No objection emal message sent on mail server. ----- Original Message -----
From: O'Connell, Pat
To: bill payne
Sent: Wednesday, July 16, 2008 1:38 PM
Subject: RE: COMMENTS COMPLETED BY JUNE 27, 2008Bill,
We are preparing for next week's meeting and wondering if you would object to us printing your comments to hand out at the meeting to aid in the discussion? Please let me know either way.
Thanks,
Pat O'Connell
241-2676
----- Original Message -----
From: Brown, Don
Cc: O'Connell, Pat
Sent: Wednesday, July 16, 2008 3:55 PM
Subject: Next PNM Electric IRP Meeting: Next Wednesday
The next PNM Electric IRP meeting is next Wednesday, July 23, from 1:30 to 4:30 p.m. Attached is the agenda as well as dial-in instructions for those of you who can't be there in person. We hope to see you there! db
Don Brown
Director, Corporate Communications
PNM Resources (NYSE: PNM)
don.brown@xxx
505.241.2882 [office]
505.321.8856 [cell]
New Mexico corruption.
Read the below and look for data to support or deny allegations.PRC Won't Reopen PNM Fuel Case The Public Regulation Commission voted 4-1 Tuesday to let stand its April decision allowing Public Service Company of New Mexico to pass along about $63 million in additional fuel charges to its customers.
Commission Chairman Jason Marks, the lone vote to reopen the case, said that an automatic adjustment to customers' electric bills reflecting PNM's cost of fuel would eliminate incentives for the company to improve operations, maintain generating plants properly, and find the best prices for fuel and purchased power.
PNM contended the adjustment is necessary to keep the company financially stable.
Commissioner Ben Ray Lujan voted against the fuel adjustment when it was enacted in May but voted against Tuesday's motion for rehearing because it would have reopened the case on grounds that Commissioner David King had discussed the case improperly with the governor and the attorney general. Lujan said he did not believe King had acted improperly. King said Tuesday he did not have improper communications about the case.
PNM said the fuel adjustment clause, which took effect in June, would add about $9.30 a month in the summer and $5.85 a month in the winter to the bills of residential customers who use 600 kilowatt hours a month. PNM makes no profit on the fuel adjustment charge.
The motion for rehearing was filed byNew Mexico Industrial Energy Consumers and incorporated motions for rehearing filed earlier by other opponents of PNM's fuel adjustment clause.
- Journal Staff Writer
Winthrop Quigley
Albuquerque Journal Wednesday July 9, 2008
Tuesday July 8, 2008 10:17
Seeking Alpha via coal viz
http://www.prosefights.org/pnmelectric/pnmelectric.htm#evelinmeaningful
Tuesday July 8, 2008 07:18
Evelin
I hope the below Schoellkopf article makes comment 4 more meaningful.
[t]he 37,500 home community planned south of the Albuquerque International Sunport.
Albuquerque Journal Friday July 4, 2008
regards
bill
cheers from the dead viz.
http://www.prosefights.org/pnmelectric/pnmelectric.htm#martinprc-----Original Message-----
From: Martin, Elizabeth, PRC [mailto:Elizabeth.Martin@state.nm.us]
Sent: Tuesday, July 01, 2008 12:46 PM
To: bill payne
Subject: RE: COMMENTS COMPLETED BY JUNE 27, 2008I have put your comments into the record. Thank you for taking the time to let us know how you feel
-----Original Message-----
From: Martin, Elizabeth, PRC [mailto:Elizabeth.Martin@state.nm.us]
Sent: Tuesday, July 01, 2008 8:22 AM
To: bill payne
Subject: RE: COMMENTS COMPLETED BY JUNE 27, 2008thanks
--------------------------------------------------------------------------------
From: bill payne [mailto:bpayne37@comcast.net]
Sent: Monday, June 30, 2008 7:37 PM
To: Martin, Elizabeth, PRC
Cc: Wheeler, Evelin; Randy Gunn; O'Connell, Pat; Jill M. Roelle; Frank Stern; Brown, Don; Brent Barkett; Carla J. Sonntag
Subject: RE: COMMENTS COMPLETED BY JUNE 27, 2008Mr. Payne, can I please have your address for our records? Thank you
[bill payne]Yes
13015 calle de sandias ne
abq, nm87111
-----Original Message-----
From: Martin, Elizabeth, PRC [mailto:Elizabeth.Martin@state.nm.us]
Sent: Monday, June 30, 2008 11:08 AM
To: bill payne
Subject: RE: COMMENTS COMPLETED BY JUNE 27, 2008Mr. Payne, can I please have your address for our records? Thank you
--------------------------------------------------------------------------------
From: bill payne [mailto:bpayne37@comcast.net]
Sent: Friday, June 27, 2008 2:25 PM
To: Wheeler, Evelin
Cc: Randy Gunn; O'Connell, Pat; Jill M. Roelle; Frank Stern; Carla J. Sonntag; Brown, Don; Brent Barkett; Marks, Jason, PRC; Aragon, Leroy, PRC; King, David, PRC; Starr-Garcia, Stacy, PRC; Lujan, BenR, PRC; Javaheripour, Setareh, PRC; Sloan, Carol, PRC; Ledezma, Luis, PRC; Jones, Sandy, PRC; Martin, Elizabeth, PRC
Subject: COMMENTS COMPLETED BY JUNE 27, 2008Evelin
Tuesday July 30, 2008 10:08
4 Utilities Seek N.M. Solar Plant
Energy prices are going UP!
pnm draft final report comments. viz.
New Mexico has only one active underground coal mine: San Juan coal mine production.
The ratio of interpretation to data is unfavorable.Article rejection referee comment to San Diego State Unversity psychology prof. About 1965.
Cutting consumption viz.
