“The problem is,” a utility company executive told me, “that there is no one at the table who cares about the ratepayers. There is no one who cares about low-cost energy. Everyone is too concerned about looking PC instead of standing up for the consumer.” We were discussing the “stay” announced last week by the EPA that allows the state of New Mexico more time to find an alternative solution toward meeting the visibility requirements spelled out in the Clean Air Act.
New Mexico has been battling with the EPA over its insistence that the state use selective catalytic reduction technology (CRT) at the San Juan Generating Station, the 1,800-megawatt coal-fueled power plant that is New Mexico’s single largest source of electricity. It also provides power to customers in California, Arizona, and Utah. The state has been arguing for a different plan that would cost less but produce similar results. Bids received for the CRT installation are more than double the EPA’s estimate.
As has been happening across the country, the high cost of the EPA’s mandates, will likely shut down the two older units at New Mexico’s San Juan Generating Station. The Public Regulatory Commission will have to allow the utility company to increase rates to cover the lost depreciation of the units—not to mention the loss of the electricity production.
As the millions of people in the Washington DC area who lived without power for days found, living without electricity is “awful.” In his well-worth reading narrative of life without electricity, When the Moore Family Lost Power, Stephen Moore states: “It was awful, but educational. If anything good has come out of this debacle, it is that our household has a new appreciation for how important it is that everyone have access to affordable and reliable sources of energy.”
Environmental groups have complained that they do not have a seat at the table. Jeremy Nichols of the group WildEarth Guardians, stated: “they've got to realize they need to work with us or else it's not going to get any easier for them.”
As the utility executive explained, the ratepayers' needs are not being considered. The meetings will likely take place in some “smoky room” where a deal will be hashed out with no one challenging the premise most of these so-called emission reductions are based on: climate change is a man-made crisis caused by humans burning hydrocarbons.
“Who,” I asked, “should be standing up for the ratepayer?” “The Attorney General,” he told me.
While our meeting started out with complaints about the process, I saw the 90-day stay as a positive. It buys us time—though a 120-day stay would have been better. One hundred-twenty days would put us past the election—though not past a potential lame-duck period.
Actions like the EPA’s insistence that power providers use excessively expensive equipment for miniscule reductions (think of the law of diminishing returns) in pollutants or “haze”—which ultimately shuts down power plants and reduces our access to abundant and affordable electricity—emphasizes the importance of electing a new President come November 6.
With the stay, we may be able to put off finalizing the rules until we have a new President and a new EPA Administrator. If an agreement is reached and finalized within the 90-day time frame, it will be harder to reverse. But if a decision is not made, and another stay is granted, it could be a win. We could have a re-think and sanity could return to electricity costs and pricing.
But winning will take citizen engagement on several fronts. If we sit back and watch, we’ll deserve what we get—which could include outrageously high energy prices.
First, in New Mexico, and other states facing similar circumstances, we need to pummel the Attorney General with phone calls, emails, and letters telling him (or her) to represent us, the ratepayers. He needs to fight for abundant and affordable electricity rather than acquiesce to the politically correct notion that CO2 emissions are ruining the planet. Sadly, in New Mexico, it is not likely that the AG will stand up for us. His website is: http://www.nmag.gov/home
Second, we all need to vote. Mitt Romney may not be our first choice, but he is a choice. Sitting the election out will give us four more years of punitive energy regulation—on steroids.
Lastly, assuming we get a change on November 6, we cannot breathe a sigh of relief, sit back, and relax. We must stay engaged. The era of spectator citizenship is over. We, the people, will need to stay on top of the Romney Administration to insist that he appoint people to positions, such as the Secretary of Energy and the EPA Administrator, who understand the important role energy plays in America. Stephen Moore called it “the central nervous system of our modern economy and our 21st-century lifestyles.”
I am optimistic because I have seen citizen engagement work.
We had a victory in New Mexico with the sand dune lizard. I believe it was citizen engagement that kept it from being listed as an endangered species—which could have severely crippled the economy in Southeastern New Mexico and West Texas and reduced oil and gas development throughout the region that produces 20% of the domestic supply.
Like the utility company executive didn’t see the “stay” as a win, not all the oil and gas stakeholders saw the sand dune lizard decision as a win.
Back in December of 2011, the sand dune lizard decision was delayed for six months. Many industry executives would have liked to have had the decision made, not delayed, so they could move on to the next step: court. At the time, I wrote that the “delay” option was a good thing, as it allowed for more public engagement, and it put the decision just months away from the presidential election. I posited that I didn’t think the Obama Administration would want to make a decision that would hurt such a large portion of the state’s economy months before the election in a swing state.
There was more public engagement and last month the decision was handed down. The lizard was not listed.
One of the reasons the lizard was not listed was because of the Candidate Conservation Agreements (CCA), in which many in the industry have engaged. Some complain that the CCAs are really extortion, and they are. The CCA requires companies that want to drill in the lizard’s habitat to pay money to an organization for habitat restoration—but they can still operate (albeit at a higher cost, which results in higher prices to the consumers).
However, as the environmental groups have complained, the CCAs are nonbinding. With a new administration and new leadership in the agencies, the CCAs could be abandoned much more easily than the lizard could be de-listed. Again, citizens will need to be engaged to keep pressure on a President-elect Romney to appoint appropriate agency leadership.
The “stay” over the regional haze regulations in New Mexico can be a win. The “delay” over the sand dune lizard was a win.
Likewise, the Supreme Court decision on the healthcare law could be a win—but we have to embrace it and get engaged. Agree or disagree with the decision, it is the decision; it is what we have to work with. The campaign cash that flowed in following the announcement ($4.6 million to the Romney campaign from 47,000 donors in less than a day) shows that, perhaps, the Chief Justice has done us a favor. In opining, “It is not our job to protect the people from the consequences of their political choices,” he has reminded all of us of the importance of our vote.
Whom we elect has far broader implications than just who occupies the White House. The President appoints people to leadership positions and they pick the people who implement the rules and regulations—like Al Armendariz. We often call these people “unelected bureaucrats,” when in fact, they are there as a result of our vote.
We have 16 weeks to save America. Are you engaged? Are you talking to your friends, family, neighbors, and coworkers about the importance of this election? Polls following the SCOTUS decision show that nearly half of the public didn’t even know that a decision had been made or what it was. For us, that translates to an understanding that a large percentage of the population—including nearly half of your friends and family—isn’t paying attention to the news. They need us to talk to them.
Each week as you read my column, you should be outraged. I aim to expose under-covered issues that point out the danger of this administration’s energy policy. In doing so, I’m giving you fresh talking points so you can engage in the process. I also hope to encourage you to keep at it; to not give up. As citizens of the United States of America, we can no longer be spectators. We must get engaged.