Showing posts with label New Mexico News Analysis. Show all posts
Showing posts with label New Mexico News Analysis. Show all posts

Land Office Takes in $7.4 Million on Oil and Gas Leases

The New Mexico State Land Office reported sales of oil and natural gas leases brought in nearly $7.4 million for August.
A total of 26 tracts of land covering more than 8,000 acres were sold. Revenues from the oil and gas industry represent 97% of all income brought in by the Land Office. The revenues are used to support public schools, universities and hospitals.
The highest sealed bid of $466,140 was made by Ronald Miles of Roswell for about 163 acres in Eddy County who also placed the highest oral bid - $2 million for about 640 acres in Lea County.
Experts wonder how much more money might have come to the State Land Office if it had not tried to retroactively change the formula for how royalties are calculated on productive leases.

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More Deficit Spending, Bingaman Brags About Pork

Jeff Bingaman
He is at it again, trumpeting dubious spending that will come back to New Mexico. With the federal government running a trillion dollar plus deficit for the fourth year in a row New Mexico Senator Jeff Bingaman seems oblivious. Last week Bingaman announced that the federal government is borrowing more money to fund nine New Mexico groups with "federal grants aimed at fighting drugs."
The borrowed money will be given to the New Mexico groups to help support the fostering of citizen participation in local drug prevention efforts.
Bingaman offered no comments on the fact that the federal government has not passed a budget for more than three years.

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Push for Uncompetitive Price Fix in Duke City

The outlook for unemployment in Albuquerque just got dimmer. A push by progressive Democrats to raise Albuquerque's minimum wage is going to make it to the ballot in November.
The Albuquerque city council could approve the measure outright or submit it to voters. The plan proposes that all unskilled labor be paid $8.50. If this proposal becomes law it will reduce the number of entry level jobs in the Duke City and reduce the competitiveness of all entities domiciled there.
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Environmentalists Fight Use of WIPP, Again

You knew it was coming. Like night follows day radical environmentalists get in the way of any plan to ship tons of plutonium. This time the destination is located in New Mexico, at the Waste Isolation Pilot Plant (WIPP) in Eddy County.
There is one thing these anti-nuclear "activists" have going for them. They have the "time" to go to public hearings and voice objections. Of course they never offer solutions to the storage problem only roadblocks to any solution.
It is a head scratcher for people in Eddy County near Carlsbad. There the government and private sector invested hundreds of millions if not billions of dollars in the WIPP plant decades ago. Now there are just enough of these activists and policymakers listening to them to make sure the plant is mostly a waste of taxpayer investment.

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Martinez Estimates $270 Million Revenue Surplus

Susana Martinez and Chuck Franco on Inauguration Day
When Susana Martinez took the oath of office as governor of New Mexico in 2011 she inherited a fiscal disaster. For the previous eight years her predecessor, Bill Richardson and the Democrat-controlled legislature spent, spent, and spent some more. They had also done their best to run off the state's breadwinning oil and gas producers leaving revenue sources in doubt.
Martinez promised a science-based common sense approach to energy policy and basic spending discipline when she took office. Apparently the governor has already delivered on those promises.
According a report by the Associated Press earlier today new financial forecasts of state tax revenues are $270 million above what was originally projected to be collected. Budget officials within the Martinez administration revealed the latest revenue projections to the Legislative Finance Committee during a meeting in Angel Fire earlier today. This good fiscal and political news for Martinez comes on the heels of a trip the governor will be making to Tampa, Florida early next week. There she is set make a prime time speech at the Republcan National Convention. Martinez is slated to address the GOP faithful just before keynote speaker Chris Christie takes the podium.