Friday June 27, 2008 14:11
http://www.prosefights.org/pnmelectric/pnmelectric.htm#evelincomments
Evelin
My comments on PNM Electric Integrated Resource Plan Draft Report.
address my concern about adequacy of data presented to support future electric
supply-side statements and graphs. For example on page 48
Of all the fossil fuels, coal is the most abundant. The United States is estimated to have sufficient coal reserves to meet current coal consumption for electric generation for hundreds of years. Typically, coal is supplied for electric generation using one of two methods: either the electric generation plant is located at the source of the coal, called a mine mouth plant; or the plant receives coal transported from one of the large coal producing regions in the United States. Both San Juan and Four Corners are mine mouth plants. The San Juan Mine, supplying San Juan Generating Station, and the Navajo Mine, supplying Four Corners, have provided a reliable supply of coal since the plants’ inception. These plants are supplied through long term coal supply agreements, and in both locations the coal reserve will last well beyond the life of the coal supply agreements and beyond the 2027 planning horizon used in this E-IRP.
And
Unlike coal and nuclear fuels, natural gas is neither as abundant nor as small a percentage of the operating cost to generate electricity. While most of the natural gas consumed in the United States is produced in the United States, the natural gas market relies heavily on supplies from Canada and the global liquefied natural gas market. Global natural gas reserves are estimated to adequately supply the current natural gas demand for about 60 years, considerably less than coal. Also, unlike coal and nuclear, demand for natural gas due to electric generation should be expected to increase during the planning horizon for this E-IRP because, other than energy efficiency and renewables, natural gas is about the only resource that can be brought on-line in the near term to supply growing electricity demand.Failure of the electric irp to address the problem of new construction on future electric load is another concern.New Mexico is home to two of the largest natural gas supply basins in North America, the San Juan and the Permian Basins. As a result, there is robust natural gas infrastructure in place to supply natural gas to PNM’s existing plants and multiple opportunities to site new plants adjacent to reliable sources of pipeline supply. So, the most significant issue to consider when evaluating new natural gas generation is the impact of volatile and rising prices.
COMMENT 1:
A. PNM completes years 1998 - 2007.
B. BHP Billton completes years 2008-2027 for San Juan and Navajo coal mines.
C. Natural gas contractor completes years 2008-2027.
D. Palo Verde completes years 1998-2027.
Persons completing table should be identified by name and position.
San Juan Coal Mine Year Tons mined BTU/pound $/ton 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Navajo Coal Mine Year Tons mined BTU/pound $/ton 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Natural Gas Consumed Year
Quantity in McfBTU/Mcf $ Total Cost 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Nuclear Fuel Consumed
at Palo VerdeYear
Quantity in poundsBTU/pound $ Cost/pound 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
The above tables will help quantify information given on pages 32-35.
COMMENT 2: PNM requests to pass fuel costs along to customers.
Therefore PNM should complete the below two tables.
Persons completing table should be identified by name and position.
Diesel Consumed by PNM Year Gallons BTU/gallon $ Total Cost 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Gasoline Consumed by PNM Year Gallons BTU/gallon $ Total Cost 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
COMMENT 3:
Graph on page 35 suggests
that electrical demand is outstripping current supply with possibly serious problems beginning in 2011.
PNM employee Steve Martin identified causes of increased demand.
I believe that Mr Martin's above foil should be included along with the completed below tables.
PNM Peak Demand Year Number of New Customers Number of new buildings Total Increase in Peak Demand 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
PNM Peak Demand Per Customer Year Square feet per new home Average increase in power consumed as a result of electronic devices Power consumed for refrigerated air conditioning 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
COMMENT 4: The electric irp focused heavily on energy efficiency and conservation thus admitting that there is a possible future problem in satisfying electric demand.
PNM employee Steve Martin pointed out sources of increased electric demand.
Yet the irp did not focus on possible solution to new construction which is the major contributor to increase electric demand.
This appears disingenuous, at best.
And, at worst, a deliberate attempt to let new construction continue knowing full-well that electric shortages could appear at least by 2011. See graph on page 35 above.
Perhaps what PNM should do is alert New Mexico public and, particularly, New Mexico government to these possible electric power dangers?
If, in fact, the world has reach or soon will reach, peak oil production, then the PNM vehicle fleet could face very expensive fuel or even fuel shortage similar to what happened in 1973-4.
PNM could possible face adverse consequences if, in fact, New Mexico suffers electric shortages in the future and did not address the new construction problem today?
regards
bill
PNM employee Steve Martin showed increase in electric use of below project to start in 2008.
Albuquerque Journal Wednesday June 25, 2008.
Power use now looks to start in 2009.
Us cats, not associated, of course, with the wrong cats, read this stuff.Natural-gas prices, up 74% since the year began, could be headed higher amid predictions of an unusually hot summer in parts of the nation. If those forecasts play out, air-conditioner use will rise -- and with it, demand for electricity production fueled by natural gas, possibly driving futures prices to records. ...
Natural-gas futures settled Friday at $12.994 a million British thermal units, up 11% in June and up more than 82% from 52 weeks ago. Prices are off about 16% from the record close of $15.378 a million BTUs set Dec. 13, 2005, in the wake of hurricanes Katrina and Rita, which disrupted natural-gas production in the Gulf of Mexico. ...
Natural gas generates as much as 30% of U.S. electricity during peak summer periods, according to the research firm Genscape Inc.
Monday June 23, 2008 08:59
Let's go after corp/gov msm stupidity.
The people who pay premium rates for green power got no consideration of the fact that wind and the sun are expected to continue providing energy for free.Peak oil overthrows green revolution? viz
Tehran vehemently denies charges that it wants to develop a nuclear weapon, saying it wants atomic energy only for a growing population whose fossil fuels will eventually run out.
It is that last item that could result in catastrophe. A war with Iran, as is being discussed, would send oil prices skyrocketing overnight. Americans may be able to get by - barely - on $4 gas, but what if that doubles? What would happen to the economy at $8 gas? How would people get to work? What would happen to the price of food, and to heating our homes come winter? Printing more money for the war would send the dollar's value down further. Inflation would go into overdrive.
What's going to happen to Iran? viz
Editor Kent Walz is brother of Lawyer Jerry Walz.
Pat O'Connell stated at the electric irp on Monday June 16, 2008 that he was trying to arrange to visit the San Juan generation plant.
Pat stated that he had never been there before.
That's PNM employee Madonna Bixby to Pat's left.
