Michael Perry, Author at Piñon Post

Powering Southeast NM means powering the entire state

Southeast New Mexico is carrying one of the heaviest economic loads in this state, but the power infrastructure needed to support that growth is struggling to keep pace.

For once, regulators left Santa Fe and came directly to the communities that depend on reliable power to keep our economy moving. That matters. Too often, decisions affecting rural regions are made hundreds of miles away in the Roundhouse without firsthand understanding of the industries, families, and workers who live with the consequences.

Right now, Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, has asked the New Mexico Public Regulation Commission to approve a new generation portfolio that includes additional power generation and battery storage resources for customers in eastern and southeastern New Mexico. The filing, part of the utility’s long-term planning process to secure reliable electricity through the end of the decade, would add needed capacity to a region already experiencing significant growth in demand.

The proposal is currently before the commission in Case No. 25-00066-UT, where SPS is seeking certificates of convenience and necessity for multiple new generation and battery storage projects.

The need for that capacity is not theoretical. It is already here.

Southeast New Mexico sits at the heart of the Permian Basin, one of the most productive oil and gas regions in the world. New Mexico has become the second-largest oil-producing state in the nation, trailing only Texas. That industry supports tens of thousands of jobs and generates billions of dollars in revenue for our state every year.

Those revenues do not stay in the Permian Basin. They benefit every community in New Mexico.

More than 97 percent of the Severance Tax Permanent Fund, one of the state’s most important financial reserves supporting schools, infrastructure, and public services, has been built from oil and gas revenues. Those dollars help pay for road construction, school buildings, public safety infrastructure, and capital projects across New Mexico. If you drive anywhere in this state and see orange construction barrels along a highway project, there is a good chance oil and gas revenues helped make that project possible.

When Southeast New Mexico thrives, the entire state benefits.

But keeping that engine running requires reliable power.

Today, electricity demand is rising rapidly across the Southwest. Population growth, electrification, industrial expansion, and emerging technologies such as data centers are pushing demand to levels utilities have not seen in decades. Some projections suggest states like Arizona may need to double their generation capacity over the next decade—an amount of infrastructure that originally took more than a century to build.

In Southeast New Mexico, the strain is already visible. Because of limited grid capacity and delays in bringing new generation online, many oil and gas operators have had to rely on diesel generators at well sites to power operations. That is not a preferred solution for anyone. Companies across the Permian Basin have made major commitments to reduce emissions and improve efficiency, but without access to affordable and reliable grid power, they are forced to rely on temporary alternatives simply to keep production moving.

That is why the SPS proposal matters.

Additional generation and battery storage would help stabilize the regional grid, provide power for growing communities and industry, and reduce dependence on diesel generation in the field.

Expanding the grid is not just an economic issue. It is also an environmental one.

At the same time, New Mexico must be honest about the challenges created by its current regulatory framework. Policies such as the Energy Transition Act set aggressive mandates that make it increasingly difficult to build certain types of dispatchable generation within our state. If those resources cannot be built here, utilities will continue looking to neighboring states, particularly Texas, where permitting processes move faster and regulatory hurdles are lower.

The electricity may still flow into New Mexico, but the jobs, tax base, and economic development tied to those projects will happen somewhere else.

That should concern every New Mexican.

We all want a cleaner energy future, but reliability and affordability must remain part of that conversation. Achieving all three requires practical solutions, not ideological battles that delay critical infrastructure.

The goal should not be ideology from either side. It should be reliability, affordability, and practical generation policy that protects New Mexico jobs while keeping the grid strong.

Southeast New Mexico has long powered this state’s economy. Ensuring that region has the electricity it needs to continue doing so is not just a regional priority. It is a statewide responsibility.

The Public Regulation Commission now has an opportunity to make a decision that supports reliability, economic growth, and responsible energy development.

For the sake of New Mexico’s future, they should move forward.

About Michael Perry: Vice Chair, Chaves County Commission | Former Assistant Commissioner, New Mexico State Land
Office | Candidate for New Mexico Commissioner of Public Lands

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Clear horizons, unfair burdens: The $2.6 billion question lawmakers won’t answer

11 Comments / Opinion / By Michael Perry

New Mexico deserves an honest conversation about the Clear Horizons Act (S.B. 18). Not slogans. Not carefully worded press releases. And not policies that sound good until you look at who ultimately pays the price.

The Clear Horizons Act is designed to fundamentally reshape New Mexico’s economy by targeting and dismantling traditional energy production, particularly oil and gas, through aggressive emissions mandates, expanded regulatory authority, and long term restrictions intended to force a rapid transition away from fossil fuels. Its stated goal is emissions reduction. Its real world impact, however, is far broader and far more damaging.

This legislation centralizes power, expands bureaucracy, and places New Mexico’s rural economies, state trust lands, and public school funding at serious risk.

It is important to be clear about what this bill is attempting to do.

The Clear Horizons Act seeks to impose statewide emissions caps across multiple sectors, expand regulatory authority over energy production, transportation, and industry, accelerate the phase down of oil and gas development regardless of economic or revenue impacts, and shift New Mexico toward a compliance driven climate model borrowed from states with vastly different economies and land ownership structures.

What it does not do is provide a realistic plan to replace the revenue that currently funds public schools, universities, and essential services across New Mexico.

