PUBLIC SERVICE COMPANY
OF NEW MEXICO.
IT )S SOMETHING PNM WON )T
TALK ABOUT EVEN THOUGH
ITS
COSTING TAXPAYERS
MILLIONS OF DOLLARS. IS
THE STATE )S LARGEST
UTILITY LOADING ITS
BILLS WITH QUESTIONABLE
CHARGES?
HERE )S LARRY )S
INVESTIGATION.
Perry: "What we )ve seen
is things that we feel
is pretty questionable."
Ennen: "This is very
important stuff. This is
public safety." Perry:
"We don )t think that )s
right on behalf of the
taxpayers."
Barker: "It )s a City of
Albuquerque expense so
obscure only a select
few know about it yet it
costs
taxpayers millions. And
it involves the state )s
largest utility. A News
13 investigation finds
PNM is
accused of gouging
taxpayers with inflated
bills and excessive
charges."
ROB PERRY IS
ALBUQUERQUE )S CHIEF
ADMINISTRATIVE OFFICER.
Perry: "In no uncertain
terms we let PNM know
that we thought that a
lot of these charges
were
questionable and we need
to change things going
forward because we
weren )t going to be
paying them."
WHATS THIS ALL ABOUT?
STREET LIGHTS. YOU SEE
WHENEVER AN ALBUQUERQUE
STREET LIGHT IS DAMAGED,
PNM DOES THE REPAIR
AND THEN BILLS THE CITY.
FOR EXAMPLE, WHEN A
MOTORIST CRASHED INTO A
LIGHT POLE ON 12TH
STREET, PNM REPAIRED THE
DAMAGE THEN INVOICED THE
CITY
$4400. WHEN THIEVES
STOLE THE COPPER WIRING
FROM A POLE ON COORS
PNM )S REPAIR BILL WAS
$20,000.
STREET LIGHTS ARE
DAMAGED MORE OFTEN THAN
YOU THINK. SINCE 2012
PNM HAS BILLED THE CITY
MORE THAN $3.8 MILLION
TO REPAIR 718 CITY OWNED
the nuts and bolts,
insulators and cables
are some unusual extras.
For example, PNM )
routinely has taxpayers
pick up the tab for
employee benefits
like payroll taxes,
pensions, worker )s comp,
vacations, even employee
meals. These extra
charges often add
hundreds of dollars to
each repair bill."
Perry: "Those indirect
types of charges, that
looks pretty
questionable and in
certain cases
unsupported,
probably improper and
not in the best interest
of PNM and certainly the
city taxpayers of
Albuquerque." Barker:
"And it )s not just
fringe benefits. PNM
also hits up the city
for unexplained overtime
pay,
even though street
lights are rarely
repaired during off
hours. For example, in
2014, thieves stole the
copper wire from this
street light on
Jefferson. PNM repaired
the damage 3 months
later and then billed
the city more than $2000
in overtime."
PETER ENNEN HEADS UP
ALBUQUERQUE )S RISK
MANAGEMENT.
Ennen: "Q. If it )s a
non-emergency situation
should the city be
paying PNM time and a
half for its employees
to do the repair? A. I
don )t think so. Q. Has
PNM provided explanation
on their overtime
charges? A. No they
haven )t. Q. Most bills
do contain over time
charges though? A. Yes."
PNM ALSO TACKS SOMETHING
CALLED A AND G ON ALL
OF ITS REPAIR BILLS.
Ennen: "We don )t get any
explanation of how they
calculate that charge,
why it is or what it is.
We just get
the expense on the
invoice. ... Q. What
do you think that actual
charge is for? A.
Overhead would be my
guess. ... Q. Is that a
legitimate charge in
your opinion? A. It
could be. And if it is
we )re willing to pay it
but we don )t get any
explanation for it. It )s
just there."
AND THEN THERE )S THE
CHARGE FOR TEMP
SERVICES.
Ennen: "Q. What are
outside temp services?
A. We think that that )s
paying temporary
clerical people to
prepare
the bills. ... It just
doesn )t seem right. It
is a part of their cost
but I don )t know that we
have to pay extra just
to have our bills put
together."
AND IT )S NOT JUST THE
MONEY. THIS STREET
LIGHT ISN )T WORKING
BECAUSE
THIEVES STOLE ALL THE
COPPER WIRE. SINCE 2012
COPPER THIEVES HAVE
RIPPED OUT VALUABLE
COPPER FROM 248 STREET
LIGHTS ACROSS THE
CITY. THE REPAIR BILL
TOPS $2 MILLION.
HOWEVER, COPPER THIEVES
ARE RARELY CAUGHT. THEY
OPERATE IN THE DEAD OF
NIGHT AND
PNM DOESN )T BOTHER
NOTIFYING THE POLICE
THAT A CRIME HAS
OCCURRED.
Ennen: "Q. If there )s
been a copper theft for
example from city
property ... will you
know about it right
away? A. No and that )s
a problem because we may
not find out about it
for six or eight months
until we get
the bill from PNM.
...They just go do the
repairs and send us a
bill. APD may never get
a report on a
copper theft. And that )s
a major problem for
APD."
Szych: "There )s all
kinds of problems with
delayed reporting the
biggest of which is we
simply don )t
know that the crime is
occurring therefore it )s
very difficult to stop
something that you don )t
know is happening."
COMMANDER PAUL SZYCH
OVERSEES APD )S COPPER
THEFT
INVESTIGATIONS.
Szych: "It makes it very
challenging to make an
apprehension ... and
therefore stop the
problem.
So for us it )s a real
big deal."
CITY ADMINISTRATORS SAY
PNM HAS SHOWN NO
INTEREST IN JUSTIFYING
ITS BILLING PRACTICES.
Ennon: "We )ve had
questions about the
billing for many years
and couldn )t resolve
them. ... We decided
that we were just going
to refuse to pay for
things that we
questioned. And so in
February we .. told them
what we were going to
do, not going to pay
these bills anymore with
these itemized charges
on them
that we questioned and
we stopped."
Barker: "So what does
PNM have to say? The
utility declined our
request for an
interview. However in a
written statement PNM
said it bills the city
only actual costs for
street light repairs and
does not mark up those
costs for a profit. PNM
defends its practice of
billing the city for
employee benefits by
calling it quote
completely appropriate."
Ennon: "Q. Has PNM
responded to the
February letter? A. No
they haven )t. ... Q. Has
PNM changed its billing
practices? A. Yes. They
stopped itemizing their
bills."
Perry: "We )re at a point
now where it )s time to
fix the problem and to
ensure that the invoices
and the
charges that are
included therein are
fully supportable that
they )re done timely and
that they )re done in a
prudent and justifiable
way on behalf of the
taxpayers. Q. Has that
been happening? A. I
think
there )s been some
questions that it
hasn )t."
LARRY BARKER KRQE NEWS
13.
YOU CAN FIND THE CITY )S
LETTER TO PNM AND PNM )S
RESPONSE ON OUR
KRQE APP.
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