We talked about the Navajo mine coal transportation.
"A review of train operations concluded that, because of the increase tonnage handled and then the high cost of diesel fuel, electric locomotives could prove attractive economies."
NEW MEXICO'S RAILROADS
Navajo Mine Railroad - near Farmington, New Mexico
A Historical Survey
Revised Edition
UNIVERSITY OF NEW MEXICO PRESS: Albuquerque
Fourth paperback printing of the revised edition, 1999
The GE E60 is a C-C electric locomotive ...
Here's Evlin Wheeler [standing], engineer/statistician Cynthia Bothwell, and PNM spokesman Don Brown at the June 16, 2008 electric irp.
Bill made two comments:
1 irp was strong on demand but weak on energy supply projections.
2 PNM should address the problem of new construction identified by pnm employee Steve Martin.
We have a June 10, 2008 draft document of pnm's electric irp report to comment on by June 27, 2008.
Don Brown and the Beaverhead viz.
Smirking Chimp "Let's hope no attack." viz.ANZAC cheers viz.
"Also noteworthy is an increasing likelihood of military conflict involving Iran:" viz
We filed the void judgment action in the now-known-as Nojeh/NSA lawsuit just be before Patty and Bill went on vacation.
This turned out to be poor timing for the reason that MALEF judge Martha Vazquez issued 87 without jurisdiction
This caused much inconvenience since we had to file a response from Bozeman.
So we're waiting to return to abq before filing.But we are posting Seeking alpha rural gas prices viz.
More seeking alpha viz.
Isaak Walton Inn, Essex, MT was fun.
See the inverted brown V over the porch. Then look at the window just above the V. That's room 15 window.This page was updated from room 15.
Hiking around Glacier Park can be really exciting!
Travelling to the Isaak Walton on Amtrak can be exciting too!
Poster photographed in the Isaak Walton bar/high speed Internet room in the basement.
Without Internet our legal project would fail.
Sunday June 15, 2008 field tripThe Oil Drum viz.
San Juan coal-fired generating plant.
Cooling.
San Juan coal mine. Note trucks parked behind nearest power pole.
Those trucks burn diesel, Pat.
Four corners coal-fired power plant as seen from San Juan coal-fired electric generation plant, heading south.
Note toxic brown cloud drifting to the west.
Billboard erected at intersection of Shiprock-Farmington highway [NM 64] and State Road 6800 to the San Juan coal-fired electric generation plant.
"americans living near coal-fired power plants"
Real reason for field trip.
We were on return from vacation.Fishing on Thursday June 12, 2008 on the Beaverhead was good. Second fish caught was the largest, about 24 inches.
Guide Justin did a nice job. Fifteen or more fish caught. Only one large rainbow, the remainder brown trout.
Fishing is usually fuel intensive. But essential non-gas-wasting travel, of course.
Here's Justin's gas-guzzling rig in Dillon.
We discussed energy problems.
Justin reported that tourism was down in Dillon in 2007.
The float fishing part of Beaverhead river in Montana parallels I-15.
Guide Justin reported that Utahns are not held in high esteem for several reasons by Montana fly fishermen.
Justin pointed out green spray paint message on an I-25 support pier which states
UTARDS
GO HOMEJustin asked Payne what he did for a living before retirement. Payne told him ... and about how the Iraq/Iran war got started.
Guide Justin and Payne discussed the below mail too.
This was posted at Paul Kedrosky Oil Drum viz.---Original Message-----
From: Iran Defence Forum [mailto:support@irandefence.net]
Sent: Tuesday, June 10, 2008 11:01 PM
To: bpayne37@comcast.net
Subject: Happy Birthday from Iran Defence ForumHello billp37,
We at Iran Defence Forum would like to wish you a happy birthday today!
Below letter and enclosures not requested.
Maybe they were looking at this page?
mark@sanjuancitizens.org; carol@sanjuancitizens.org; amber@sanjuancitizens.org; jimbo@sanjuancitizens.org; tracy@sanjuancitizens.org;
mike@sanjuancitizens.org; eddie@sanjuancitizens.org; susan@sanjuancitizens.org; chuck@sanjuancitizens.org
-----Original Message-----
From: O'Connell, Pat [mailto:Pat.O'Connell@pnmresources.com]
Sent: Monday, April 28, 2008 11:24 AM
To: bill payne
Cc: Wheeler, Evelin
Subject: RE: cholla
Bill,
I don't have the specific information you have requested on gas, diesel and motor oil. PNM does report operational data, including coal consumption, to FERC, and that info is published quarterly in a document called a FERC Form 1. You can view PNM's FERC Form 1's if you follow the instructions at this address: http://www.ferc.gov/docs-filing/eforms/form-1/viewer-instruct.asp
Also, I looked a the the pnm.com page with our Electric IRP information and the presentation from July 2 is still posted there.
Pat O'Connell
--------------------------------------------------------------------------------
From: bill payne .... Sent: Sunday, April 27, 2008 8:46 PM
To: O'Connell, Pat
Subject: cholla Pat
PNM may have fuel problems.
We are investigating.
Cholla apparently gets it coal from the McKinley coal mine in New Mexico.
Cholla Arizona coal fired plant photo taken November 12, 2007 on essential non-gas-wasting trip to visit Dr Ted Lewis in Salinas, CA.
Thursday July 5, 2007 07:09
Pat
I'm out at the Electric IRP page but I don't see the foils from the July 2, 2007 meeting posted. When will these foils be posted?
There are two foils, one related to load projections and the other about future coal use by PNM [Ms Bothwell presented both], I would like to examine more carefully. Not all issues raised the the Electric IRP appeared to me to be of equal importance.
I want to focus on what appears to me to be essential issues in the future production use and of electric power.
I would like to get from you answers to the three below questions:
1 annual gallons of motor oil consumed
2 annual gallons of diesel oil consumed
3 annual gallons of gasoline consumed
4 megawatts of electricity produced by PNM electric for years 1991 through 2006
for preparation for the next Electric IRP.
Please include San Juan coal mine consumption.
regards
best
billUtilities across the USA are raising power prices up to 29%, mostly to pay for soaring fuel costs, but also to build new plants and refurbish an aging power grid.
