I've recently been alerted to two important opportunities for your involvement regarding New Mexico's electricity generation and cost and I will be on the air with Scott Stiegler at KKOB, 770 AM, this evening from 6:00-6:45 to discuss them and alert as many people as possible. Please listen and call in with questions and comments. (Listen online from anywhere.)
The first is tomorrow morning, Thursday at 8:00 AM. PNM is hosting an informational meeting and breakfast in Albuquerque. (A similar meeting will also be held in Santa Fe on July 30 at 8:00 AM.) The meetings are to introduce, and and provide an overview of, the year-long process of determining where the state's electricity will come from in the future--called the Integrated Resource Plan (IRP). At the meetings, PNM will review its existing power resources from wind and solar energy to coal, gas and nuclear energy, and explore those things that impact energy planning such as the projected need for electricity, regulations, cost to customers, the environment and the need to keep power reliable. PNM revisits the IRP every three years. I participated in both the introductory meeting and the year long process--which requires one afternoon a month--in 2011. It was fascinating and very educational. I encourage you to join me at the meeting tomorrow, or in Santa Fe on July 30, to learn more about New Mexico's power generation portfolio and to help you determine if you want to participate in the IRP process in the coming months. It would be great to have some rational thinkers present! More information can be found on the PNM website. If you plan to attend in Albuquerque or Santa Fe, they ask that you RSVP by emailing irp@pnm.com.
The second opportunity is to comment on the The Public Regulation Commission's proposed rule change.
PNM is mandated by New Mexico's Renewable Portfolio Standard (Passed by the legislature in 2007) to include certain percentages of renewable energy in its portfolio--but only if it doesn't cost too much for the consumers (known as the Reasonable Cost Threshold). The PRC is tasked with ensuring fair and reasonable rates for the consumer--basically protecting the consumer. The PRC wants to make a slight change to the existing rules.
Currently, regulations mandate that PNM meet the state's RPS with a prescribed mix: a minimum of 30% from wind, 20% from solar, 5% from "other" such as geothermal and 1.5% from distributed generation such has rooftop solar--regardless of cost. The PRC wants to allow PNM to fill the renewable energy mandate with the least-cost source--which will ultimately save the consumers money. The "distributed generation" portion of the rule has created a false market for rooftop solar installations--without the rule requiring PNM to purchase rooftop solar the expensive installations would not be attractive to potential customers who get paid 3-4 times as much for the electricity they generate than PNM's average portfolio cost. So, in essence, every PNM ratepayer--residential, business, or industrial--is subsidizing solar panels for the wealthy who can afford the up front costs.
The other major rule change involves the Reasonable Cost Threshold and how the costs are calculated. The way the cost of renewable energy is currently calculated doesn't take into account the true cost--for example that it requires back up generation or load following costs such as plant maintenance and fuel costs--which makes renewable appear less expensive. The PRC wants to the cost calculation to reflect the true costs.
The PRC is inviting public comment on the proposed rule change--but the comment period closes on Friday. Please contact the PRC now and tell them that you support the proposed rule changes. Send you comments via Email to prc.records@state.nm.us, or US Mail:
Mr. Nick Guillen
NMPRC Records Management Bureau
1120 Paseo de Peralta
P.O. Box 1269
Santa Fe, NM 87504
The Santa Fe New Mexican has a pretty good overview of the proposed rule changes that can be read here. The Sierra Club opposes the rule changes and, through an op-ed published in today's Albuquerque Journal, is encouraging people to contact the PRC to ask them to reject the proposed changes.