Not exactly the right time of year, but gather 'round, boys and girls. This is the tale of the State Transmission Infrastructure Authorities Monster.
Who? If you're not a resident of one of seven unfortunate western states where the monster lives or has lived, this may be no more than a cautionary tale for you. However, if you live in one of the seven states that comprise the monster's stalking grounds, the horror is real.
Between 2006 and 2008, the monster was born as an idea to encourage the building of electric transmission within a state in order to increase export of energy produced in the state. It was just a pumped up economic development authority for energy. The idea was to give these state transmission authorities the ability to issue revenue bonds, allow corporations to avoid tax liability, and most importantly to utilize eminent domain to take private property from citizens and give it to corporations in the name of "economic development." These authorities like to pretend they are "catalysts" or "incubators" to bringing incredible riches to their state. In reality, they are steamrollers... flattening a path through the state in order to create profits for out-of-state corporate interests.
Despite a whole bunch of initial hype, this monster turned out to be kinda lazy. It hasn't accomplished much in more than a decade. In fact, the monster has been killed in several states (Kansas and South Dakota) after the people saw how lazy and ineffective their monster really was. Other states quickly defunded their monsters in an attempt to starve them out of existence. For the most part, that worked. The vast majority of the surviving monsters are weak do-nothings that barely survive on scraps tossed to them by out-of-state energy companies still toying with the idea of needing a good monster in the future to ram though a highly-profitable transmission idea.
And then there's New Mexico's monster. The Renewable Energy Transmission Authority, or RETA, is fat and happy on the cash out-of-state energy companies are feeding it. And, in exchange for a 3 squares a day, RETA is shambling around the countryside, gobbling up private property under threat of eminent domain, and stockpiling it for future ownership of the out-of-state energy companies that feed RETA.
RETA was established by the New Mexico legislature in 2007 to plan, develop, finance and acquire energy transmission and storage projects for the purposes of economic development. New Mexico figured it has excellent wind and solar energy resources, but not enough transmission to export it out of state. New Mexico is currently planning to permit just one out-of-state developer to build many more megawatts of wind energy than New Mexicans need.
Who? If you're not a resident of one of seven unfortunate western states where the monster lives or has lived, this may be no more than a cautionary tale for you. However, if you live in one of the seven states that comprise the monster's stalking grounds, the horror is real.
Between 2006 and 2008, the monster was born as an idea to encourage the building of electric transmission within a state in order to increase export of energy produced in the state. It was just a pumped up economic development authority for energy. The idea was to give these state transmission authorities the ability to issue revenue bonds, allow corporations to avoid tax liability, and most importantly to utilize eminent domain to take private property from citizens and give it to corporations in the name of "economic development." These authorities like to pretend they are "catalysts" or "incubators" to bringing incredible riches to their state. In reality, they are steamrollers... flattening a path through the state in order to create profits for out-of-state corporate interests.
Despite a whole bunch of initial hype, this monster turned out to be kinda lazy. It hasn't accomplished much in more than a decade. In fact, the monster has been killed in several states (Kansas and South Dakota) after the people saw how lazy and ineffective their monster really was. Other states quickly defunded their monsters in an attempt to starve them out of existence. For the most part, that worked. The vast majority of the surviving monsters are weak do-nothings that barely survive on scraps tossed to them by out-of-state energy companies still toying with the idea of needing a good monster in the future to ram though a highly-profitable transmission idea.
And then there's New Mexico's monster. The Renewable Energy Transmission Authority, or RETA, is fat and happy on the cash out-of-state energy companies are feeding it. And, in exchange for a 3 squares a day, RETA is shambling around the countryside, gobbling up private property under threat of eminent domain, and stockpiling it for future ownership of the out-of-state energy companies that feed RETA.
RETA was established by the New Mexico legislature in 2007 to plan, develop, finance and acquire energy transmission and storage projects for the purposes of economic development. New Mexico figured it has excellent wind and solar energy resources, but not enough transmission to export it out of state. New Mexico is currently planning to permit just one out-of-state developer to build many more megawatts of wind energy than New Mexicans need.
The 3,000 MW potential for Pattern Energy would produce enough electricity to power 1,095,000 homes in New Mexico, according to Public Service Company of New Mexico. New Mexico has 948,000 housing units, according to the U.S. Census Bureau.
