NW New Mexico News

On June 21, the Central Consolidated School District (CCSD) filed a Motion to Intervene and a Motion for Rehearing in Public Regulation Commission (PRC) Case No. 23-00353-UT. The request was rejected.

The Energy Transition Act (ETA), passed in 2019, has had significant implications for the district following the closure of the San Juan Generating Station and the Four Corner's Plant along with attached mines. These closures have resulted in a substantial impact on CCSD's property tax revenues, which have been a critical funding source for the district.

The ETA includes a provision aimed at mitigating the impact on CCSD from the loss of property tax revenues. According to the law, PNM is required to locate replacement resources within the school district in New Mexico where the abandoned facility is located to maintain reliable service and serve the public interest, as determined by the commission.

In Case No. 19-00195-UT, the PRC approved a plan that included 430 MW of "replacement resources" to be located in CCSD. However, a 130 MW resource, known as the Rockmont project, was delayed and ultimately canceled. Despite this, PNM requested additional resources from the PRC without mentioning that these were actually SJGS "replacement resources." The failure to include resources located within CCSD's taxable boundary has left the district with a significant shortfall.

The closure of SJGS has had a profound impact on CCSD students due to rising student homelessness and job loss in the region. CCSD's student population consists of approximately 95% Native American students who face challenges such as limited access to essential resources like electricity, running water, indoor plumbing, and internet connectivity. These hardships have forced CCSD to consider restructuring measures, reduction in force measures, and potential school closures to prioritize student needs with limited resources.

In response, CCSD is urging PRC to enforce ETA provisions and revisit approvals for resources primarily located in Bernalillo County intended to replace San Juan Generating Station capacity. Additionally, CCSD calls for reassessment of PNM's compliance with ETA requirements regarding resource placement within CCSD's taxable boundary to address funding shortfalls and support educational facilities.

Steve Carlson, Superintendent of Central Consolidated School District expressed concerns about how funding shortfalls affect addressing historic underfunding of school facilities: "We may need to redirect educational operational funding toward necessary improvements due to insufficient bonding capacity and property tax revenues."

Suzette Haskie-Oberly, School President for CCSD emphasized: "The energy transition has significantly increased student homelessness rates; we need restructuring and consolidation so dwindling funds benefit our students' education."

CCSD urges PRC action addressing funding shortfalls supporting educational facilities alongside student community well-being.