TITLE 17 PUBLIC UTILITIES AND UTILITY
SERVICES
CHAPTER 9 ELECTRIC SERVICES
PART 572 RENEWABLE ENERGY FOR ELECTRIC
UTILITIES
17.9.572.1 ISSUING AGENCY: New Mexico Public
Regulation Commission.
[17.9.572.1 NMAC - Rp. 17.9.572.1 NMAC, 2/28/2023]
17.9.572.2 SCOPE: This
rule applies to all electric investor-owned public utilities under the commission’s
jurisdiction.
[17.9.572.2 NMAC - Rp, 17.9.572.2 NMAC, 2/28/2023]
17.9.572.3 STATUTORY AUTHORITY: Sections 62-13-13.1 NMSA 1978 and 62-16-1 to 62-16-10 NMSA
1978.
[17.9.572.3 NMAC - Rp, 17.9.572.3 NMAC, 2/28/2023]
17.9.572.4 DURATION: Permanent.
[17.9.572.4 NMAC - Rp, 17.9.572.4 NMAC, 2/28/2023]
17.9.572.5 EFFECTIVE DATE: February 28, 2023,
unless a later date is cited at the end of a section.
[17.9.572.5 NMAC - Rp, 17.9.572.5 NMAC, 2/28/2023]
17.9.572.6 OBJECTIVE: The purpose of this
rule is to implement the Renewable Energy Act, Sections
62-16-1 to 62-16-10 NMSA 1978, and to bring significant economic
development and environmental benefits to New Mexico.
[17.9.572.6 NMAC - Rp, 17.9.572.6 NMAC, 2/28/2023]
17.9.572.7 DEFINITIONS: Unless otherwise
specified, as used in this rule:
A. Definitions beginning with “A”: “average annual levelized cost” means a calculation to produce the
present value of the total cost of building and operating a new resource over
an assumed lifetime, assuming equal unit costs each
year over the life of the resource. Average
annual levelized cost is calculated by dividing the present value of the
assumed lifetime total cost of a new resource by the present value of the
assumed lifetime generation production of that new resource. The equation for calculating average annual
levelized cost is as follows:
where, It equals
investment expenditures in year t (including financing) in nominal
dollars; Mt equals operations and maintenance expenditures in
year t in nominal dollars, including but not
limited to return, depreciation, property taxes, and income taxes, net of tax
credits that are passed on to customers; Ft equals fuel
expenditures and variable operations and maintenance in year t in
nominal dollars; Et equals electricity generated in year t
including any degradation; r equals a discount rate equal to the utility’s after-tax
weighted average cost of capital as authorized in the utility’s most recent
rate case; and n
equals the assumed lifetime of the new resource. Fuel expenditures would not be applicable for
determining the levelized cost of renewable resources but may be applicable for
determining the levelized cost of proposed zero-carbon resources.
B. Definitions beginning
with “B”: [RESERVED]
C. Definitions
beginning with “C”: [RESERVED]
D. Definitions beginning with “D”: [RESERVED]
E. Definitions beginning with “E”: “emissions” means all emissions regulated by state or federal
authorities, including but not limited to: all
criteria pollutants and hazardous air pollutants, methane, mercury, and carbon
dioxide.
F. Definitions beginning
with “F”: “financial incentive” means money or additional earnings that a public utility is
authorized to collect from ratepayers by the commission or capital investment
opportunities to encourage certain behaviors or actions that would not
otherwise have occurred in order to further the
outcomes described in Section 62-16-4 NMSA 1978. The financial incentive, or monetary benefit,
motivates certain behaviors or actions.
G. Definitions beginning with “G”:
“greenhouse gas emissions” means emissions of gases including carbon dioxide, methane,
nitrous oxide, fluorinated gases, or other gases that trap heat in the atmosphere.
H. Definitions beginning with “H”:
[RESERVED]
I. Definitions beginning with “I”: “IRP” means
integrated resource plan.