The numbers tell the story, and they cannot be ignored.

In the most recent fiscal year, oil and gas generated approximately $2.6 billion for the State of New Mexico through royalties, severance taxes, production taxes, and lease payments. That revenue supports public education, health care, infrastructure, and state and local government services statewide. On state trust land alone, oil and gas production pays 20 to 25 percent in royalties, directly benefiting schools and other trust beneficiaries.

By contrast, clean energy projects generated roughly $8 million in state revenue during the same period. While wind and solar projects bring investment and construction jobs, their ongoing contribution to state revenue is comparatively minimal. Most clean energy projects on state trust land pay just 3 to 6 percent in royalties.

That is not a matter of opinion. It is a difference of $2.6 billion versus $8 million.

Equally important is what happens after the energy is produced.

Oil and gas operators are required to contribute to a reclamation fund and post bonds to ensure sites are properly cleaned up when production ends. That reclamation fund is not a tax on the people of New Mexico. It is paid for entirely by the oil and gas industry itself through fees assessed on production. When wells reach the end of their life, those funds exist to protect landowners, taxpayers, and the state trust from cleanup costs.

Clean energy does not operate under the same standard.

There is no equivalent statewide reclamation fund for wind turbines or large scale solar facilities. There is no guaranteed funding mechanism to restore land when projects reach the end of their lifespan or when companies sell assets, dissolve, or walk away.

So the question New Mexicans deserve answered is straightforward. Who pays when wind turbines rust, solar arrays are abandoned, or a clean energy company goes belly up?

If the answer is the taxpayer or the trust, then New Mexico has failed in its responsibility as a steward of public land.

I oppose the Clear Horizons Act because it punishes an industry that pays its fair share and funds the state, while giving a pass to alternatives that do not. It treats oil and gas, an industry that brings in $2.6 billion, pays higher royalties, and funds reclamation, as something to be dismantled, while replacing it with revenue streams totaling $8 million and carrying unresolved long term liabilities.

That is not environmental leadership. It is selective accountability.

New Mexico is a rural, land based state. We manage millions of acres of working lands held in trust for specific beneficiaries. Any climate policy that weakens the revenue streams funding education, land stewardship, and rural communities without a proven replacement is fundamentally flawed.

I am not opposed to renewable energy. I am opposed to unequal rules, unequal responsibility, and unrealistic math.

If clean energy is going to be part of New Mexico’s future, then it must pay royalty rates comparable to other energy producers, contribute to a dedicated reclamation fund paid by the industry rather than taxpayers, and be held to the same long term accountability standards as oil and gas.

Anything less is not a transition. It is a gamble with New Mexico’s land, schools, and future.

Clear horizons require clear thinking. This bill falls short on both.

Two-term Chaves County Commissioner is running for State Land Commissioner.

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When public officials go rogue: NM Dem’s shady move against rally

28 Comments / Opinion / By Michael Perry

In a blatant misuse of power, New Mexico State Land Commissioner Stephanie Garcia Richard made the decision to refuse the Trump campaign’s use of a parking lot for their rally that was held on Halloween in Albuquerque. By denying access to an area that falls within the bounds of the campaign’s legally established lease from Isleta, Garcia Richard appears to be deliberately attempting to disrupt the political process. This brazen maneuver not only disregards the principles of free speech and assembly but also sets a disturbing precedent for how public office can be wielded against those with opposing political views.

The purpose of a rally is to provide a platform for supporters and those interested in learning more about a candidate’s positions. It’s an opportunity for individuals to come together in support of their beliefs and values. For the commissioner to deny the Trump campaign access to the parking lot—a seemingly trivial part of the rally setup—signals a broader attempt to suppress political expression. Such actions are a stark violation of the American principles that allow citizens to freely express their political affiliations, regardless of partisan lines. The campaign’s lease, which extends to the parking lot, reflects a mutual understanding and right to the space. By holding the lot “hostage,” as some have described, Garcia Richard is leveraging her power in a way that appears both petty and antithetical to her duty as a public servant.

Public offices, especially one as influential as the State Land Office, are not meant to be vehicles for personal biases. They are established to serve all citizens fairly and impartially. Yet, Garcia Richard’s refusal to honor the lease agreement demonstrates a troubling trend: the erosion of neutrality in government roles, where officials prioritize partisan agendas over their constitutional oath. Instead of fostering an environment where all New Mexicans can express their political views, the State Land Office is alienating a segment of the population and attempting to dictate which voices get a platform.

This situation also highlights a broader issue in contemporary politics—using government influence to silence opposition. No public official should feel emboldened to stifle free speech and expression, yet Garcia Richard’s actions here suggest a willingness to do exactly that. This is not merely a local issue; it reflects a growing problem within American governance. When officials refuse to uphold the rights of individuals based on political disagreements, they abandon the foundational principle of representing all citizens fairly.

What New Mexico’s Republican voters—and, frankly, all Americans—deserve is a government that will respect and protect the rights of all political participants. The State Land Office’s role is to manage public lands responsibly, not to suppress lawful political expression. Commissioner Garcia Richard must be held accountable for her actions in the name of fair governance, and it is crucial for all New Mexicans, regardless of party, to call out this blatant abuse of power.

Michael Perry is a county commissioner in Chaves County, representing District 5

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