We're off and running on the Tuesday political trail. . .

--In the greater scheme of things that more conservative minimum wage increase being sponsored by Grants Dem Senator Clemente Sanchez isn't so bad. It puts the statewide minimum up from $7.50 an hour to $10 next year and keeps the lower minimum for tipped workers in place. Also, it does not gradually increase the minimum to $12 an hour over two years as another bill does, but leaves it at $10. That makes sense for the recession-ravaged rural areas that might be most impacted by $12 an hour in a relatively short time. The state's large cities, ABQ, Santa Fe and Las Cruces, already have minimums near or above $10 and  regularly adjust them for inflation.

--The House continues to inch toward approving a bill to legalize recreational marijuana but there is little confidence in Santa Fe that the state's bureaucracy is ready to take on the sizable task of regulating a new drug industry when it's already struggling with the fast growing medical cannabis program. We still see the Senate putting the brakes on legal pot--at least for this year.

--Yes, powerful Dem State Senator John Arthur Smith, chairman of Senate Finance, can "boggle the mind" at times. Here's reader Ken Tabish:

John Arthur Smith just boggles my mind. Here he is submitting a bill to raise the tax on food which would only hurt the poor in this poverty heavy state but he can't approve a 1 percent draw on the $18 billion Land Grant Permanent School Fund for early childhood education! It's raining cats and dogs in this state especially when we consider low income earners. We have the money, let's spend it--yes, judiciously while maintaining adequate reserves . . . just sayin'.

The one percent draw down on the giant Permanent Fund is still up in the air. The food tax is DOA. Smith knows that but says he wants to make a point about the need for additional state revenue streams.

--Quite a favorable assessment of  Rep. Ben Ray Lujan in Politico and we'll be seeing more national reporting about the northern Dem congressman now that he has secured the post of "Assistant Speaker." Excerpts:

Rep. Lujan

Can a nice guy like Ben Ray Luján elbow his way to the top? (He) has built strong ties throughout the caucus, positioning him to rise in leadership when there’s an opening....Luján now ranks fourth in a sprawling hierarchy helmed by Speaker Nancy Pelosi and is seen as a future contender for one of the caucus’ top jobs — maybe even speaker. But whether a lawmaker known for his congenial, easy-going personality can ascend even higher. . . is unclear. . . And the competition would be fierce. Luján would square off against an ever-growing roster of seasoned Democrats. 

. . As assistant speaker, Luján is tasked with managing a large, historically diverse and at times unwieldy class of more than 60 freshmen. But it’s no secret that the six-term lawmaker from Santa Fe is already eyeing his next move once there’s a chance.

THE GREAT ETA DEBATE (CONT.)

Many of our readers find the ongoing blog debate over the Energy Transition Act (ETA) quite captivating. It's the measure that would increase the percentage of renewable resources the state uses to generate its energy to 50% by 2045. Now that it has passed the Senate Conservation Committee on a close vote the Great Debate again heats up. So everyone say "securitization" real fast three times and let's get it on.

First up is a Senior Alligator with a long background in energy:

Joe, the header on the Journal's account of the Senate Conservation Committee hearing suggests that the PNM securitization bill is the wide road to a carbon-free future. The market is attending to that transition already. The reason the owners of those plants don't want to operate them after 2022 is because coal is too expensive compared to renewables and natural-gas-fired electrical generation.

The end of coal is happening--with or without SB 489 (ETA). With SB 489, the transition will cost PNM ratepayers--$400 million over 25 years. PNM would have us believe customers will save money if SB 489 passes. PNM's ratepayers (many of whom are poor) could go broke saving money from this bill.

The Public Regulation Commission (PRC) is the duly constituted body to make 'abandonment' determinations. PNM has a pending case before it. PRC has substantial authority and an expert staff.
SB 489 is the Legislature assuming authority over this question--with little-to-no capacity for doing so. PNM thinks it will get a better deal from legislators than it would get from regulators. The Conservation Committee didn't elicit PRC's view of the legislation.

Tactically, the conservation committee's 5-3 vote was a close call for PNM. The 5-3 'do pass' vote would have died on a 4-4 tie. It was one vote from defeat. The bill has language ambiguities that Committee Chairman Cervantes wants to try to fix. Such fixes can be easier said than done. And, with 19-days remaining until adjournment, the clock begins to matter.

Apart from language imprecisions, the bill is a complex stew that puts good and bad stuff together. The 'bright, shiny object' in the bill that has attracted 'progressive' support is the increase in the Renewable Portfolio Standard (RPS). The transition from coal to non-fossil fuel sources is a function of economics. It will happen whether the 'progressives' are complicit in extracting $400 million from PNM customers or not.

Securitization is good for PNM shareholders. If SB 489 becomes law, Wall Street will be pleased and NM customers will pay for its pleasure - needlessly. Let the PRC do the job it was created to do.