Even more dramatic rate increases are ahead. The mounting electric bills will further squeeze households struggling with spiraling gasoline prices. ...
The price of coal, which fires half of U.S. power plants, has doubled since last year, largely because of surging energy use in countries such as China and India. Natural gas prices are up nearly 50% on high U.S. demand. In California, drought has forced Pacific Gas & Electric to replace cheap hydroelectric power with natural gas, helping to prompt it to seek 13% rate increases. ...-----Original Message-----
From: Brown, Don
Sent: Thursday, June 12, 2008 6:49 PM
Subject: Draft PNM Electric IRP Report + Meeting on Monday
Participants in the public advisory process.
Here is a link to the draft of the PNM electric IRP report: http://www.pnm.com/regulatory/irp_electric.htm . This report is the result of your input and feedback, so we hope you'll spend some time reading the report before Monday's public advisory meeting. This will be your opportunity to provide feedback on the draft report.
Next PNM Electric IRP Meeting
Monday, June 16 9:30 a.m. to 12:30 p.m.
Downtown ABQ/PNM's Alvarado Square
La Luz Conference Room
Agenda and dial-in information is attached. Please let us know if you have any questions. Thank you for your help during the past (nearly) year! db
Don Brown Director, Corporate Communications
PNM Resources (NYSE: PNM)
don.brown@... brown doesn't want his is mail posted on InternetALBUQUERQUE — New Mexico's largest utility on Thursday terminated a power purchasing agreement with a proposed biomass electric plant that has been touted as part of the state's push for renewable energy. ...
PNM spokesman Don Brown acknowledged Thursday that the energy market is more expensive today. But he said the utility must focus on finding reliable renewable energy sources to meet the company's diversity goals as well as a state standard that calls for 10 percent of electricity from the state's investor-owned utilities to come from renewable sources by 2011.
"We really need to focus on renewable projects that have a high probability of becoming a reality and this one at this point does not appear to be close to fruition," Brown said. "There are too many question marks surrounding this project at this time." ...
Monday June 2, 2008 10:37
Seeking alpha viz.
Note: No mention of limiting new construction.
PNM employee Steve Martin [red check] blew the whistle on electrical increase reasons. Main reason, of course, is new construction.
Incidentally, Martin reported to the group that he has been working for PNM for 28 years. Retirement in imminent sight?
Above is PNM smokescreen to hide real problems identified by Steven Martin.
More smoke to try to hide Martin's identification of problems.
3 indicates TPTB wants us to suffer while they make money with new construction.
Engineer Ms Cindy Bothwell's audacious plot shows that in 2012 that electrical generation capacity falls below projected use provided no new capacity is added.
PNM might have problems funding new capacity for the reason
After the recommended decision was announced, Fitch Ratings downgraded PNM's long-term debt to the lowest investment-grade credit rating. Standard and Poor's changed PNM's outlook from stable to negative after downgrading PNM in December to a similar level. And Moody's Investors Services said it would continue to review PNM for possible downgrades.Let's see what happens.
"He told shareholders that, under current conditions, PNM cannot afford to build new power plants to meet growing demand." Ouch!
Sterba offers plans to improve PNM's performance
By Jack King
Journal Staff WriterPNM Resources Chairman, President and CEO Jeff Sterba told shareholders last week a bit of what they already knew: the utility has had a bad year. And then he offered specific plans for improving its performance.
Sterba said the $34 million rate increase the Public Regulation Commission gave PNM utility in April and the $63 million fuel adjustment clause the commission subsequently approved will not cover the costs of providing service in New Mexico. Both PNM, in New Mexico, and Texas-New Mexico Power, in Texas, will file a new rate case in the third quarter of this year, he said.
He told shareholders that, under current conditions, PNM cannot afford to build new power plants to meet growing demand. The $1.7 billion in capital spending over the next five years is mostly for transmission and distribution of infrastructure, he said.
"We're only contemplating $100 million in new generation. We're spending $400 million this year, and none of that on generation," he said.
PNMR's earnings per share were down almost 40 percent in 2007 from 2006 levels. Sterba said he takes responsibility for the cause of that loss - a 2002 agreement between PNM, a group of its larger customers and the PRC that included two rate decreases and eliminated PNM's fuel adjustment clause. Although the agreement benefitted PNM by allowing it to retain 100 percent of its revenue from sales of surplus energy, Sterba said it ran a year too long.
In the meantime, he said, PNM's customer demand grew enough to eliminate the surplus energy used to make the sales, and, in 2007, there were significant increases in fuel and the commodities required to maintain infrastructure. But, he denied that PNMR's financial difficulties have anything to do with the cost of acquiring its Texas utilities, with losses in those operations or with exorbitant executive compensation.
Besides the rate cases, Sterba said PNM will focus on three objectives in the coming year: reducing company. costs through efficiencies and technology; simplifying PNM's business model by separating its regulated and competitive generation, and selling its natural gas division; and improving the operating capability of Palo Verde Nuclear Generating Station. As part of that effort, PNM will ask the PRC to allow it to include its costs of buying back the leases on Palo Verde Units 1 and 2 in customers' rates, he said.Business Outlook Albuquerque Journal Monday June 2, 2008
Sugar daddy got
PNM off the hookPNM has for years mined the pockets of New Mexico customers, racking up enough profits to expand and buy new ventures in Texas and Oklahoma and create a holding company. These profits, plus the dividends that are paid out to stockholders such as Bill Gates, come from the people of New Mexico, many of them who are very poor.
Now that the bubble of mortgage speculation has burst and has taken us all down, PNM received Public Regulation Commission approval to let them open up new digging rights into our pockets to pay off high interest junk bond loans. They want to recover what are their losses from gambling on the market in a time of risky future stability. How much will they come back for next year?
The failure of PNM to set aside enough assets for basic new infrastructure in New Mexico rather than trying to expand into other states is a bad business decision, not a wise move and obviously not in our interest here.
When we little people make bad decisions or capitalist competition sinks our boats, we don't have a sugar daddy (the PRC) to bail us out. We have to take the losses. PNM should do the same and not come begging for permission to make us poor even poorer.
