Friday, February 11, 2011Clippings From My Newsroom Floor--Come On In & Pick Through The Pile, Plus: Hit The Road, Jack; Dems Will Miss Schmitt More Than R's
Mary Beth Pizzoli
 Governor Martinez seemed to escape major political damage from the natural gas shortage which until the political demise of Jack Schmitt was the major political story of the week. Her condemnation (and blaming) of the NM Gas Company resonated with those out of heat and the public at large. The administration--new at this--did seem to have to scurry to get their arms around things. But at a public hearing sponsored by the state's congressional delegation in Espanola Thursday, we're told only one of some 200 disgruntled residents pointed their finger at the Guv. Everyone was raging at the gas company.We think our initial take had it right--that the big impact of the crisis could be on the energy industry's deregulation agenda. But that doesn't mean there aren't plenty of Dems trying to drag Martinez down for her performance. Sam Bregman, seeking to become NM Dem Party chair, accuses Susana of not being ready for prime time: Thousands of New Mexicans lost their heat and needed help from their government. What did Governor Martinez do? First, she met with the gas company and did nothing. Next, instead of looking for the resources that would actually help solve this crisis, she started the blame game. She refused to ask for federal assistance...The first crisis for our new Governor and she failed. Cozy relationships with industry insiders are her priority while a devastating crisis that left New Mexicans in the cold and without heat is someone else's fault. This is leadership? But The Guv's office says: The Martinez Administration has been in contact with FEMA since the first day of the natural gas crisis, and the Governor anticipates that damages will rise to the level of a Presidential Disaster Declaration, which will enable FEMA to reimburse state and local entities for costs associated with uninsured damages... PAYING THE PIPER  A reader asked this week where the money would come from to pay the cost of sending ABQ police and firemen to the north to help relight gas deprived homes. It appears those expenses could be reimbursed by the state. The Guv signed an executive order that makes available up to $750,000 to local government for reimbursement.ABQ firefighter union head Diego Arencon sends this YouTube video that he says pushes back against the contention that the firemen have it easy, except for an occasional emergency. Expect NM Senator Jeff Bingaman to join the investigation of the Great Gas Shortage. His office says he will hold a one day hearing on the outage. Bingaman is chairman of the Senate energy committee. IS THERE ENOUGH? We chuckled at the timing of this release when it came across our Apple computer screen this week: New Mexicans tired of getting gouged by increasing gas prices may have an alternative—and some healthy incentives—to convert their cars to natural gas with a bill moving through the House. The House Business and Industry Committee approved Tuesday HB 198, which provides personal and corporate income tax credits to those who convert their petroleum-based vehicles to natural gas... As long as the NM Gas Company isn't the supplier, we suppose this will work out. HOW ABOUT PROPANE?  It's quite a bit more expensive to heat your rural home with propane than natural gas, but some folks are sure to look into it after being hit by the gas crunch. The propane boosters are out in force as we see in this email from Jim Conway, of Conway Oil & Propane in Clovis:...A lot of Mom & Pops in the propane industry have been doing what we've always done best--serving our customers on an individual and personal basis. Most of us were working around the clock keeping cost effective, readily available and efficient propane in our customers tanks. We sold almost as much propane in the last 10 days as we sold all of last February, which was one of our best months ever. We had adequate inventory; enough delivery equipment; and motivated staff willing and able to work incredible hours. We...reinforced our position as the area's "Energy Supplier of Choice." The natural gas companies can't make the same statement! Jim, if you ever get out of the propane biz, you might want to try your hand as a copywriter for commercials. You have it down pat. HIT THE ROAD, JACK  The Democrats will mourn the loss of Jack Schmitt more than the Republicans. Schmitt refused to undergo an in-depth, but routine background check ordered by the Senate Rules Committee and the Guv withdrew his nomination to become secretary of the energy and minerals department. There was no way Governor Martinez could keep him around, not after she pledged a transparent administration to beat all administrations. If Schmitt, 75, a former astronaut and US Senator, had been confirmed for the post, he would have been a convenient whipping boy for the Dems who decry his controversial views on global warming as well as his position on a corporate board of directors that caused him to have a conflict of interest over the NM Spaceport. Did the Martinez team drop the ball in vetting Schmitt? Yes, he is respected, but has become downright ornery in recent years, publishing off the wall comments that made him a Dem dream. Didn't the vetters know that? The Dems would have liked to keep him around, subscribing to the theory that it's always best to cripple your villain, not take him out for the count. But state Dem Chairman Javier Gonzales had to settle for this riff on Susana's first weeks in office. Martinez tally of failure in just the past few weeks: Harrison Schmitt flame out; Poor handling of gas crisis, which left thousands of New Mexicans in the cold, some for more than a week; No New Mexicans named to her education-reform team; Still not one comprehensive jobs bill proposed by administration; Rebuffed by state Supreme Court for letting industry lobbyists write an order that attempted to halt clean-water protections Martinez isn't the first Governor to stumble over the vetting process and won't be the last, but the difference this time is Martinez's Democratic foes will be as sad about the mishap as she will. They don't have Jack Schmitt to kick around anymore. AWARD WINNING Governor Martinez's political team is getting congratulations for winning an award for producing the best statewide TV spot in 2010 in the USA. The ad from Lincoln Strategy Group was called "Convicted" and showed Martinez destroying the credibility of an attack ad from Dem Guv nominee Diane Denish. The ad was produced by consultant Jay McCleskey who recently announced plans to open his own consulting firm. The Reed awards were handed out by Campaign and Elections Magazine in D.C. Meanwhile, over at state GOP headquarters, they've named a new executive director who is from out of town. THE BOTTOM LINES  One of our stories this week has Dem US Senator Jeff Bingaman getting 57% approval in the PPP poll. It was actually 56%...Speaking of headlines, we came across this one promoting a program on the legislative session: "Expanded Legislative Coverage During This Crucial 60-Day Session." Of all the adjectives you might use to describe the sleeper session in Santa Fe, crucial is probably last on the list. Yes, those are snoring sounds you hear emanating from the storied Roundhouse.... And was this the Joke of the Week? The New Mexico Gas Company, according to Public Regulation Commissioner Jason Marks, plans to seek a rate increase soon. Isn't that like paying a pick-pocket? Thanks for checking in here this week and making us New Mexico's #1 political site. Reporting from Albuquerque, I'm Joe Monahan. This is the home of New Mexico politics.