J. Definitions beginning with “J”:
[RESERVED]
K. Definitions beginning with “K”:
[RESERVED]
L. Definitions beginning with “L”:
[RESERVED]
M. Definitions beginning with “M”:
[RESERVED]
N. Definitions beginning with “N”:
[RESERVED]
O. Definitions beginning with “O”:
[RESERVED]
P. Definitions beginning with “P”:
(1) “plan year” means the calendar year for which approval is sought;
(2) “plan
year total retail energy sales” means retail energy sales in kilowatt-hours
projected for the plan year adjusted for projected energy efficiency reductions
based on approved energy efficiency and load management programs in effect at
the time of the filing, less energy sales to voluntary program participants
under Section 62-16-7 NMSA 1978;
(3) “political
subdivision of the state” means a division of the state made by proper
authorities thereof, acting within their constitutional powers, for purpose of
carrying out a portion of those functions of the state which, by long usage and
inherent necessities of government, have always been regarded as public;
(4) “procure or procurement” means a competitive
process conducted by an investor-owned electric utility for soliciting and
evaluating purchased power, facility self-build, or facility build-transfer
options as proposals for any new, additional, or amended renewable energy
resource, including but not limited to, instructions to bidders, bid
specifications, conditions, forms, or other requirements included in a request
for proposals, and all methods, practices, and assumptions used by an investor-owned
electric utility to model or evaluate such proposals or to negotiate with
bidders, in order to generate or purchase any renewable energy resource or to
commit to generate or purchase any renewable energy resource, but does not include agreements to purchase energy or
capacity from a qualifying facility pursuant to 17.9.570 NMAC;
(5) “public utility” means investor-owned
electric utility certified by the commission to provide retail electric service
in New Mexico pursuant to the Public Utility Act and does not include rural
electric cooperatives or municipalities.
Q. Definitions beginning with “Q.”: [RESERVED]
R. Definitions beginning with “R”:
(1) “reasonable cost threshold” (RCT) means an average annual levelized cost of $60.00 per
megawatt-hour at the point of interconnection of the renewable energy resource
with the transmission systems, adjusted for inflation after 2020. The reasonable cost threshold is a customer
protection mechanism that limits the customer bill impact resulting from annual
Renewable Energy Act plans;
(2) “renewable
energy” means electric energy generated by use of renewable energy
resources and delivered to a public utility;
(3) “renewable energy certificate” (REC)
means a certificate or other record, in a format approved by the commission,
that represents all the environmental attributes from one megawatt-hour of
electricity generated from renewable energy delivered to a public utility and
assigned to its New Mexico customers;
(4) “renewable energy resource” means the following energy resources with or without
energy storage:
(a) solar,
wind, and geothermal;
(b) hydropower
facilities brought in service on or after July 1, 2007;
(c) biomass
resources, limited to agriculture of animal waste, small diameter timber not to
exceed eight inches, salt cedar, and other phreatophyte or woody vegetation
removed from river basins or watersheds in New Mexico, provided that these
resources are from facilities certified by the energy, minerals and natural resources
department to:
(i) be of appropriate scale to have
sustainable feedstock in the near vicinity;
(ii) have
zero life cycle carbon emissions; and
(iii) meet
scientifically determined restoration, sustainability and soil nutrient
principles;
(d) fuel
cells that do not use fossil fuels to create electricity; and
(e) landfill
gas and anaerobically digested waste biogas.
(5) “renewable portfolio standard” (RPS) means
the minimum percentage of retail sales of electricity by a public utility to
electric consumers in New Mexico that is required by the Renewable Energy Act
to be from renewable energy;
(6) “renewable
purchased power agreement” means an agreement that binds an entity
generating power from renewable energy resources to provide power at a
specified price, for a specified term, and binds the purchaser to that price.
S. Definitions beginning with “S”: [RESERVED]
T. Definitions beginning with “T”: [RESERVED]
U. Definitions beginning with “U”: [RESERVED]
V. Definitions beginning with “V”: [RESERVED]
W. Definitions beginning with “W”: “WREGIS” means
the western renewable energy generation information system.
