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Thursday, March 27, 2008

Editorial: Co-Op Should Re-Examine Rates

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    The state Public Regulation Commission kicked off two investigations into the rates Central New Mexico Electric Cooperative charges its customers last week during a four-hour hearing in Moriarty.
    It's an understatement to say commissioners got an earful. Very few customers spoke in support of the cooperative and comments to the commission veered away from the subject of the hearing, causing it to go "off the record."
    What the commission heard was the frustration of hundreds of customers about high electric bills, and it wisely let the people have their say.
    The co-op charges its average residential customers nearly double what PNM charges its customers in Albuquerque. There are several reasons for the higher charge, co-op officials say. Chief among those reasons is that the co-op provides service to a more rural area, which can drive up costs. Another reason is that the co-op is beholden to other electric suppliers, while PNM has its own power plants.
    The co-op would be wise to look closely at how it does business. While higher costs due to its situation as a rural cooperative are understandable, people are getting tired of seeing their bills increase even after taking measures to reduce use.
    In addition, the PRC should not let up in its investigations into rates and should look at how customers of all New Mexico electric cooperatives can be better protected.