Thursday, August 12, 2021Conflicting Rulings In Rael/AG/Avangrid Conflict Case As High Stakes Merger Enters Final Stage, Plus: Avangrid Analysis: Key Political Points Explored Avangrid is seeking to merge with PNM and Balderas has gone from opposing the merger to supporting it--after meeting several times about the matter with hired gun Rael. Now the NM Supreme Court's Disciplinary Board parts company with the PRC hearing officer and rules Rael does not have a conflict in dealing with Balderas, despite the many contracts Rael's firm has had with the AG's office. Responding to a complaint from New Energy Economy that opposes the marriage of the companies, the disciplinary board says: . . .We do not find a conflict of interest. Your allegation of favoritism consists of meetings between (Rael and Balderas) that preceded Mr. Balderas's change of position on the Avangrid/PNM merger; and the multiple awards of contracts to Mr. Rael's law firm for handling often complex litigation. We would not be able to prove that the meetings caused the shift; also, the contracts were awarded pursuant to requirements of the Procurement Code. Mr. Rael is an experienced attorney with many complicated cases on behalf of the State and otherwise. Neither of those two circumstances indicate misconduct. Second, Mr. Rael has no conflict of interest in representing the State in cases that do not present an adversity of interest and that are unrelated to his representation of Iberdrola.. The full ruling is here. AG Balderas says the ruling should cause the PRC hearing officer to reverse his ruling and let Rael--an old friend of Balderas'--to resume his gig with Iberdorala. That is unlikely to happen but it is a badly needed PR win for the AG who has been put on the defensive by progressive Dems for his pro-merger position. As for the merger, politically the pieces seem to be lining up but there are still plenty of rocks on the path. ANGLES ON AVANGRID  Joe Monahan, who writes a popular blog that is closely followed by New Mexico’s political and business class, told CTFN that the merger has the support of movers and shakers in the state despite a spate of negative news stories involving Avangrid and its corporate parent Iberdrola, S.A., of Spain. New Mexico regulators have been monitoring developments in the northeastern US, where several Avangrid utilities have been the subject of regulatory investigations and management audits, and have been penalized millions of dollars in fines and cost disallowances stemming from customer service issues. At least for now, those far-off troubles do not appear to have had a measurable impact on the PNM/Avangrid merger. Gov. Michelle Lujan Grisham, Attorney General Hector Balderas, and others appear to continue to support the merger. “They got the governor’s support, the legislature, all the leading establishment figures,” Monahan told CTFN, even though Avangrid is involved in a “mess” elsewhere. “I think the mess is being overlooked somewhat because everybody is already on board [with the merger],” he observed. “...The mood is, this is our pick, forget the reports about what happened in Maine or the allegations of bribery or whatever [in Spain].” Still, the steady drip-drip-drip of negative news has caught merger supporters off-guard. “I think it surprised a lot of people,” Monahan said. “But it hasn’t really broken the back of support among the political figures — the political and economic classes ... I think they just don’t see it as deal-breaking material.”
He also believes that the environmentalists’ support for the merger has come “at the expense” of the average ratepaying consumer. “There’s not much talk about what impact the merger is going to have on the consumer, on ratepayers,” he said. “We went through this with the Energy Transition Act — with, well, you know, don’t worry, your electric rates will go down. And that was hyperbole.” Monahan said while personal relationships help in New Mexico, you also must “follow the money.” The PRC has begun a final round of hearings on the proposed merger that will run until August 20 and are being streamed on YouTube. This is the home of New Mexico politics.
