Climate Change: PNM's Position

MORE ON CLIMATE CHANGE PNM's position Cap and trade vs. carbon tax What will it cost? What we're doing on climate change What you can do on climate change Additional resources

We believe that in the United States, greenhouse gas regulation is inevitable.

The challenge is to achieve meaningful reductions at the lowest possible cost for our customers, the communities we serve and live in, and our investors.

We believe comprehensive and sensible federal legislation - rather than state and regional approaches or regulations issued by the U.S. Environmental Protection Agency - is the best way to go.

Such legislation would:

• significantly reduce greenhouse gas emissions over time.
• be mandatory and economy-wide in nature.
• include cap and trade as a core element, plus complementary measures*.
• include cost-containment protections to minimize increased costs for consumers and allow energy companies to continue providing reliable, affordable service.
• be market-based to spur innovation and investment in advanced and clean energy technologies, including renewable energy, smart grid initiatives, energy storage and energy efficiency.

Fall 2010 update

While comprehensive carbon legislation passed the U.S. House of Representatives in summer 2009, companion legislation has stalled in the U.S. Senate. Meanwhile, the EPA is moving forward on a set of carbon regulations to take effect sometime in 2011.

Within New Mexico, there are two current efforts to adopt state-level caps on carbon emissions. Both are being considered by the N.M. Environmental Improvement Board, a body comprised of seven members appointed by the governor. The first is a proposal by the Santa Fe-based nonprofit New Energy Economy; the second is a proposal by the N.M. Environment Department.

PNM, a number of other New Mexico organizations and concerned citizens – troubled by the potential impact of these caps on energy prices and jobs within our state – are actively opposing these proposals.

Hearings on both proposals are expected to conclude this fall. NMEIB could vote on the proposals at any time after the public hearings conclude.

*-By complementary measures we mean policies and measures that are complemenatary to the cap and trade program Complementary measures are needed to provide incentives for emission reductions by sectors of the economy that are well-suited to participate in a cap and trade program. Examples of complementary measures could include building codes that set standards for energy efficiency, mileage requirements for vehicles, and rebate programs for old refrigerators.