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PRC candidates: Financial analysis crucial to utililty
Public Regulation Commission candidates

The New Mexican
Posted: Sunday, May 11, 2008
- 5/10/08
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In the run-up to the June state primaries, Democrat and Republican candidates in contested races are asked to name the number one issue facing the governmental body which they see to serve. And we asked them how they think their presence in that office would help resolve that issue.

This week, you'll read the opinions of the Democrat Primary candidates for the Public Regulation Commission, District 3, which includes all of Los Alamos, Taos, Colfax, Mora, Union, San Miguel and Harding counties, plus parts of Santa Fe, Rio Arriba, Sandoval and Guadalupe counties.

No Republican candidates emerged to run for the PRC seat vacated by Ben Ray Lujan, who is running for the U.S. House of Representatives from New Mexico's Third District. Therefore, the winner of the June 3 Democrat Primary will assume the PRC vacancy.

Next week: Santa Fe County Commission, Districts 4 and 5


Financial analysis crucial to utililty
By Jerome D. Block Jr.

Because of today's sagging national economy, I believe that the critical issue facing the PRC today is the way the PRC deals with utility regulation. All segments of the population, especially the disabled and elderly, who depend on a small fixed income, are affected by volatile rate changes and "rate shock." I believe that a healthy utility is necessary for the well being of society, but the utility has to maintain accountability, not only to its stockholders, but to the ratepayers who bear the burden of paying off their investment. For instance, because of growing demand, PNM is asking for an increase in rates for new investment.

At the last legislative session there was a statute passed that allows PNM to be compensated for any programs it undertakes to promote energy conservation.

This was, in part, to mitigate the need to build new generating facilities. The PRC must also carefully consider the request for the cost of fuel adjustment. PNM presently uses 22 percent of its electricity generated by gas. If the cost of fuel adjustment is passed, will PNM use more gas generation, rather than cheaper coal? Will they buy more of their power from their own unregulated "merchant plants"? Will PNM be as aggressive in negotiating contracts, since they can pass along any fuel costs to the customer?

Renewable energy should be a priority with the PRC. In 2002 the PRC passed a Renewable Portfolio Standard Rule, mandating renewable energy usage, beginning with 5 percent in 2006 and 10 percent by 2011. The Legislature, since then, has mandated annual increases to 20 percent by 2020. Rural electric cooperatives are also required to start providing 5 percent of renewable energy by 2015 and 10 percent by 2020.

Because Qwest did not comply with the original alternative form of regulation, PRC must be vigilant in monitoring the present alternative form to ensure the same issues do not arise.

The PRC deals with many issues that require analysis of rates and rate of return. My education and background in finance will be invaluable in studying cases and making fair and equitable decisions for all citizens of New Mexico.


Waste reduction, conservation are important
By Paul Campos
The PRC is one of the most powerful state agencies. Its basic mission is to evaluate and approve rates for, among other things, electricity, gas and phone usage. The PRC is the only agency that stands between the utility and its customers, and it must make sure that the proposed charges are fair and reasonable. A utility company is entitled only to a reasonable profit.

The PRC is underfunded. It does not have the experts to properly evaluate the utility applications made by the utility companies. The utility companies have a lot of hired experts to make their case. The public is entitled to the same quality of expertise to review the applications.

The PRC plays a key role relative to energy efficiency. It must take steps to ensure that we and the utilities act to reduce the energy waste.

We waste 25 to 30 percent of the energy we pay for either because we have forgotten to "turn off" the lights or because we have appliances that are outdated "energy hogs." We must better insulate our homes and replace windows and doors that allow the cold or heat to enter our homes.

The bigger question involves energy efficiency in the production of energy. A coal fired power plant has an efficiency of only 30 percent. That is, we only get 30 percent of the energy produced. The PRC must encourage production-side efficiencies. In other parts of the world, utilities reach efficiencies in the 50 to
80 percent range. If we don't waste energy, we will not have to build additional polluting coal plants.

The PRC must encourage the use of solar energy to produce electricity. New technologies, such as concentrated solar power, are now available.

As a Santa Fe county commissioner and attorney, I know how to get things done.

Employees affect PRC performance
By Louis E. Gallegos

The biggest issues we are facing are the high telephone, natural gas, water, insurance and electricity rates.

We need to bring the big industries in and sit them down to review their profit margins and try to actually decrease rates.

With the economy in such bad shape, the PRC needs to do everything possible to regulate these industries and keep costs down for all citizens.

We also need to come up with more incentive programs to help our senior citizens. It is a crime to see our senior citizens on fixed incomes struggling to pay their utility bills.

We cannot expect them to pay high premium rates.

I would also have to say to be a more effective agency there needs to be a re-classification of job descriptions for all employees who work within the PRC.

I would make it a priority because without good employees, its mission could not be accomplished. Some of the employees have been working for years with no change to their job descriptions and/or salary.

While the job workload increases, their pay remained the same. Some of our state employees have to get second jobs because they are struggling to get their bills paid.

This is a must to ensure that the PRC operates to its fullest capacity, and we get the most advocacies out of all the divisions that the PRC regulates.

If elected to the PRC, I will also work diligently with the industries, ensuring fair regulatory treatment for both the industry and the hardworking citizens of New Mexico.

I will be tough on "big business" when needed.

I am a proven regulator. I will be able to walk into an office and know what to do from "Day One."

