Coal opponents seek to disqualify 4 of 5 New Mexico regulators from PNM rate decision

Dive Brief:

A group of clean energy advocates opposed to Public Service Company of New Mexico’s (PNM) plan to expand ownership of the San Juan coal facility are seeking to exclude most of the state's regulators from the decision.
Citing emails they say show a cozy relationship, ex parte communications and targeted political contributions, the clean energy advocacy group New Energy Economy told a hearing officer that four of the commission's five members may have prejudged the case.
PNM has struck a deal with environmentalists to continue operating the plant, but New Energy Economy was not a party to the deal and is continuing to oppose the utility's coal use.

Dive Insight:

Clean power advocate New Energy Economy has asked a hearing officer to disqualify four of the commission's five members from voting on PNM's proposal to continue operating the San Juan coal facility. In a 65-page filing, the group cites emails from utility officials discussing campaign contributions and alleges ex parte communications that show regulators have pre-judged the case.

The four regulators the groups wants disqualified include: Lynda Lovejoy; Sandy Jones; Karen Montoya; and Patrick Lyons.

According to NEE, the utility has “tainted this process with consistent and nefarious contact with the Commissioners. The cumulative weight of influence by PNM with this Commission makes a fair determination on the merits impossible.”

A PNM spokesperson told the Santa Few New Mexican that it "does NOT agree that any inappropriate communication occurred between PNM and any of the commissioners.”

In May, PNM struck a deal to continue operating the San Juan facility for another 20 years. The utility believes it is the lowest cost option to ratepayers, and would shutter two of station’s units and keep two others operating at a cost of $6.8 billion over 20 years.

Last month PNM filed to boost electric rates by 14.4%, or more than $123 million. The utility said net customer bill increases would average 5.4% if other changes, including the San Juan coal contract, are approved.

“Since our last general rate increase in 2011, PNM has continued to make significant investments in the electric system to maintain the company’s excellent reliability and to protect the environment, benefits our customers are receiving but not yet paying for,” Pat Vincent-Collawn, PNM Resources’ chairman, president and CEO, said in a statement. “We’re also proposing the first significant change to rate structure in more than two decades so that bills may be calculated more accurately to reflect how our customers actually use energy today.”