Note: This site is for reviewing legacy plan of work data from 2007-2011. If you are looking for the current plan of work interface, visit pow.nmsu.edu.
Impact Report
| For plan | Producing Sustainable Agronomic Crops in New Mexico (Eddy County) |
| Date | October 19, 2009, 6:32 pm |
| For Objective | Long-term Show long-term objectives |
| Impact Report | In the fall of 2008 the Public Regulatory Commission passed rate changes for Excel Energy subsidiary company South West Public Service Company. Because these rate changes went into effect in the fall most irrigated producers did not realize the impact. Fifteen farmers approach the Eddy County Agent identifying how the rate change would have an adverse effect on their ability to stay in business. The 2008 rate change removed the irrigation rate and added in with all industrial rates, thus requiring a “demand charge” which would be applied based on the maximum amps demanded in a 15 minute period. If a producer had a 12 inch well and a 100 horse power electric motor if it ran for more than 15 minutes in a meter reading period (30 days) a charge of $600 plus accrual use of electricity in KWH. Woods Houghton Eddy County ag agent contacted local elected officials and meet with Mr. Sandy Jones of the PRC while attending the association of counties meeting in Santa Fe. Mr. Jones advised Mr. Houghton and Senator Asbill and Leavell to write a letter explaining the problem. Mr. Houghton and a local producer Mr. James Waltershied field as interveners in a new rate case being presented to the PRC. They could do so because Excel had used the 2008 rate case to justify the 2009 rate case. Excel officials worked with the Extension office to put together a panel of producers to have a discussion with. For large producers which would run a well for at least 13 days in a metering period for 24 hours the 2008 rate would break even or be lower than previous rates. Excel did not realize that many of the producers in South Eastern NM would not pump a well for that long, and for those whose wells are supplemental to surface irrigation have limited control on the date of pumping. A compromise which increased the KWH rate a little and reduced the demand rate a lot was worked out. This saved the producers in South Eastern NM a tremendous burden. The Extension Economist Dr. Jerry Hawkes and water specialist Mr. Crag Runyan were extremely helpful. A number of producers expressed that this kept them farming. If the rate change had stayed in effect it would have increase the cost of production by 128%, instead there will be a 8% increase which is fair and reasonable. Excel did not realize the difference in production from west Texas to South Eastern NM, and have called the Eddy County Office on three other issues for advice in dealing with Agriculture. |