E-mail your news and comments. Interested in advertising here? Drop us a line. (c)NM POLITICS WITH JOE MONAHAN 2011 Not for reproduction without permission of the author Thursday, February 10, 2011Spaceport Action Accelerates: Schmitt's Conflict Raised; Susana Names New Board & Branson Raises Stakes With Hotel Plans, Plus: Udall And The Earmarks
Sir Richard Branson
 The action has accelerated over Spaceport America, the economic development project that could be New Mexico's Sandia Labs of the 21st century--employing thousands--or a $210 million gamble gone bad.First, there's the issue of Jack Schmitt's conflict of interest. Then there's Susana appointment of an all new Spaceport Authority Board. And then there's Virgin Galactic's Sir Richard Branson upping the ante by announcing plans to build a hotel near the Spaceport. We start with the Schmitt angle... Should Jack Schmitt, nominated for a spot on Governor Martinez's cabinet, resign from the board of directors of Orbital Sciences Corporation because it represents a huge conflict of interest with the taxpayer-financed Spaceport America in southern New Mexico? Or should he be allowed to keep the board position because his department has no direct role in the Spaceport? Schmitt, a former astronaut and US Senator, has been nominated to become the next secretary of energy and minerals department by Governor Martinez and awaits state Senate confirmation. Meanwhile, he is on the job and drawing a state paycheck. But his association with Orbital--a potential competitor with the Spaceport which has close ties to the Mid-Atlantic Regional Spaceport (MARS), has backers of the project asking when and if he will resign the board membership. He has held it since 1983 and in 2009 it paid him $88,000 in cash and stock. It was hoped that Schmitt, a native of Silver City and one of the few men to walk on the moon, would be a major supporter of Spaceport America, but it hasn't turned out that way. He had to recuse himself from advising the Governor on the project because of his conflict of interest. Also, insiders in the know have told us that Schmitt is not a backer of the project as presently envisioned. Having Schmitt on the Orbital board while the Spaceport struggles for full support with the current administration is just too much for Spaceport boosters to swallow. He is a national symbol of space exploration and his inability to support the project from his perch as a cabinet secretary is untenable for spaceport backers. However, others argue that as secretary of energy and minerals Schmitt will have no direct role in the development of the Spaceport and that his board membership represents no direct conflict of interest. Will state employee Schmitt resign his private board membership? Will Martinez, who has stressed ethics like no other recent governor, ask him to? Will the state Senate demand that he do so before confirming him? Or will the ex-Senator continue to cash Orbital Sciences checks as well as state paychecks and be allowed to look the other way when it comes to Spaceport America? THE NEW PLAYERS  Meanwhile, Martinez's appointment of seven new directors to the Spaceport Authority Board drew favorable reviews from Spaceport enthusiasts who cited the continuity and experience the new directors would provide. Most of them have been involved in the project from them beginning. There was concern that Martinez, who sacked the entire board soon after taking office along with executive director Rick Homans, would take too long in getting the board back together. But that concern was answered with this round of appointments. Still, the additional news that requests for proposals to hire contractors for maintenance and general services at the Spaceport has been extended for ninety days was called a "momentum buster" by one Alligator tracking the action. Then there was that line in the Guv's news release: "It’s time to see the project through to completion by bringing in private funding." What private funding? The Spaceport's initial phase is already paid for by state appropriations and a voter-approved tax in two southern NM counties. Virgin Galactic is the anchor tenant and plans to send tourists into suborbital space at $200,0000 a pop and has signed a lease agreement with the state. Is the administration sending a message that they want to "privatize" the Spaceport--sell it to a private company to operate? If so, Santa Fe is putting the cart way ahead of the horse. GETTING DOWN TO BIZ  The first order of business is to have Virgin Galactic light that rocket and put a civilian in suborbital space. The new Spaceport board can hire a new executive director and proceed posthaste with giving state taxpayers what they paid for--a functioning Spaceport.Sure, some may want to offload to a private firm the risk we've already agreed to assume, but that would severely limit the projects potential and its accountability to southern New Mexicans most vested in its future. New Mexico voted to think big and take the gamble. To quote Jim Morrison of the Doors: "The time to hesitate is through." Governor Martinez's rhetoric has gotten a wee bit more friendly to the Spaceport, but her overall communications about the project still carry a tone that the Spaceport is a burden, presents problems, is a financial challenge and on and on. We understand the emotions that may prevent the administration from fully embracing a project that was launched under her predecessor--Big Bill--who they so dislike. But it's time to get over it and cease worrying about Bill getting credit and those far-in-the-future financial issues. How about bringing to fruition the fully-financed task at hand--putting people in space and then watch what happens. BRANSON AT BAT AGAIN  Sir Richard Branson, the colorful raconteur and billionaire who the state has pinned much of its hopes on to get the state Space program up and running, dropped a mini-bombshell this week when he announced that Virgin Hotels--his new hotel chain--will build a hotel near the Spaceport to complement Virgin Galactic's spaceport operation. No details on the project, except that Virgin Hotels are to be of the five star variety.It's a mini-bombshell because it signals the first private sector jobs that could be spun off from the Spaceport. That's key to maintaining public support and for the state to profit from the project via gross receipts taxes. The Branson announcement also raises the political stakes for Martinez in keeping the Spaceport on track. We're