Sierra Club News:
The Public Regulation Commission (PRC) voted 5-0 Wednesday that PNM violated the ETA. The Commission agreed with environmental and consumer groups and blocked PNM’s plan to keep charging customers for San Juan Generating Station expenses long after the plant is closed.
The commission also required PNM to issue the community and worker money that the Energy Transition bonds would fund immediately when the coal plant closes.
The ruling means the average PNM customers will see a bill savings of more than $8 per month, and hundreds of dollars over the next 18 months.
PNM planned to charge customers for coal expenses after it exits the plant in September, which would have resulted in more than $125 million in double collections from PNM ratepayers.
The recommendation also requires PNM to issue the millions of dollars in community and worker transition funding that the ETA bonds should provide, even if PNM delays its bond issue.
PNM revealed earlier this year that it would delay issuing ETA bonds until after it filed its next rate case. The AAA-rated, low-interest ETA bonds dramatically lower customer payments for stranded San Juan Generating Station expenses and were meant to be issued when the utility exits San Juan. Instead, PNM planned to keep charging customers for as long as 18 months afterward, until after its next rate case.
The charges would include operations and maintenance costs that the utility was no longer paying, as well as a significant rate of return that PNM collects as profit. The savings from the bonds’ lower interest rates than PNM’s 10 percent rate of return would also provide $40 million in funding for impacted communities and workers.
Dozens of New Mexicans, including many from the impacted Four Corners area, offered public testimony last month urging transition, immediate rate credits reflecting the savings of removing coal from PNM’s portfolio, and immediate investment of ETA transition funds for the community and plant and mine workers.
The Energy Transition Act’s intent is carried out by the decision today. For those having a hard time paying their energy bills, relief is coming,” said Stephanie Dzur of the Coalition for Clean Affordable Energy.
“PNM wanted to continue to charge New Mexicans for a coal plant the utility will be closing. We protected PNM customers from charges that shielded consumers from seeing the benefits of switching from coal to cleaner sources of energy.” said Cara Lynch, attorney for CCAE and Prosperity Works.
About the Rio Grande Chapter of the Sierra Club:
The Rio Grande Chapter of the Sierra Club is a volunteer-led organization representing more than 7,000 members in New Mexico and West Texas. Its mission to is to explore, enjoy and protect the planet, and prioritizes action on protecting the climate, clean air, clean water, and conservation of wildlife and public lands in New Mexico and West Texas.
The Rio Grande Chapter was founded in 1963 and originally included New Mexico and all of Texas. In 1965, the Lone Star Chapter was formed. Lone Star encompasses all of Texas except for El Paso, Hudspeth and Culberson counties, which stayed with Rio Grande to this day.
Five regional groups make up the chapter:
- Northern New Mexico Group
- Pajarito Group (Los Alamos area)
- Central New Mexico Group
- Southern New Mexico Group
- El Paso Group
Each group has at least one representative on the chapter Executive Committee, which is made up of volunteers elected by members. To see the makeup of the Executive Committee or to contact a chapter leader, click here.
The Executive Committee meets in person four times yearly to set priorities, vote on political endorsements and make decisions on budget and hiring of staff. The chapter currently employs two full-time employees and one part-time employee.
For information, contact Chapter Director Camilla Feibelman at camilla.feibelman@sierraclub.org or 505.715.8388.