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Former Senator: Customers Paying For El Paso Electric's Bad Choices
January 30,2017 Noting El Paso Electric is preparing to seek another rate increase from New Mexico regulators, Steve Fischmann, a former New Mexico state senator and advocate on utility issues, writes in a guest column for the El Paso Times that El Paso Electric is seeking to, "impose millions of dollars of unnecessary costs," on customers How? By building two new peaking plants for use during extremely limited hours, when the utility could have relied on efficiency or load-side programs or even PPAs to fill any peak capacity needs, Fischmann writes Fischmann's observation is another reminder of the "bad old days" of utility gold plating customers were freed from through retail electricity restructuring, where customers are no longer responsible for investment in generation While Fischmann's observation related to traditional utility planning, it is equally applicable to any model where customers are obligated to pay for capacity, including capacity markets, particularly those with multi-year forward obligations. Capacity markets with three-year forward procurements crowd out more efficient and cheaper resources which can be developed and deployed to capacity needs as they arise rather than building new plants for a few hours of scarcity, but, which due to their nature, cannot efficiently participate in a three-year forward procurement (notably, load resources) See the El Paso Times for the column
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