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Alan Reed
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Paul Campos
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Joseph Maestas
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Monday, May 12, 2008
Public Regulation Comission Candidate Bios and Q&As
By Jack King
Journal Staff Writer
There are two contested primaries for the two open seats on the Public Regulation Commission this year, with primary voting June 3. In District 1, two candidates are running in the Republican primary. Democrat Jason Marks is running unopposed in that district. In District 3, six candidates are running in the Democratic primary. There is no Republican running in District 3.
Mini profiles and answers to a Journal survey follow for each candidate.
1. What would be your priorities if elected to the PRC?
2. What are your thoughts about PNM's current request for an electricity rate hike and emergency fuel adjustment clause?
3. Have you ever been cited for, arrested for, charged with or convicted of drunken driving, any misdemeanor or any felony in New Mexico or any other state?
4. Have you or your business, if you are or have been a business owner, ever been subject to a tax lien?
5. Have you ever been involved in a personal or business bankruptcy proceeding?
E. Tim Cummins
POLITICAL PARTY: Republican
PLACE OF RESIDENCE: Albuquerque, Northeast
AGE: 51
EDUCATION: No degree, years of real estate classes.
OCCUPATION: Real estate brokerage and investments.
FAMILY: Wife, Paty, two boys, two stepdaughters.
POLITICAL/GOVERNMENTAL EXPERIENCE: Albuquerque City Council, four years; Bernalillo County Commission, eight years.
1. As a conservative Republican, small-business owner and community leader, I bring a much-needed sense of professionalism to the PRC. Having worked for 12 years as an elected official, I know that making fair and balanced decisions requires maturity both in and out of the workplace. I have the commitment and qualifications necessary to protect the community, the ratepayers and the regulated companies. The PRC has a responsibility to be balanced, sensible and judicious. Service on the PRC is serious work, not a political stepping stone.
2. I support a reasonable rate increase for PNM. They have held down rate increases for several years and are having serious financial difficulties. Unfortunately, energy and fuel costs are rising for all of us. Economic times may become more difficult; bankrupting PNM will not aid our economy. The state of New Mexico requires a thriving utility company to provide service, employment and opportunity for economic growth.
3. No.
4. Yes.
5. Yes.
POLITICAL PARTY: Republican
PLACE OF RESIDENCE: Albuquerque North Valley
AGE: 67
EDUCATION: Ph.D. in government.
OCCUPATION: Emeritus professor of public administration, UNM; president/CEO, software development firm.
FAMILY: Married, one daughter, four grandchildren.
POLITICAL/GOVERNMENTAL EXPERIENCE: Albuquerque city councilor, consultant to hundreds of federal, state and local agencies and the Navajo Nation.
1. My priorities will be: to assert balanced economic and consumer interests against the politically charged operations of the PRC; to resist political micromanagement of important industries; to demand professional performance by PRC employees; and to end drinking parties and private negotiation with lobbyists outside the official business of the commission.
2. It is inappropriate for a candidate without full access to the official PRC hearing process to comment on the specifics of a pending rate case. However, my general view of PNM's application for a rate increase and an emergency fuel adjustment clause is that decisions regarding both should reflect careful appraisal of the financial future of this important utility balanced with the need to avoid sudden cost rises for power users. It is unfortunate that past decisions by the PRC have delayed rate adjustments for 20 years, while short-term political micromanagement has led to shocking jumps in user rates.
3. No.
4. No.
5. No.
Jerome Block Jr.
POLITICAL PARTY: Democratic
PLACE OF RESIDENCE: La Puebla, N.M. AGE: 31
EDUCATION: UNM Anderson School of Banking, associate's degree.
OCCUPATION: Sales manager, LandAmerica Financial Group.
FAMILY: Wife, Stephanie Block; two sons.
POLITICAL/GOVERNMENTAL EXPERIENCE: None.
1. I would first concentrate on the many utility issues before the commission. It is imperative that the commission monitors the Qwest AFOR (Alternate Form of Regulation) to ensure that the same problems (do not develop as) with the original AFOR. PNM issues will continue to be important. I will work with the other commissioners and staff to protect the ratepayers from unnecessary rate shock through inappropriate increases. Insurance regulation is also paramount. I will work to further personalize the Insurance Division to ensure consumers are paying fair premiums and receiving appropriate coverage and prompt claim service. The advancement of renewable energy will also be a priority.
2. PNM should be kept healthy. If a rate increase is necessary, I believe the commissioners give careful consideration to the hearing examiner's recommendation. I think a 9.71 percent rate of return is quite generous. PNM gas plants produce 22 percent of all sales. If a fuel adjustment is granted, will PNM use more gas plant production and purchase more from their unregulated wholesale merchant plants and use less cheap coal-produced electricity? Will PNM not be as aggressive in negotiating the contracts, since they can pass along any fuel costs to the customer? I have serious questions about the fuel clause adjustment.