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Another Meeting to Hear Input on San Juan Generating Station Sure to Draw Radical Environmentalists

New Mexco citizens anxious to put a stop to the U.S. Environmental Protection Agency's efforts to use regulations to destroy the economic viability of a coal-fired electric plant near Farmington will have another chance to speak up. The anti-coal Obama EPA wants to require high-cost emission controls on the San Juan Generating Station. To eliminate "haze" nobody can see.
San Juan Generating Station
It remains an open question whether the emission control equipment PNM will be required to purchase will be mandated by EPA or will be the type approved by the New Mexico Environment Department (NMED). Either way ratepayers will bear the costs.
Both sets of equipment will meet federal "visibility" requirements. The state-approved technology would accomplish that goal for a fraction of the cost of EPA's plan saving PNM ratepayers millions of dollars.
The next public input meeting is scheduled for Monday August 20th in Farmington. Citizens unable to attend in person can submit input to NMED by sending an email to Morgan R. Nelson of NMED at Morgan.nelson@state.nm.us. There is little doubt radical envirnomentalists will be at this meeting to push for policies that push electricity rates higher and threaten the closure of the primary generating station that supplies New Mexico with low cost electricity.
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Sustainability Summit to Spend Borrowed Money

An all-day “summit” is set for Saturday in Las Cruces. Those coordinating the event are celebrating a $2 million federal grant for a “sustainability initiative.” The money for this initiative is all part of $3.8 trillion in spending by the Obama administration this year. The money has been made available without passing a budget for three years.
Progressive Democrats, including Doña Ana County Commissioner Billy Garrett and Las Cruces Mayor Pro Tem Sharon Thomas, will begin the process of consuming the grant which was given to Doña Ana County by the federal Partnership for Sustainable Communities. The U.S. Housing and Urban Development Department (HUD), the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation (DOT) gave the money away.
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Chasey in Denial About Voter Fraud

Gail Chasey
In the shadow of very disturbing recent voter fraud charges filed against multiple individuals including a librarian after the recent Sunland Park mayoral elections, a state representative remains in denial about voter fraud.
There have also been widespread reports that are well-documented in Virginia that have exposed efforts by progressives to create the conditions that lead to voter fraud there.
Still, Albuquerque's house member Gail Chasey took it upon herself to call the voter fraud problem a "myth." In a press release yesterday Chasey targeted Secretary of State Dianna Duran for simply cleaning up the voter rolls in New Mexico and thus making it more difficult for people in the country illegally to vote. Duran's efforts will also make it more difficult for others to vote for people who moved out of New Mexico years ago.
Chasey is one of several Democrats in the legislature who has consistently blocked all bi-partisan efforts to repeal a law that allows the issuance of driver's licenses to people living in the state illegally. She has also consistently stalled efforts that would require all voters to simply produce a picture identification when they vote, just as all citizens do when they fly, cash a check, use a credit card or do countless other tasks each day. In doing so Chasey has chosen to ignore here responsibility to protect all legitimate votes cast in her district and in the state.

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NMFA Management Team Seats Are Getting Hot

According to the Albuquerque Journal’s James Monteleone, the CEO of the New Mexico Finance Authority says the agency’s bogus 2011 audit report was read by “a lot of people,” but no one recognized the document was a fake despite glaring evidence of fraud in the forged 62-page report.
Municipal bond ratings agencies are not impressed. A $40 million NMFA bond sale has been suspended due to Standard and Poor’s and Moody’s placing all NMFA debt on credit watch for downgrading due to “weak internal controls.”
To put it mildly, NMFA CEO Rick May is suddenly on the hot seat as is NMFA Chief Operating Officer John Duff.
According to the Journal (subscription required) the forged 2011 findings report was copied word-for-word from the NMFA 2010 report. Apparently the actual document forger (or forgers) were incredibly sloppy. They never bothered to change dates in their fake report so the document appeared to account for the 2011 fiscal year instead of 2010.
It now appears the beginnings of the he-said she-said phase of the investigation is well underway between the accounting firm that was hired to do the audit and the executives at NMFA who were supposed to receive and OK the audit.
One things seems sure. Moodys and Standard and Poors have this one right so far. There were major managerial deficiencies at the NMFA with the irrefutable evidence being “weak internal controls.”

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NMFA’s fraudulent audit is a big deal

NMPolitics - There are more questions than answers right now about why the New Mexico Finance Authority’s controller allegedly created a fraudulent audit of the agency’s finances, but what’s clear is that it’s a big deal.

