Current work in wildlife, rivers, public lands, and climate

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 ServiceCompany of New Mexico’s (PNM’s) plans to saddle New Mexico ratepayers with thecost 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 onPNM’s proposed rate increase. Alltold, the utility is asking for a 21% increase. The plan has drawn ire from a number of municipalities andother customers.

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

The rate increase comes as PNM is being required by federallaw to retrofit the San Juan Generating Station, the company’s 1,800 megawattcoal-fired power plant located in San Juan County, New Mexico, with modern airpollution controls. PNM assertsthat the cost of retrofitting the plant is nearly $1 billion, althoughindependent estimates place the cost closer to $250 million. PNM has threatened to recover the fullcost from ratepayers.

At the same time, PNM has rejected modest calls for thedevelopment of renewable energy. Most recently, PNM asked for a waiver to the State’s 20% renewableenergy standard because the utility claims the cost of developing renewable energy—whichPNM 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 energystandards as high as 30%, PNM is balking at meeting even a 20% standard.

In addition to saddling ratepayers with the cost ofcontinuing to operate the coal-fired San Juan Generating Station, PNM’s brazenmove would saddle New Mexicans with millions in health costs. Health analyses prepared by the CleanAir Task Forces shows that every year, the San Juan Generating Station causes33 premature deaths, 50 heart attacks, 600 asthma attacks, 21 cases of chronicbronchitis, and 31 asthma-related emergency room visits at a cost of more than$250 million.

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