The Public Regulation Commission (PRC) has fined Picacho Hills Utility Company owner Stephen Blanco $950,000 and the utility itself $50,000, for dozens of violations of state public utility law and PRC rules and orders.
The $1 million fine is higher than any previously assessed by the Commission. The previous record was the $371,000 PNM was fined July 7 for an unreported and potentially explosive gas leak at a busy Albuquerque intersection.
Among other violations, the utility has failed to build a waste water discharge pipeline to the Rio Grande. Currently, treated waste water from the sewer treatment facility is stored in the Picacho Hills Country Club golf course ponds and is used to irrigate the golf course greens.
The $950,000 fine could be interpreted as excessive and as representing a personal “vendetta” against Blanco, Commissioner Jason Marks warned. The Picacho Hills utility is small, with only 800 customers.
But Commissioner Sandy Jones said ”It’s justified. …He has a year to pay it.”
Blanco has until Sept. 1, 2011 to pay his $950,000 fine, but most of the water company’s $50,000 fine — $35,000 — is due Sept. 15, 2010.
The Commission has referred possible witness intimidation and perjury charges against Blanco to the state Attorney General’s office, and will ask the district court in Las Cruces to force the utility into receivership, replacing Blanco with a court-appointed trustee.
If Blanco quickly surrenders control of the utility and the utility builds the discharge pipeline, portions of the fines may be rescinded, Jones and PRC chairman David King said.
Blanco has said the fines are a personal attack intended to force his surrender of valuable water rights. Blanco will appeal the penalties and efforts to force his utility into receivership to the Supreme Court, he has told The Independent.