What are we to do? If we had a Legislature and governor not in the pockets of corporations like PNM we would see a revoking of PNM's monopoly charter, for a start. Then maybe we might move to nationalize and run our resources for the people of New Mexico, not outside speculators.
Why do we have to carry the rich on our back any longer, or give them rides into space?
Robert L. Anderson
AlbuquerqueBusiness Outlook Albuquerque Journal Thursday May 29, 2008
PNM proposes to generate about 49% of new electricity using natural gas.
The cost of a gallon of gas gets all the headlines, but the natural gas that will heat many American homes next winter is going up in price as fast or faster.
...
A longstanding assumption of American energy policy has been that natural gas would be plentiful abroad, and therefore readily available for importation, as production falls off in North America, where many fields are tapped out.
But some experts are starting to question that idea, saying natural gas could be subject to the same explosion in overseas demand that has made oil so expensive.
...http://www.theoildrum.com/node/4020/347688
Letter Drive Backs PNM Fuel Clause Stockholders Write To PRC Officials
Copyright 02008 Albuquerque Journal
By Jack King
Journal Staff Writer"Approve PNM's emergency fuel clause" is the message in a letter-writing campaign from a utility shareholders group.
Executive Director Carla Sonntag of the New Mexico Utility Shareholders Alliance told the Journal that the group has sent 7,000 sample letters to PNM stockholders statewide suggesting they send them on to Public Regulation Commission members considering the company's request for immediate relief.PRC Chairman Jason Marks said his office has received about 30 of the group's letters.
Although most have been retyped and/or customized to 'express the individual shareholder's personal viewpoint, many have simply had the top third torn off, then been mailed in with "sample letter" still printed at the top and a signature at the bottom, he said.
A cover document that goes with the letter is headlined, "The New Mexico Utility Shareholders Alliance (NMUSA) is concerned about recent decisions by the NM Public Regulation Commission (NMPRC) and needs your help!" A subhead farther down the page reads, "A fuel clause is critical to maintaining adequate cash flows." In the letter, a boldfaced sentence reads, "Your approval of PNM's requests, in the pending Emergency Fuel Clause case is critical."
Marks said that letter-writing campaigns are nothing new for PRC commissioners and that letters are placed into the record of a case, but don't have the same status as sworn testimony. Marks said he has
See FORM on PAGE A2Form Letters on PNM Fuel clause Target PRC
from PAGE Al
received about six letter's a week on PNM's rate case.
"They do stimulate me to ask questions about the record and even to take a new perspective on the record," he said. "I've gotten some that told me something new about the case, something I didn't know or understand before. I read them all, although I don't think I'll read all of the 30 identical letters I've gotten this time," he said.
Commissioner Ben R. Lujan's assistant, Terah Javaheripour, said he had received approximately 25, and Commissioner Carol Sloan's assistant, Luis Ledezma, said she had received 16.
The PRC today begins what is expected to be at least two days of hearings on PNM's fuel clause request, which could generate $72 million in a 12-month period.
Sonntag at first denied that the letters are being sent under the aegis of the nonprofit shareholders alliance.
"That letter was not a letter from the shareholders alliance. It was not from anyone," she said.
She did, however, say the shareholders alliance had printed the sample letter and mailed it out to PNM shareholders who also are alliance members.
"As executive director, I represent shareholders, who can't all be involved. It's our job to keep them educated and to champion the best public policy for shareholders of gas and electric companies doing business in New Mexico," she said.
The New Mexico Utility Shareholders Alliance does not receive regular contributions from PNM, although the company, along with other utilities, has helped sponsor the alliance's annual luncheon. The alliance is primarily funded by contributions from its members, Sonntag said. The New Mexico Utility Shareholders Alliance has about 12,000 members, of which about 7,000 hold PNM stock.
Albuquerque Journal Thursday May 15, 2008Yahoo Finance Wednesday May 14, 2008
PNM Resources Inc. (PNM)
PERIOD ENDING 31-Mar-08 31-Dec-07 30-Sep-07 30-Jun-07
Net Income Applicable To Common Shares ($48,636) $16,597 $8,371 $20,240New Mexico Public Regulation Commission
Jason.Marks@state.nm.us
Leroy.Aragon@state.nm.us
David.King@state.nm.us
Stacy.Starr-Garcia@state.nm.us
BenR.Lujan@state.nm.us
Setareh.Javaheripou@state.nm.us
Carol.Sloan@state.nm.us
luis.ledezma@state.nm.us
Sandy.Jones@state.nm.us
Elizabeth.Martin@state.nm.us
http://www.prosefights.org/pnmelectric/pnmelectric.htm#dearcommissioners
Tuesday May 13, 2008 07:10
Dear Commissioners:
New Mexico Utility Shareholders Alliance contacted us to make comments to the PRC.
I've been attending PNM natural gas and electric Integrated Resource Planning since 2007 for several reasons.
One reason is that I was informed of peak oil by my high school chemistry teacher, who previously was an oil industry chemist, in 1956.
PNM employee Steve Martin alerted us to the causes of increased electrical demand.
Further, Martin alerted us to electrical demands of Albuquerque mayor lawyer Martin Chavez's water project.
PNM promotes programs of energy conservation.
These energy conservations programs appear to be a smoke screen to try to mask business interests.
PNM appears to be asking customers to conserve on electricity so that new construction and other causes of electricity increases, like power hungry flat panel LCD and plasma TV purchases, can continue.
Continuation of new construction may not be sustainable for energy shortage reasons.
PNM showed that without addition of new electrical generation capacity it may have reached peak electrical production.
Further, PNM's suggested additions
which rely heavily on natural gas
renewable, and nuclear energy, and energy efficiency may have to be reconsidered.
Clearly not allowing PNM to pass along increased diesel, gasoline, natural gas, coal costs to consumers is unreasonable and could lead to PNM insolvency.
Bankruptcy is not be in the interests of PNM customers or the government of the State of New Mexico.
For these reasons I support allowing PNM to pass along increased fuel costs [including diesel and gasoline] to customers.
