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Air Quality Credit: George Holmes

Published on May 19th, 2014 | by John Farrell

11

David & Goliath Fight To Tap World-Class Solar

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May 19th, 2014 by  

“It’s the most inspirational work that I’m doing…this is an inspirational and aspirational effort…at the heart of it is love of place and energy democracy.” Mariel Nanasi and the citizens of Santa Fe, NM, are exploring the economic and environmental benefits of more local and locally-controlled energy production.  Is their city ready to take the lead?

Find out in this interview with Mariel, Executive Director of New Energy Economy, recorded via Skype on November 22, 2013.

A Failure to Take Advantage

The incumbent electric monopoly serving Santa Fe, Public Service Company of New Mexico (PNM), gets just 1% of its energy from solar in a state that some call the “Saudi Arabia of solar.” The result is a citizen-driven movement to explore a city-owned utility, and to make the most of the local renewable resource.

Mariel says, “I look at my kids in their eyes.  I don’t say ‘you have so much potential’ and leave it at that.  I want them to maximize their potential….We have abundant solar and wind resources in New Mexico.  The incumbent monopoly has failed to take advantage.”

New Energy Economy commissioned a study to see what would happen if the city, becoming the electric utility, did take advantage of its local resource.  The results are remarkable.

Doubling Efficiency, Doubling Renewables, Cutting Costs

In a study released in December 2012 and benignly titled “Preliminary Economic Feasibility Assessment of a Publicly-Owned Electric Utility for the City of Santa Fe and Santa Fe County,” the city learned that an energy switch to public power could be momentous:

  • It could double savings from energy efficiency from 8% to 20%
  • It could more than double renewable energy production from 20% to 45%
  • It could cut coal’s share of their energy supply from 60% to zero
  • It could increase the percent of local energy fivefold (and possibly much further with local utility-scale solar and city ownership of a combined-cycle natural gas power plant)
  • It could increase customer-sited and -scaled energy from a pittance to over 11%
  • It could cut energy bills by 10-15%

As Mariel says, the study says Santa Fe has “the potential to create leading edge innovations in energy efficiency and renewable energy and related economic development.”

Lessons from Las Cruces: A David and Goliath Fight

Santa Fe has two local examples that will inform their quest for cleaner, more local, public power.

The first is the local water utility, which “highlights our ability to put our values to work.”  The city purchased the water utility from a private monopoly 10 years ago and it is now “one of the most respected water utilities in the country” for its efforts on conservation and furthermore, “It is profitable for the city of Santa Fe.”

The second is a failed attempt to municipalize the electric utility in nearby Las Cruces.  After a 10 year effort, the bid to take over the electric system from El Paso Electric failed by a single vote in the 1990s, after the incumbent corporate utility helped finance the successful campaign of a city council candidate who voted against the last $30 million appropriation necessary to complete the deal.

The lesson from Las Cruces, according to the lawyer that represented the city, is that the question of municipalization is not about which entity is better – that’s self-evident (see the study) – but ‘is there sufficient political will to fight the incumbent monopoly?’

“PNM will do shady things…will do everything in their power…will ask their friends at Edison Electric…create phony nonprofits…try to pay off people…to quash public power,” notes Mariel.  There’s even a corporate utility-written handbook for defeating public power efforts.  (There’s a response, too, from the American Public Power Association called Straight Answers to False Charges Against Public Power).

Already, PNM is already talking to mayoral candidates in Santa Fe in preparation for the political battle.  It is, Mariel says, “Part of the David and Goliath fight.”

What’s Next

New Energy Economy and its partners in Santa Fe are going to spend 2014 “doing our due diligence.”  Their research will focus on the lessons learned from the city’s recent purchase of the water utility, as well as best practices from leading utilities like Austin, TX.

Ultimately, they intend to push their city council and county commissioners to vote on the issue of a public electric utility in 2014.

This is the 14th edition of Local Energy Rules, an ILSR podcast with Senior Researcher John Farrell that shares powerful stories of successful local renewable energy and exposes the policy and practical barriers to its expansion. Other than his immediate family, the audience is primarily researchers, grassroots organizers, and grasstops policy wonks who want vivid examples of how local renewable energy can power local economies.

