NOTICE OF PROPOSED RULEMAKING TO PROMOTE RENEWABLE ENERGY RESOURCES
by Lance Adkins
In January, I reported on the New Mexico Public Regulation Commission's (NMPRC) interest in promoting renewable energy projects in New Mexico, and had issued a Notice Of Proposed Rulemaking (NOPR) to that affect. This case is officially docketed as Case No. 3619. A definition of Renewable Energy was established by the legislature, in the Electric Utility Industry Restructuring Act of 1999, and that language was generally used in the proposed rulemaking. I say generally because language was added to the legislature's definition to include certain "biomass" projects, and the additional language is italicized in the definition below.
Renewable Energy is defined for this specific rulemaking as "electrical energy generated by means of a low- or zero-emissions generation technology that has substantial long-term production potential and may include, without limitation, solar, wind, hydropower, geothermal, biomass, including but not limited to agriculture or animal waste, small diameter timber, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds in New Mexico, landfill gas, anaerobically digested waste biomass or fuel cells that are not fossil fueled. Renewable Energy does not include fossil fuel or nuclear energy, provided however a renewable energy source shall qualify as renewable energy for purposes of this Rule if it is developed in combination with a fossil fuel source. However, only the amount of energy from the renewable resource shall qualify for purposes of meeting the portfolio standard of this rule."
Renewed activity by the NMPRC in pursuing Renewable Energy rulemaking came when the Legislature determined that deregulation in New Mexico should be delayed by five years, and all provisions of the law were put on hold, including mandatory provisions in support of renewable energy. The Act included mandatory purchases of renewable energy by utilities for consumers and established a "Systems Benefit Charge" to support the development of renewable energy projects in New Mexico. Under the Act, cooperatives and municipally owned electric utilities were exempt from mandatory renewable energy purchases under certain circumstances; however, all New Mexico consumers would be subject to the Systems Benefit Charge. In a departure from the law, the current NOPR would require electric cooperatives, including Farmers' Electric, to purchase a percentage of wholesale energy from renewable energy generators.
Today, Farmers' Electric and other New Mexico electric cooperatives do purchase renewable energy in the form of hydroelectric power generated at Federal hydroelectric projects in Colorado, generally in excess of 10% of total wholesale energy purchased. This power has historically been purchased at a lower cost than wholesale power we purchase from Southwestern Public Service Company (SPS), resulting in savings to our member/consumers. If the Commission's final rule passes, our current purchases from renewable energy resources in Colorado will not satisfy the rule, and mandatory purchases from other sources will certainly increase costs to our members.
Farmers' Electric agrees that further development of renewable energy resources is a worthy goal. Our concern centers on how these projects will be funded, and favors allowing consumers to voluntarily purchase renewable energy. So the question continues to be; should consumers be forced to purchase renewable energy, or should renewable energy be a voluntary option available from their local utility? Many point out that so long as renewable energy costs are higher than traditional resources, consumers are unlikely to participate on a voluntary basis.
Farmers' Electric will continue to oppose a mandatory requirement that will increase costs to our membership. Cooperatives are consumer owned and controlled through an elected Board of Trustees. If Cooperative members desire renewable energy options they have a voice in those decisions today, and do not require legislative or regulatory mandates to accomplish this goal. NMPRC Commissioners are elected by you, the people they represent, and if you feel strongly, one-way-or-another on this issue, I encourage you to contact your Commissioner directly. Comments on the Case will be accepted through April 15, and a public hearing has been scheduled for 9:30 am, May 8, 2002, Marian Hall, 224 Palace Avenue, in Santa Fe. This date may change, so if you plan to attend please call the NMPRC to check their schedule for this Case.
For more information you can contact the NMPRC directly at 1-800-663-9782 or (505) 827-6940, and reference Case No. 3619, or at www.nmprc.state.nm.us/notice.htm.
Members of Farmers' Electric are represented by two elected Commissioners, Mr. Rory McMinn (District 2), and Mr. Jerome D. Block (District 3). Mr. McMinn represents most of the Cooperative's service area, and Mr. Block represents members living primarily in Guadalupe County. Should you desire to comment on these Policy Principles, their mailing address is:
Maria Brito
Records Manager
NMPRC-Utility Division
Marian Hall
224 East Palace Avenue
Santa Fe, NM 87501
Lance Adkins is the General Manager of Farmers' Electric Cooperative in Clovis, New Mexico, providing electrical service to approximately 10,500 meters in New Mexico.
Didn't find what you were looking for? Click Here to visit the ARCHIVES or
Click Here for Page One of the New Mexico Journal.
Questions or Comments? Email editor@nmjournal.com
Copyright ©2000-2002 WordPros Publications, Inc. All Rights Reserved. No part of this site may be duplicated in any form without the express written consent of WordPros Publications, Inc. This includes all text, formatting, graphics, photographs, scripts and coding, etc. All brand names, logos, and product names used on these web pages are trademarks or tradenames of their respective holders. Terms of Use.
