PRC Sets Direction for PNM Renewable Energy Plan

August 31 - The New Mexico Public Regulatory Commission (PRC) released its Final Order in the PNM Renewable Plan case. In summary, the PRC directive approved 46 MW of Solar electric power to be installed in the next three years.

The new PNM plan includes 24 MW of distributed generation and 22 MW of central utility owned solar power. The distributed generation program will continue to have net metering plus a Renewable Energy Credit (REC) payment for electricity generated by the customer. Net metering allows customers to run their meters backwards when their solar system produces more electricity than the customer is using. Net metering also provides the consumer some inflation protection from future utility electricity rate increases. The new REC program will have declining payments with cumulative installations that are intended to match declining costs of solar equipment.

At the end of 2009, there was about 2 MW of solar power on PNM's system. Thus, this 46 MW of new solar will substantially increase PNM's solar electricity output. This is certainly a step in the right direction.

However, solar energy produced by this new capacity will be less than 2% of PNM's total energy output. Since New Mexico has the second best solar energy potential in the nation, we still have a long way to go. - David Van Winkle