State Auditor Hector Balderas announced Thursday that his agency had uncovered the fraudulent audit. In a news release, his office announced that a special audit of NMFA’s books would be conducted. NMFA quickly announced that it had retained a law firm “to conduct a thorough investigation to determine how the misrepresentation occurred and to recommend steps for strengthening financial reporting procedures,” and had hired an accounting firm to complete the agency’s fiscal year 2011 audit. Balderas also turned the matter over to law enforcement. Read full analysis here: News New Mexico

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Attempt to Create "Scandal" Gets Bogged Down

Michael Corwin
 It seems that manufacturing an e-mail scandal is as messy as mudslinging. It is simply not quite as easy as Democratic Party operative Michael Corwin would have thought. More and more elected officials have been brought into the spotlight in recent days as questions abound about the proper use of public and private e-mail addresses.
Late last week New Mexico Attorney General Gary King held a press conference in which he accused the Republican Party of New Mexico (RPNM) of "intimidating" him by filing a public records request. Unfortunately for King, his use of private emails for public business were about to be brought to light.
Through its request, RPNM sought to determine just how common it is for public officials to use private emails. This followed Michael Corwin’s efforts to slap the "scandal" label on the Martinez administration for its e-mail conduct. The smear merchants were using e-mail data they knew was stolen.
Apparently the Attorney General and his staff routinely use private emails. Recently King directed a lawyer and $5,000 campaign donor to send him an email about official state business to his private email address. The lawyer previously emailed King at lglgking@nm.net — an address King indicates was incorrect. The subsequent email proves King had a private phone conversation with the lawyer and directed him to use "gary@garyking2010.com" to send him information about official state business. King then tells one of his government employees, "let's not forward the entire email."
You can review the above referenced email here: News New Mexico
Since Michael Corwin attempted to establish the precedent that use of private emails is a "scandal," a number of revelations have come to light:
1. Legislators have always used, and now promise to continue to use, private emails. Many will not produce records via public records requests.
2 Neither Governor Johnson, nor Governor Richardson ever used state emails.
3. Attorney General Gary King uses multiple private email accounts.
4. Public officials from around the state, including APS Board Member Martin Esquivel continues to use private emails for official business.
5. Governor Susana Martinez remains the only elected official to order all of her staff to exclusively communicate via email on state emails for official state business.
6. Apparently King has sent and received so much private email about official business that he requested additional time to review emails related to GOP's public records request.
It would seem that all of the efforts of Michael Corwin to try to smear the Martinez administration have sort of blown up in his face.

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Despite a String of Bankruptcies Richardson Will Lead Energy "Forum" at the Democratic Convention


Bill Richardson
Critics suggest that former New Mexico governor Bill Richardson is proving once again that a record of failure in the world of energy investing doesn’t matter to progressive media outlet Politico or the Democratic Party.
New Mexico Watchdog reported earlier this week via Politico that former Governor Richardson will “lead an energy forum” at the Democratic National Party’s convention sponsored by Politico.
By almost any measure it is an amazing invitation. Despite a horrendous investment record in New Mexico where virtually every solar venture Richardson plowed public funds into stiffed creditors and filed for bankruptcy protection, apparently the Democrats still want Richardson to deliver a lecture on the subject of energy investing.
Not surprisingly, Richardson’s results are not dissimilar to those of the Obama Department of Energy. The highest profile failure to date by the administration is the more than a half a billion dollars it threw at Solyndra, only to see that company go straight into bankruptcy. Energy industry observers are astonished that Democrats continue to be insistent about trying to pound square taxpayer funded "investment" pegs into round economic reality holes. Here is a partial list of other recent solar bankruptcies besides Schott Solar, Advent Solar, and Solyndra: Evergreen Solar, SpectraWatt, Stirling Energy Systems, Photowatt, Solon, Energy Conversion Devices, Scheuten Solar, Odersun, Q-Cells, and Solar Trust of America.
The NM Watchdog is waiting to hear from Politico on why considering Richardson’s dismal track record, he was selected to lead the forum. And curiously, nobody at the DNC has plans to host a forum to see what could be done to build the Keystone XL pipeline or encourage Exxon Mobil, Chevron, and Conoco Phillips to grow their businesses so they can increase income taxes paid to the government above the current $37 billion per year.
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A Year Later D.A. Still "Reviewing" Evidence

