RPS New Mexico
(Last updated July 1st, 2004)

RENEWABLE PORTFOLIO STANDARDS-STATE SUMMARY

I. POLICY
II. ADMINISTRATION
III. FINANCING
IV. CRITICAL ELEMENTS
V. POLICY/PROGRAM ASSESSMENT
VI. PUBLIC OUTREACH AND EDUCATION


I. POLICY

Date Enacted
March 4, 2004

Effective Date
July 1st, 2004

Time Period
2006–2011 onward

Extensions to Time Period
No sunset provision, 10% renewable standard continues onward from 2011.

Applicable Laws, Orders, and Regulations
Renewable Energy as a Source of Electricity - 17.9.573 New Mexico Administrative Code:
http://www.nmprc.state.nm.us/utility/pdf/3619finalrule.pdf
Renewable Energy Act
http://legis.state.nm.us/sessions/04%20regular/bills/senate/sb0043.html

Description
Rule 17.9.573 NMAC, Renewable Energy as a Source of Electricity, establishes a process for promoting and developing New Mexico's renewable energy resources. Each public utility's electricity production portfolio will include a progressively greater percentage of service from renewable sources. Rural electric cooperatives are exempt from the standard.

The legislation requires that utilities generate 5% of retail-sold power as of 2006, increasing by 1% per year to 10% of retail generation in 2011. The intent of this measure is to strengthen the stability of the supply of electricity, enhance the environmental health and welfare of the state, stimulate economic development, conserve water and depletable resources, while reducing vulnerability to power market price fluctuations.

To promote portfolio diversity and to encourage the development of solar power, each kilowatt -hour of electricity generated by solar technology will count as three kilowatt-hours toward compliance with the renewable portfolio standard. Each kilowatt-hour generated from biomass, geothermal, landfill gas and fuel cell sources will count as two kilowatt-hours towards compliance with this rule.

Beginning December 2005 and biennially thereafter the Commission will review the standard and recommend changes as appropriate.

Program Name
17.9.573 NMAC, Renewable Energy as a Source of Electricity

Standard

Effective Date	% Renewable Generation
January 1, 2006	5%
January 1, 2007	6%
January 1, 2008	7%
January 1, 2009	8%
January 1, 2010	9%
January 1, 2011	10%

Eligibility Date
Hydroelectric generation is limited to new facilities.

Generation Limit
RPS eligible hydroelectric generation facilities shall be limited to 5 MW or less.

Fuels/Technologies

• Solar
  
• Fuel Cells
  
  
  
  • not fossil fueled
  
  
• Biomass, including but not limited to
  
  
  
  • Agricultural or animal waste
    
  • Small diameter timber
    
  • Salt cedar and other phreatophytes or woody vegetation removed from New Mexico's river basins and watersheds
    
  • Anaerobically digested waste
    
  • Landfill gas
    
  • Biomass co-firing with non-renewable fuels is allowed under the RPS. In co-firing facilities, only the biomass contribution to electricity generation will be RPS eligible.
  
  
• Geothermal
  
• Wind generation
  
• Small-scale hydroelectric (under 5 MW)

II. ADMINISTRATION

Administering Entities
New Mexico Public Regulation Commission

Type of Entity
State

Administrative Contacts
New Mexico Public Regulation Commission
1120 Paseo de Peralta/P.O. Box 1269
Santa Fe, New Mexico 87504-1269
Phone: 505-827-6940
http://www.nmprc.state.nm.us

III. FINANCING

Funding Level
None specified

Funding Source
None specified

Cost Cap
Industrial consumers requiring large loads of electricity surpassing 10 million kilowatt-hours are protected from receiving charges over $100,000 per year or no more than a 2% increase in electricity charges for renewable energy sources.

Charge
The PRC shall create a consumer protection threshold to establish reasonable costs above which consumers will not have to pay for the excess costs of renewables.

IV. CRITICAL ELEMENTS

Trading
Renewable energy certificates may be traded, sold, or otherwise transferred from their owner to any interested party. Utilities may procure renewable energy certificates from a certified source in the event that it has not generated a sufficient percentage of renewable based electricity. This procurement shall be in the form of a contract to purchase renewable energy for a period of no less than ten years.

Green Pricing
Each public utility shall offer a voluntary renewable energy tariff, for those customers who want the option to purchase renewable energy, regardless of cost, based on availability. Generation sold under green pricing programs is eligible under the RPS.

Certification
A renewable energy certificate shall provide a detailed description of source, producer, date of issue and quantity of kilowatt hours represented to enable the Commission to properly track and document RPS procurement. Once used to satisfy the renewable portfolio standard, certificates are to be retired. A certificate may be "rolled over" for use in subsequent years, but has no value beyond four years from the date of its issuance.

Out-of-State
Utility generation portfolios shall take into consideration the overall reliability, availability, dispatch flexibility and cost of various resources by providers and generators. Other factors being equal, preference shall be given to renewable energy generated in New Mexico. However, the recent legislation has provided New Mexico electricity suppliers an opportunity to trade renewable energy credits outside of the state because development of a southwestern market for such credits could be profitable for New Mexico.

Self-generation
No regulations specified, though additional rulemaking on self generation is anticipated.

Flexibility
The legislation allows for credit trading, credit banking, and provides credit multipliers for specific resources to allow utilities flexibility in meeting the standard. Renewable energy certificates maintain value for up to four years after date of issuance, and may be used to meet the standard at the utility's discretion. To promote portfolio diversity and to encourage the development of solar power, each kilowatt -hour of electricity generated by solar technology will count as three kilowatt-hours toward compliance with the renewable portfolio standard. Each kilowatt-hour generated from biomass, geothermal, landfill gas and fuel cell sources will count as two kilowatt-hours towards compliance with this rule.

V. POLICY/PROGRAM ASSESSMENT

Reporting Requirement
The legislation requires that proposed strategies be publicly available on the utility's website. By October 1, 2004 and by October 1 each subsequent year, each utility must file a portfolio plan for the following year.

By July 1, 2004 and by July 1 of each following year, each utility shall submit an annual report including an itemized list of all electricity generated and procured with accompanying certificate copies for review by the Commission.

Enforcement mechanisms are to be promulgated and may include imposition of administrative fines.

Assessing Entity
New Mexico Public Regulation Commission
1120 Paseo de Peralta/P.O. Box 1269
Santa Fe, New Mexico 87504-1269

Report Date
July 1 annually

Report Name
Portfolio Summary
http://www.nmprc.state.nm.us/utility.htm

Status
New Mexico's RPS requirement does not begin until January 1, 2006. The Renewable Energy Act, passed on March 4, 2004, strengthens the RPS by establishing more palpable cost caps and thresholds as well as developing an out-of-state trading system, which driven by the energy market of the Southwest, could further strengthen renewable energy development in New Mexico through a regional trading system advantages.

Cost Information
Not available at this time

Assessment Contact
New Mexico Public Regulation Commission
1120 Paseo de Peralta/P.O. Box 1269
Santa Fe, New Mexico 87504-1269
Phone: 505-827-6940
http://www.nmprc.state.nm.us


VI. PUBLIC OUTREACH AND EDUCATION

Outreach/Customer Education
Under the RPS legislation, each public utility shall develop an educational program, highlighting to its customers the benefits and availability of purchasing additional renewable energy.

State of New Mexico Consumer Relations Division:
http://www.nmprc.state.nm.us/CRDmissnstmt1.htm

New Mexico Public Regulation Commission Utility Division:
http://www.nmprc.state.nm.us/utility.htm

Press Releases
New Mexico Public Regulation Commission
http://www.nmprc.state.nm.us/newsrel.htm