3. I am not proud to admit that nine years ago I was pulled over for suspicion of DUI. After going through the court process, Iwas found "not guilty" of the charges and I do not have any convictions on my record. I am in full support of the DUI laws in New Mexico, and I applaud all efforts taken to stop people from drinking and driving. I have learned from that experience from my youth, and I will make sure this event does not repeat itself.
4. No.
5. No.
POLITICAL PARTY: Democratic
PLACE OF RESIDENCE: Santa Fe
AGE: 58
EDUCATION: Business degree and Doctorate of Jurisprudence.
OCCUPATION: Attorney.
FAMILY: Divorced; two daughters, one son.
POLITICAL/GOVERNMENTAL EXPERIENCE: Santa Fe County commissioner, 2001 to present; City of Santa Fe Zoning Commission, 1998–2000; assistant district attorney, 1977–79; Santa Fe County attorney, 1985–88.
1. Fairness is my first commitment. A commissioner must be committed to treating all parties fairly, avoiding ex parte communications and evaluating carefully the facts of each case. As a lawyer, I understand the process.
2. As to the fuel cost adjustment, the attorney general has indicated that his office supports a two-year pass-through provision. Thus, I would consider the request seriously. Electricity is critical to our community and we must have a financially viable utility. Fuel costs are on the rise. As to the general rate hike case, I reserve comment, because I am not sufficiently familiar with the facts for or against the rate hike. If we focus on the efficient use of electricity, we can cut consumption significantly. This will help us to either decrease or eliminate price increases.
3. No.
4. No.
5. No.
POLITICAL PARTY: Democratic
PLACE OF RESIDENCE: Santa Fe
AGE: 64
EDUCATION: Three years at NMSU, agriculture.
OCCUPATION: Mortgage banker, Southwest Mortgage.
FAMILY: Bea, five sons, two daughters.
POLITICAL/GOVERNMENTAL EXPERIENCE: Secretary of State's Office, election compliance officer, under Claire Jones, 1980s; New Mexico State Racing Commission, state racing steward, 1985–87; State Corporation Commission, 1988–94.
1. Be more of a "watchdog" for all divisions of the PRC. Work to improve the morale of the PRC employees, who need to be reclassified for their actual job descriptions. Work to restore the integrity of the Insurance Division. I would broaden the importance of telephone rates by working with and evaluating current New Mexico phone companies, especially cellular/ mobile phone companies (whose rates and services are preposterous). There are hundreds more competitive companies competing in the marketplace than ever before, and the consumer is demanding additional services and products at competitive prices. Will work diligently with the industries the PRC regulates, ensuring fair regulatory treatments for both the industry and the citizens of New Mexico.
2. I will be fair and impartial to any rate hike brought before the PRC. As far as fuel clause adjustments, if I talked about this issue now and I am elected I may disqualify myself to preside over this judgment. Thank you for the question, but it is too important to be disqualified over any technicality. I am sure the public will understand my position.
3. No.
4. No.
5. No.
POLITICAL PARTY: Democratic
PLACE OF RESIDENCE: Santa Cruz, N.M.
AGE: 47
EDUCATION: University of New Mexico, Bachelor of Science in Civil Engineering; Arizona State University, Master of Science in Civil Engineering.
OCCUPATION: Engineering consultant, 2006 to present; 1983–2006, highway engineering, Federal Highway Administration, U.S. Department of Transportation.
FAMILY: Wife, Martha Vazquez; one son from a previous marriage.
POLITICAL/GOVERNMENTAL EXPERIENCE: Mayor of Española, 2006 to present; Española city councilor, 2000–06; president of New Mexico Municipal League, 2005–07; New Mexico Economic Partnership board of directors, 2007 to present; National League of Cities board of directors, 2003–05; state Democratic Party central committee member; Kerry for President, New Mexico steering committee member; committee member of various state and local campaigns; more than 23 years of federal civil service.
1. I will bring stability and progressive new leadership to the PRC. I will protect consumer interests and fight for increased energy assistance. I will streamline the resolution of cases and encourage alternative resolution methods. I will increase efficient uses of energy and renewable energy development, beyond goals and standards set in legislation. I will work to expand telephone and broadband Internet services in rural areas and reform the title insurance industry by eliminating fixed rates and immunity from negligence. Finally, our transportation system requires more efficiency.
