owned utilities “are relying on their own generation of electricity.”