By Steven Michel and Gail Ryba
Energy Advocates
Ben Luce's commentary "Energy-Saving Bill Deeply Flawed" misrepresents the benefits of House Bill 305 and is filled with errors and inaccuracies.
HB 305, sponsored by Speaker Ben Lujan and signed into law by Gov. Bill Richardson, provides New Mexico's best opportunity to mobilize energy efficiency. This legislation provides New Mexico with an alternative to further construction of large power plants and transmission lines by requiring utilities to assist customers in implementing energy-efficiency measures.
The bill requires that these utility-provided measures save customers money on their bills. If these measures are successful, the legislation provides rewards to the utility based upon the performance of those measures.
Luce's critique of the bill is premised on a great deal of false information. For example:
Luce states that HB 305 guarantees extra profits for utilities. There is no such guarantee. Utilities only receive additional profits if the Public Regulation Commission finds that the utility successfully provided cost-saving efficiency measures to its customers.
Luce states that the analysis for HB 305 came from the state Environment Department, which "does not have expertise with utility rate regulation." In fact, the state Energy, Minerals and Natural Resources Department— not Environment— provided the bill analysis.
Luce states that HB 305 was developed within a few weeks of the legislative session "behind closed doors." HB 305 was developed over the course of months, not weeks, and the discussions and meetings surrounding HB 305 were open to all. Consumer groups, environmental groups, utilities, rural electric cooperatives, state agencies and the Governor's Office all participated in the discussions at one time or another.
Luce states in several places that one of HB 305's proponents, Western Resource Advocates, has a PNM official, Jeff Burks, on its board. None of WRA's board members are affiliated with any public utility. Jeff Burks is not, and never has been, on WRA's Board.
Luce states that Gail Ryba is a lobbyist for the Southwest Energy Efficiency Project. She is not. Ryba is the executive director of the Coalition for Clean Affordable Energy and lobbied for the bill on CCAE's behalf.
Luce claims the legislation will involve huge rate increases to encourage utilities to provide efficiency. In fact, the legislation only allows utilities to deploy energy efficiency measures if they save their customers money.
Luce concludes that HB 305 should be rejected so that an option for other, independent efficiency programs can be included. HB 305, however, does not prevent any entity from providing energy efficiency to consumers.
HB 305 is an important piece of legislation, with broad-based support, that will move New Mexico forward to meet many of its future energy needs through efficiency.
Steven Michel is Western Resource Advocates' senior staff attorney. Gail Ryba is executive director of the Coalition for Clean Affordable Energy.
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