January 3, 2022
by Paul Ciampoli
APPA News Director
January 3, 2022
A group of New Mexico lawmakers is asking state utility regulators to launch a study that would evaluate shifting the state’s electric sector to public power.
The lawmakers said in their petition filed at the New Mexico Public Regulatory Commission (PRC) that they “believe that it is probable that public ownership of the electrical utilities that serve New Mexico would benefit New Mexico’s ratepayers, New Mexico’s businesses, and New Mexico’s state, local and tribal governments.”
The lawmakers said that the PRC should oversee a comprehensive study that would address questions that would include, among others:
The lawmakers said that within the next decade trillions of dollars will be invested in energy infrastructure across the United States. “From federal policies to market forces to the inevitable replacement of retiring fossil fuel plants, the transition to renewable energy sources will necessitate a massive restructuring of not only the power grid and generation sources, but energy markets, ownership and control,” the petition said.
“With some of the highest solar and wind capacity of any state in the nation and the ability to deliver terawatts of energy to our neighbors and beyond, New Mexico will be presented with numerous opportunities and important decisions as this transition unfolds.”
But the lawmakers argued that the transition is not being facilitated effectively by the state’s current IOU structure. “Despite New Mexico’s abundant natural resources, second in the country for solar potential and 11th in the country for wind potential, and the sun Zia on our flag, each of the state’s investor-owned-utilities have relatively small percentages of renewables in their energy portfolios.”
They said that under the current energy model, investor-owned-utilities’ plant ownership and energy investments “require a return on equity that creates a perverse incentive NOT to invest in energy sources with fixed capital costs and no fuel costs.”
The lawmakers said that under the IOU model, returns on investments and profits — at least in the case of Public Service Company of New Mexico, with a return that is 9.575% annually, are exported to Wall Street.
Copyright © 2024 Kansas Power Pool | Designed by Custom Internet Services LLC