However, renegotiation of compensation packages for PNM Utility Officials before any rate increase might be warranted in view of PNM performance.
"We can't solve problems by using the same kind of thinking we used when we created them." Albert Einstein.
Continued new construction is a serious problem that I believe needs to be addressed by the PRC.
New Mexicans are faced, perhaps soon, with expensive and scarce energy which may lead to energy shortages.
Perhaps the PRC should consider options to attempt to limit new construction and ways to attempt to reduce volumes of unnecessary space currently heated and air conditioned in existing structures?
The PRC might wish to consider regulation of sale of new electric and natural gas meters?
regards
bill payne
Another William H Payne.
"Two things are infinite: the universe and human stupidity; and I'm not sure about the universe." Albert Einstein
Enclosed in April 2008 utility bill.
Finally we got a glimpse April 30, 2008 of what pnm proposes to do to increase electricity production.
Note the reliance on natural gas.
Simmons power points
LMS 100 and 7FA.
The risk of electricity blackouts in Southern California during the hottest days this summer is more than triple that of previous years because power plant additions have failed to keep up with demand, the state's grid manager said.
PNM may have fuel problems.We are investigating.
Cholla apprently gets it coal from the McKinley coal mine in New Mexico.Cholla Arizona coal fired plant photo taken November 12, 2007 on essential non-gas-wasting trip to visit Dr Ted Lewis in Salinas, CA.
The price of electricity in Chile has jumped from about 3.5 cents per kilowatt-hour to 35 cents per kilowatt-hour in just three years. That's like gasoline spiking from $2 a gallon in 2005 to $20 a gallon today.
This situation – which has big implications for commodity investors – stems from a deal between Chile and Argentina a few years ago...
In 1995, Chile generated 57% of its electricity from hydroelectric dams, 28% from coal, and the rest from diesel fuel. The government sought ways to diversify its electrical generation. It settled on cheap, clean natural gas piped in from neighboring Argentina. The media hailed the project as a model of national cooperation.
Chile bet big on Argentine natural gas, which quickly came to produce 37% of the country's electricity. The switch lowered energy prices... for about 18 months. Then, like my junior prom date, the relationship went bad in a hurry...
Argentina proved to be a terrible partner. By 2004, it began violating its production contracts. To meet increasing Argentine demand, suppliers cut the gas coming into Chile.
Chilean electrical production shifted to diesel, which effectively tripled the cost. Companies had to bring many of the old diesel generators out of retirement. Where a natural gas turbine costs $50 per megawatt-hour to run, the old diesel turbines cost $250 per megawatt-hour... a 400% increase.
Matt Badiali
Daily Wealth
Saturday April 26, 2006
Tuesday April 22, 2008 07:26
The Rio Grande water project looks to be coming on line at a time of diminishing new electricity production?
New generation capacity appears to be declining.
Peak Oil's Investment Implications Mathew Simmons March 7, 2008
Peabody's Black Mesa Project.
PNM Says Employees Insulted
Did PNM Bring On Problems?: Fuel increase opponents ask if financial crunch is result of mismanagement 03/26/2008 1:41 PM ET
Two intervenors in Public Service Company of New Mexico's rate case say the company's request for an emergency fuel clause may be less about a real crisis and more about mismanagement at the state's largest utility.
he Albuquerque-Bernalillo Water Utility Authority and the New Mexico Industrial Energy Consumers asked state regulators Tuesday to give them more time to delve into PNM's fasttracked request that would generate $72 million in new revenue for the utility over 12 months.
With the support of Attorney General Gary King, PNM asked for the emergency relief after a hearing examiner recommended a much lower rate hike than the company sought -- and recommended against its request to pass along automatic increases in the cost of fuel used to generate electricity.
PNM has said that without the immediate help, its bond rating could be downgraded to junk status. PNM has cited the rate case as a major factor.
But the two intervenors say there are a number of issues that need to be explored before the Public Regulation Commission decides on the emergency request:
Whether and to what extent the credit crisis facing PNM's holding company, PNM Resources, is due to "mismanagement" of its unregulated enterprises in Texas.
Whether poor performance of PNM's regulated power plants is a "primary driver" of its credit problems.
Whether PNM's claimed emergency is a real, current crisis or a "forecasted emergency."
Why PNM's fuel cost projections in the emergency proceeding differ so significantly from its forecasts in discovery in the underlying rate case.
Whether the potential credit rating downgrade stems from PNM overselling the rate case to the investment community and its "frantic, very public, responses" to the recommended decision.
PNM spokesman Jeff Buell said the utility will object to the requested delay.
"We're seeking emergency relief. In our view, we just can't wait 60 days. These are extraordinary circumstances that require expedited attention," he said.
He said the company would file a detailed response.
'Radical departure'
As part of their request for a delay, the intervenors cite a notation from Wachovia Capital Markets attached as a PNM exhibit in the emergency fuel clause case.
"PNM's holding company ... went on the offensive and purchased a power plant and a utility, both in Texas ... largely financed by short-term debt that PNM, in our view, should have moved more quickly to term out," the exhibit said.
Wachovia said in another exhibit: "Management also accountable -- PNM's acquisitions over the past few years have piled on debt and debt equivalents, but there doesn't seem to have been enough attention paid to the flagship store."
The Public Regulation Commission has agreed to make PNM's request a separate case and put it on a fast track for a hearing April 15.
The two intervenors described PNM's request for expedited action "a radical departure from established commission procedure" and argue it denies due process to consumers by taking away the "right to be heard at a meaningful time and in a meaningful manner."
Attorneys Nann Winter of the Water Authority and Peter Gould of NMIEC say they need at least 60 days to get answers from PNM and to properly analyze them.
They are asking PNM to provide the contracts with fuel providers that will generate the costs it is projecting, as well as other information.
They also are asking PNM to turn over all its communications with bonding agencies.
Winter said PNM hasn't presented any new evidence about emergency coal costs and there was no specific number attached to the open-ended fuel clause requested in the rate case.
"Two days after the recommended decision we have publications from Wachovia and Standard and Poor's saying PNM absolutely had to have a fuel clause," she said.