now talking about the first round of tangible employment spinning off from the Spaceport. And we're not just talking jobs for the eggheads, but for the working class. Pressure for those jobs will be intense. This hotel announcement is interesting timing, isn't it? If Branson was on the defensive now that Big Bill and former Spaceport executive director Homans are gone, it didn't last very long. They don't teach that in the poly sci classes, kids, but that's how the game is played. Virgin has already signed up hundreds of suborbital space tourists at $200,000 a piece. Now Branson plans to give them some nice earthly views while they wait to rocket up and to rest when they touchdown. But don't make a reservation just yet. Word is that Branson's hotel is two years down the road. MORE POLLING  That PPP poll that had Senator Bingaman in such good shape for re-election (56% approval) also has President Obama scoring well with New Mexicans. It says Obama's approval rating here is a healthy 55%, with 40% disapproving. In theoretical match-ups the Prez also handily beats potential 2012 GOP challengers like Romney, Gingrich and Palin.Obama scores 60% approval with critical independent voters who helped push him to a 15 point win here in 2008. PPP is a Democratic firm, but it has been reliable and not shown itself to be biased. The survey has more Dems than the R's would like to see, but keep in mind that more Dems will be voting in a presidential election year than voted in 2010. Most important, the R's are not coming with any of their own numbers that contradict the PPP standing of Obama or Bingaman. This early polling is vital because it determines the field. For example, if Bingaman were faltering it could persuade him to opt out of a re-election bid as happened Wednesday with Virgina Senator Webb who faced a tough re-elect. With huge money needed to run, you can't wait six months for better polling numbers, you need them early to raise the money and deflect stronger opposition. Many folks are asking us about ABQ GOP Mayor RJ Berry and whether he might make a run against Bingaman. All we can tell you is that a close friend of the mayor told us recently the mayor has no plans to run for the US Senate. Berry is up for re-election for mayor in 2013. THOSE "EVIL" EARMARKS  Senator Tom Udall has some words to keep in mind when we hear the outcry against those congressional "earmarks."The Washington spin cycle has turned 'earmarks' into a dirty word, but in reality, they have long provided funds to New Mexico businesses and organizations that create jobs and boost local economies. The decision to prohibit earmarks might make for a good sound bite, but in practice, it means less federal support for our state in the long run. You summed it up nicely, Tom. But you're going to take a hit in some quarters for saying it. You see, there's a viewpoint, expressed by those who may not be familiar with the history of our state, that only money generated by the "private sector" is "good" money. They look with disdain at anything associated with government. We know that sounds bizarre when the very foundation of the modern economy of New Mexico is the federal government. Fortunately, most of our congressional delegation, as delegations that have preceded them the past seventy years, are determined to bring to this little and needy state the federal funds that provide thousands of well-paying, meaningful and reliable jobs--and also provide a major boost to the private economy. And that's the way it is. This is the home of New Mexico politics. E-mail your news and comments. Interested in advertising here? Drop us a line. (c)NM POLITICS WITH JOE MONAHAN 2011 Not for reproduction without permission of the author Wednesday, February 09, 2011Bloom Not Off Bingaman; Poll Has Him At 56% Approval & Stomping Heather, Plus: Low Opinion Ratings For Heinrich & Lujan, And: Energy Crunch Watch Chances are growing that the 2010 NM US Senate race could be a bust. Fresh polling shows Jeff Bingaman garnering a 56% approval rating, potential Republican challenger Heather Wilson trailing far behind in a theoretical match-up with him and no other heavyweight R's poised to take on Bingaman who is expected to announce by the end of March that he will seek a sixth term.The PPP poll, conducted among 545 state voters, shows Bingaman defeating Wilson in a head-to-head match by a healthy 19 points. It's Jeff 56% and Heather 37%. He landslides her by 28 points among crucial independent voters. Those are not the kind of numbers that are going to encourage the former five term ABQ GOP congresswoman to fire up a multi-million dollar campaign. It's true that it is still quite early, but both Bingaman and Wilson are very well-known, giving this first neutral survey of the '12 cylce more import than it normally might have. What could Wilson, who has said she is considering a Senate run, do to change opinions about Bingaman, now the state's senior senator and chairman of the energy committee? She would seem to need the environment to start drifting back to that of 2010. We've talked about the changing mood of the electorate since the anger drenched 2010 balloting and these numbers track that trend. Bingaman, 67, bottomed out at 50% approval in the polls last fall and now has grown back to 56%. PPP says that makes him more popular in his home state than all but four of 77 of his Senate colleagues the firm has polled. The margin of error in the survey is plus or minus 4.2 percent. It was taken mostly over this past weekend (Feb, 4-6). Wilson appeared to be trying to get back in the game by becoming chairwoman of Governor Martinez's transition team. She completed that task with mixed to good reviews. It appears it did little to rehab her image which has taken a hit since she ran for and lost the 2008 GOP US Senate primary against Steve Pearce. Heather's unfavorable rating is 45% and her favorable 39%. She even loses to ABQ Dem Congressman Martin Heinrich in a theoretical match-up for the Senate seat--50% to 39%. If Wilson, 50, bypasses the contest, which now seems more likely, it will be interesting to see what NM GOP Chairman Monty Newman and company do for a candidate. Will they look for a heavy or go with token opposition? Craig Sowards of Las Cruces is an announced GOP candidate, but PPP did not even do a match-up featuring him against Bingaman. He is not seen as a top-tier contender. Another GOP candidate is unknown Bill English of Alamogordo. The PPP pollsters did put the name