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  (c)NM POLITICS WITH JOE MONAHAN 2021 Wednesday, August 11, 2021New House Leader Martinez To Keep it On "Progressive Path, Plus: Radio Talker Aragon Makes Cut; Collects Enough Sigs To Make Mayoral Ballot, And: CYA At CYFD As Secretary Heads To The Exits
Attorney Martinez, 39, replaces the scandal-plagued Sheryl Williams Stapleton who was forced to resign her ABQ SE Heights seat and leadership post as she faces possible criminal charges alleging she stole nearly $1 million from the ABQ Public Schools. Martinez's progressive credentials are pretty much impeccable. He was a lead sponsor of the constitutional amendment to increase funding for early childhood which will go before voters next year and he was also a lead sponsor in legalizing cannabis. As chair of the House tax committee he pushed legislation that restored some progressive structure to the state's income tax brackets that had been flattened in favor of the wealthy. Expect Martinez to make more of the post than Stapleton by asking Speaker Brian Egolf to share some of the power. After all, as majority leader he can no longer be a committee chairman. Martinez had only token opposition at the caucus meeting, unlike the first time he sought a leadership post and lost. Now in his fourth term and with that substantial legislative record, he has the street cred to help the House recover from the Stapleton debacle. ARAGON MAKES CUT
Aragon's signatures, all submitted to the city clerk electronically and screened for proper residency, will get the fine tooth comb treatment. However, unless there are challenges and over 300 folks who signed more than one mayoral petition--grounds to disqualify a signature--he will be the lone Republican choice for mayor this year. That's pretty heady stuff for the staunch Trump advocate who has flirted with politics for several years but never quite made the cut. Now he has and the 46 year old outspoken talker is sure to light up the campaign trail with his unabashed rhetoric. He already is. Aragon says Gonzales should withdraw from the race, telling us: His campaign is a mess. He can't raise money, he's as responsible for the crime as Keller and he's a Democrat looking for Republican votes. He can stop running. I am the Republican candidate. Suddenly, the mayoral race got a lot more colorful. The voluble Aragon's impressive accomplishment was done in just about two weeks, using his perch at KIVA 1600 AM radio to steer listeners to the web to sign the petitions and get the needed 3,000. While his candidacy will divide the R's, that division makes it easier for Keller to capture 50 percent of the vote Nov. 2 and avoid a run-off election. But he will have to take his lumps from Aragon along the way. The microphone maven is already slamming the incumbent for allowing the "murder and mayhem" in the city. CYA AND CYFD
Blalock, smothered in controversy, including charges of conducting state business in secret, firing two whistleblowers and allegations of rigging a $45 million software contract, announced he is heading back to California from whence he came to indulge his wife's career. MLG played along with that charade, lightly calling Blalock's serious troubles "missteps" but the disturbing Blalock tenure, a once promising cabinet secretary widely supported for bringing an outside set of eyes to a challenged agency, can't be ignored. Nor those who preceded him. It seems every Governor since CYFD was created in 1992--at the urging of then NM first lady Alice King--has had trouble keeping the department in line. For example, in the 90's Heather Wilson, later elected to the US House, came under fire for being too austere with the budget and not pushing foster care. Under Gov. Martinez, Monique Jacobson, a professional marketer who led the Tourism Department, was tapped to head CYFD and her lack of expertise showed. Now there's Blalock, perhaps the most disappointing as he came from San Franciso highly touted and with high hopes. Not that there hasn't been any progress but Blalock's ethical lapses overshadowed them and he had to go. Up next is Barbara Vigil, 62, who recently retired as a nine year justice of the NM Supreme Court. She's been tapped by MLG to tame the bureaucracy and improve the culture. But Vigil, who as a district judge presided over the state Children's Court, is in danger of becoming another Jacobson--well-intentioned but without the necessary experience or background to manage a 1,000 employee agency that deals with some of the most pressing and emotional concerns of the state. The appointment seems odd, but it does put Blalock in the rearview mirror. By the way, rumbling in Santa Fe has possible personnel changes among senior staff already coming to the new Early Childhood Department. THE BOTTOM LINES The PNM-Avangrid merger is valued at $4.3 billion not the $8.3 billion we had it at in a first draft. And Build a Better Burque, the outside committee supporting Mayor Keller, raised about $21,000 in the latest reporting period, not the $9,000 we first had it at. This is the home of New Mexico politics. E-mail your news and comments. (newsguy@yahoo.com) Interested in reaching New Mexico's most informed audience? Advertise here.
(c)NM POLITICS WITH JOE MONAHAN 2021 Tuesday, August 10, 2021Herrell Heads Back To Far Right; A "Spit In The Eye" Of Redistricting Dems? Plus: Mayor's Race Could Get Wild; Trump Fan And Republican Radio Talker Aragon Very Close To Making Ballot Rep. Herrell has teamed up with fellow Republican Rep. Marjorie Taylor Greene of Georgia on a bill that would strip schools of federal money if they mandate the COVID-19 vaccine. . . The legislation says if a person is discriminated against for not being vaccinated or refusing to wear a mask, he or she can seek damages in U.S. District Court. It also says that any school – from elementary through higher education – would not receive federal funding if they require the vaccine as a condition to attend or participate in any academic or extracurricular activity. The bill has no chance of passage but if it did it would cut funding to UNM and other educational institutions here. It was just last May that we were blogging of how Herrell, serving her first term, was broadening her appeal while not snubbing the Trumpers: Herrell has been pitching issues lately that have broad appeal and are her first steps to establish a more independent identity.
