2012 Pop Quiz: Public Regulation Commission Dist. 3

Spring is here and another crowded Democratic primary for the Public Regulation Commission in District 3 is upon us. The highly-coveted $90,000-a-year position comes in a body more known for controversy than its purpose: regulating the state's utilities and telecom industry.

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Last fall, embattled Commissioner Jerome Block resigned after countless scandals. Gov. Susana Martinez named Doug Howe as replacement, who, to the chagrin of many, won't be running this year to keep his seat. Now four candidates, two of them familiar faces in the Santa Fe political arena, are vying to replace Howe. SFR caught up with each of them to see how much they really know about the political body they're intending to join. Much of the conversation revolved around restoring order to the troubled commission.

The Questions

1. What gave you the idea to run for PRC? Why are you qualified?

2. What two bodies merged into the PRC when it was created in 1996?

3. How many times has the PRC granted rate hikes to Blue Cross Blue Shield since 2009? BONUS: What were the percentages of each? What is the percentage of the current proposed BCBS hike?

4. How many PRC commissioners have been involved in scandals since 2007?

5. Name two of the three proposed constitutional amendments that voters will vote on this fall.

6. What are the current qualifications to be a commissioner?

7. What changes will you bring to the PRC?

Virginia Vigil, 62, Santa Fe County Commissioner, attorney

1. Actually I was interested in the PRC about eight years ago when Rep. Ben Ray Luján ran for it. I became interested in policymaking. Back then I had already put in my name for county commissioner. I am an attorney and I have the right research skills. I am a customer of the PNM system and a telecom customer. My background has involved decision-making when it comes to PNM and telecom companies. [The county commission] approved site locations for cell [phone] towers. Through zoning we approved underground and overhead lines for PNM.

2. The Public Utilities Commission and the Corporation Commission.

3. Actually I am familiar with most recent two times and the one that's in process of being appealed. The percentages were protested by Blue Cross Blue Shield customers and members. That created a huge response both from newspapers and the community.

4. I'm probably better at naming them. Jerome Block, Shirley Garcia, David King, another tall gentleman with a hat.

5. First one I'm very curious about is whether or not they move the superintendent of insurance. Second one is whether or not corporations should be moved to the secretary of state's office. Third one has to do with qualifications. Should the legislature impose new qualifications? There's a lot of debate on whether legislators should set the qualifications.

6. They don't even require a GED. You have to be 18 years of age, a New Mexico resident and live within the district you represent.

7. I actually want to provide a leadership in alternative and renewable energy. I hope to create a citizen advisory board to keep the commissioners updated. I will be there with strong vigilance and scrutinizing the assumptions utilities make with their proposed rate hikes. I will protect consumers with [special] attention to seniors and low income residents.

Valerie Espinoza, 52, Santa Fe County Clerk

1. I realize it's a highly complex position but my professional experience brings 33 years of combined experience with the state and county and Los Alamos National Lab. At LANL I earned a pollution prevention awareness award. I've been recycling and promoting recycling for a number of years. Given my history and reputation, I will bring good government [to the PRC]. I am working to become extremely familiar with the issues. I've gone to Commissioner Doug Howe's meetings in Taos.

2. The Corporation Commission. Was the other the insurance department perhaps?

3. Goodness, I think there've been two. That's rather disturbing because Blue Cross Blue Shield is trying to impose their rate hikes. PRC commissioners have their hands tied when it comes to the decisions. There's one up right now. At the end of the day, ratepayers are ones that kicked in the shins.

4. Many. I do remember at least four and each individual had media coverage. I can name them. I don't feel it's appropriate. There has been a sufficient amount of scandal. That's why I feel I can restore [the PRC]. We can all work together.

5. Require a minimum criteria that includes some sort of formal education or relevant experience. That's why I supported it; it would weed out the potential for unqualified commissioners. The other is to remove the corporations out of PRC and send them to secretary of state's office. The last one is the superintendent, removing him from purview or jurisdiction from the PRC.

