WildEarth Guardians

Tuesday, January 25, 2011
Rate Increase Request Saddles New Mexico With Debt and Pollution

PNM Says Renewable Energy too Expensive, Yet Saddles Ratepayers With Out of Control Costs of Coal
Contact: John Horning (505) 988-9126 x1153

Albuquerque—WildEarth Guardians is opposing Public Service Company of New Mexico’s (PNM’s) plans to saddle New Mexico ratepayers with the cost of burning coal at the expense of cleaner, healthier renewable energy.

At a hearing slated for tomorrow January 26 in Albuquerque, the New Mexico Public Regulation Commission will be taking public testimony on PNM’s proposed rate increase.  All told, the utility is asking for a 21% increase.  The plan has drawn ire from a number of municipalities and other customers.

“This isn’t a rate plan, it’s a self-serving threat to stick New Mexican’s with the exorbitant cost of coal,” said John Horning, Executive Director of WildEarth Guardians.  “Rather than shift to cleaner, more affordable energy, PNM is instead trying to force us to pay for dirty energy, yet that’s a rate we literally can’t afford.”

The rate increase comes as PNM is being required by federal law to retrofit the San Juan Generating Station, the company’s 1,800 megawatt coal-fired power plant located in San Juan County, New Mexico, with modern air pollution controls.  PNM asserts that the cost of retrofitting the plant is nearly $1 billion, although independent estimates place the cost closer to $250 million.  PNM has threatened to recover the full cost from ratepayers.

At the same time, PNM has rejected modest calls for the development of renewable energy.  Most recently, PNM asked for a waiver to the State’s 20% renewable energy standard because the utility claims the cost of developing renewable energy—which PNM says will be between $3.3 and $6 million—is too much.  Although utilities in other states, including Xcel Energy in Colorado, have been able to meet renewable energy standards as high as 30%, PNM is balking at meeting even a 20% standard.

In addition to saddling ratepayers with the cost of continuing to operate the coal-fired San Juan Generating Station, PNM’s brazen move would saddle New Mexicans with millions in health costs.  Health analyses prepared by the Clean Air Task Forces shows that every year, the San Juan Generating Station causes 33 premature deaths, 50 heart attacks, 600 asthma attacks, 21 cases of chronic bronchitis, and 31 asthma-related emergency room visits at a cost of more than $250 million.

“PNM is fighting efforts to develop cleaner, more affordable energy, yet is brazenly threatening to saddle New Mexico with nearly $1 billion to keep burning coal at the San Juan Generating Station,” said Horning.  “It’s time for PNM to stop putting profits and pollution over people.”