X. Definitions beginning with “X”: [RESERVED]
Y. Definitions beginning with “Y”: [RESERVED]
Z. Definitions beginning with “Z”:
(1) “zero carbon resource” means an electricity generation resource that emits no
carbon dioxide into the atmosphere, or that reduces methane emitted into the
atmosphere in an amount equal to no less than one-tenth of the tons of carbon
dioxide emitted into the atmosphere, as a result of
electricity production;
(2) “zero carbon
resource standard” means providing New Mexico public utility customers with
electricity generated from one hundred percent zero carbon resources.
[17.9.572.7 NMAC - Rp, 17.9.572.7 NMAC, 5/4/2021; A, 2/28/2023]
17.9.572.8 LIBERAL CONSTRUCTION: This rule shall be
liberally construed to carry out its intended purposes. If any provision of this rule, or the
application thereof to any person or circumstance, is held invalid, the
remainder of the rule, or the application of such provision to other persons or
circumstances, shall not be affected thereby.
[17.9.572.8 NMAC - Rp, 17.9.572.8 NMAC, 2/28/2023]
17.9.572.9 RELATIONSHIP TO OTHER COMMISSION
RULES:
Unless otherwise specified, this rule does not supersede any other rule
of the commission but supplements rules applying to public utilities.
[17.9.572.9 NMAC - Rp, 17.9.572.9 NMAC, 2/28/2023]
17.9.572.10 RENEWABLE
PORTFOLIO STANDARD:
A. Each public utility
shall develop an annual Renewable Energy Act plan to comply with the renewable
portfolio standard during the plan year.
The plan shall demonstrate reasonable and consistent progress toward
meeting the renewable portfolio standard to be effective following the end of
the plan year. Renewable energy
resources that are in a public utility’s electric energy supply portfolio on
July 1, 2004 shall be counted in determining
compliance with this rule. However,
renewable energy sold to customers through a voluntary renewable energy program
tariff approved by the commission shall not be counted in determining
compliance with this rule. Other factors
being equal, preference shall be given to renewable energy generated in New
Mexico.
B. Renewable portfolio standards: For public utilities other than rural electric
cooperatives and municipalities, requirements of the renewable portfolio
standard are:
(1) no later
than January 1, 2015, renewable energy shall comprise no less than fifteen percent
of each public utility’s total retail sales to New Mexico customers;
(2) no later
than January 1, 2020, renewable energy shall comprise no less than twenty
percent of each public total retail sales to New Mexico customers;
(3) no
later than January 1, 2025, renewable energy shall comprise no less than forty percent
of each public utility’s total retail sales to New Mexico customers;
(4) no
later than January 1, 2030, renewable energy shall comprise no less than fifty
percent of each public utility’s total retail sales to New Mexico customers;
(5) no later
than January 1, 2040, renewable energy resources shall supply no less than eighty
percent of all retail sales of electricity in New Mexico, provided that compliance
with this standard until December 31, 2047 shall not require the public utility
to displace zero carbon resources in the utility’s generation portfolio as of June
14, 2019; and
(6) no
later than January 1, 2045, zero carbon resources shall supply one hundred
percent of all retail sales of electricity in New Mexico. Reasonable and consistent progress shall be
made over time toward this requirement.
C. Demonstration of compliance: In accordance with Section
62-16-5 NMSA 1978:
(1) compliance with the renewable portfolio standard shall be demonstrated
by the retirement of renewable energy certificates, provided that the
associated renewable energy is delivered to the public utility and assigned to
the public utility’s New Mexico customers;
(2) a public
utility shall not retire renewable energy certificates associated with
renewable energy from generation resources for which it has traded, sold, or
transferred the associated renewable energy certificate for purposes of
compliance with the renewable portfolio standard; and
[17.9.572.10
NMAC - Rp, 17.9.572.10 NMAC, 2/28/2023]
17.9.572.11 COMMISSION
ADMINISTRATION OF RPS AND ZERO CARBON STANDARDS: After consultation
with the department of environment, the commission may not approve a public
utility’s annual Renewable Energy Act plan that results in material increases
to greenhouse gas emissions from entities not subject to commission oversight
and regulation.