This energy isn't for New Mexicans. It's not about making energy "cleaner" in New Mexico. It's about harvesting cheap energy in New Mexico and making a huge profit selling it to other states (like California) that will pay a premium for imported "clean" energy instead of junking up their own state with the necessary turbines, solar panels, and transmission lines to make it themselves.
At what point will New Mexico wake up and realize it's nothing but a cheap date for out-of-state energy companies? The real money isn't staying in New Mexico, it's being shipped out of state right along with the energy. Only a few New Mexicans will see income from being California's energy doormat. The majority will find their properties irreparably damaged and turned into industrial energy plants while they feast on a few crumbs and "fair market value" attempts to make them whole in the wake of eminent domain takings. You'd think New Mexico would be at least as smart as some eastern states who are using economic development to produce energy for their own use. Produce energy in state, use energy in state, and all the economic development dollars stay in state for the benefit of its people. History should have already taught the lesson of what eventually happens to states that throw wide the doors for exploitation by out-of-state energy companies. The out-of-state companies get the gold, and the people of the state get the shaft.
Let's take a look at RETA's most recent financial audit, which is the best look you're going to get at RETA's finances.
Where did RETA get its money in 2019?
At what point will New Mexico wake up and realize it's nothing but a cheap date for out-of-state energy companies? The real money isn't staying in New Mexico, it's being shipped out of state right along with the energy. Only a few New Mexicans will see income from being California's energy doormat. The majority will find their properties irreparably damaged and turned into industrial energy plants while they feast on a few crumbs and "fair market value" attempts to make them whole in the wake of eminent domain takings. You'd think New Mexico would be at least as smart as some eastern states who are using economic development to produce energy for their own use. Produce energy in state, use energy in state, and all the economic development dollars stay in state for the benefit of its people. History should have already taught the lesson of what eventually happens to states that throw wide the doors for exploitation by out-of-state energy companies. The out-of-state companies get the gold, and the people of the state get the shaft.
Let's take a look at RETA's most recent financial audit, which is the best look you're going to get at RETA's finances.
Where did RETA get its money in 2019?
The Authority did not receive a State appropriation for the 2019 fiscal year. However, SunZia and Pattern Energy provided developer contributions totaling $550,000 to facilitate ongoing operations.
...........
In 2019, the significant revenue sources were developer contributions from Pattern Energy LLC, of $525,000 and Sun Zia Transmission, LLC, of $25,000.
All of RETA's money came from private developers in 2019. ALL OF IT. How is it that a quasi-state agency, using the power of the state, can be 100% funded by private corporations who can profit from the agency's actions? Isn't that a huge conflict of interest? If RETA doesn't do what its funders want, perhaps it won't receive additional funding. This is nothing more than a for-profit corporation masquerading as a "state agency" in order to take from the citizens of the state.
And to make matters worse, Pattern has signed an agreement with RETA to "lease" the property RETA obtains using the eminent domain power of the state. Pattern also will make RETA the "owner" of its Western Spirit transmission project. RETA doesn't pay state taxes... it is the state. See where this is going? RETA, on behalf of the State of New Mexico, is so eager to have Pattern "developing the economy" of New Mexico that it doesn't have to pay taxes. Pattern can take private property for its own for-profit use and doesn't have to pay taxes. How does New Mexico benefit from this again? The state is granting the right to take private property to an out-of-state company for its own profit. Doesn't exactly scream "move here for prosperity," does it? Economic development? Or corporate lackey?
RETA likes to pretend it was created mainly to issue revenue bonds.
And to make matters worse, Pattern has signed an agreement with RETA to "lease" the property RETA obtains using the eminent domain power of the state. Pattern also will make RETA the "owner" of its Western Spirit transmission project. RETA doesn't pay state taxes... it is the state. See where this is going? RETA, on behalf of the State of New Mexico, is so eager to have Pattern "developing the economy" of New Mexico that it doesn't have to pay taxes. Pattern can take private property for its own for-profit use and doesn't have to pay taxes. How does New Mexico benefit from this again? The state is granting the right to take private property to an out-of-state company for its own profit. Doesn't exactly scream "move here for prosperity," does it? Economic development? Or corporate lackey?
RETA likes to pretend it was created mainly to issue revenue bonds.
The Authority’s Purpose and Highlights The Authority was created in 2007 based on the Laws of 2007, Chapter 62. The purpose of the New Mexico Renewable Energy Transmission Authority Act (the “Act”) is to create a governmental instrumentality to finance or plan electricity transmission and storage facilities within the State of New Mexico. The financing or acquisition of an eligible project would be accomplished through the issuance of renewable energy transmission revenue bonds or other debt instruments.