According to the Albuquerque Journal, District Attorney Angela "Spence" Pacheco of Santa Fe, who was appointed the special prosecutor for Second Judicial District Pat Murdoch's rape case, says her office is still reviewing ëvidence involving a retired Albuquerque criminal judge accused and later cleared of raping a prostitute. Pacheco was appointed as special prosecutor days after Murdoch's arrest in July 2011. Why this D.A. would announce she is reviewing new evidence instead of simply reviewing it is anybody's guess.

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LCPS: Artificial Turf for Field of Dreams?

The Las Cruces Public School Board is considering an investment in an artificial surface at the Field of Dreams. Many years ago in the city of the Crosses the Field of Dreams Task Force secured the initial funding for the current stadium. At that time one of the new problems presented to the school district in Las Cruces came with the opening of Onate High School. Adding Onate to the mix meant the city had four football teams playing games at Aggie Memorial Stadium. It was an unworkable situation for many logistical reasons.
With the opening of Centennial High School LCPS is presented with a similar problem, but with a much easier solution. An investment in artificial turf at the Field of Dreams is an excellent solution to the problem.
In recent years there have been tremendous advances in artificial turf technology. The surfaces are much better and last much longer.
With LCPS facing rising costs for water, grass supplies, equipment, maintenance labor, plus the inevitable wear and tear that comes with four teams playing on one grass field, the debate on the board over this question should not last long. Delaying an investment in an artificial surface at the Field of Dreams will become a waste of LCPS resources.

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Griego Had a Failure to Appear Problem, Eleven Warrants for His Arrest Were Issued


State Senator Eric Griego
 From The Republic - What is up with the vetting of Congressional candidate Eric Griego by public employee unions and radical environmentalists? According to an article in the Albuquerque Journal Griego simply skipped out on court dates and also ignored judicial orders after getting tickets for speeding. Instead of paying the fines or showing up to contest the trafic violation charges Griego was a no-show. As a result, apparently eleven different arrest warrants were issued for Griego by Albuquerque Metropolitan Court judges between 2000 and 2007 for failing to appear at scheduled court hearings and/or missing court-ordered driver school programs for traffic citations.
It would seem that Griego feels that one set of rules applies to everyone else and another set of rules applies to him. Incredibly, Griego's campaign manager, Ed Yoon, says Griego addressed the violations, paid the fines and regrets the warrants. Yoon says they do not reflect on Griego's ability to represent Albuquerque in Congress. What would reflect on his ability? Read story here: News New Mexico
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All Three C.D. #1 Democrats Favor Obamacare

Eric Griego
Following Saturday’s Congressional District # 1 debate one thing seems clear. Former State Representative Janice Arnold-Jones is going to face off against a proponent of making the federal government bigger in the general election in November.
All three Democrats running for the House of Representatives were firmly in support of “Obamacare,” the government’s late night takeover of the healthcare system engineered in large part by Nancy Pelosi when she was Speaker of the House. 
Michelle Grisham-Lujan
State Senator Eric Griego, said Democrats should not compromise on budget and tax debates, even in the face of trillion dollar deficits. Griego is considered the favorite to win the primary. He has raised more than $709,000 in contributions through March, mostly from unions and radical environmentalist organizations.
Griego says he wants even more government control of health care. Griego said, “If we’re serious about reforming health care, we need to go far beyond the Affordable Care Act (Obamacare) and we need to be talking about Medicare for all,” Griego said. “If it’s good enough for seniors, it’s good enough for the people we care about … we need to offer that to everybody.”
Martin Chavez
One issue that remained unresolved at the end of the evening was the ethics behind a whopping $24,000 in severance pay Griego extracted from New Mexico Voices for Children late last year. Griego was the executive director of the nonprofit organization when he decided to quit and run for Congress. Not surprisingly, New Mexico Voices for Children receives substantial funding from government every year. You can watch the entire debate on KOAT here: News New Mexico