[17.9.572.11 NMAC - Rp, 17.9.572.11 NMAC, 2/28/2023]
17.9.572.12 REASONABLE COST THRESHOLD:
A. The
reasonable cost threshold in any plan year is adjusted for inflation starting
in 2021 by the amount of the cumulative increase change in the consumer price
index, urban, all items, published by the bureau of labor statistics between
January 1 of the year prior to the procurement plan year and January 1 of the
procurement plan year. Each public
utility shall include in its annual Renewable Energy Act plan a reasonable cost
threshold analysis by proposed procurement for the plan year for which it seeks
commission approval. This analysis shall
show how each procurement compares for that plan year with the inflation adjusted
reasonable cost threshold.
B. If, in any given year, a public
utility determines that the average annual levelized cost of renewable energy
that would need to be procured or generated for purposes of compliance with the
renewable portfolio standard would be greater than the reasonable cost
threshold, the public utility shall not be required to incur that excess cost;
provided that the existence of this condition excusing performance under the
renewable portfolio standard in any given year shall not operate to delay
compliance with the renewable portfolio standard in subsequent years. The provisions of this rule do not preclude a
public utility from accepting a project with a cost that would exceed the
reasonable cost threshold. When a public
utility can generate or procure renewable energy resources at or below the
reasonable cost threshold, it shall be required to do so to the extent
necessary to meet the applicable renewable portfolio standard. To the extent a procurement is greater than
the reasonable cost threshold and results in excess costs, the public utility
shall explain in detail why the public utility cannot procure renewable energy resources
at a cost less than or equal to the reasonable cost threshold along with a demonstration
of the public utility’s efforts to procure renewable energy resources at or
below the reasonable cost threshold.
C. A public utility that believes its
procurement will exceed the reasonable cost threshold may file with the commission
a request for waiver of the renewable portfolio standard for the applicable
plan year. The waiver request shall:
(1) explain
in detail why the public utility cannot procure resources at a cost less than
the reasonable cost threshold;
(2) include
an explanation and evidence of all efforts the public utility undertook to
procure resources at a cost within the reasonable cost threshold; and
(3) be
deemed granted if not acted upon within sixty days of the date the waiver request
was filed.
[17.9.572.12 NMAC - Rp, 17.9.572.12 NMAC, 2/28/2023]
17.9.572.13 RESOURCE SELECTION: The utility shall
select resources to satisfy the renewable portfolio standard through a
competitive resource selection process that includes opportunities for bidders
to propose purchased power, facility self-build or facility build-transfer
options. The utility shall determine all
commercially available resources available through a competitive procurement
process that are necessary to make reasonable and consistent progress toward
the renewable portfolio standards and the zero-carbon standard. The utility shall, at a minimum, use the net
present value methodology to identify the costs of a proposed new renewable energy
resource necessary to satisfy the renewable portfolio standard. The utility may propose additional methodologies to identify
the costs of a proposed new renewable energy resource.
[17.9.572.13 NMAC - Rp, 17.9.572.13 NMAC, 2/28/2023]
17.9.572.14 ANNUAL RENEWABLE ENERGY ACT PLAN:
A. An annual
Renewable Energy Act plan shall include plan year and next plan year data. The plan year shall be presented for commission
approval and the next plan year shall be presented for informational purposes.
B. On
or before July 1 of each year, each public utility shall file with the commission
an annual Renewable Energy Act plan. The filing schedule shall be staggered, as follows, with each of the
investor-owned utility filings occurring one month apart, the last filing to be
made July 1 of each year. The utilities shall file alphabetically each
year (el paso electric company shall file on May 1; public
service company of New Mexico shall file on June 1; and southwestern public service
company shall file on July 1 each year).
