Senate Bill 418 was signed into law in March 2007 and added
new requirements to the state's Renewable Portfolio Standard,
which formerly required utilities to get 10 percent of their
electricity needs by 2011 from renewables. Under the new law,
regulated electric utilities must have renewables meet 15 percent
of their electricity needs by 2015 and 20 percent by 2020. Rural
electric cooperatives must have renewable energy for 5 percent
of their electricity needs by 2015, increasing to 10 percent
by 2020. Renewable energy can come from new hydropower facilities,
from fuel cells that are not fossil-fueled, and from biomass,
solar, wind, and geothermal resources.
In early March 2004, New Mexico Governor Bill Richardson signed
into law a measure (SB 43) that requires investor-owned electric
utilities to produce or buy increasing amounts of renewable energy.
According to the new law, renewables must make up 5 percent of
the utilities' sales by 2006, and 10 percent by the year 2011.
The renewable energy measure puts into statute a Public Regulation
Commission (PRC) rule that took effect last year. The law left
a tiny hole that would allow utilities to ignore the new law
through a provision for a PRC-established "reasonable cost
threshold" beyond which a utility would not be required
to add renewable energy to its energy supply portfolio.
Renewable energy is defined as electric energy generated from
resources such as solar, wind, hydropower, geothermal or biomass,
but does not include fossil fuel or nuclear energy. The “reasonable
cost threshold,” is to be established by the PRC through hearings
and research, by December 31, 2004. According to the Energy,
Minerals and Natural Resources Department, studies have indicated
that, while a “renewable portfolio standard” may slightly negatively
impact electric rates in the short term (i.e. up to 10 years),
its long-term impact will help to stabilize electric rates by
diversifying the supply mix and, in effect, serve as a substitute
for natural gas-fired electric power production.
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 no later than
January 1, 2011, as follows:
A diversity requirement for IOU’s as % of total RPS requirement:
No less than 20% Wind
No less than 20% Solar
No less than 10% Other technologies
No less than 1.5% Distributed Generation (2011-2014) and
3% Distributed Generation by 2015
RPS Compliance Links
Renewable Energy for Electric Utilities - 17.9.572 New
Mexico Administrative Code:
Renewable Energy Act
Senate Bill 418
Senate Bill 43
Code of Federal Regulations – Title 18: Conservation
of Power and Water Resources
|