Case history
In the initial rate case, PNM was seeking an unlimited fuel clause and a rate increase of $77 million.
The hearing examiner recommended a rate increase of $24 million -- about 4.4 percent -- and no fuel clause.
The Public Regulation Commission ultimately will decide.
The emergency clause now sought was a compromise with King, whose office originally recommended against a fuel pass through and for a rate cut.
His office agreed to the short-term fix because he was convinced the company was in financial peril.
As two of the big electricity users, the Water Authority and NMEIC would be hit with a proportionally higher increase through a fuel clause than through a basic rate increase.
They also raise the question of whether the fuel clause would, in essence, give PNM a fast-track to a rate increase in the range of 18 percent to 20 percent.
The company, meanwhile, points to its relatively low rates and says its credit problems would cost New Mexico consumers in the long run.
To see more of the Albuquerque Journal, or to subscribe to the newspaper, go to http://www.abqjournal.com.
Copyright (c) 2008, Albuquerque Journal, N.M.
My comment: When will banks learn that renewables cannot be substituted for the energy generated by coal plants? It would require a massive amount of renewables to do so. In California renewables have been touted for 30 years and there is very little results from them. PG&E is playing the game by contracting for 177 MWe of solar plants that will have a capacity factor of only 20% and produce very little amounts of energy.
Coal News and Markets
My comment: When will banks learn that renewables cannot be substituted for the energy generated by coal plants? It would require a massive amount of renewables to do so. In California renewables have been touted for 30 years and there is very little results from them. PG&E is playing the game by contracting for 177 MWe of solar plants that will have a capacity factor of only 20% and produce very little amounts of energy.
San Juan Mine StatisticsOwnership
San Juan Coal Company - BHP Billiton Mine site size
17 square milesAnnual yield
7,800,000 million tonsDaily production
17,810 to 19,810 tons per day (average)Estimated life span
Through at least 2017
 -----Original Message----- PNM draft electric report [dated March 14, 2008] attached to above email. Here are three of the more interesting pieces of information presented in the report.  PNM electric generation facilities.  Here's the caption to the above audacious table. 3.5 Load and Resources Figure 3-5 illustrates the current load and resources balance. It is based on the Load and Resources table shown in Appendix D. The L&R table reflects the existing resources and mid load forecast documented in this report. Through the planning period, existing resources decline while projected demand increases.  PNM currently has a program to purchase renewable energy certificates (RECs) from retail customers that choose to install PV panels smaller than 10 kW. PNM’s Renewable Portfolio Standard (RPS) targets. |
PNM gas irp has something in writing as of Tuesday March 4, 2008.
We're starting a page on PNM Solar since Director, Advanced Generation Development, Greg Nelson, is in the planning starge of a solar project.
Cost of coal power is rising
Electric bills are poised to soar for customers of utilities building coal-fired power plants.
The plants, long-trusted purveyors of low-cost power, no longer seem like such good bets because of soaring construction costs and the surging cost of coal. ...
The Kansas City Star
Posted on Wed, Mar. 19, 2008 10:15 PM
PNM Seeks Emergency Increase Utility, AG Seek Clause To
Pass Fuel Costs to CustomersCopyright © 2008 Albuquerque Journal
By Jack King
Journal Staff WriterPublic Service Company of New Mexico -with the support of Attorney General Gary King - is asking for an emergency fuel adjustment clause that would generate an estimated $44 million this year.
The average residential customer using 600 kilowatts a month would see an increase of about $5.
PNM President, Chairman and CEO Jeff Sterba said Thursday the measure is necessary to keep bonding agencies from downgrading the utility's bond rating to junk status - a move, he says will cost ratepayers more as the company tries to obtain credit.
The proposal is a modified version of the clause PNM has asked for in its pending rate case. It was rejected by a hearing examiner in a recommended decision March 6 and is awaiting action by the elected Public Regulation Commission.
While the AG's Office supports the emergency clause, several of the intervenors who opposed both PNM's rate hike and the earlier fuel clause said they would object.
The move is a turnabout for the Attorney General's Office, which is charged with representing residential consumers in rate cases. The AG Opposed both the fuel clause and PNM's 76.9 million rate request.
A fuel adjustment clause allows the company to pass the cost of fuel needed to generate power onn to customers.
As part of a compromise with the AG's Office, the emergency clause would be billed at .83 cents per kilowatt hour for the first year and capped at a penny after that.
PRC Commissioner Jason Marks said the commission will decide how to act on the request and make a determination as soon as possible. The PRC staff had not yet taken a position.
Reaction to the filing from other parties was mixed Thursday.
Peter Gould, counsel for the New Mexico Industrial Energy Consumers, called it "entirely improper."
PNM is asking that the clause be put into effect at the same time as the rest of rate case, on or before May 7, even though no hearings have been held on this new version, he said.
"How are they going to reopen the record without delaying the case?" he asked. "If they file affidavits of support, we have the right to respond to them in a timely manner. Are they going to ask for further hearings?"
Nann Winter, attorney for the cities of Albuquerque and Santa Fe, and the Bernalillo County Water Authority, said her clients oppose the request.
"Procedurally, the record is closed," she said. "PNM had a chance to present this issue. If they feel they are under-recovering they should file this proposal under a separate docket."
King said Thursday the proposal would protect electric energy consumers.
Assistant Attorney General Jeff Taylor said utility and AG officials had been meeting since Monday on the proposal.
"Not only does PNM need this clause to cover fuel costs, but there are a lot of adverse financial consequences if they don't get it," Taylor said.
"We don't need a bankrupt utility in this state. All kinds of problems could result from that. I wouldn't want them taken over by an out-of-state utility."
Taylor said the AG's Office hadn't realized the company's dire position during the earlier hearings. The AG's Office actually recommended a rate reduction. The company's stock has fallen from the $34 range last year to close at $9.99 on Wednesday. Its bond rating has been downgraded.
The PRC earlier this week gave the company permission to try to borrow an additional $300 million. AG spokesman Phil Sisneros said PNM officials appear to have been "in a panic" since the recommended decision was issued. He said King also has concerns about consumers "if PNM were to tank."
