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Renewable Energy

New Mexico Public Regulation Commission and Renewable Energy in New Mexico 

The Public Regulation Commission reviews and approves renewable energy procurement plans and reports of Investor Owned Utilities ("IOU’s") and Rural Electric Cooperatives ("Coops") pursuant to the Renewable Energy Act ("REA"), §§ 62-16-1 et seq. NMSA 1978 and Title 17.9.572 NMAC ("Rule 572"). IOU’s in New Mexico are procuring renewable energy and renewable energy certificates from New Mexico renewable generation facilities to meet the Renewable Portfolio Standard (RPS) requirements of the REA and Rule 572.

 

Investor Owned Utilities and the RPS

The REA and Rule 572 established an RPS applicable to all investor owned electric utilities in New Mexico. In 2006, the RPS will be 5% of retail sales in kWh’s, reaching 10% by the year 2011.  Recent legislative changes to the REA (SB418, signed March 5, 2007 by Governor Bill Richardson) have increased the RPS percentages and extended the time lines - IOU’s now must have in their portfolio as a percentage of total retail sales to New Mexico customers, renewable energy of no less than 15% (by 2015) and 20% (by 2020).

 

Resource Diversity and the RPS
In addition to the RPS, Rule 572 requires that IOU’s must offer a voluntary renewable energy program to their customers. In addition to and within the total portfolio percentage requirements, utilities must design their public utility procurement plans to achieve a fully diversified renewable energy portfolio as follows:
Diversity requirements for IOU’s as % of total RPS requirement:
No less than 30% Wind
No less than 20% Solar
No less than 5% Other technologies
No less than 1.5% Distributed Generation (2011-2014) and 3% Distributed Generation by 2015

 

Reasonable Cost Threshold
A public utility shall not be required to add renewable energy to its electric energy supply portfolio, pursuant to the renewable portfolio standard, above the reasonable cost threshold established by the Commission. The reasonable cost threshold in any plan year is 3% of plan year total revenues, beginning in 2013.

 

Rural Electric Cooperatives and the RPS

The recent changes to the REA also included expanding the RPS requirements to rural electric cooperatives. Renewable energy must comprise of no less than 5% of retail sales to New Mexico customers by 2015 and the RPS will increase at a rate of 1% annually until 2020, at which time the RPS will be 10%. In addition to the RPS, Rule 572 also requires that Coops must offer a voluntary renewable energy program to their customers provided their supplier makes renewable resources available.

 

RPS Compliance

2006 is the first compliance year for New Mexico IOU’s, meaning that IOU’s must demonstrate they have met the RPS requirements in their Renewable Energy Portfolio Reports to the Public Regulation Commission. These reports must be filed with the Public Regulation Commission by July 1 of each year. Compliance estimates by technology type are shown below:

2011 Retail Sales RPS RPS Obligation Generated Year=2011
(Actual) Total Wind Solar Biomass
(MWh) % (MWh) (MWh)
PNM              
SPS              
EPE              
2010 Retail Sales RPS RPS Obligation Generated Year=2010
(Actual) Total Wind Solar Biomass
(MWh) % (MWh) (MWh)
PNM 9,090,828 6 497,915 565,829 552,242 13,587 -
SPS 4,366,190 6 261,971 739,488 739,243 245 -
EPE 1,646,976 6 98,819 102,791 96,323 1,001 5,467
2009 Retail Sales RPS RPS Obligation Generated Year=2009
(Actual) Total Wind Solar Biomass
(MWh) % (MWh) (MWh)
PNM 8,867,533 6 509,103 539,821 533,289 6,532 -
SPS 4,116,931 6 247,016 642,593 642,584 9 -
EPE 1,602,769 6 96,166 126,642 85,802 24,942 15,898
2008 Retail Sales RPS RPS Obligation Generated Year=2008
(Actual) Total Wind Solar Biomass
(MWh) % (MWh) (MWh)
PNM 9,162,354 6 503,401 581,179 577,506 3,673 -
SPS 4,168,103 6 250,086 768,677 768,677 - -
EPE 1,594,493 6 95,670 121,788 89,789 22,894 9,105
2007 Retail Sales RPS RPS Obligation Generated Year=2007
(Actual) Total Wind Solar Biomass
(MWh) % (MWh) (MWh)
PNM 8,726,294 6 502,755 502,321 500,560 1,760 -
SPS 4,106,037 6 246,362 687,911 687,911 - -
EPE 1,596,870 6 95,812 97,290 97,290 - -
2006 Retail Sales RPS RPS Obligation Generated Year=2006
(Actual) Total Wind Solar Biomass
(MWh) % (MWh) (MWh)
PNM 7,933,552 5 373,162 528,944 528,626 171 -
SPS 3,883,263 5 194,163 724,660 724,660 - -
EPE 1,537,449 5 76,872 78,320 78,320 - -

 

Sources: EPE, PNM, SPS Rule 572 Compliance Filings, Annual Reports - Form 1. 
Note: EPE purchased all wind RECs from PNM to meet the full RPS requirement for years 2006 and 2007.