C. The
annual Renewable Energy Act plan shall include:
(1) testimony
and exhibits providing a full explanation of the utility’s determination of the
plan year and next plan year renewable portfolio standard and reasonable cost
threshold;
(2) the cost of
procurement in the plan year and the next plan year for all new renewable
energy resources required to comply with the renewable portfolio standard
selected by the utility pursuant to 17.9.572.10 NMAC;
(3) the
amount of renewable energy the public utility plans to provide in the plan year
and the next plan year required to comply with the renewable portfolio
standard;
(4) testimony
and exhibits demonstrating how the cost and amount specified in Paragraphs (2)
and (3) of this subsection were determined;
(5) testimony
and exhibits demonstrating the plan year and next plan year procurement amounts
and costs expected to be recovered by the utility;
(6) the capital,
operating, and fuel costs on a per-megawatt-hour basis during the preceding
calendar year of each nonrenewable generation resource rate-based by the
utility, or dedicated to the utility through a power purchase agreement of one
year or longer, and the nonrenewable generation resources’ carbon dioxide
emissions on a per-megawatt-hour basis during that same year;
(7) testimony
and exhibits demonstrating the plan year and next plan year procurement amounts
and costs expected to be recovered by the utility if limited by the reasonable
cost threshold;
(8) testimony
demonstrating that the cost of the proposed procurement is reasonable compared
with the price of electricity from renewable resources in the bids received by
the public utility to recent prices for comparable energy resources elsewhere
in the southwestern united states;
(9) testimony regarding
strategies used to minimize costs of renewable energy integration, including
location, diversity, balancing area activity, demand-side management, rate
design, and load management;
(10) testimony
demonstrating that the portfolio procurement plan is consistent with the
integrated resource plan and explaining any material differences;
(11) testimony
demonstrating that acceptable system reliability will be maintained with the
proposed new renewable resource additions;
(12) information,
including exhibits, as applicable, that demonstrates that the proposed
procurement was the result of a competitive procurement that included
opportunities for bidders to propose purchased power, facility self-build, or
facility build–transfer options;
(13) demonstration
that the plan is otherwise in the public interest, considering factors such as
overall cost and economic development opportunities;
(15) any other information the commission
may deem necessary.
D. In addition
to electronically filing and serving in accordance with 1.2.2 NMAC, a public
utility shall serve notice and a copy of its annual renewable energy plan
filing by first class mail on renewable resource providers requesting such
notice from the commission, the New Mexico attorney general, and the
intervenors in the public utility’s most recent rate case. A public utility shall also post on its
website the most recent and the pending annual Renewable Energy Act plans.
[17.9.572.14 NMAC - Rp, 17.9.572.14 NMAC, 2/28/2023]
17.9.572.15 COST RECOVERY FOR RENEWABLE ENERGY AND
EMISSIONS REDUCTIONS:
A. A
public utility shall recover the reasonable costs of complying with this rule
through the rate making process, including its reasonable interconnection and
transmission costs, costs to comply with electric industry reliability
standards, and other costs attributable to acquisition and delivery of
renewable energy and zero carbon energy to retail New Mexico customers.
B. Costs
that are consistent with commission-approved annual Renewable Energy Act plans
are deemed to be reasonable.
C. A
public utility that is permitted to defer the recovery of renewable energy
costs pursuant to commission order may, through the ratemaking process, recover
from customers that are not subject to the rate impact limitations of Subsection
C of Section 62-16-4 NMSA 1978 the cumulative sum of those deferred amounts,
plus a carrying charge on those amounts.
D. Any
financial benefits resulting to customers qualified pursuant Subsection C of Section
62-16-4 NMSA 1978 shall accrue to the customer immediately as of June 14, 2019 and shall be reflected in customer bills each month,
subject to annual true-up and reconciliation.
E. The financial
incentive established pursuant to 17.9.572.22 NMAC shall be recovered or credited
through a separate rider during the calendar year following the determination
of the financial incentive, and subject to reconciliation for under- or
over-recovery in a subsequent calendar year.