Those issues include pausing the federal gas tax, expanding broadband and immigration legislation. Now Herrell is back on the far right and making her look disconnected from all but a small sliver of the state electorate. But why? A Dem consultant sniped: Joe, being on the crazy side of things these days raises a lot of money, but Herrell just spit in the eyes of those who will redistrict that seat. And . . . Those who can establish themselves as torch-bearers of the Trumpian right can translate any controversy into massive grassroots fundraising hauls. Those who can't must weather the fallout. Doug Heye, a Harvard Institute of Politics fellow and a former senior House GOP leadership aide, called it the "immediate celebrification" of politics. And raising money Herrell is. The latest FEC report covering the first six months of the year shows Herrell took in $852,000 and had cash on hand of nearly $700,000. Herrell may raise even more funds from her dalliance with Taylor Greene, a far right conspiracy theorist, but it may cost her important public opinion that could help her keep her district's boundaries safe from the eager pens of Dem House Speaker Brian Egolf and company. The anti-vaxxers don't have many votes at the Roundhouse but national R's think the Dems are most likely to lose seats in the US House in a low turnout, off year election next year. They believe that will mean Herrell's far right antics will help not hurt her. The Dems have no candidates on the field yet because the field of play will not be constructed until that critical redistricting session. Then the game will be on. A NEW WRINKLE?  The deadline for getting the 3,000 is today at 5 p.m. Aragon tells us he is "very confident" that he will make the ballot. One hurdle that Aragon must jump is the requirement that a voter sign only one mayoral petition. If they have signed more than one their signature is disqualified. The Gonzales camp, also courting Republican votes, is sure to check for any violations. No matter what happens Aragon has changed the game when it comes to petition collecting, showing that on line is the way to go and pushing aside the traditional in-person method. And he did it in just 15 days, using his radio station to solicit the signatures and firing up Trump Republicans who are his political base. None of his signatures have been rejected as faulty because a city computer program does the screening to make sure the voter is registered and eligible to sign. Shortly we'll know whether Aragon will become the third candidate in the mayoral race and the lone Republican, joining Dems Tim Keller and Sheriff Manny Gonzales. It could get wild, Gators. Stay tuned. MORE MONEY RACE In th money race the outside committee supporting Mayor Keller--Build Back Burque--reports raising about $21,000 in the latest sporting period (July 6-Aug.2) and about $26,000 in cash on hand. The committee has raised about $53,000 in total. That contrasts with the $197,000 raised by Save Our City, the outside committee supporting Manny Gonzales and which reported $121,000 in cash on hand. Keller has qualified for $661,000 in public financing. Gonzales has tried to but has been denied because of forged signatures in collecting qualifying donations. His appeal to district court is on hold until the NM Supreme Court announces a judge to hear the case and a date is set. What's the hold up with that, Supremes? This is the home of New Mexico politics. E-mail your news and comments. (newsguy@yahoo.com) Interested in reaching New Mexico's most informed audience? Advertise here.
(c)NM POLITICS WITH JOE MONAHAN 2021 Monday, August 09, 2021Gonzales Campaign Starved For Funds Feeds Off Of The Headlines; Record Homicides Reached And Soccer Stadium Plan Brings Out Foes, Plus: "Sideshow" Takes Center Stage As AG Takes Another Ethics Hit Over PNM Merger
If BernCo Sheriff Manny Gonzales could rouse his semi-moribund mayoral campaign a major issue might break his way. That's in addition to the issue of tying the ignominious annual record for city homicides--81--that was reached over the weekend. City officials pushing a $50 million bond issue for a downtown soccer stadium keep quoting a city satisfaction survey that show 63 percent of respondents support such a stadium. That was the 2020 poll. But a 2019 question in the satisfaction survey also asked city residents if they favor placing such a stadium downtown and support having it paid by taxpayers. That question was not included in the '20 survey. But in '19 it showed that only 50 percent of respondents supported a publicly funded downtown stadium with 38 percent opposed. Also, in the 2020 survey 48 percent of those asked favored building any new stadium near the UNM sports stadiums. Only 12 percent thought downtown would be the best location.