I am the only candidate who has actually worked in the industries that the PRC regulates, having previously held the position of State Corporation Commissioner for six years.

Thus said, I believe I have the right experience and industry knowledge to run for this office.

I look forward to making some serious changes that are long overdue for New Mexico citizens.


Help for families who can't make ends meet
By Joseph Maestas


It is painful for a family to realize that no matter how many hours they work they still can't make ends meet.

This is true for the citizens of Public Regulation Commission District 3 and indeed families everywhere.

The greatest challenge facing the PRC today is finding the resolve to ease the financial burden of the consumer despite heavy opposition to the contrary.

There is no excuse for inaction.

If elected to the PRC, I will bring stability, progressive leadership and will immediately work to increase energy assistance and relief programs. I will streamline the resolution of cases brought before the PRC and fight for the interest of the consumer.

It's not only possible to greatly increase the efficient uses of energy, save money and invaluable natural resources — it's a moral obligation.

I do not accept minimal renewable energy standards as set by legislation.

I will push beyond extinct limits and embark on a comprehensive initiative of vast co-operation, innovative thinking, and common sense incentives in partnership with utility companies, stakeholders, and the public.

If elected, I will develop and implement new rules that will offer financial incentives for investor-owned utilities, electric co-ops, and municipal utilities to exceed the portfolio standards particularly through solar and biomass for electricity or steam production.

Corporations will be held accountable.

There will be no free passes for companies with respect to environmental recklessness, health and safety risks to employees and consumer gouging.

I will represent and be an advocate for the people above all else.

This job requires public service experience in administrative, consumer and legislative affairs.

The resolve to reform the title insurance industry and make our transportation system more efficient are additional actions I will take.

The PRC is charged with upholding the public's trust in the constant face of special interests.

Public financing of PRC campaigns removes special interests, period!

I am a publicly-financed candidate, a lifelong public servant, current mayor of Española and a reformer who will be ready to serve the people of New Mexico and uphold their trust from day one.

Encourage alternative energy sources
By Arthur H. Rodarte


The New Mexico Public Regulation Commission is charged with regulation and oversight of the operations of the utility companies, telecommunications, motor transportation companies, insurance companies, corporations, pipeline safety, the state Fire Marshall's office and the Firefighter Training Academy. It's the responsibility of the PRC to ensure that all entities provide the best possible services with the most reasonable charges possible to citizens of New Mexico.

One of the most critical issues facing the PRC is the regulation of utility companies and being able to maintain fair and equitable methods for these companies to find other sources of energy and keeping the cost down without having to pass the cost to the consumers. Coupled with this is the issue to promote energy efficiency.

I believe that with my expertise in dealing with power companies, having served as a trustee on the Kit Carson Electric Cooperative Board for many years, I have gained a broad understanding and experience in dealing with these issues. We have been instrumental in becoming the largest seller of renewable energy of all the rural electric cooperatives in the state.

Currently, we are implementing two major solar projects with two colleges in Northern New Mexico, one at The University of New Mexico-Taos and the other at Northern New Mexico College-El Rito, for assisting them with reducing their energy costs, as well as for educating students. My experience as a state senator also has provided me with a wealth of experience in dealing with people of diverse cultures, the government, the legislature, the governor and making decisions that impact people's lives.

The citizens of New Mexico, as well as the rest of the country, are experiencing increasing insurance costs.

Insurance rates have dramatically increased, making it a struggle for people on fixed incomes to afford medical insurance, as well as insurances for their vehicles and homes.

Insurance rates in New Mexico are among some of the highest in the nation.

This issue is also of great concern and one with which the PRC must deal. I am not accepting any donations from corporations, so if elected, I will represent the people to protect their interests.


Professionalism, not politics, needed
By Bruce Throne


Public Regulation Commission decisions probably affect the public's interests more than those of any other single agency in New Mexico.

This agency is responsible for investigating and regulating a myriad of complex and highly technical rate-setting, energy efficiency, renewable energy, service quality and safety aspects of the state's electric, natural gas and water utilities, rural electric cooperatives, telecommunications providers (including the infrastructure necessary to provide customers in rural and urban areas with a choice of providers and access to reasonable Internet service), title and health insurance, "common carriers" (e.g., taxi and bus services), gas pipelines, hazardous material carriers and fire protection.

Because of this broad public protection mandate, the most critical issues facing the PRC today are its lack of (1) specialized training and experience at the commissioner decision-making level and (2) sufficient funding and technical staff to satisfy its oversight responsibilities in a timely manner.

The former problem exists because, since its creation as an elected position, the "under the public radar" job of PRC commissioner has been treated as a political one, rather than a professional position requiring specialized legal training or other experience concerning industries the PRC regulates.

The latter problem exists because, although the state collects more than $16 million annually through "Inspection and Supervision Fee" surcharges on consumers' bills for regulated services, the Legislature gives the PRC an insufficient portion of those funds to do its job. This creates the appearance of regulation where often none exists.

If elected to the PRC, I would use my 32 years of legal training, knowledge of regulatory law and experience representing consumers and the public interest in PRC cases to clearly explain to the public and resolve — in a politically independent manner free from improper outside influences — matters within this agency's jurisdiction.

I also would work hard to persuade state legislators to give back to the PRC more of the "Inspection and Supervision" funds which the state collects from consumers of regulated services so this agency will have the technical staff and resources necessary to fully, competently and timely investigate and wisely address these matters and thereby truly protect the public's interests.





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