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2003 Educational Reform Failed Miserably

Bill Richardson
The last time the State of New Mexico tackled education reform was 2003 when the legislature enacted and Bill Richardson signed what was characterized as sweeping "reforms" to the system. Friendly to unions, the House and Senate dismissed all calls for school choice and there was zero consideration given to a simple market-oriented school voucher system.
An Ad Hoc Subcommittee paved the way for Democrat's policy proposals. The committee reached the conclusion that throwing more money at teacher and principal salaries was a big part of the solution to New Mexico's educational woes. The committee also proposed a Professional Development Fund to be administered by the State Department of Education and the Commission on Higher Education. This policy cleared the way for teachers to take time away from the classroom for “professional development” sessions. Finally, the committee called for the funding of a Cabinet Post for a Secretary of Education. Ten years ago New Mexico threw more money at educators, provided more government administered professional development programs, and added more administrative oversight in Santa Fe.
To pay for the increased spending the Ad Hoc Subcommittee called for a raid on the state’s Land Grant Permanent Fund. It also called for increasing the tax burden through a Motor Vehicle Excise Tax increase. The committee also recommended amending the New Mexico Property Tax Code to dedicate an additional two mills on the net taxable value of property to public schools. Amazingly, the committee even called for the phasing out the Los Alamos National Laboratory’s Gross Receipts Tax exemption. Ironically, Los Alamos has always had the most successful schools in New Mexico.
Most of the subcommittee's proposals were adopted. And nearly ten years have passed since Governor Richardson and Democrats in the House and Senate raised taxes and raided the Land Grant Permanent Fund so they could throw more money at the education problem. How did these policies fare in the real world?
Graduation rates have continued to decline and New Mexico student proficiency has continued to rank among the lowest in the nation. Not surprisingly, proponents of those 2003 policies are not held accountable for their failures. These days many of the same people who supported throwing more taxpayer dollars at education continue to fervently fight any approach to educational reform that doesn’t first and foremost benefit those who collect their paychecks from the state education system.

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Dems Have to Work to Encourage Voter Turnout

From statesman.com -Everyone believes that Barack Obama can't win Texas because Democrats don't spend any money here. I wrote as much in a guest column in these pages back in February, declaring confidently that when Texas Democrats put money into getting out the Hispanic vote, then we'll become the biggest swing state in the country.Turns out, I was wrong. It happens, and as is usually the case, one of my friends pointed out my mistake. Ed Espinoza, who headed up Hispanic turnout operations in Western states for the Democratic National Committee, pointed me to one case in which the Obama campaign did spend money in Texas with depressing, if instructive, results. In 2008, Obama targeted New Mexico. Winning that state means buying TV time in the El Paso media market because it reaches Las Cruces, N.M. That meant that New Mexicans and old Texicans saw the same ads in 2008. But only 38 percent of El Paso County voted in the 2008 general election, far fewer than the 62 percent turnout in neighboring Doña Ana County just over the state line. "Same media market. The voters are seeing the same commercials. They're voting in the same election. The turnout is a 24 percent difference. That on the surface is significant," said Espinoza the other day over scotch and wings at the Tavern.  More here
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Las Cruces Gross Receipts Revenue Is Sagging

