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At a recent Santa Fe City Council meeting, the first business item was to hear a report on establishment of a public power system for Santa Fe. Public power refers to electricity distribution or generation owned by the consumers. Currently, our power is provided by PNM, 80 percent of which comes from coal and nuclear, with adverse impacts to the economy, our health and our environment. The preliminary economic feasibility showed that a Santa Fe public power utility could provide leading-edge innovations in energy efficiency, renewable energy and related economic development while stabilizing rates.
The report was two years in the making and the result of a desire by many in Santa Fe to have a cleaner, less expensive electric energy supply. Its commission was an act of vision. To implement it will be an act of courage. Santa Fe has taken on a leadership role before. Now is the time to actualize longstanding community values to bring brighter long-term possibilities for our health, prosperity and sustainability.
The commissioned study envisioned a way for residents to establish a consumer-owned utility that would implement locally owned renewable energy projects such as wind, solar and conservation. The report produced by Santa Fe-based New Energy Economy spoke to the probability that moving toward community ownership of electric generation would provide lower costs for consumers and a greener, cleaner generation resource for Santa Fe. My experience tells me that it was on target and received plaudits from our elected officials. But, as I said, going further will take courage and considerable community support. I am suggesting that a great deal of community support could be the best governmental decision ever made in this county.
Briefly stated, Santa Fe County residents import nearly all of their energy needs. In electricity, we ship $120 million annually out of the county. Of that, over $65 million goes for power plant and related profits and taxes. In the next 30 years – if there were no PNM rate hikes, no energy growth, no inflation – we would ship $2 billion out of the county for power plant costs. With looming rate hikes, the outlay will be closer to $4 billion if we stay with PNM. Alternatively, consider please, that a Santa Fe community-owned utility could buy a new natural gas-fueled power plant, and encourage and support homeowner- and small business-owned solar power and conservation investment for about $300 million, sufficient to serve the entire county.
The question is: Do we want to spend $4 billion that provides no ownership of generation resources, or do we develop our own resources, hedge against rising PNM costs, protect our air and water, mobilize effectively for change, and create the shift we need?
The best answer for Santa Fe is to own the electric system, to have the money that leaves town for employment stay here, to have control over our locally owned energy resources.
We can do this. We should because PNM rates are so high. After you use 900 kwh in winter, the rate with taxes and adjustments is over $150 per 1,000 kwh, in summer it is over $170. In Oklahoma, Kansas, the Texas Panhandle or Missouri, the rate would be closer to $100 in summer and $50 in winter. By getting control of our electric utility, our growth energy can be cut in half.
The best course for us is to have a growth in local clean energy family-supporting jobs, hired after they graduate from Santa Fe Community College, and responsive customer service. All we have to lose is a couple of billion if we don’t take the chance.
Woolbright is a Santa Fe resident and retired electric utility association executive and former city manager.
