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Kit Carson urges support for SB 357

By February 24, 2019April 29th, 2022Climate & Energy

Our northern New Mexico organizing program is working on advancing clean energy policies so that local communities will benefit from the economic growth and job creation from expanding the industry. CVNM and our partners at Kit Carson Electric Co-operative urge support for SB 357 at the New Mexico Legislature.

From Kit Carson, benefits of Passing SB 357:

The purpose of Senate Bill 357 at its core is transparency and accountability of generation and transmission rates charged by the Generation and Transmission Cooperatives (G&T’s) in the State of New Mexico.  Today there are two G&T’s that operate within the State, Western Farmers and Tri State.   The bill proposes that if the G&T owns and operates, high voltage transmission facilities that are not subject the Federal Energy Regulatory Commission (FERC) rate authority then the NMPRC shall assert jurisdiction of transmission rates charged New Mexico entities that require transmission services from one of the respective G & T’s if that entity is not a member of the respective G&T. The NMPRC should then assure through a protest process determine if the rate is just and reasonable before the proposed transmission rate goes into effect.  Since the nature of the transmission system models more a monopoly, the business model needs a check and balance mechanism through rate regulation by either the federal government or state of NM through the PRC.

It is understood that Tri-State is not regulated by FERC and that Western Farmers transmission in NM is in the SPP (the southwest power pool) which is subject to FERC jurisdiction.  All the Tri-State members are also transmission customers. 

The proposed change in SB 357 would be to decrease the number of protests from a member cooperative of the G&T from 3 Co-ops to 1 Co-op. Allowing a single Co-op to protest the generation and transmission rates. This would offer more transparency of rates that the respective cooperative members are paying since the examination would determine if the rate proposed is just and reasonable. It would also examine other opportunities such as renewable energy and storage applications. The proposed change is more consistent with the process a distribution cooperative has which is 25 members or 1% of a member class can cause a rate review.  The current number of 3 cooperatives equate to between 28% to 75% of member cooperatives can cause a rate review.  Changing the number to 1 would change that percentage to between 9% to 25% and also enable more members of the cooperative to participate in the rate proceeding. 

On average a residential electric bill is 70% the cost of power and transmission and 30% distribution.  The proposed change would give the members a chance to reduce the cost of the largest portion of their home bill.

Take Action by calling your Senator if they sit on the Senate Conservation Committee. Find their contact information on the legislature’s website.