 

Renewable Energy Certificate Tracking

The acquisition, sale or transfer, and retirement of any renewable energy certificates used to meet renewable portfolio standards on or after January 1, 2008 must be registered with the Western Renewable Energy Generation Information System (WREGIS).  WREGIS is the Western Governors’s Association’s independent regional tracking system to provide data necessary to substantiate and support verification and tracking of renewable energy generation.

 

Annual Renewable Energy Portfolio Procurement Plans

Public utilities (IOU's) must file with the Commission an annual portfolio procurement plan on July 1 each year. Rural Electric Distribution Cooperatives must file with the Commission by March 1 of each year, a report on its purchases and generation of renewable energy during the preceding calendar year. Rural Electric Distribution Cooperatives must also report to their membership, a summary of its purchases and generation of renewable energy during the preceding calendar year. Renewable energy plans and reports that public utilities file with the Public Regulation Commission are also required to be made available on the utility’s website. Below are links to the utility website where the most recently filed renewable energy plans and report documents are made available.

Renewable Energy Capacity in New Mexico 
New Mexico has several utility scale renewable generation facilities. Below is a list of utility scale facilities in New Mexico.

 

Electric Utility or Coop New Mexico Wind Projects Location Date Online MW
PNM New Mexico Wind Energy Center* DeBaca & Quay Counties 2003 204
PNM Red Mesa Wind Energy Center*
Nextera Energy
Cibola County 2010 102
Western Farmers Electric Coop (OK) Brahms Wind Project
(formerly Broadview Energy)
Curry County near Grady 2014 20
SPS Llano Estacado (Texico phase II)
Cielo Wind Power
Curry County 2003 2
SPS Caprock phase I & II*
Cielo Wind Power
Quay County 2004 & 2005 80
SPS San Juan Mesa* Roosevelt County 2005 120
SPS High Lonesome Mesa* Torrance County 2009 100
Arizona Public Service Aragonne Mesa* Guadalupe County 2007 90
Tucson Electric Power Macho Springs Power Luna County 2014 50
Exelon / LCEC Generation Wildcat Wind Ranch Lea County near Lovington 2012 27
  Anderson Wind Project Chaves County under construction
By BayWa r.e. Wind LLC
15
  Guadalupe Mountains Chaves County under construction 134
  Roosevelt Wind Farm Roosevelt County under construction
By EDF Renewable Energy
250
  El Cabo Wind Farm Torrance County near Willard pending
by Iberdrola Renewables
278

* projects are considered utility-scale with enough generating capacity for commercial viability

 

 

Electric Utility or Coop New Mexico Solar Projects Location Date Online MW
Mora-San Miguel Electric Coop Standard Solar San Miguel County May 2014 1.5
Otero County Electric Coop OCEC-owned Alamogordo substation,
Otero County
January 2014 76 kW
Kit Carson Electric Coop KCEC-owned

Concentrated PV & PPAs

Taos County 2010 3
Kit Carson Electric Coop Owned by Washington Gas Energy
RCCLA Amalia Solar Array 1
Taos County May 2012 1.5
Springer Electric Coop currently building one Colfax County estimate early 2015 1
Tri-State G&T Cimarron Solar Facility – First Solar Colfax County December 2010 30
Tri-State G&T Escalante Station- case study with Electric Power Research Institute McKinley County near Prewitt    
El Paso Electric Macho Springs Solar facility Luna County May 2014 50
El Paso Electric NRG Energy Roadrunner Solar Generating Facility Doña Ana County 2011 20
El Paso Electric Hatch Solar Energy Center Doña Ana County 2011 5
El Paso Electric Centennial Solar Farm – Sun Edison Doña Ana County May 2012 12
El Paso Electric El Chaparral Solar Farm Doña Ana County June 2012 10
El Paso Electric Rio Grande carport Doña Ana County 2009 64 kw
PNM Manzano Solar Energy Center
5 plants (Los Lunas, Deming,
Alamogordo, Las Vegas, Albuquerque)
Valencia, Bernalillo, San Miguel, Otero, and Luna Counties 2011 & 2013 36.5
PNM La Luz Solar Energy Center Otero County December 2013 7.5
PNM Meadowlake Solar Energy Center Valencia County 2014 9.1
PNM Sandoval County Solar Energy Center Sandoval County 2014 6.1
PNM Cibola Solar Energy Center Cibola County 2014 7.6
SPS / Xcel Energy Sun Edison solar project Lea and Eddy Counties 2011 50
SPS / Xcel Energy NM Community Solar Project Curry, Lea, and Chaves Counties   .1
Total Distributed Generated estimate across all IOUs and electric cooperatives various   45