of former NM GOP Governor Gary Johnson up against Bingaman. Gary fared much better than Heather with Jeff beating him 51% to 40%. But a close friend and adviser of Gary's told me after the poll was released he has zero interest in running for the Senate and is still concentrating on a possible 2012 GOP presidential run. Also, his drug legalization stance could make winning a GOP Senate primary problematic. HEINRICH, LUJAN & PEARCE  While Heinrich scores well in a theoretical run against Wilson, look at this--opinion of him is not all that high. 39% have a favorable opinion of Heinrich while 34% don't. If the poll has it right, this is a bit of a bright spot for the GOP. They came close to bumping him off last November, but Heinrich manged a second term win. This time around ABQ GOP City Councilor Dan Lewis is already off and running. He's formed an exploratory committee and begun raising money. The name of GOP Bernalillo County Commissoner Wayne Johnson was floated here recently as another possible GOP candidate for the Heinrich seat, but he is telling friends he is not running.
These polling numbers are sure to buoy Lewis, but there is a long way to go and Heinrich isn't the type of politician to let things slide. Up North, Dem Congressman Ben Ray Lujan is also feeling the breath of a disgruntled electorate, securing a 36% favorable opinion with 34% unfavorable. Lujan was re-elected to a second term in November with about 57%. His heavy Dem seat is seen as safe. R Tom Mullins of Farmington says he is looking at making a second run at Lujan after losing out in his first attempt. Republican Congressman Steve Pearce gets 35% approval while 44% disapprove. No major Dem names are yet circulating to take on Steve next year. While the anti-incumbent fervor has died down some, as reflected in Bingaman's improving fortunes, these numbers for House members Heinrich and Lujan indicate there is still much displeasure in this electorate. The lousy economy--highlighted by high unemployment-- around here is the obvious reason. JABBING JEFF Bingaman has become an iconic political figure, first elected in 1982 and not having a serious re-election challenge since '94. But R's can still hope. Among them is longtime politics watchers Larry Ahrens who tries to make a case for bumping Bingaman: Senator Bingaman voted with all the D’s to support the ObamaCare health spending bill and to turn away R efforts to repeal it. Perhaps Bingaman thought it was a “safe” vote. But he’s now on record as supporting the bill as-is. If the legislation gets ruled unconstitutional, if health care premiums continue to rise, if more deficits, spending and bureaucracy come to light--then this routine vote will be used against him by his yet-to-be-determined R opponent. That's a lot of "ifs," Larry. We'll we watching for the "whens." SUSANA SPECULATION  Under different circumstances the continuing speculation among national pundits about Governor Martinez possibly becoming a contender for the 2012 GOP vice presidential nomination might go down better. But right now it seems downright dangerous.Martinez and New Mexico have a full plate of issues before them. Speculation that would have her leaving the state and seeking national political office strikes a discordant note. Voters just went through that with "President Richardson." But that's not going to stop the talk. From the Politico: For a candidate who struggles to connect with women voters, Sen. Kelly Ayotte of New Hampshire or Govs. Nikki Haley of South Carolina and Susana Martinez of New Mexico might help broaden the GOP’s reach. Martinez, along with Rubio and Nevada Gov. Brian Sandoval, could help a nominee who’s unappealing to Hispanics. Both Governors Johnson and Richardson have been on and off the presidential trail. This is the third Governor in a row that is getting the national treatment. But considering the state of the state, the third time is not the charm. THE FRONTRUNNER? We noted that a couple of our Alligators peg Victor Raigoza as the frontrunner to take the chairmanship of the Bernalillo County Democratic Party over incumbent Ana Canales. But not all agree. To the e-mail: You’ve got Victor as the “front-runner”? Thanks for the chuckle, Joe. Victor is largely seen within the party as a do-nothing who’s good for a great speech every now and then, but who’s never done a lick of work to move the party forward. If he gets more than 35% of the vote I’ll be very surprised... Well, the lines are now drawn. And we are going to have to stick with calling Raigoza the frontrunner as a Senior Alligator weighed in, joining a handful of others, in calling Raigoza the favorite. The Canales Vs. Raigoza contest will be settled by the county Dem central committee March 19. HELPING THE NORTH  Back on the weather beat and a reader email on ABQ police (and firemen) being sent up north to help turn on gas at homes doing without:Is there a reasonable explanation for why the "Berry-White" administration is sending Albuquerque city police vehicles with highly paid city law enforcement professionals to the City of Espanola to turn on gas at the direction of the Governor? Maybe there is a very reasonable explanation (i.e. the City receiving state funds for an emergency response team, etc. which would make sense that they could be on call for statewide emergencies. Police Chief Ray Schultz told TV news he will worry about the cost later. That his first concern is providing assistance to the north. But these are not the days of the Bull Market and how anything is paid for is never far from taxpayers' minds--no matter the circumstances. DEFINING MOMENT? A reader, a Democrat, writes: The most telling thing about the natural gas crisis and the Martinez Administration's handling of it is that they failed to seek federal assistance (FEMA) and had to be prompted by Congressman Ben Ray Lujan. Why isn't she tapping the Weather Assistance Program for skilled labor and additional help? Why is it? One, they refused any transition training or help from Department heads or employees that could have helped them be ready. Martinez didn't even know to move on FEMA money or where to go for other resources as soon as the crisis hit? Now, once the gas is back on in the North, there are still lots of financial issues like loss of business income, clean up, etc. What does this say about the Administration except uninformed and ill-prepared? Secondly, rather than looking for all the resources to solve the problem, she wants to point the finger at someone. She and her staff can try to shed the blame on NM Gas Co., but this was an early defining moment which will not be soon forgotten. Martinez says it's likely a request will be made to FEMA for federal aid but it isn't a pressing issue. Well, if the bills continue to mount from this energy crisis, it will be. Speaking of the feds, this comes from the state's congressional delegation: The New Mexico congressional delegation and the U.S. Department of Agriculture’s Rural Development Agency will host a forum this week in Española that will bring together federal agencies and nonprofits to discuss assistance available to eligible New Mexicans whose homes and businesses were affected by last week’s storm. The forum will take place from 10 a.m.