Regulators approve showing renewable energy costs on electric bills

Aug 15 - McClatchy-Tribune Regional News - Staci Matlock The Santa Fe New Mexican

Public Service Company of New Mexico customers can expect to see between $1.38 and $1.47 tacked onto their monthly electric bills soon to cover the costs of adding renewable energy to the company's portfolio.

The New Mexico Public Regulation Commission approved PNM's request to add specific renewable energy costs to customer bills as new solar and wind facilities are added, as renewable energy is purchased and as credits are paid out to customers producing their own renewable energy. The initial amount that will show up soon on bills is PNM's bid to recover $95 million in costs for five new solar energy facilities completed last year.

The costs for renewable energy will be added as facilities are built. PNM calls it "pay as you go" and claims that in the long run, it will save customers money while increasing the use of renewable energy. Prior to this rate rider, PNM had to wait until each rate case to try to recover the costs of adding renewable energy.

Renewable energy advocates weren't happy with the PRC vote. They think it unfairly singles out renewable energy, since the costs for nonrenewable energy sources aren't shown. "It was not the outcome we wanted -- selective transparency that singles out clean energy on customer bills, but not costs for other resources [such as oil and natural gas]," said Steve Michel of Western Resource Advocates. "We'll consider our options once we see the [PRC] order."

The cost of constructing solar facilities is declining. PNM is planning to add 20 megawatts more of solar photovoltaic capacity that the company said will cost 40 percent less than the solar plants built last year.

Meanwhile, PNM remains far behind in meeting renewable energy requirements set by the state. It is supposed to produce 15 percent of its power from renewable sources by 2015.

In an effort to note the benefits of cleaner energy, the commissioners will require future PNM bills to contain a line that says "renewable energy reduces fossil fuel cost and generation." PNM claims paying for renewable energy as it's acquired will save customers about $2.7 million.

Contact Staci Matlock at 986-3055 or smatlock@sfnewmexican.com.