By Carla J. Sonntag
Executive Director, New Mexico Utility Shareholders Alliance

Reliable electricity is the backbone of society and will make a difference in how we move this state out of a lingering recession. That's why the Recommended Decision (RD) in the PNM rate case, which could effectively eliminate nuclear produced electricity as an option for New Mexico's future, was so stunning. If adopted, it could be the precursor to higher rates and a dilemma for electricity production in our future.

PNM is a regulated monopoly, which means it is the sole provider of electricity in its service territory. The New Mexico Public Regulation Commission (PRC) is charged with oversight of monopolies to ensure New Mexicans get a fair deal and it is specifically required, by statute, to balance the interests of consumers, investors and the public.

Unfortunately, the process at the PRC seems to be moving away from one that is fair and balanced. This is evident in the RD for PNM's rate case and, if not corrected by commissioners, will have a huge bearing on our future.

Last fall, after several years of discussion and planning, the PRC approved a plan for PNM to close two of its four coal plants. That closure will reduce the plant's usage of coal, water and carbon emissions by fifty percent. In exchange for these environmental gains, PNM had to seek additional generation sources to replace the lost power. To maintain affordable, reliable service that is available 24 hours per day, PNM sought to diversify its energy portfolio to include more natural gas and nuclear energy. Solar and wind will help make up part of the lost generation, but they are unable to provide the round the clock service that we've all come to rely upon.

The problem with the RD in this case is that the Hearing Examiner disallowed all cost recovery for leases at Palo Verde Nuclear Generating Station. Electricity generated at Palo Verde is our most reliable, economical, carbon-free source of generation.

What is the true cost of the RD, if the PRC fails to set it aside and do the right thing for New Mexicans?

For starters, PNM would be faced with the unsavory decision of whether or not to sell its interest in Palo Verde to recover its costs.

Second, this bad decision would set precedence where PNM and other utilities in New Mexico would probably not invest in nuclear energy again for fear of not recovering all of the associated costs. In 2023, PNM will have the opportunity to purchase Palo Verde capacity that it is now leasing. PNM has stated it will not purchase any more leased capacity when opportunities arise, if this RD stands.

And what would fill the gap of lost nuclear power? It would have to be another type of base load generation, such as natural gas, because of reliability issues with solar and wind. Unfortunately, natural gas is also under attack by the G

Content on the Beat

WARNING: All articles and photos with a byline or photo credit are copyrighted to the author or photographer. You may not use any information found within the articles without asking permission AND giving attribution to the source. Photos can be requested and may incur a nominal fee for use personally or commercially.

Disclaimer: If you find errors in articles not written by the Beat team but sent to us from other content providers, please contact the writer, not the Beat. For example, obituaries are always provided by the funeral home or a family member. We can fix errors, but please give details on where the error is so we can find it. News releases from government and non-profit entities are posted generally without change, except for legal notices, which incur a small charge.

NOTE: If an article does not have a byline, it was written by someone not affiliated with the Beat and then sent to the Beat for posting.

Images: We have received complaints about large images blocking parts of other articles. If you encounter this problem, click on the title of the article you want to read and it will take you to that article's page, which shows only that article without any intruders. 

New Columnists: The Beat continues to bring you new columnists. And check out the old faithfuls who continue to provide content.

Newsletter: If you opt in to the Join GCB Three Times Weekly Updates option above this to the right, you will be subscribed to email notifications with links to recently posted articles.

Submitting to the Beat

Those new to providing news releases to the Beat are asked to please check out submission guidelines at https://www.grantcountybeat.com/about/submissions. They are for your information to make life easier on the readers, as well as for the editor.

Advertising: Don't forget to tell advertisers that you saw their ads on the Beat.

Classifieds: We have changed Classifieds to a simpler option. Check periodically to see if any new ones have popped up. Send your information to editor@grantcountybeat.com and we will post it as soon as we can. Instructions and prices are on the page.

Editor's Notes

It has come to this editor's attention that people are sending information to the Grant County Beat Facebook page. Please be aware that the editor does not regularly monitor the page. If you have items you want to send to the editor, please send them to editor@grantcountybeat.com. Thanks!

Here for YOU: Consider the Beat your DAILY newspaper for up-to-date information about Grant County. It's at your fingertips! One Click to Local News. Thanks for your support for and your readership of Grant County's online news source—www.grantcountybeat.com

Feel free to notify editor@grantcountybeat.com if you notice any technical problems on the site. Your convenience is my desire for the Beat.  The Beat totally appreciates its readers and subscribers!  

Compliance: Because you are an esteemed member of The Grant County Beat readership, be assured that we at the Beat continue to do everything we can to be in full compliance with GDPR and pertinent US law, so that the information you have chosen to give to us cannot be compromised.