-noon on Thursday, February 10, at Mission Museum, 1 Calle de los Españoles, Española. A variety of federal agencies and New Mexico nonprofits have been invited. And another Democratic reader, Chris Catechis of ABQ, writes: Joe, I hope you are doing well; as always the first thing I do in the morning is have my cup of coffee and read your blog. I wanted to respond to today's (Tuesday's) blog about Governor Martinez. Someone on her staff may want to remind her that the campaign is over and it's now time to lead. She has allowed a minor crisis to become a major one. As far as the gas officials personal assurances to her, she may want to look to Republican Ronald Regan's old saying of "Trust, but verify" when it comes to future crisis. Susana announced late Tuesday that just about all the gas had been turned back on in the northern communities. Our Dem critics have a point and Susana took a hit for the delay in restoring gas service. Looking ahead, it is probably not the repercussions of this week that worry her the most, but the prospect of it happening again. MILLION DOLLAR FUND The NM Gas Company has set up a million dollar fund to deal with claims filed by customers who have had broken pipes, property damage and business interruption because of the outage. That claims number is 1-888-NM-GAS-CO. A million bucks is probably not going to even put a dent in the number of claims the company sis going to see before this is all over. IN PRAISE OF TAOS  Reader Tommie Newman of Clovis writes of the gas crunch in Taos:Joe, I spoke with my family to see how they were managing. I was so impressed and honestly proud of how they were handling the situation. Not complaining but making sure those without heat were helped or taken in. I was amazed at the attitude of my brother and sister and I suspect many others in Taos reacted the same…They buckled down and did whatever they could to deal with a very bad situation. I don’t pretend to understand energy policies or why this happened and an investigation is certainly in order, but I can sure see what Northern New Mexicans are made of. I’d share a foxhole with a Taosean every time. They’re made of tough stuff! This is the home of New Mexico politics. E-mail your news and comments. Interested in advertising here? Drop us a line. (c)NM POLITICS WITH JOE MONAHAN 2011 Not for reproduction without permission of the author Tuesday, February 08, 2011Guv Runs For Cover; Blames GasCo For Ongoing Energy Shortage As North Still Shivers, Plus: Sunshine Effort At City Gets Cloudy This paragraph from the Guv that puts New Mexico Gas Company on the spot says it all in demonstrating how fragile political alliances are--even Susana's with the energy industry: Gas company officials personally assured me they would complete their work by Sunday night and repeatedly declined our offers to provide additional resources, such as National Guard troops. It is unacceptable that so many are still without power in Taos and Espanola and that’s why we are mobilizing additional personnel to expedite the process and ensure New Mexicans are not going without heat. We will work around the clock until the job is done... Nothing like a sticky energy crunch to bring out strains of populism--in both R's and Dems alike. Susana was much more sunny last week about the Gas Company's initial response, but on Monday she was forced to send several hundred more National Guardsmen to the Taos area to get the gas up there going again. No Governor is going to take the hit for a private company for that, and that loud noise you heard was company officials getting thrown under the bus. Martinez was ahead of the curve when the bad news hit Thursday and stayed ahead of it through the weekend, but she fell behind it when she trusted GasCo's promise to restore service promptly. If she had been more skeptical (and more experienced?) she would have mobilized the Guard troops earlier. She said she had offered GasCo more Guardsmen earlier, but the company said it was unnecessary. But the Governor of New Mexico needs to be making the call in matters of public safety, not private outfits that may work to outmaneuver public officials to downplay any failures on its part and protect its investors. The recent Gulf oil spill with BP at the center showed us that. Both the new Governor and GasCo are fortunate that no one has lost their life because of the shortage or else this story would be going viral. The urgency for Martinez now is to get the gas flowing again so she can stop the flow of negative headlines. GasCo began to come under scrutiny from regulators and legislators Monday. The company was spun off from PNM a couple of years ago, but doesn't its crisis management raise questions about the out-of-area ownership? And shouldn't a question be raised at the Public Regulation Commission (PRC) about future ownership? Here's the AP report on the state House energy committee hearing. SOME LUCKY TIMING  Is PNM happy or what that it secured approval of a nearly 11 percent electric rate increase just before the big freeze hit? State regulators and major users signed on to the agreement Feb. 3. But in the aftermath of Arctic Plunge 2011, PNM is still going to bird dog the rate hike between now and final approval by the PRC.PNM came with a news update that pointed out that few of its customers lost service as the frigid air hung over the state. Yes, it's news in New Mexico now when the public utilities do their job. And are we alone in wondering whether allowing PNM to dump the gas company a couple of years ago is looking pretty dumb? Speaking of which, how about a raking over the coals of the head honcho at El Paso Electric by the El Paso Times? That city and the utilities service area in southern NM suffered through