2. PNM has not raised its rates in 20 years despite rising costs. PNM's five-year rate agreement of 2002 that included two rate reductions and no fuel cost recovery has not adequately sustained its business. I support PRC staff's recommendation of a 4.4 percent ($24 million) rate increase. With the high and fluctuating price of fuel, I support a separate emergency fuel adjustment for PNM but feel it should be monthly, not fixed. PRC commissioners must allow full due process, thoroughly review all the evidence filed, avoid unnecessary delay and trust staff recommendations in this case.
3. No.
4. No.
5. No.
POLITICAL PARTY: Democratic
PLACE OF RESIDENCE: Ojo Caliente
AGE: 60
EDUCATION: B.A., business administration, NMSU.
OCCUPATION: County assessor, Rio Arriba County. FAMILY: Wife, Isabel; two daughters, Melody and Crystal; son, Mark.
POLITICAL/GOVERNMENTAL EXPERIENCE: Elected 1984, Kit Carson Electric. Coop board; served as Rio Arriba county commissioner, two terms; county manager, Rio Arriba County, state Senate, 4 years.
1. The N.M. PRC regulates the utilities, telecommunications, motor carriers and insurance industries to ensure fair and reasonable rates, and to assure reasonable and adequate services to the public as provided by law. The PRC also has responsibility for the State Fire Marshal's Office, the Firefighter Training Academy, Pipeline Safety and the registration of all corporations doing business in New Mexico. My priorities would be first to ensure that consumers know they will have a voice in the above mentioned industries, and I will ensure the commission acts as a safety net for consumers while giving the regulated entities the tools to offer and operate vital services to New Mexicans. I believe there are needs to balance between renewable energy, energy efficiency and traditional "clean" electric generation relative to ensuring the cost of electricity does not become too burdensome for our people. Also, as (to) our desire to build large-scale renewable projects such as wind farms, biomass plants and concentrated solar, we will have to also address the need for more transmission lines. Iwould also like to concentrate on rates to make sure rates that we pay are justifiable and fair. Iwould also like to begin an aggressive consumer education program that informs them about what services they should receive, rights and responsibilities, options to save money (i.e., energy efficiency ideas).
2. In recent weeks the PRC approved a rate increase of $24.2 million ... about one third of what was requested. Since that announcement, PNM stock has dropped significantly and may affect PNM's ability to maintain and continue to build a reliable electric system. I believe the hearing examiner made the right decision relative to safeguarding the ratepayer. Without further examination of the additional information ... it would be difficult to determine if any additional increase should be awarded, but with the rising cost of fuels such as natural gas a "temporary" fuel adjustment may be prudent.
3. Unfortunately, the answer is yes. Iwas cited for drunken driving 18 years ago, back in 1990. I am not proud of this, although I am thankful for two reasons: 1. I never hurt anyone other than myself. 2. This incident caused me to reevaluate my life and became the turning point in my future, because I have not had a drop of alcohol since 1990. I believe this is evidence of my strong will and determination toward improvement, be it in my personal life or in the workforce. Once Iset my mind on accomplishing a goal, I dedicate myself to it. This is the same dedication that drives me to continue to be a public servant. There is always room for improvement.
4. No.
5. No.
POLITICAL PARTY: Democratic
PLACE OF RESIDENCE: Santa Fe
AGE: 57
EDUCATION: Bachelor of Arts, Wesleyan University; law degree, George Washington University.
OCCUPATION: Attorney.
FAMILY: Divorced, one daughter, one son.
POLITICAL/GOVERNMENTAL EXPERIENCE: Director of Utilities Unit, N.M. AG under Jeff Bingaman, 1980–82.
1. 1. Improve the public's confidence in the PRC. 2. Improve funding for the PRC. The state collects more than $16 million annually from consumers (about $8 million from utility customers alone) through "inspection" and "supervision" surcharges on their bills. To competently do its job, the PRC needs more experienced, technical personnel. For this, the Legislature needs to allocate a greater portion of these customer-contributed revenues to the PRC. 3. Encourage more effective energy- and water-efficiency measures and use of renewable energy for utility customers. 4. Request more effective statutory authority to enforce the PRC's telecommunications orders. The current $25,000 limit on administrative fines is outdated and toothless.
2. In 2002, PNM's management voluntarily asked the PRC to approve electric rates for five years — without a fuel adjustment mechanism. Utility "fuel adjustment clauses" are somewhat like adjustable rate mortgages. Customers can't budget for — and regulators can't protect customers from — their financial impacts. PNM had a clear opportunity to present that proposal to the PRC last November, but chose not to do so. PNM's new proposal doesn't resolve a legitimate ratepayer concern: the PRC's current lack of resources to effectively regulate the reasonableness of customer rate spikes that could result from it.
3. No.
4. No.
5. No.
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