The Las Cruces City Council
The Las Cruces City Council has embraced an anti-business and anti-growth mindset for several years. Its policies are now clearly taking a toll on the economy of New Mexico’s second largest city. The effects of imposing one new regulation and fee after another are now showing up in the Gross Receipts Tax (GRT) revenues flowing into city coffers. Before long the council will be forced by its own policies to either lay off workers or raise taxes. For the month of March 2012 receipts fell by 1.6% versus March of 2011. March receipts represent January’s economic activity. Despite a recovery in both the national and state economies, Las Cruces is now clearly lagging most areas. The year-to-date growth rate for the fiscal year of 2012 gross receipts tax revenue now stands at a negative 0.4%.
The news is even worse for some sectors. Other cities in New Mexico (Albuquerque) have reversed the imposition of new impact fees on the construction industry. Not in Las Cruces. There the City Council has gone full speed ahead with this job killing approach. As a result, gross receipts for the month of January from the construction industry were off by a whopping 12.9%. In fact, the construction sector gross receipt tax revenue alone is now off by over $1 million dollars for the nine months of FY12, versus the same period last year. January retail trade sales also suffered its second consecutive month of decline, losing 3.5% as compared with March 2011. While councilors obsess with frivilous ideas like imposing mandatory recycling, passing dust ordinances in the desert, and spending tens of millions on bike paths, joblessness has remained stubbornly high in the Las Cruces metro area. Living standards in the city are falling.

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Facts Not Critical to Sierra Club Approach

Earlier this week the Sierra Club announced it reached a legal settlement with PNM Resources. In what can only be accurately characterized as an extremely misleading press release, the Sierra Club suggested Public Service Company of New Mexico (PNM), PNM Resources, and San Juan Coal Company (a subsidiary of BHP Billiton, Ltd.) must spend millions of dollars to stop ground and surface water contamination caused by toxic coal ash waste and other sources at the San Juan Coal Mine and San Juan Generating Station coal-fired power plant.
The problem with the press release is there is NO ground or surface water contamination downstream from the plant and coal mine that originates from coal ash or other sources at the plant or coal mine. In fact, the settlement agreement does not require any change in the way coal is mined or handled. It also does not require any change in how coal ash is managed at the plant or placed at the coal mine. Placement of coal ash at the mine is already required by the state as part of the mine reclamation procedures. Coal ash is not regulated as a hazardous, or “toxic,” waste. And the system the companies are installing is only a “capture” system. There is no requirement that any of the water captured in the system be treated in any respect.
Despite all the bluster of the radicals in the Sierra Club, the power plants are in compliance with federal and state permits and the plant in San Juan County undergoes regular, rigorous inspection by state and federal regulators. As a result of the latest $320 million environmental upgrade at San Juan which was completed in 2009, the San Juan Generating Station became an industry leader in mercury emissions control. It has achieved a 99 percent mercury removal rate based on EPA-required stack testing and exceeds the EPA’s recently implemented mercury removal standards. Additionally, PNM scrubs 100% of the flue gas from each of the four units in the four corners area and also uses state-of-the-art technology to remove 99 percent of the particulate matter (or “soot”) in the flue gas.
In completely mischaracterizing the nature of the settlement, it appears that pining for more donations is remains the primary objective of the Sierra Club. The release also said, “PNM ought to invest in creating energy from clean sources like solar panels, instead of continuing to expose our air, water and land to toxic pollution from coal.”
Always on the offensive, what the Sierra Club failed to mention is that under mandates passed during the Richardson administration, PNM already has significant investments in renewable energy programs. In fact, PNM entered the renewable arena long before renewable energy mandates existed.
Back in 2003, PNM agreed to purchase all the energy produced by the New Mexico Wind Energy Center, which at the time was the world’s third-largest wind facility. In 2011, the utility invested $95 million to add 22 megawatts of solar power to its system. And, PNM has the state’s largest solar distributed generation program. About 2,400 customers have installed solar systems, amounting to 15 megawatts of power. PNM provides credits to these customers as an incentive to invest in solar technology. The program more than doubled in 2011.
For New Mexico citizens served by PNM it is naïve to think the company could easily move away from fossil fuels, like coal. There is simply NO technology to store wind or solar power. A complete move to these much more expensive resources is virtually impossible.
It is unfortunate that the Sierra Club feels compelled to engage in misinforming the public regarding electrical power in New Mexico. In doing so it puts pressure on existing power sources, electricity prices, and the possibility of blackouts in this area. Electricity blackouts are not GREEN, they are dangerous to the health and welfare of New Mexico.

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