days of rolling blackouts and narrowly escaped a complete blackout. It's a scorcher of an interview that the press here might get some pointers from. A sample question: Other parts of the country routinely face blazing summer heat and bitter winter cold. What do their generation facilities have that yours don't? THE AD GAME And that advertising campaign from the energy industry touting its contributions to the state and playing out in the middle of the crisis pops up on our radar again. One of the energy Alligators games the action: Joe, The "Energy Advances New Mexico" campaign is funded by Devon Energy, and was created by Oklahmoa advertising group called Brothers out of Oklahoma. The rest of the New Mexico industry is not supportive of the campaign, because while it looks pretty and has high production value, it doesn't ask the public to do anything, There is no call to action. It’s seen as a waste of money. At least a previous campaign established a toll-free number that asked people to call if they see an oil spill, or something out of the ordinary at an oil or gas field. Devon Energy is the second largest gas producer in the state. Where is the New Mexico Oil and Gas Association in this industry crisis? Nothing to say? WHO ARE THESE GUYS?  While the GasCo officials on TV news seem well-intentioned, who are they? Not a heavyweight in the bunch. Not like the old days when we had the likes of Jerry Geist holding forth at PNM and the gas company. Ratepayers could hang him in effigy if something went wrong, or at least set up a picket line outside his house.Come on New Mexico, let's get louder local voices in this new gas company. Accountability. It's a good thing. WINDFALL PROFITS? The news isn't getting any better for big energy as information is gathered on the causes of the widespread energy outages. The Texas Observer comes with this news, which is about as comforting as a Taos adobe deprived of natural gas: While Texans suffered rolling blackouts (last Wednesday), some power generators were enjoying windfall profits. Starting around 5 a.m., prices in the wholesale market surged to the market cap, $3,000 per megawatt-hour, and stayed there, off and on, until around noon. Prices are typically below $100/megawatt-hour, acknowledged ERCOT CEO H.P. "Trip" Doggett today in a press conference. There are still more questions than answers but this much is clear: At best, some power generators around the state raked in oodles of money thanks to the way ERCOT has structured the energy market. At worst, some may have manipulated the market to drive up prices... MORE FALLOUT? Back here in our Enchanted Land, GasCo customers are asking if they have to pay their entire bills for February even if they received no service for a number of days. And what about the financial damages suffered by restaurants and the like? Well, never mind that. Will GasCo start stocking their customers' homes with frostbite medication? FOLLOWING THE MONEY  Mayor Berry's effort to increase transparency at City Hall via the ABQ View web site went foggy recently, with erroneous information about the salaries of all city employees. And even when the pay scales are listed correctly--as they are now--it is difficult for taxpayers to figure out just how an employee makes on an annual basis.The site recently showed "year to date" earnings for Chief Administrative Officer David Campbell at $168,000 a year. That got the tongues wagging because Campbell came in with an annual salary of $159,000 in December 2009. Did Campbell get a whopping raise while all other city employees were getting hit with a salary reduction to help balance the budget? No, says they city. The problem--simply put--was that ABQ View was not figuring the pay periods correctly. The IT department has since corrected its software. It is still confusing because salaries on the site are given by hourly wage and "year to date" but not the much easier to understand annual compensation. Campbell is making about $154,000 a year when the mandatory salary reduction from July 2010 is factored in. Mayor Berry is making about $103,854 a year, down from the about $109,000 he began his term at. (Berry and the City Council agreed to five percent cuts to help balance the budget) Public Safety Director Darren White started at $125,000 and his salary--with the three per cent cut--is $120,640. City spokesman Chris Ramirez says no pay raises have been awarded since Berry took office. (The compensation figures do not include the value of take home cars that are given to Campbell, Berry and White.) The point of all this is that the view from ABQ View can be murky. The city says its salary disclosure method was done with the input of the NM Foundation for Open Government (FOG). It may have been well-intentioned, but the execution does not come off. The city argues, convincingly, that it deserves credit for making a variety of previously hard to get at information available on the site. But if it wants to improve the transparency, it should consider listing annual salaries, as the state sunshine web site does, and not force citizens to fumble around. OPEN 'EM ALL How we get there is the question, but that we should start the journey new GOP State Rep. James Smith is proposing is not in doubt: Every public meeting, every public action…broadcast to everyone. That’s the goal of House Bill 367 (HB 367) sponsored by Rep. James Smith (Sandia Park, Dist. 22.) While there is limited webcasting of the Legislature, HB 367 would require that every government meeting where public business is conducted be webcast. Both audio and video feeds of the meeting would be required and then copies would be saved as public records. Smith took the ABQ East Mountain area seat previously represented by Rep. Kathy McCoy. CANALES ANNOUNCES  The Alligators have pegged ABQ Dem activist and political consultant Victor Raigoza as the front-runner in the race to become chairman of the Bernalillo County Democratic Party, but there is a race. Ana Canales just announced for a third, two year term:I announce my passionate re-commitment and candidacy for re-election as your Bernalillo County Chair to my third consecutive term. Four years ago, I was proud to be elected your County Chair. Together, we made NM history by wresting the ABQ congressional seat from the GOP by electing our first Democrat: Representative Martin Heinrich! The big blow to the Dems in BernCo county was the narrow defeat--51% to 49% of Dem Guv nominee Diane Denish by Susana Martinez.