6. You must be 18 years old, must be a US citizen and reside in district.

7. First and foremost I would serve with honor and integrity and good old-fashioned hard work. I'd like to see utility rates as low as possible while still being fair to all parties. I'd like to assure that we find ways to introduce wind energy. I would make sure that I work with fellow commissioner before I institute any type of plan. We need someone with integrity and a proven record. Someone who can comprehend complex testimonies.

Danny Maki, 34, Director of Development, Boys and Girls Club of Santa Fe

1. One of the reasons I believe I'm best qualified is that I'm the only candidate that's worked at PRC and knows how it works. I'm very passionate about energy. It's important we take advantage of our labs and take wind and solar to the next level. I've worked in PRC. I was office manager for then-chair Ben Ray Luján.

2. The State Corporation Commission and the Public Utility Commission.

3. Since 2009 there's been three rate hikes and one is up right now. This one is 8.9 percent rate increase. Last one was 21 percent. One before that was 6 percent. We're raising rates at a time the economy is hurting and we have a lot of people on fixed incomes. So the rate increase, we have to look at it. It's a shame how much the rate has gone up.

4. Four. Carol Sloan, Shirley Baca, David King and Jerome Block.

5. One of them is changing qualifications for individuals running commissioner, the other is to move the corporation department to the secretary of state, and the other is to remove PRC's authority over insurance. My position is yes we need to have better qualifications, but the legislature will determine them next session (if voters approve the amendment). I believe we shouldn't write a blank check to the legislature.

6. You just have to be over age of 18.

7. Integrity, honesty and a working relationship with all parties. We got to be able to work with our local government, county, and federal government in order to bring back jobs to New Mexico. The congressman (Luján), when he was a commissioner he brought integrity to the commission. He knew the issues, knew what was going on. I hope all commissioners strive to be like that.

Brad Gallegos, 40, senior mortgage banker at Hamilton Group Funding

1. I believe the people of New Mexico need someone with the right reputation, someone concerned about their community and well-being. People are tired of politicians acting as regulators. Keep in mind the problem—the role of politics and money and how they've played on the commission at the expense of New Mexico citizens. Who better to take on issues than someone who takes on numbers? I bring 18 years of knowledge of small business in New Mexico, which gives me a grasp of regulations. Marketing, accounting, not to mention the state federal regulations I have to meet, I have to maintain compliance as a small business owner. With rules and regulations changing every day, it's important to have skilled professional on the PRC.

2. The State Corporation Commission and the Utilities Commission.

3. Including the one that's going now? They're probably going to review it. The one they're offering is 8.9 percent? I don't know exactly. I believe they started 8.9 percent.

4. The question would be how many do we want to see in the future? You would not see any scandals from me. Let's go down the list. You've got [David] King, you've got [Carol] Sloan, you've got [Jerome] Block. Don't forget Pat Lyons. That question depends on what you want to read and how you want to read it.

6. One is removal of insurance and other is removal of corporations to the secretary of state and other is adding qualifications [to commissioners].

7. I think there are none. Judging by the people we've elected?

8. I think what your asking is in what way can the PRC be improved. With effectiveness, responsiveness and transparency. Businesses have to be run most cost effective ways and that's going to keep rates down. We need to find better ways so they can operate effectively so when they raise rates it's not on back of consumers. When commissioners work with other departments, they're reading other companies' tidbits. I can analyze their tidbits. I would look at revenue, profit margin, their forecasting, analysis of their customer base, their profit and loss, just everything. Their economical position, how strong the company is.

Key

2. The State Corporation Commission and the Public Utilities Commission.

3. Two. A 20 percent rate increase in 2009 and a 21 percent increase in 2010. A third rate increase of 6.9 percent is being considered.

4. Three, David King, Jerome Block and Carol Sloan. We will also accept Pat Lyons for driving a state car to his ranch on numerous occasions. Shirley Baca's scandal happened in 2006.

5. Increase qualifications for commissioners, transfer the PRC's authority over the reporting and registration of corporations to the secretary of state, and remove the PRC's authority over insurance and change how Superintendents of Insurance are selected.

6. Be 18 or over, not a convicted felon and a New Mexico resident for one year.

Santa Fe Reporter