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:
it was not cost effective compared to solar and wind investments; and
ratepayers would save hundreds of millions of dollars to switch to renewables; and
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.
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.