This is the home of New Mexico politics. E-mail your news and comments. Interested in advertising here? Drop us a line. (c)NM POLITICS WITH JOE MONAHAN 2011 Not for reproduction without permission of the author Monday, February 07, 2011Energy Industry Now Playing Defense; How Gas Crunch Could Change Political Game, Plus: Our Readers--Expert And Nonexpert--Weigh In On the Big Story It's the unexpected that can change the direction of public policy as fast as a flip of a coin and that makes political sport as fascinating to watch as Super Bowl Sunday.So it is in New Mexico this week as all of a sudden we see an energy industry that has gone from being on top of the political world with a new and sympathetic governor to one that is going to be playing defense in the wake of a natural gas and electric outage that forced thousands out of their homes or into a triple layer of long johns. Never mind that the outages came amid bitterly cold temperatures that we see once in a generation, if ever. The finger-pointing and blame game will be in high gear. And there's nothing wrong with that. We make things better in New Mexico and America by questioning our performance, even if it is put to the test under extraordinary circumstances. Although the problems were centered with the utilities delivering the energy, we don't hesitate for a moment in saying that the fallout is going to cover all aspects of the industry. That's because the push for deregulation of all sorts is now going to have its own energy shortage. For the better part of a year and a half oil and gas interests have dominated the energy debate, decrying the environmental "Pit Rule," becoming the #1 industry contributor to Republican Governor Susana Martinez and fighting any efforts to repeal tax breaks that total over $130 million as the state and its budget struggle through an unrelenting recession. The energy crisis for the energy companies comes in the middle of an industry media campaign touting the number of jobs and the amount of tax revenue it pays to the state. Mr. and Mrs. New Mexico are happy for that, but not before they have turned up the heat in their humble abodes and had their first cup of hot morning coffee. That the industry is mighty important to New Mexico and deserves a place at the public policy table is not in dispute. The state needs oil and gas revenue like never before and for 80 years the industry has been a good neighbor. But rarely does a blatant political tilt toward (or against) one industry last long. But who would have thought it would be the weather that would make the playing table more even? THE FALLOUT  The new chairman of the state House energy committee, Brian Egolf (D-Santa Fe), an aggressive questioner of the industry, wasted no time. He set an oversight hearing on the shortage for 8 a.m. today. Last week Republicans walked out of that committee claiming Egolf had called a biased and unqualified witness against oil and gas.There will be no walking out in Santa Fe today. New Mexicans want answers--from both Republicans and Democrats. Let's see if the committee gets the right questions asked, or will it all be dismissed as a fluke of nature? A bunch of other hearings and inquiries can be expected over the events of the memorable and frigid days the state endured. The Public Regulation Commission will hold hearings. Governor Martinez promises an investigation, and she's going to have to be careful as her campaign donation list will be made an issue if she tilts too much. (Oil and gas contributed $807,000 of her $6.9 million in campaign contributions). She may try to use the shortage to recite the "drill, baby, drill!" mantra, but in light of the recent traumatic events, don't count on that resonating. And then there's the question that arises again in the aftermath of the deep freeze--how close are the regulators to the regulated? Northern Dem Congressman Ben Ray Lujan comes first with the federal angle, asking the Federal Energy Regulatory Commission (FERC) to take a look. His district, including Taos, Questa, Espanola and Raton, were especially hard hit by the shortage. As we mentioned above, while the oil industry was not directly involved in this weather-energy drama, the smart money says the outages will make the public more skeptical toward the overall energy deregulation agenda. In other words, don't expect that "pit rule" to go away anytime soon. In fact, a bet that way is as safe as the one you made on Green Bay beating Pittsburgh. VOX POPULI  Our reader email revealed how quickly the mood can go sour when citizens start shivering and go unshowered. We weren't very critical of Governor Martinez's initial handling of what we called her first "mini-crisis." But that was hardly a view shared by all. We still think Susana gets a passing grade, but never mind us. Jean Reid of Placitas fires first:Joe, you wrote Friday: "...Martinez did impart a basic confidence that probably left most citizens satisfied, even as they hunted for their long lost thermal underwear." Excuse me? To make such a statement I assume you have taken a shower sometime in the last three days. Most of us in Santa Ana, Bernalillo and Placitas have not. As of 10 AM Sat. 9 percent of service to Santa Ana and Bernalillo and 11% to Placitas has been restored. Three days! The Governor's "emergency declaration" stated that propane truck drivers could work longer hours - what do propane deliveries have to do with natural gas service? We should turn down our thermostats? Thanks, but NM Gas is doing that for us. No platitudes about how concerned she is, how she is working frantically to solve this problem... Your third-worldish and Texas comments were were spot-on. But the questions that many of us in Placitas have (and can't find quick answers to) include why doesn't NM have its own gas supply, why