Officials: Solar users won't be separate class

LAS CRUCES -- Oct 29 - McClatchy-Tribune Content Agency, LLC - Steve Ramirez Las Cruces Sun-News, N.M.

Efforts by El Paso Electric Co. to create a separate rate class for solar residential customers in New Mexico have been halted.

The New Mexico Public Regulation Commission, on a 3-2 vote at its weekly meeting Wednesday in Santa Fe, approved an order to deny El Paso Electric from including solar residential customers as a separate class in a proposed rate increase case the utility has filed in New Mexico.

"We reviewed our (commission) rules, state statute and federal law and upheld that El Paso Electric cannot do that," said Commissioner Sandy Jones, whose PRC district includes Las Cruces. "We cited a number of federal rules. ... We felt like the facts were against them."

Jones and Commissioners Karen L. Montoya and Valerie Espinoza voted to deny a separate category for solar residential customers in El Paso Electric's rate case. Commissioners Patrick H. Lyons and Lynda Lovejoy voted the other way.

The Alliance for Solar Choice filed a motion Aug. 3 with the PRC to dismiss El Paso Electric's proposal to create a separate rate class for solar residential customers. Some Las Cruces homeowners and companies that install home solar energy systems have criticized the proposal, saying a separate rate category would penalize solar residential customers who operate systems they claim benefit El Paso Electric.

"A separate category for solar residential customers would have defeated the whole purpose of installing and operating those systems," said Janice Dwyer, who installed solar collection panels on the roof of her East Mesa home almost seven years ago. "I just don't think El Paso Electric (officials) completely thought it through before trying to create that separate class."

Resident rate class

Eddie Gutierrez, El Paso Electric vice president of external and public affairs, said the PRC's decision won't change rate increases sought by the utility.

"The proposed increase in the rate case filing will not change the average bill impact on residents, currently proposed at 9 percent of the total average monthly bill," said Gutierrez, in an email sent to the Sun-News. "This includes residents with or without solar panels. (Solar panel owners) go back to being treated as they are today, and the rates adopted in the case for residential apply to them."

City Manager Robert Garza said he was not surprised with the outcome.

"I feel it will further simplify the discussion moving forward," Garza said.

Jones said El Paso Electric can file a rate adjustment with the PRC -- to include solar panel customers in the proposed rate increase -- or appeal the commission's decision to the New Mexico Supreme Court.

"They will have to adjust their filing and then justify it," Jones said. "Either way, we're still months away from a final decision in this rate case."

Water utility

Also Tuesday, the commission unanimously approved the application of Mesa Development Center Inc. to abandon all regulated utility service and transfer all of its water utility assets to the city of Las Cruces. The commission's decision ends years of efforts by Mesa Development to sell its utility system to the city. The private utility company has provided water and wastewater services to 305 customers on the city's East Mesa.

"It seems to make sense for the sale to go forward," Jones said. "Before we approved this, the commission just wanted to make sure that the former owners (Las Crucen Grover Pettes and his family) were getting a fair price for the utility."

Garza said city officials are pleased the acquisition of Mesa Development Center can be completed. The sale of the utility was also stalled years ago when Moongate Water Co. filed a lawsuit in state district court claiming it had an exclusive service area within half a mile of Mesa Development's infrastructure. But in August 2011, the New Mexico Court of Appeals overturned a decision by former state District Judge Robert Robles that agreed with Moongate's claim.

"It is very important that everyone knows that Mesa Development Water Company executives have pursued a voluntary sale to the city," Garza said. "It has taken some time to work out details and fair costs for the transaction.

"... Also important is that we intend to invest in system rehabilitation and upgrade to align with other city service standards, and the customers will be paying rates that are lower than their current structure."

Steve Ramirez can be reached at 575-541-5452 or sramirez@lcsun-news.com; follow him on Twitter @SteveRamirez6.