New Mexico is facing an energy affordability crisis due to rising gas utility costs. The upcoming legislative session is a critical moment for the state. United's Michael Barrio authored an opinion piece for The Albuquerque Journal, urging state legislators to embrace cleaner, more efficient electric technologies, modernize the energy grid, and implement policies that will reduce costs, protect vulnerable families, and support a sustainable energy future for the state.
As the state’s largest gas utility continues to raise rates, energy costs are eating into household budgets, and many are struggling to keep up. Right now, our state is at a crossroads: we can stick with the same expensive, unsustainable fossil fuels that drive up costs and leave us vulnerable to price hikes, or the state can embrace a smart, cleaner path that lowers costs and protects all New Mexicans, especially those hit hardest by rising energy prices.
For too long, we’ve accepted unsustainable and unaffordable gas infrastructure spending. Gas utilities continue to be incentivized to overspend consumer dollars and overbuild pipeline projects. These costs are passed on to all of us, even as more households transition to more efficient and cost-effective electric heating and cooling.
This means households who remain reliant on gas for heating and cooking will bear the brunt of these ever-increasing costs. Without intervention, gas bills could increase as much as 350%, leaving the most vulnerable — low-income families, renters and seniors on fixed incomes — to pay the highest price.
Consider this: households living at or below the federal poverty level already spend an average of 16% of their income on energy, compared to just 3% for most New Mexicans. For a family already struggling to make ends meet, that’s not just a number, it’s the difference between keeping the heat on or putting food on the table.
But this doesn’t have to be our reality. New Mexican residents are already making choices to move toward a more affordable and sustainable energy future.
Many households are upgrading their homes with modern, efficient electric appliances like heat pumps, which can heat in the winter and cool in the summer, all while cutting energy bills. These technologies are becoming the preferred choice nationwide because they’re more efficient and save money in the long run.
New Mexico is also leading by being the first state in the nation to apply for federal home electrification and appliance rebates and home efficiency rebates funding, which offer low-income residents federal assistance for energy-saving home improvements. Programs like HEAR and HER are a strong start, but much more is needed at the state level to contain rising energy costs for homes and businesses.
Fortunately, we have a chance to change course during this upcoming legislative session. The state should develop comprehensive, long-term plans to control customers’ costs as the HVAC market transforms from gas to electric.
This requires engaging the utilities in robust planning processes that create accessible programs to help residents reap the benefits of technological change, and processes that ensure that the infrastructure they are building on ratepayer dimes is right for our future.
Legislators should consider making the transition to affordable heat easier for households by phasing in changes gradually. Setting clear, long-term goals for gas utilities would protect New Mexicans from the financial shock of sudden changes and ensure that future investments focus on affordable, sustainable solutions rather than outdated and risky projects. This kind of legislation could help all families benefit from cleaner, more efficient energy while avoiding unnecessary costs.
At the same time, we have to modernize the electric grid to handle today’s energy needs. Policies that support the adoption of modern technologies, such as heat pumps that can both heat and cool homes efficiently and effective utility planning to meet that new demand when and where it shows up at the lowest cost, can save families money. It can help residents gain more control over their energy use while creating jobs in New Mexico’s growing clean energy workforce.
These policies would both safeguard families from skyrocketing costs, make homes more energy-efficient and boost the state’s economy and advanced energy job sector.
The upcoming legislative session is a critical moment for New Mexico. We can continue pouring money into an outdated system or we can choose a future where energy is cleaner, more affordable and works for everyone.
Let’s make the smart choice before it’s too late.
Read the full article here.