Energy Transition Act
aka PNM Bailout Bill

Senate Bill 489

SB489, the Energy Transition Act was passed and signed into law during the 2019 legislative session

In 2015, PNM invested more than half a billion dollars in its coal plant, the San Juan Generating Station (SJGS). New Energy Economy’s position was that PNM should close the dirty climate-altering unreliable coal plant because:
 

  1. it was not cost effective compared to solar and wind investments; and

  2. ratepayers would save hundreds of millions of dollars to switch to renewables; and

  3. that we’d create thousands of jobs in a new energy economy.
     

But PNM, along with cover from “environmental organizations,” got their way before a corrupt PRC to continue operating SJGS.

 

A year later, PNM agreed with New Energy Economy that San Juan is no longer “cost effective” and will close the plant by 2022. Yet, PNM is asking the legislature to make New Mexicans pay the $300 MILLION plus they would have made from us if the plant remained open and still producing electricity until 2053.

 

Now, PNM has received a BAILOUT through Senate Bill 489, The Energy Transition Act. READ New Energy Economy's Initial Analysis and recommended next steps for the bill. [PDF]
 

In the last 10 years, when PNM, with an energy portfolio of 50% coal, 30% nuclear, 10% gas, 8% wind and 2% solar, was making the 654% profits it was stuffing the pockets of its CEO with $5 million a year and enjoying stock value increases of 300%, they didn’t share any profits with us.

 

Legislation has been passed and will likely result in requiring us to give PNM $300 MILLION+ more in “non-bypassable” charges on our monthly bill! When PNM reaped the rewards of its investment PNM didn’t share the profits with us why should we pay for their losses? It isn’t fair.

CLICK HERE to download a PDF: one-pager on Energy Transition Act or SECURITIZATION

 

We asked for significant changes to this deregulation law and told we Legislators to:

Vote NO PNM BAILOUT!

 

We asked, to no avail, for the following criteria to be included in the bill.
 

  • the bill must allow for competition for replacement power after the coal-fired San Juan Generation Station closes in 2022;
     

  • the bill must ensure PRC maintains authority over cost-recovery and replacement power;
     

  • the bill must allow for renewable energy resources;
     

  • the bill must protect New Mexico ratepayers against overbuilding of power generation and NOT set a precedent for future bailouts;
     

  • the transition fund must be responsibly managed and allocated;
     

  • PNM must pay a fair share for economic recovery

     

Invest in people & solar, not corporate welfare.

Makai Lewis, Co-Director for New Energy Economy's, Just Transition - Health Impact Assessment project near Shiprock, New Mexico, gazes toward the coal-fired Four Corners Generating Station with the San Juan Generating Station behind him.
A VICTORY
PNM is closing the San Juan Generating Station (“San Juan”), one of the dirtiest coal plants in the United States, in 2022. This is a celebrated milestone. Coal is the single greatest driver of climate change and PNM’s San Juan coal plant is the largest source of climate-altering carbon emissions in our state and an environmental hazard (millions of lbs. of coal ash, tens of millions of dollars of externalized health care costs for asthma, heart disease and more, annually).
THE OPPORTUNITY
With the Coal Plant closing, we have a great opportunity to create clean energy jobs, improve the air quality and provide cheaper electricity to New Mexicans. We need to ensure that the area is cleaned up and poisonous coal ash is not left to leak into the San Juan River, since PNM has said that is a possibility. We also need to make sure that San Juan residents have access to training and new jobs in the renewable energy sector that we can build in San Juan. We also have to monitor PNM’s effort to claim $320 million of assets that it believes it is entitled to with the closing. Ratepayers shouldn’t subsidize PNM for it’s imprudent business decisions.
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343 E. Alameda St.

Santa Fe, NM 87501

Phone: (505) 989-7262

Tel: 505-989-7262

info@NewEnergyEconomy.org