New Mexicans showed up to tell the PRC that experience and accountability matter.. and BCP has shown none.

What happens when an inexperienced and profit driven gas company cuts costs and fails to properly maintain its facilities and operations? On Tuesday dozens of New Mexicans showed up to the PRC's public comment hearing about Bernhard Capital Partner's bid to buy New Mexico Gas Company and asked that very important question. How can a private equity company focused exclusively on profit, and with just three months experience running a gas utility, be trusted to provide safe and reliable gas service to the majority of residents in our state?

Thank you to everyone who took time to speak up for New Mexicans! People had to sit on the floor before more chairs could be found, and more were waiting online. The only comments in support of the deal were from business advocates - the Chamber of Commerce reps and surprise, the New Mexico Oil and Gas Association. Every other speaker opposed the proposed deal because Bernhard Capital Partners has not proved it can operate a gas utility.

In fact, it has proved the opposite at a much smaller water utility, BCP's National Water Infrastructure serving 20,000 people, which was cited by the Louisiana Department of Environmental Quality when it "failed to properly operate and maintain the treatment facility," resulting in bloodworms and sanitary waste entering the receiving stream. As Michael Policastro, an engineer, pointed out about the wastewater operation in his comment "That's an order of magnitude LESS dangerous, LESS complicated, and SMALLER in scope than NM Gas Co.” The Abq Journal also quoted Mr. Policastro's important statement:

As an engineer, I have a couple of catchphrases I like to live by. One is, ‘trust but verify,’ another is, ‘bring the receipts,’ and a third one is, ‘identify risk, mitigate risk, and avoid risk at all costs,’” Policastro said. “I see no clear benefit to New Mexico customers from this proposed sale.

We concur.

Gas is flammable, explosive, odorless and invisible. A failure of maintenance and operations could be catastrophic.

Other commenters spoke about the dangers of private equity ownership. They raised experience with the increasing cost and reduced access to veterinary care in New Mexico after private equity companies bought out many vet practices. They noted the impact of private equity ownership on hospitals, nursing homes and housing. (New Mexico has the highest proportion of hospitals owned by private equity firms in the country, with 38 percent of private hospitals (17 out of 45) owned by private equity firms.) Michael Sweringen, a school teacher, explained that after private equity acquisition hospitals reduce staffing, nursing home patients wait longer for basic care and die at an increasing rate, and renters face higher costs and eviction proceedings. Karilyn Haozous, a Navajo and Taos Pueblo elder, noted that the cost of living is rising, and elderly folks on fixed incomes cannot afford any utility increases.

Many pointed out that if New Mexico tapped its Permanent Fund to buy controlling stakes in our utilities, we could keep energy costs for New Mexicans low while allowing state residents to directly profit from our own resources, all without further squeezing low and middle class ratepayers to inflate the profits of wealthy private equity investors. There is a reason these predatory companies are looking to buy up our utilities - they see big profits in our resources! And those expected profit increases will come directly from the pockets of NM Gas Company customers. 

Public ownership would also allow New Mexico to direct NM Gas Company to comply with emissions reduction goals and focus on efficiency rather than the profit driven incentive to continue investing in the unnecessary expansion of gas distribution infrastructure. That is the last thing we need as people around the world lose their homes, their lives and their health because of fossil fuel use.

WHAT'S NEXT?THE BCP BUYOUT HEARING BEGINS NEXT WEEK

The special public comment hearing is over, but your statement is still important and relevant. The Hearing Examiner will begin the hearing on this case over the next two weeks and the PRC will base their decision on the Hearing Examiner's recommendation usually several months afterwards. Your written public comment can be sent to public.comment@prc.nm.gov with the subject line "Public Comment on 24-00266-UT" or call them in at (505) 490-7910.

AND!! Importantly, this was not the only opportunity to speak. The PRC has regular open meetings in Santa Fe and online. Every open meeting is an opportunity to tell the PRC why private equity needs to keep its hands off of our utilities! You are key to this process. When we fight, we can win. We need you!!!