The Jemez Mountains Electric Cooperative and other rural co-ops are lobbying for changes to a federal energy bill that’s designed to curb greenhouse gas emissions but could show up as a hike in customers’ electric bills.
The American Clean Energy and Security Act passed the U.S. House of Representatives June 26 and is being discussed in the Senate. If signed into law, the bill would set up a “cap and trade” system to reduce emissions, starting with a 3-percent cut in emissions by 2012 and dropping gradually to an 80-percent cut by 2050.
The system would cap the emissions of utilities by issuing credits allowing them to pollute only a specific amount. Companies that pollute less than that amount could sell their left-over credits to companies polluting more than their allotted amount.
But the House bill gave utilities in coastal states too many credits while utilities in other states got too few, New Mexico Rural Electric Cooperative Association Vice President Keven Groenwold said. That means the Tri-State Generation and Transmission Association, which sells electricity to Jemez and 11 other New Mexico co-ops, will have to buy credits from companies in other regions, he said.
The cost of that would go to customers, whose electric bills would rise by about $160 a year if the Act becomes law, Groenwold said.
Jemez Board members Kenny Borrego, Rio Arriba County Commission Chairman Elias Coriz and Tsay Corporation Chief Executive Officer Ron Lovato won election to the Co-op Board this year on “green energy” platforms. Borrego said he ran his campaign in support of wind and solar power, but said he opposes cap and trade.
“We don’t want the rates to be raised on people, especially those on fixed incomes, like my mom,” Borrego said.
Coriz said the problem is Jemez’s contract with Tri-State runs through 2050. Otherwise, the Jemez Co-op could look for greener alternatives.
“We’re locked in with Tri-State, so we’d be having to buy credits from people who already produce green energy somewhere else while Tri-State keeps on burning coal here,” Coriz said. “Our customers would pay more money so the air can be cleaner somewhere else.”
Tri-State spokesman Jim Van Someren said the technology doesn’t exist yet for the company to meet the Act’s goals.
Groenwald said the Act will likely pass the Senate without major changes. Co-ops and their customers should lobby senators to limit the cost passed on to customers at no more than $160, he said.
Udall’s office can be reached at (202) 224-6621 and Sen. Jeff Bingaman’s (D-NM) office can be reached at (202) 224-5521.
All three New Mexico House members voted for the Act.