The new proposal has a number of changes from the first fuel adjustment clause presented in PNM's rate case.
Among the changes:
· Instead of the amount being revised monthly, customers would pay a fixed fuel adjustment charge of .83 cents per kilowatt hour for one year.
· At the end of the year, the amount would be raised or lowered, depending on the company's expenses - subject to PRC approval.
· PNM would pay the costs of auditing the costs included under the clause.
· If the commission allows a fuel adjustment increase, the amount customers would pay would be capped at 1 cent per kilowatt hour.
· If the commission decided .83 cents was too much, PNM would return the difference to customers.
· The commission could deny PNM the right to recover costs that were the result of poor plant performance at its base-load power plants. Poor performance is defined as the plants' capacities being below a weighted average of 82.9 percent.
· The clause would expire two years after the date rates in the current rate case go into effect, or on the date rates in a second rate case go into effect, whichever is sooner, PNM said.
PNM spokesman Jeff Buell said Thursday that statement doesn't mean PNM intends to file a second rate case within the next two years.
Albuquerque Journal Friday March 21, 2008
Smaller PNM Rate Increase Advised
Albuquerque Journal (NM) (KRT) Via Thomson Dialog NewsEdgeMar. 7--The hearing examiner in PNM's electric rate case before the Public Regulation Commission has recommended a 4.4 percent rate increase for the utility, about a third of what the company requested.
The company had asked for a 14.7 percent increase, between $77 million and $82 million. Instead, in a recommendation issued Thursday evening, hearing examiner James Martin said Public Service Company of New Mexico's electric rates should be increased by about $24 million.
Martin also recommends that PNM's request for a fuel adjustment clause be denied. The clause would allow PNM to pass its fuel costs on to customers through surcharges on their monthly bills. ...Florida Sparks Dark Visions
[U]tilities understand implicitly their roles -- to produce and deliver safe, reliable and cost effective power. The attention of those at the top has been diverted, however, and the job of fixing any problems associated with those goals has been the responsibility of those who are more technically oriented. But now that the federal law has more bite, those at the top of the chain of command are expected to be more involved.
Those in the trenches have always known that the capacity of the transmission system is insufficient and will be unable over a sustained period to support huge increases in power demand. The same infrastructure, meantime, is from a bygone era. Translation: The difficulties in winning permits coupled with lack of capital flowing to transmission projects has meant that the risks of large-scale reliability problems have increased because of inadequate or congested transmission lines. ...
Invariably, utility planners will be forced to draw parallels between the massive 2003 blackout and the recent one in Florida. At the heart of the matter is the fact that the nation will need an additional 141,000 megawatts of electricity by 2015 to accommodate a 19 percent increase by then, says NERC. But only 57,000 megawatts are planned.
energybizinsider
March 5, 2008PNM Rates Fair; Affordable
REPORTER JACK King's article on Public Service Company of New Mexico's pending electric rate case, "PNM Calls Rate Increase Imperative Others Say Request Too High," was a fair portrayal of the case but failed to mention a few key facts.
First, PNM electric customers have not had an electric-rate increase in more than 20 years - and have seen four rate reductions since 1994. A New Mexico residential customer with an electric bill of $'50 in 1994 would have paid $43.05 to use that same amount of electricity in 2007. Today, our rates are 29 percent below regional and 22 percent below national averages.
Second, our request for a mechanism to pass along to customers changes in the cost of fuel used to make electricity, with full oversight by state regulators, is something that most electric utilities have. Every state but one allows electric utilities to recover costs this way, and all other investor-owned utilities in New Mexico already do so. Third, we agree that in a state such as ours with a high level of poverty, electricity must remain affordable. Looking at the average annual residential electric bill as a percent of median personal income, only residents of Maine currently pay less than PNM customers - about 1 percent of annual median income versus 1.25 percent.
Had our proposed increase and fuel clause been in effect for the year ending September 2007, PNM customers would have paid a lower annual electric bill than residents in 46 of the 50 states.
We understand that rate increases are never popular and acknowledge' the enormous task facing the state Public Regulation Commission as it considers our request. But it is critical that rates properly reflect the cost of running our business and are structured in a way that encourages efficient use of electricity. We believe our proposal does that while keeping the price both competitive and affordable.
DON BROWN
PNM Resources Albuquerque
Albuquerque Journal Saturday March 1, 2008
A serious power crunch developing in Guangdong. vizUntil recently, external power supplies for consumer devices such as cordless phones and laptop computers were notorious power hogs. Consumers generally considered any adapter, or “wall wart,” that provided enough power at the correct voltage and current for the cheapest price was good enough. With efficiency levels as low as 40 to 50%, these adapters wasted power as low as 1W each—too low to get an individual consumer’s attention. However, multiply these adapters by the millions that exist in the United States alone, and you’ve wasted enough power to require extra power stations. The Energy Star program, which has since 1992 been offering voluntary-compliance standards for household appliances, has now created a similar specification for EPS (external-power-supply) products.
Gates' Investment Firm Loads Up on PNM Stock
Feb 22, 2008 (Albuquerque Journal - McClatchy-Tribune Information Services via COMTEX) -- Bill Gates' personal investment firm has bought an additional 500,000 shares of PNM Resources' common stock, bringing the number of its shares of the holding company's common stock to more than 7 million. ...
PNM Resources shares traded at $23.21 at the beginning of the fourth quarter last year and at $21.19 at quarter's end.
The stock price has dropped sharply since then, closing at $12.78 Thursday on the New York Stock Exchange.
The company's share price dropped almost 25 percent Feb. 11 after it announced its profit for the fourth quarter fell 49 percent.
A Robert W. Baird & Co. stock analyst who follows PNM Resources said long-term investors like Gates are looking for return on investment years from now and don't pay much attention to near-term fluctuations in stock price. ....
 Sent to San Filipe de Neri grade school, Albquerque on about Friday February 23, 2008. www.pnm.com/teachenergy |
Here's another of our New Mexico interests: crooked lawyers and judges and msm. Lots of money to be made by the above group on the below subject. A perfect electric storm? |
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