Rep. Patricia Royal Caballero House District 13 | Sierra Club Rio Grande Chapter
New Mexicans gathered in Albuquerque and Lewistown, Texas, to protest against a proposed 15.8% rate increase by PNM. The protests took place at PNM's headquarters and during the shareholder meeting. Activists urged the company to transition from fossil fuels to renewable energy sources.
In Lewistown, over a dozen people demonstrated with signs reading “Texans in Solidarity with New Mexicans.” Inside the meeting, three New Mexico-based shareholders presented resolutions aimed at incorporating sustainability into PNM operations. Although these resolutions were voted down, it remains uncertain if they received enough votes to be reconsidered next year. Meanwhile, activists have scheduled a lunch meeting with PNM CEO Pat Vincent-Collawn.
Concerns were raised about the details of PNM’s rate case before the New Mexico Public Regulation Commission (PRC). The application includes a $123 million rate hike that translates to a 15.8% increase for customers. Intervenors representing consumer, business, and environmental interests opposed fees and rate changes seen as unjustified costs.
Since early 2008, electricity costs provided by PNM have risen by more than 50%, while real median household incomes in New Mexico declined by 6.4%. During this period, PNM's earnings increased significantly. The top executives reportedly earn over $9 million annually compared to approximately $7,200 per year for Navajo people affected by coal plants.
The focus has been on PNM's San Juan coal plant and its interest in the Four Corners Power Plant on Navajo Nation land. In December 2013, PNM signed a $580 million coal contract without prior disclosure to the PRC until two years later. This take-or-pay contract could lead to substantial cost increases through its duration.
Several groups including Sierra Club and others joined forces highlighting that further investment in coal is detrimental to economic vitality.
PNM also seeks approval for acquiring 64 MW of Palo Verde 2 nuclear power from Arizona within this rate case without creating local jobs or providing cost-effectiveness analyses. Tom Solomon of 350.org New Mexico criticized reliance on expensive nuclear technology when solar options are cheaper and more sustainable.
The proposed residential fixed customer fee would increase significantly under this plan.
PNM's shareholder annual meetings typically held at corporate headquarters took place in Lewisville, Texas this time—seen as an attempt to bypass activism according to protesters who brought forward issues related to sustainability goals and executive compensation tied to those goals.
Protesters highlighted that El Paso Electric Company has abandoned its shares at Four Corners due to anticipated costs and liabilities associated with coal-fired generation—a decision backed by financial analyses showing benefits for customers from such abandonment.
Additional concerns addressed include lack of transparency regarding nuclear asset prices before purchase commitments were made and high ongoing costs associated with Palo Verde facility operations despite potential alternatives like solar power which promise job creation locally along with reduced environmental impact.