F. Any renewable energy
procurement costs recovered through the utility’s fuel clause shall be
separately identified in its monthly and annual fuel and purchased power clause
adjustment filings and its continuation filings.
G. The
commission shall not disallow the cost associated with any expired renewable
energy certificate.
H. If a public
utility has been granted a certificate of public convenience and necessity
prior to January 1, 2015 to construct or operate an electric generation
facility and the investment in that facility has been allowed recovery as part
of the utility’s rate-base, the commission may require the facility to
discontinue serving customers within New Mexico if the replacement has less or
zero carbon dioxide emissions into the atmosphere; provided that no order of
the commission shall disallow recovery of any undepreciated investments or
decommissioning costs associated with the facility.
[17.9.572.15 NMAC - Rp, 17.9.572.15 NMAC, 2/28/2023]
17.9.572.16 CUSTOMERS QUALIFIED PURSUANT TO SUBSECTION
C OF SECTION 62-16-4 NMSA 1978:
A. Any customer that is a political subdivision of the state, or any
educational institution designated in Article 12, Section 11 of the Constitution
of New Mexico with an enrollment of twenty thousand students or more
during the fall semester on its main
campus, with consumption exceeding twenty million kilowatt-hours per year at
any single location or facility, and that owns renewable energy generation or
hosts such facilities through a renewable purchased power agreement, shall not
be charged by the utility for power purchases of one year or less or fuel
on the amount of electricity purchased
from the utility equal to the amount of renewable energy produced or hosted by
the customer. The customer shall
annually certify to the state auditor and notify the commission and the
customer's serving electric utility of the amount of renewable energy produced
at the customer-owned or customer-hosted facilities that generate renewable
energy. The customer shall also certify
to the state auditor and notify the commission that the customer will retire
all renewable energy certificates associated with the renewable energy produced
by those facilities. Any financial
benefits as a result of the provisions of this
subsection shall accrue to the customer immediately upon June 14, 2019, and
shall be reflected in customer bills each month subject to annual true-up and
reconciliation. The provisions of this
rule shall not prevent the utility from recovering all of
its reasonable and prudent fuel and purchased power costs. That customer shall
also certify that it will retire all renewable energy certificates associated
with the energy produced by those facilities.
B. The
notice to the commission and the customer’s serving utility shall:
(1) be
timely;
(2) state
the plan year during which the renewable energy is expected to be produced or
hosted;
(3) quantify
the amount of renewable energy expected to be produced or hosted; and
(4) shall
include a copy of the customer’s certification to the state auditor.
C. Rule
17.9.572.16 NMAC only exempts customers from charges for power purchases of one
year or less or fuel on the amount of electricity purchased from the utility
equal to the amount of renewable energy produced or hosted by the customer. Rule 17.9.572.16 NMAC shall not prevent the
utility from recovering all of its reasonable and
prudent fuel and purchased power costs.
D. A
public utility shall not retire any RECs retired per the certification of a
customer made pursuant to Subsection C of Section 62-16-4 NMSA 1978 for the
renewable portfolio standard or voluntary renewable energy program compliance.
[17.9.572.16 NMAC - Rp, 17.9.572.16 NMAC, 2/28/2023]
17.9.572.17 RENEWABLE ENERGY CERTIFICATES:
A. Each
public utility shall annually establish its compliance with the renewable
portfolio standard through the filing of an annual report, as provided in
17.9.572.19 NMAC, documenting the retirement of renewable energy certificates.
B. Non-WREGIS
registered RECs shall contain the following information:
(1) the name and
contact information of the renewable energy generating facility owner or
operator;
(2) the name and
contact information of the public utility or rural electric distribution
cooperative purchasing the renewable energy certificate;
(3) the type of
generator technology and fuel type;
(4) the
generating facility’s physical location, nameplate capacity in megawatts,
location and ID number of revenue meter and date of commencement of commercial
generation;
(5) the
public utility to which the generating facility is interconnected;
(6) the
control area operator for the generating facility; and
(7) the
quantity in kilowatt-hours and the date of the renewable energy certificate
creation.