doesn't NM (and apparently TX) have back-up systems to prevent this, and who is going to pay for this: the reverse 911 calls, all the techs coming from other states, etc. Somehow I doubt that we are going to get an apology and a rebate from the gas company for the inconvenience. NOT MUCH SYMPATHY But another reader writes and says the folks in Placitas should look in the mirror: We have reached capacity, there have been no new power stations or major improvements in many, many years. You sow what you reap. DATELINE TAOS  Taos was one of the hardest hit towns because it is at the end of the natural gas pipeline. Governor Martinez visited there Friday, but she did not get much sympathy from Dem activist and local lawyer Helen Laura Lopez. She also thought our initial analysis of the Guv's performance was off the mark:Ace Hardware In Taos did more than the Governor and acted faster. They brought in 1200 space heaters from Colorado Springs Thursday night and stayed open til 11. Joe, you didn't get cold enough to give the Governor's weak "too late to the party" performance a more critical eye. Big Bill was good at emergencies. He would have been outside in his winter gear checking on people as an example for others, after he sent the National Guard to the rural communities with water and blankets. (No one reported that when the electricity goes out, community water goes out too.) Up here it was not a mini-crisis. It's the real deal. Gov. Martinez did on Saturday mobilize 50 Army National Guard members to help restore gas service in the North. We did characterize the gas shortage as a "mini-crisis" because at its peak it impacted 30,000 residences, not 300,000. But we get it. If you're out of a job, the economy is in a depression. And if it's your home without heat, it's a crisis. As for not getting cold enough to look at the story with a critical eye, we note that our own domicile suffered burst pipes and several shut-offs of heat and water. But fear not. We promise to shower thoroughly before going to Starbucks later today. NORTH DAKOTA VS. NEW MEXICO Another reader wanted to talk about this explanation by El Paso Electric for the company's inability to deliver electricity down south during the record cold: This is a once-in-a-long-time cold freeze," (El Paso electric spokesman) Souza said. "Our area hasn't experienced something like this in years. This isn't common for our area. We knew it was coming, because we'd heard reports from the National Weather Service...so in preparation we tried to bring some of our generation units out of maintenance mode, put them to work, but the cold freeze, it was just too much and everything froze. The instrumentation froze." Our reader retorts: "So how come the instruments work in states like North Dakota? Sounds like El Paso Electric got a few of their parts on the cheap." SPIRO'S SPIN  We asked several of our readers expert in the natural gas area for their comments. Longtime energy investor and ABQ Republican Spiro Vassilopoulos comes with an explanation that those investigating this shortage are going to want to pursue:My guess is that cold weather in the Northeast "pulled" (from a price stand-point) the natural gas to higher net-back markets. What does that mean? In anticipation of colder than normal weather in the Northeast, gas buyers rented temporary pipeline transportation capacity and bought natural gas on the cash market. Temporary capacity is that portion of the fixed percent of the line capacity (that is permanently subscribed to by a gas producer or utility) that is rented out to another buyer to temporarily transport his gas. I suspect that the NM Gas Co. blundered by renting out a portion of their subscribed capacity and got caught with their pants down. You mean it was an inefficiency in the "free market" that contributed to our woes, Spiro? Well, that's a reminder of why we have regulation. WARD'S WAY  Ward Camp is a veteran industry consultant who is a former GOP candidate for the NM Public Regulation Commission:Joe, The problem is the gas company's infrastructure. If you look at New Mexico Gas Company's lines, the Taos area is the end of the line. This has been a problem for at least 20 some odd years and many times in the past the pressure has gotten too low... The problem can be rightly blamed, in part, on the NM Public Regulation Commission. The PRC has not allowed a sufficient rate of return on such projects for the gas company to proceed. As you know the company does not make money on the gas, it earns a rate of return on its facilities. The PRC in its efforts to "protect" the consumer has imposed extremely low rates of return historically on the company (why do you think PNM dumped them?). This has starved infrastructure expenditures that become readily apparent when we have severe weather conditions... Thanks, Ward. But if you're right, who pays for this additional infrastructure? Can the ratepayer be expected to shoulder all of the burden? We question how many of those customers would consider the company having "extremely low rates" as you assert. MEDIA NOTES TV viewers checking in here reported that KOAT-TV was the only station to carry Governor Martinez's mid-day Thursday news conference on the natural gas shortage live, and we blogged it as such. But KOB says it also carried the remarks. It appears what happened is that KOB joined the news conference moments after KOAT and viewers switching back and forth saw only KOAT coverage in the initial moments. The intense competition in TV news continues, and our Alligators are keeping score. This is the home of New Mexico politics. E-mail your news and comments. Interested in advertising here? Drop us a line. (c)NM POLITICS WITH JOE MONAHAN 2011 Not for reproduction without permission of the author |
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