February 2012
Balancing key Issues
by Keven J. Groenewold
Keven J. Groenewold
The electric cooperatives in New Mexico have three primary goals: provide you safe, reliable access to electric power; offer that service as affordably as possible; and do both of those things in a fiscally and environmentally responsible fashion.
Because your electric cooperative is a not-for-profit enterprise—which means your money stays local; we don't have to worry about distant shareholders—we are well-positioned to make any necessary investments for ensuring safe, reliable, and affordable electricity. However, fulfilling our commitment to environmental stewardship in a fiscally responsible manner has become more challenging. Today, many environmental laws that were adopted by Congress decades ago are being used by federal agencies and the courts to address issues for which they were never intended.
For example, the federal Clean Air Act is now 40-years old and was last amended in 1990—more than two decades ago. Much has changed in the intervening years, including technology, our understanding of the environment, and the electric utility industry.
Today, officials with the U.S. Environmental Protection Agency—often under court order—are trying to modify the Clean Air Act to fit new circumstances. Without a doubt, new EPA rules being issued will wind up back in the courts—and lengthy litigation will ensue.
In New Mexico, we have had more challenges as we saw greenhouse gas regulations hurriedly implemented in the waning days of the last administration. The co-ops are now part of a broad coalition attempting to repeal these ill-conceived rules.
We had nationally renowned experts look at the impact of these rules on New Mexico. The results were that these "New Mexico only rules" would have no measurable benefit to the health, welfare, visibility, and property of our members. Nor would the repeal of these rules cause any measurable injury to the health, welfare, visibility and property of our members.
In fact, a thorough economic analysis reveals that these rules will—over time—cost New Mexico over a thousand jobs and a billion dollars. Meanwhile, the reduction of greenhouse gases would be like dipping a bucket of water out of a swimming pool.
The repeal of Cap-and-Trade, Reporting, and Verification Rules are being considered by the EIB, and they are scheduled to deliberate and make a decision in that proceeding in February. The consideration of the repeal of the Cap Rule will follow about a month later. The EIB is scheduled to deliberate and decide that proceeding in mid-March.
Reasonable people can and will disagree over how to find a balance between protecting the environment, guaranteeing a reliable supply of power, and keeping electric bills affordable. Under the right circumstances, Congress will eventually have to revisit the Clean Air Act and update it to fit the needs of the 21st century. Electric cooperatives will continue to be part of this debate. We will continue to advance our renewable energy development, champion wise use of energy through energy efficiency, weatherization and conservation programs. Striking a balance between all of these competing interests is key.
In the meantime, your local co-op will keep you updated on our efforts to encourage lawmakers and regulators to strike the proper balance on these concerns. After all, protecting the deep blue skies and all the attributes that make New Mexico such a special place to live is part of the fabric of our co-op mission.
