Monday, March 10, 2008Political Jolt For PNM; Rate Boost Trimmed; Guv Weighs In; Is He Behind The Curve?, Plus: Party Loyalty Issue In ABQ Race, And: Dems Illinois Hope![]() "Richardson is a day late and a dollar short. He should have made his case BEFORE the recommendation was made. Don't be surprised to see PRC dig its heels in just to make it clear the PRC is beholden to no one." The Guv's pro-PNM tilt--he is friends with PNM CEO Jeff Sterba--may fall on deaf ears with Commission Chairman Jason Marks who is up for re-election this year and Commissioner Ben Ray Lujan, who is seeking the Dem nomination for the northern congressional seat. Not supporting a staff decision that gives major relief to state consumers wouldn't seem a wise way to gather votes. The three other commissioners may be more susceptible to a bigger rate hike. However, if they grant it, they may look like their strings are being pulled by the Governor as they hand consumers a bigger light bill to boot. Those are issues that might not be forgotten. Big Bill can't seek re-election, but showing sympathy for PNM while consumers face a sour economy might not help his approval ratings, particularly with his own Democratic party. THE POLITICS OF PNM CEO Sterba CEO Jeff Sterba says the company needs the larger rate increase "to provide the safe and reliable service our current and future customers expect and deserve." He adds that rejection of the full rate increase request "limits our ability to invest in the renewable power we believe our customers want us to develop." There is a way to get a large chunk of the money Sterba says is needed to provide for its customers--cut the dividend being paid to shareholders. PNM stock is trading down nearly 75% from its 52 week high. An investor buying a share today would get a dividend yield of nearly 10%, clearly an unsustainable level. Cutting the dividend in half would give the company over $25 million in additional annual cash. The political and economic climate is shifting. Capital and business have ruled supreme for several decades, but now a recession looms; money is tight. The tide is shifting. Rather than being protected from the storm by a sympathetic Governor, PNM may have to join its customers and start biting the bullet, or welcome business suitors who can. ON BEING A DEMOCRAT ![]() "I have never been active in Republican Party politics, or anything like that. My father was a Republican and he took me down to register when I was 18...I was not involved in politics as a youth...I'm the new guy." Keller said. Keller also says he hasn't voted much as an adult. He especially regrets it in the case of the Wilson-Madrid '06 ABQ congressional race in which Republican Wilson was re-elected by a margin of less than 900 votes. Keller, an ABQ native, may have only recently strengthened his Democratic credentials, but his campaign platform is solidly liberal and will have appeal to primary voters. They can weigh that along with his registration history. THE ILLINOIS HOPE ![]() THE BOTTOM LINES Northern Dem congressional hoepful Don Wiviott may have a hard time getting people to pronounce his name right, but they will get a chance to try. A judge has thrown out a lawsuit from Wiviott rival Jon Adams that could have kept Wiviott off the June primary ballot. Adams could appeal. E-mail your news and help us keep the politics coming. (c)NM POLITICS WITH JOE MONAHAN 2008 Not for reproduction without permission of the author |
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