It is published twice monthly, on 1st and 3rd Thursday.  Click to subscribe to the podcast: iTunes or RSS/XML

Sign up for new podcast notifications and weekly email updates from the energy program!

Photo credit: gholmes

Thanks to ILSR intern Jake Rounds for his audio editing of this podcast.

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About the Author

directs the Democratic Energy program at ILSR and he focuses on energy policy developments that best expand the benefits of local ownership and dispersed generation of renewable energy. His seminal paper, Democratizing the Electricity System, describes how to blast the roadblocks to distributed renewable energy generation, and how such small-scale renewable energy projects are the key to the biggest strides in renewable energy development.   Farrell also authored the landmark report Energy Self-Reliant States, which serves as the definitive energy atlas for the United States, detailing the state-by-state renewable electricity generation potential. Farrell regularly provides discussion and analysis of distributed renewable energy policy on his blog, Energy Self-Reliant States (energyselfreliantstates.org), and articles are regularly syndicated on Grist and Renewable Energy World.   John Farrell can also be found on Twitter @johnffarrell, or at jfarrell@ilsr.org.



  • sault

    The 5 Supreme Court justices that gutted our campaign finance law in Citizens United did so under the assumption that campaign donations are not an avenue for corruption. Anybody with the least bit of common sense knows this is absolutely ridiculous and the example of Las Cruces failing in its bid to institute its own public utility is just one example among thousands.
    How is speech free when the wealthy and well-connected can basically get the best government money can buy? How can I be heard by my representatives in government when a single Koch brother can lay down 1 MILLION TIMES as much money as I can in any given election and not even think twice about it? If the voice of the common voter s consistently going to be drowned out by hundreds of millions in corporate cash and billionaire donations, how is this any different from Aristocracy?

    • Banned by Bob

      I suspect that a single Koch brother pays 1MM times more taxes than you do.

      How is it fair that he gets the same vote as you?

      It isn’t because life isn’t fair.

      • http://electrobatics.wordpress.com/ arne-nl

        Are you suggesting rich people have a right to have more than one vote? That voting power is a function of how much tax you pay? Bring your IRS forms to the voting booth? I hope I am missing a joke here.

        Democracy is: one man one vote. Nothing more nothing less.

        • Banned by Bob

          First, we live in a Democratic Republic and not a Democracy. I’m sure you meant to say that.

          And you remember that the Founding Fathers originally only allowed the vote to landowners. Things have obviously changed since.

          My point is that there is inequity in that rich people have more influence in the campaign process, but that their vote is no more powerful than that of a welfare recipient. No said everything would be fair.

          • sault

            “First, we live in a Democratic Republic and not a Democracy.”
            Quit playing on semantics. We formed our own country because we determined that rule by a monarch and an elite Aristocracy wasn’t in our best interests and that rule by popular concent was, plain and simple.

            “No[sic] said everything would be fair.”

            Sure, but you at least want a democratic system that isn’t dysfunctional. Allowing the rich and well-conneted to basically bend the democratic process and thus the government to their will results in the 99% of the rest of us getting screwed over every time. Once again, how is this arrangement that much different from an Aristocratic system where the poor and even upper middle class don’t even really matter in how policy gets formed and implemented?

          • Banned by Bob

            Semantics? No, it’s a pretty meaningful difference.

            So how do you get screwed every time? Are you paying too much in taxes? Please be specific.

            Do you feel the same way about rich Republicans as you do rich Democrats?

          • Matt

            So let me ignore the rich US citizens for a moment. The Court also allows Corporation to spend as much as they want to by election, even if they are majority own by non-US citizens. So non-US citizens get a bigger say in our government than I do. I guess you think that is as it should be too.

          • Banned by Bob

            Actually, no.

            I’m just weary of all of the Koch bashing that goes on here. It’s a tired meme, it shows a lack of critical thinking, and it’s a disservice to the kind of capitalist job creators that we don’t have enough of in this country.

          • Bob_Wallace

            You really sticking up for those SOBs?

            They;re willing to kill the planet for their own gain. Your type of heroes?

      • sault

        Again, equating wealth and power to political influence is just Aistocracy by another name.

    • http://zacharyshahan.com/ Zachary Shahan

      Well said.

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