Protecting Our Communities From Wildfire Risk
Protecting Our Communities From Wildfire Risk
State legislators Pat Woods and Meredith Dixon discuss the state's efforts to limit wildfires and ensure utilities have access to wildfire insurance
Wildfire risks have gone up for utilities across the country. This has brought rising insurance costs and increased exposure for utilities. New Mexico’s lawmakers are working on solutions that protect communities and incentivize wildfire mitigation work.
New Mexico State Sen. Pat Woods and Rep. Meredith Dixon recently spoke with New Mexico Rural Electric Cooperative Association CEO Vince Martinez to discuss why wildfire liability reform is urgently needed and how their proposal would support consumers and the co-ops that serve them.
Connection to Rural New Mexico
Q: How has your connection to rural communities shaped your understanding of wildfire risk and infrastructure needs?
Sen. Woods: I first ran for public office because I wanted to make sure the voices of rural New Mexico were being heard in Santa Fe. There are great infrastructure needs for a district like mine, because every New Mexican deserves access to power, broadband, et cetera, meaning infrastructure has to cross more miles to every person.
When you mix that in with heightened wildfire risks for rural areas, we have to make sure our policies address these unique needs.
Rep. Dixon: I grew up along the Ohio–West Virginia border and know how each small town is unique and deserves to have their specific needs met. I want to ensure every New Mexican is protected from the ever-increasing risk of catastrophic wildfires.
And here especially, our communities are interconnected, meaning that what happens in our rural communities has direct implications for urban areas like the district I represent, whether that’s transmission infrastructure to move electrons across the grid, or the effects of wildfire on insurance prices and availability.
The Role of Electric Cooperatives
Q: What do you see as the role of New Mexico’s electric cooperatives in wildfire prevention and community protection?
Rep. Dixon: While my district is not covered by a co-op, I have had the privilege of learning more about them through my work on energy policy. Co-ops are critical to bringing electricity to every home in New Mexico, often covering service territories that for-profit companies will not serve. They have thousands of miles of infrastructure that cross unique landscapes that all have different wildfire risks and need tailored solutions to reduce those risks. I hear consistently of the fire mitigation work New Mexico’s co-ops are doing, and I am excited this legislation provides structure and incentives for the co-ops to do even more.
Sen. Woods: My ranch and home are powered by a co-op, so I know firsthand how integrated they are in the community because they are our friends and neighbors. That means co-ops take wildfire prevention very seriously, because they want to protect their own community. Co-ops are using cutting-edge technology to address wildfire issues across each of their distinct landscapes.
Understanding the Risk Landscape
Q: Wildfire frequency and costs have been increasing nationwide. How is this risk affecting rural communities, co-ops and ratepayers in New Mexico?
Sen. Woods: I represent one of the most rural districts in the state, so every summer my constituents hold their breath, because fire is an ever-present threat. I know rural co-ops take fire mitigation work very seriously, because that’s how they protect their communities.
Rep. Dixon: We have seen firsthand in New Mexico how quickly fires can grow, with the frequency and intensity of these fires only getting worse in recent years. My own constituents have felt these impacts directly as insurance companies increase prices or even drop them for wildfire risk, even in urban environments like Albuquerque. Wildfire risks and costs affect every New Mexican, regardless of what part of the state you call home.
The Motivation Behind the Bill
Q: What inspired you to take on the issue of wildfire liability?
Sen. Woods: I sponsored legislation last year that called for a new approach to how we coordinate, mitigate and fight wildfires. Out of that legislation, we were able to pull together a diverse working group across first responders, government and utilities. One issue that consistently came up during that process was how rural electric co-ops are unable to get adequate insurance coverage for wildfire risk. Since protecting my rural communities from rate increases is a top priority, this inspired me to take this issue on.
Rep. Dixon: Affordability is probably the single biggest concern I hear from my constituents. Some people in my district also have lost insurance coverage in recent years due to increased wildfire risk, which underscored to me the importance of wildfire mitigation.
How the Proposed Legislation Works
Q: How would your bill help utilities better manage wildfire risk and keep energy affordable?
Sen. Woods: All New Mexico communities deserve to know their power will be on tomorrow, but not-for-profit co-ops are at the most risk of bankruptcy in the case of a large wildfire. This bill would provide more certainty for co-ops, so they are able to continue serving their communities.
Rep. Dixon: Access to wildfire insurance is forcing co-ops to tighten budgets, which ultimately limits how much they can invest in wildfire mitigation. This bill would help co-ops manage that risk by spreading it more fairly across the state, while also incentivizing more wildfire mitigation projects.
What Happens if the Legislature Doesn’t Act
Q: What do you believe is at stake for New Mexico communities if no reforms are passed this session?
Sen. Woods: Rural communities are doubly at risk by this issue—with more exposure to wildfire risks while also being served by not-for-profit electric co-ops that don’t have the deep pockets of other utilities. Now is the time to act to address these risks, so we don’t look back after another devastating fire wishing we had done more to protect rural communities.
Rep. Dixon: We have the opportunity to act now to prevent wildfires and protect rural and urban communities alike. Other fire-prone western states are taking great steps to address this issue, and New Mexico should do the same before we face another catastrophic wildfire season.
