Renewable Energy Standard: 2004 (expanded in 2007)
In 2002, the New Mexico Public Regulation Commission adopted a 10% Renewable Energy Standard for New Mexico, requiring investor owned utilities to provide 10% of their power from renewable sources by 2011 (and 5% by 2005). This was subsequently codified into Law by the Legislature in 2004. In 2007 the Standard was increased to also require 15% by 2015, and 20% by 2020. The RES was strongly advocated by the CCAE, and its adoption represents the desire of the people being expressed in regulation. New Mexico consumers do support strong renewable energy requirements! After challenges by utilities following the PRC's initial ruling, both in the media and State Supreme Court, Governor Bill Richardson endorsed the PRCs ruling, and the State Legislature subsequently codified it into law with little change. You can read a detailed history of the original RPS here.
Results
So far, the New Mexico RES has resulted in roughly $465 million in renewable energy development, including several large wind farms, a biomass plant (under development), and PNM's PV program (which provides financial support to customers to generate their own solar power).
Provisions
Targets: 5% by 2006, ramping up 1% a year to 10% by 2011. Then 15% by 2015 and 20% by 2020 (with no ramp up in between).
The new version also requires rural electric cooperatives to provide 5% of the power from renewables in 2015, and 10% in 2020, and allows coops to develop a special fund for renewable energy and efficiency projects with a 1.5% rate impact cap. Spending on meeting the targets is capped at a 2% rate impact for investor owned utilities, and 1% for coops. There are also rate caps, called "reasonable cost thresholds" set for specific sources of energy. Utilities are currently allowed to count solar power as three times wind power, and biomass as twice wind power.
Utilities and coops can purchase renewable energy credits, or "RECs" from renewable sources “contracted for delivery” in New Mexico as an alternative way to meet their obligations under the RES. Renewable power generated and consumed onsite is also eligible for RECs, such that, for example, utilities can purchase RECs from the owners of net-metered systems (this capability was clarified in 2007).
Under this policy, utilities submit a “Renewable Energy Procurement Plan” each year to the Public Regulation Commission, which are then considered in an official case open to all interested “interveners”. The Commission may “approve and modify” these plans.
