A Just and Reasonable Decision

In what appears to be a just and reasonable decision, the PRC is prepared to adopt rate increases that penalize low-energy users less and encourage high-energy users at home to economize more. Rather than raise the standard rate connection fee from $10 to $20.50, the hearing officer suggests a $14.50 rate as the minimum. In effect, the rate increase will raise projected residential revenues for Kit Carson from the sought after $16, 734.014 to $17,016, 6888 or in an amount $288,000 higher than requested. The additional amount, however, is expected to compensate the utility for an expected decrease in sales due to decreased usage because of higher rates. Kit Carson’s initial rate increase request penalized low energy users while it encouraged high-energy users to use more electricity.

As a result KCEC will be able to meet its government loan obligations. And the rates can be summarized as giving consumer-members a more just rate design, called “gradualism,” in the trade. The proposed decision requests that Kit Carson also file a plan that includes cost savings regarding both its electrical distribution operation and its diversified investments in Propane and Telecom.

While the record of decision has yet to be adopted by the PRC Commission, in effect, the decision and its justification include a fascinating history of the motions and individuals involved in the hearings, as well as the legal background and financial analysis for the decision.  Certainly, in this writer’s opinion, the KCEC CEO, legal team, and trustees and the protestors—interveners can say they have been well served. The community has learned much about complex rate regulations, hitherto hidden expenses associated with KCEC diversification and board expenses.

As a result of the decision, we members shall be encouraged to diversify our dependence on energy through the use of efficiency and by adopting multiple resources for our energy needs. Culturally speaking, false pride and impassioned envidia on the part of the Coop has cost the community, trustees and activists a great deal of emotional pain and money. Certainly, KCEC’s  law firm profited from the brouhaha just as law firms but not individuals will profit from the previous discord and lawsuit filed by TMS administrators against school board members.

The two-year old lawsuit filed by administrators against TMS languishes in the judicial system. Apparently depositions continue under the aegis of the federal courts. But the issues are largely of the “he-said” “she-said” variety having no real basis in actual financial harm to either side—except for legal bills that reduce revenues available to educate children.

In the past private grievances were settled by screaming matches, fist fights, crimes of passion among competing factions in Taos. Today those grievances have been elevated and commodified by the legal and regulatory systems.

(I can say without hesitation that a former mayor and this writer would have gladly settled our differences out in the parking lot had we known the courts would cost us more than $20 grand a piece for a nonsensical disagreement. That’s a helluva payday for an amateur fighter.)

Currently, due to the KCEC fracas and controversial issue of the “Command Center,” the Town of Taos is in danger of descending into a long protracted battle with the Council itself, the County, and the Community at large.

There is no reasonable justification for the Town to enter into an unnecessary and costly agreement with KCEC. The ribbon cutting ceremony for the Command Center is over and KCEC will receive its rate increase so that it remains current with its loan obligations. The deal is a double-dip into the pockets of KCEC ratepayers who are also Town residents.

It’s time for Taos leaders to economize. Let us leave the ratepayers, taxpayers, and the children in peace.

Pax Vobiscum