NM high court shuts down utility’s $5M rate hike to comply with ETA

The New Mexico Supreme Court has ruled on a contentious matter concerning Southwestern Public Service Co.’s proposal to impose an additional charge on its customers, aiming to garner over $5 million in a span of three years. 

This proposed charge, known as a rate rider, was intended to offset the costs associated with augmenting the utility’s renewable energy output as a shift from traditional fossil fuel sources, mandated by the state’s Green New Deal, also known as the Energy Transition Act (ETA).

In New Mexico, the fully Democrat Gov. Michelle Lujan Grisham-appointed Public Regulation Commission (PRC) oversees electricity tariffs. In 2021, the Southwestern Public Service Co. approached the PRC with a request to introduce this rate rider, positioning it as a necessary step toward fulfilling the state’s mandate for increased renewable energy production. 

New Mexico’s legislative framework mandates a significant push toward so-called “renewable” energy, setting strict guidelines for utilities to follow.

However, the PRC turned down this request, citing a need for concrete evidence from Southwestern Public Service Co. regarding their specific plans to invest in or develop new renewable energy projects with the proceeds from the proposed rate hike.

The state’s highest court has now affirmed the PRC’s decision, providing clarity on the issue. The court’s judgment underscored that the legislation encouraging the shift toward renewable energy was designed to promote the actual development and acquisition of clean energy resources. 

The justices pointed out that the utility company’s proposal failed to demonstrate how it would contribute to expanding renewable energy infrastructure, thus falling short of the legislative intent behind financial incentives for a “clean” energy transition. 

With utilities unable to increase rates for costly new eco-leftist mandates, it is unclear what utilities will be forced to do if no rate hikes are granted due to the apparent steep requirements mandated by the Democrat-run state.

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6 thoughts on “NM high court shuts down utility’s $5M rate hike to comply with ETA”

  1. I’ll be darned – the PRC did good by asking for specific investments and how those clean electrons will be generated. No green slush fund for the utility.

    1. Way to go, PRC and Supreme Court. I’m encouraged by the fact that these Democrat-controlled bodies would make a ruling that bucks Grisham’s agenda.

  2. Why would they need a rate hike to meet any needs? Our taxes and costs of everything are through the roof to already pay for this BS agenda. That money is being embezzled instead of going where they said it would? Weird.

  3. I say force NMs to go green, they (the democrat marxist running our state) know most NMs cannot afford EVs nor do the EVs support the driving most NM have to do and EVs that will do the jobs we need ( hauling and moving heavy loads) cost 120K and up. They (the marxists) know solar and wind only make the CCP rich, they know to make an EV battery makes more pollution than you gas car makes in 200,000 miles of driving, they know the know green energy does not support energy use throughout the year, they know there is no safe way to dispose of green energy equipment when it breaks (and they do sooner that required and they are made in China) . Yes NM voted the Marxists into office, but now is the time to vote them out.

  4. I agree with you all. Yes, lets vote them out! They seem to be embezzling all over these days, it’s not a funny joke, it’s a crime!

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