Commentary and Opinion

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Wednesday, March 14, 2012

PNM CEO Explains Struggles with EPA (cont'd)

"EPA's mandate to use the most expensive technology available to reduce emissions has us concerned that electric prices will increase beyond the point of affordability for many more New Mexicans and acutely affect the most vulnerable members of our community."
The Albuquerque Journal recently editorialized on the issue as well, arguing that the state plan makes long-term sense. And the International Brotherhood of Electrical Workers Local Union 611 recently wrote: "a cost requirement of this magnitude clearly will add significantly to the operating costs which will lead to higher energy prices. That's a serious concern ...."
We share these concerns about the significant impact EPA's decision will have on customer electric bills, especially during tough economic times.
EPA Delays Review of New Mexico Plan While Approving Similar Plan for North Dakota
EPA continues to delay consideration of New Mexico's visibility plan, moving the target dates for accepting public input and taking final action on that plan back by months. EPA recently revised its position regarding two plants in North Dakota, agreeing to allow those plants to install the same technology it has disallowed in New Mexico. While the North Dakota situation is different in some ways from that in New Mexico, we are encouraged that EPA considered new information that was presented after it proposed a federal plan for North Dakota and then changed its course accordingly.
Meanwhile, we have begun spending money to comply with EPA's plan without knowing whether it will be implemented. We continue to believe that EPA's cost estimate for its plan, about $345 million, does not reflect the true cost of the project. Our estimates from engineering companies with experience installing these technologies indicate EPA's plan will cost about $750 million - or more. We continue to ask EPA review the cost differences with us, as they are significant.
Court Decision on Delaying Implementation
Our appeal of EPA's decision, on the grounds that the federal agency has not properly followed the law or its own regulations in making a decision on the San Juan plant, is still pending. Appeals by New Mexico Gov. Susana Martinez and the New Mexico Environment Department also are pending.
All three parties last fall asked the court to allow us to postpone implementation of the plan until the court reaches a final decision on our appeals. Recently, the court denied that request. While we are disappointed with that decision, it renews our focus on trying to win a delay in implementation, or stay, from EPA so that we do not continue to spend money on a technology the court ultimately could find is unnecessary. It is worth noting that EPA has full authority to grant a stay on this issue for the benefit of New Mexico's economy and citizens.
If you have already taken action in support of the New Mexico plan, thank you. We appreciate your support. If not, you can take action today - and let our delegation know you support the state plan -- by visiting New Mexicans for Common Sense Environmental Policy.