New Mexico Act Requires Utilities to Save Energy
EERE Network News - 3/6/08
New Mexico Governor Bill Richardson signed a bill last week that requires
the state's electric and natural gas utilities to provide their customers
with cost-effective energy efficiency resources. By 2014, the state's
electric utilities must achieve energy efficiency gains equal to 5% of their
total sales in 2005, increasing to 10% of their 2005 sales by 2020. The
utilities could achieve these gains through such efforts as a rebate program
for energy efficient appliances, home weatherization programs, or programs
to give away or discount compact fluorescent light bulbs.
To help the utilities meet their goals, the New Mexico Public Regulation
Commission must identify and remove disincentives and barriers to such
energy efficiency programs, including one key item: the commission must
provide public utilities an opportunity to earn a profit on their energy
efficiency programs. In fact, when such programs perform satisfactorily, the
commission must provide a profit that "is financially more attractive than
supply-side resources." The new act allows utilities to recover their costs
and any commission-approved incentives through either an increase in base
rates or a special fee added to utility bills. The act also provides a
mechanism for utilities to fall short of their goals, requiring them to
justify the shortfall, to set new goals, and to gain commission approval for
lowering the goals. |