The city council later this month is expected to approve placing the stadium bond on the November 2 city election ballot, but at only 50 percent approval Gonzales has a potential issue to bring a variety of voters to his side--if he opposes the stadium and folds it into his anti-crime platform. Mayor Keller popped the stadium into the public debate close to the election, touting it as a way to revive downtrodden downtown. But if a fairly well-financed committee ($75K?) was formed to oppose the stadium it appears the bond issue could be defeated. The stadium was excoriated at a public hearing last week as a potential boondoggle and unnecessary, especially as the city faces a crime crisis and struggles economically to recover from Covid. That certainly did not reflect well on the organizational skills of those supporting the venue. Gonzales is still waiting for a court hearing on whether his campaign qualifies for $661,000 in public financing which has been in turmoil since he admitted forgeries occurred in gathering public donations to qualify for the money. Mayor Keller has already qualified. All BernCo district court judges recused themselves from the case. And as we broke the news July 26, the State Supreme Court has been asked to name a judge to hear the matter. Meanwhile, an early glimpse at the latest campaign finance reports due today show the outside committee supporting Gonzales has $121,000 in cash on hand and has raised a total of $197,000. That guarantees a TV buy for Gonzales in October and earlier if the PAC can continue to gain steam. An outside PAC is also supporting Keller and will also file today. Despite the sheriff's penchant to shoot himself in the foot, his campaign continues to breathe because the news narrative (crime, the stadium and homeless shelter controversies) keep Keller on the defensive. ''SIDESHOW" TAKES MAIN STAGE
. . .A hearing examiner with the state Public Regulation Commission issued an order, saying Marcus Rael Jr. can no longer represent Iberdrola/Avangrid in connection with (its proposed merger with PNM). . .Watchdog groups iled complaints. . .that highlighted Attorney General Hector Balderas’ relationship with the law firm where Rael works (Robles, Rael, Anaya). They alleged that Rael used his influence to convince Balderas to sign off on the merger and that Balderas awarded numerous contracts to Rael and approved improper invoices.
Balderas and Rael both graduated from the University of New Mexico law school and briefly worked together before Balderas ran for public office. New Energy Economy Executive Director Mariel Nanasi is among those who have raised concerns about the merger and Rael's relationship with the attorney general's office. Public records. . . showed that since taking office in 2015, Balderas has hired Rael or others at his firm to help represent the state in at least 19 cases, which is at least triple the number of cases farmed out to any other private law firm.
Invoices and contracts from the attorney general’s office showed more than $4.5 million in direct payments of fees and expenses to the Robles, Rael & Anaya. The hearing examiner's order also pointed to a series of meetings between Rael and the attorney general's office from late February through early April while the attorney general was preparing testimony that initially opposed the planned merger. Avangrid has been working furiously to win public support for the $4.3 billion merger which has widespread support among the political and environmental classes. But Nanasi says the Rael episode should serve as a warning: I have little doubt that Iberdrola hired Rael to get our Attorney General to change his position on the merger because Iberdrola knew Rael was an insider in the AG’s office and a pal of the AG. Why else would Iberdrola hire him? Iberdrola, here and in Spain, seems to always be looking for some tricky angle to get its way. Why doesn’t it just present its and its subsidiary’s qualifications for taking over PNM’s monopoly to the PRC and let the PRC decide whether the takeover is in the public interest. Iberdrola’s top management is under criminal investigation in Spain, and its performance after taking over Maine’s utility is the subject of a scathing audit. We should see its hiring of Rael, the criminal investigation in Spain and Maine’s audit of its performance there as real warning signs for us here in New Mexico. As for Rael: Rael said he doesn't believe there is a conflict but will honor the (disqualification) order. He said he joined the Avangrid and Iberdrola team because he believes the merger is in the best interest of New Mexicans, and he's proud of the work he has done.
“I look forward to the merger being complete so that New Mexico achieves its renewable energy goals." And in this article Balderas offers a defense of himself as a consumer advocate. The PRC public hearings on the merger begin today. The broader exposure of how the Robles Anaya & Rael law firm has its hands on the levers of political power have done their damage to Balderas, but he is not expected to seek higher office anytime soon and can be expected to go into private practice when his term ends next year. But for State Auditor and '22 Dem attorney general candidate Brian Colón this is a high hurdle to jump. He worked for the firm for a dozen years and is a BFF of Balderas. Now that the law firm's role in the public sector is is known to a wider swath of the public Colón will face questions, particularly from progressive Dems, about his ethical standards and his dealings with the firm past, present and future. E-mail your news and comments. (newsguy@yahoo.com) Interested in reaching New Mexico's most informed audience? Advertise here.
(c)NM POLITICS WITH JOE MONAHAN 2021 |
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