However, in the 13 years of its existence, it looks like RETA has not issued any bonds.
The Act created the Renewable Energy Transmission Bonding Fund, which shall consist of revenues received by the Authority from operating or leasing eligible facilities, fees and service charges collected and, if the Authority has provided financing or eligible facilities, money from payments of principal and interest on loans. Money in the Renewable Energy Transmission Bonding Fund is pledged for the payment of principal and interest on all bonds issued pursuant to the Act. Bonds issued pursuant to the Act shall be payable solely from the Renewable Energy Transmission Bonding Fund or, with the approval of the bondholders, such other special funds as may be provided by law. These bonds do not create an obligation or indebtedness of the state within the meaning of any constitutional provision. No bond has been issued thus this fund has no activity.
RETA is not financing transmission. It's also not "planning" it. RETA is simply responding to the out-of-state energy corporations who pay its bills. Its main purpose seems to be to acquire private property using eminent domain in order to create transmission rights-of-way that out-of-state energy corporations use to make a huge profit. RETA is nothing more than a corporate sugar daddy for Clean Line, Pattern, and Sun Zia. If you're a corporation that thinks it can make a lot of money exporting renewable energy from New Mexico, RETA is your sugar daddy monster!
Is it democracy when state government is funded by "donations" from corporations with a pecuniary interest in the actions of the state government? This isn't even hard to figure out... it's a straight up conflict of interest! And when you toss the taking of private property through eminent domain into the mix, it's a horror show!
Haven't we all been down the eminent domain for economic development road before? What happened, New Mexico? Were you out sick that day?
RETA's window dressing says it's all about protecting landowners, claiming on its website "We're here to help."
But when you get inside, it's a house of horrors. RETA is all about helping developers, not landowners. RETA needs a cash infusion from the legislature. Think about that... it needs state funding. Where does state funding come from? It comes from taxpayers. The state government has no source of revenue except taxpayers. RETA wants the citizens of New Mexico to pay its bills while it takes their private property and gives it to an out-of-state for-profit corporation.
Any touted cash payments to landowners are from wind farms, not the transmission lines RETA "develops." Not all landowners benefit equally from the construction of new transmission lines. Some landowners get royalty payments for hosting energy generators, but others get one time "make whole" payments for exporting the electricity across their property. The royalties wouldn't happen without the landowners exporting the energy, but yet these landowners are expected to participate basically for free. No wonder RETA needs to use eminent domain to set up its scheme whereby the few profit at the expense of the many.
When is the legislature of New Mexico going to wake up to the stink coming from its own monster? When is New Mexico going to stop acting like a cheap date for out-of-state energy corporations?
More about New Mexico coming soon: How Pattern changed Clean Line's rate scheme for Western Spirit in order to build a private-use generation tie line....
Is it democracy when state government is funded by "donations" from corporations with a pecuniary interest in the actions of the state government? This isn't even hard to figure out... it's a straight up conflict of interest! And when you toss the taking of private property through eminent domain into the mix, it's a horror show!
Haven't we all been down the eminent domain for economic development road before? What happened, New Mexico? Were you out sick that day?
RETA's window dressing says it's all about protecting landowners, claiming on its website "We're here to help."
But when you get inside, it's a house of horrors. RETA is all about helping developers, not landowners. RETA needs a cash infusion from the legislature. Think about that... it needs state funding. Where does state funding come from? It comes from taxpayers. The state government has no source of revenue except taxpayers. RETA wants the citizens of New Mexico to pay its bills while it takes their private property and gives it to an out-of-state for-profit corporation.
Any touted cash payments to landowners are from wind farms, not the transmission lines RETA "develops." Not all landowners benefit equally from the construction of new transmission lines. Some landowners get royalty payments for hosting energy generators, but others get one time "make whole" payments for exporting the electricity across their property. The royalties wouldn't happen without the landowners exporting the energy, but yet these landowners are expected to participate basically for free. No wonder RETA needs to use eminent domain to set up its scheme whereby the few profit at the expense of the many.
When is the legislature of New Mexico going to wake up to the stink coming from its own monster? When is New Mexico going to stop acting like a cheap date for out-of-state energy corporations?
More about New Mexico coming soon: How Pattern changed Clean Line's rate scheme for Western Spirit in order to build a private-use generation tie line....
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