 

Other Renewable Energy Programs
While IOU’s are complying with the RPS through primarily power purchases from non-utility or independent power producers ("IPP’s"), there are other programs that purchase REC’s from customer sited photovoltaic installations of 10kW or less. One such program is PNM’s Small PV Program

Voluntary (Green Power) Programs 

Investor Owned Utilities 
As required by Rule 572, IOU’s must offer a voluntary renewable energy program to their customers. New Mexico’s three IOU’s programs are listed in the tables below with links to their program websites. 

Investor Owned Utility El Paso Electric (EPE)
Program Title: Renewable Energy Tariff Program:
http://www.epelectric.com/nm/residential/sign-up-new-mexico
Energy Source: Wind from Hueco Mountain Wind Ranch, located east of Horizon City, Texas
Solar from Rio Grande PV installations, located in NM
Programs Offered: Fixed Monthly Cost:  $5.84 per month/ per 100kWh block (residential), $4.26 per month/ per 100kWh block (small commercial).  Must commit to a one-year program subscription.
2013 MWh: Participation:  approximately 75 customers
Sales:  907,740 kWh
2012 MWh: Participation:  approximately 75 customers
Sales:  926,640 kWh
2011 MWh: Participation:  approximately 100 customers
Sales:  950,900 kWh

 


Investor Owned Utility Public Service Company of New Mexico (PNM)
Program Title: Sky Blue:
https://www.pnm.com/pnm-sky-blue1
Energy Source:

Wind (85%) from NM Wind Energy Center near Fort Sumner, NM
Solar (15%) from solar panels located in Los Lunas, NM

Programs Offered:

Option 1:  Fixed Monthly Cost
$1.70 per 100kWh block above normal electricity cost, maximum number of blocks purchased cannot be greater than 90% of minimum monthly use in past 12 months.
Option 2:  Variable Monthly Cost
$0.017 per kWh above normal electricity cost, can purchase between 1% - 90% of monthly electricity usage

2013 MWh:

Participation:  approximately 3,600 residential, 100 non-residential customers
Sales:  36,973 MWh

2012 MWh:

Participation:  approximately 12,250 residential and 450 non-residential customers
Sales:  84,805 MWh

2011 MWh:

Participation:  approximately 13,000 residential and 450 non-residential customers
Sales:  106,397 MWh



Investor Owned Utility Southwestern Public Service
Program Title: Windsource:
http://www.xcelenergy.com/Save_Money_&_Energy/Residential/Renewable_Energy_Programs/
Windsource_for_Residences_-_NM?stateSelected=true
Energy Source:

Wind (100%) from Llano Estacado Wind Ranch, located in Texico, NM

Programs Offered: Fixed Monthly Cost:  $3.00 per month/ per 100kWh block, can purchase from one block per month up to 100% of electricity usage
2013 MWh:

Participation:  approximately 850 residential and 100 non-residential customers
Sales:  4,454 MWh

2012 MWh:

Participation:  approximately 1000 residential and 100 non-residential customers
Sales:  4,394 MWh

2011 MWh:

Participation:  approximately 1,100 residential and 100 non-residential customers
Sales:  5,505 MWh

 

 

Rural Electric Cooperatives 
As required by Rule 572, Coops must offer a voluntary renewable program to their customers to the extent that their energy suppliers make such renewable resources available. Sales for 2005 are shown below for 2005. For a website listing of the New Mexico cooperatives see theNew Mexico Rural Electric Cooperative Association’s website. Currently Tri-State Generation & Transmission supplies energy to most New Mexico Coops, as well as green power for the Coops voluntary programs. Current rates for green power sold through Tri-State’s Renewable Energy Program are $1.25 per 100 kWh block. Check with the individual cooperative for program details.

 

 

Source: COOP Rule 572 compliance filings to the Public Regulation Commission for 2006 and 2007.

 

Links and Resources 
For more information regarding the technologies, environmental initiatives, Federal and other regional programs to promote and support renewable energy technology and markets, please see the following links:




 
 
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