C. Renewable
energy certificates:
(1) shall
be owned by the generator of the renewable energy unless:
(a) the
renewable energy certificates are transferred to the purchaser of the energy
through specific agreement with the generator;
(b) the
generator is a qualifying facility, as defined by the federal Public Utility
Regulatory Policies Act of 1978, in which case the renewable energy
certificates are owned by the public utility purchaser of the renewable energy
unless retained by the generator through specific agreement with the public
utility purchaser of the energy; or
(c) a
contract for the purchase of renewable energy is in effect prior to January 1,
2019, in which case the purchaser of the energy owns the renewable energy
certificates for the term of such contract; and
(2) may
be traded, sold or otherwise transferred by their owner, unless the
certificates are from a rate-based public utility plant, in which case the
entirety of the renewable energy certificates from that plant shall be retired
by the utility on behalf of itself or its customers. Any contract to purchase renewable energy
entered into by a public utility on or after July 1, 2019
shall include conveyance to the purchasing utility of all renewable energy
certificates, and the entirety of those certificates shall be retired by that
utility on behalf of itself or its customers or subsequently transferred to a
retail customer for retirement under a voluntary program for purchasing
renewable energy approved by the commission;
(3) that
are used once by a public utility to satisfy the renewable portfolio standard
and are retired shall not be further used by the public utility; and
(4) that
are not used by a public utility to satisfy the renewable portfolio standard
may be carried forward for up to four years from the date of creation and, if
not used by that time, shall be retired by the public utility.
D. Public
utilities shall be responsible for demonstrating that a renewable energy
certificate used for compliance with the renewable portfolio standard is
derived from eligible renewable energy resources and has not been retired,
traded, sold or otherwise transferred to another party. Public utilities shall maintain records
sufficient to meet the demonstration requirement of this subsection.
E. The
acquisition, sale or transfer, and retirement of any renewable energy
certificates used to meet renewable portfolio standards on or after January 1, 2008 shall be registered with the WREGIS or its direct
successor(s), except as provided in Subsection F of 17.9.572.17 NMAC. Certificates whose retirement has been registered
by the public utility with WREGIS shall be deemed to meet the requirements of
Subsection D of 17.9.572.17 NMAC.
F. Renewable
energy certificates representing electricity delivered to the public utility
and assigned to the public utility’s New Mexico customers and registered with a
tracking system other than WREGIS may be used to meet renewable portfolio
standards so long as WREGIS lacks the capability to import certificates from
that other tracking system.
[17.9.572.17 NMAC - Rp, 17.9.572.17 NMAC, 2/28/2023]
17.9.572.18 VOLUNTARY RENEWABLE TARIFFS:
A. The
commission may require that a public utility offer its retail customers a
voluntary program for purchasing renewable energy that is in addition to
electricity provided by the public utility pursuant to the renewable portfolio
standard, under rates and terms that are approved by the commission.
B. The
voluntary renewable tariff may also include provisions to enable consumers to
purchase renewable energy within certain energy blocks and by source of
renewable energy. Additionally, each
public utility shall develop an educational program on the benefits and
availability of its voluntary renewable energy program. The tariff, along with the details of the
consumer education program, shall be on file with the commission.
C. All
renewable energy purchased by a retail customer through an approved voluntary
program shall:
(1) have
all associated renewable energy certificates retired by the retail customer, or
on that customer’s behalf, by the public utility, and the certificates shall
not be used to meet the public utility’s renewable portfolio standard
requirements pursuant to Subsection A of Section 62-16-4 NMSA 1978;
(2) be excluded
from the total retail sales to New Mexico customers used to determine the
renewable portfolio standard requirements pursuant to Subsection A of Section
62-16-4 NMSA 1978; and
(3) not be
subject to charges by the public utility to recover costs of complying with the
renewable portfolio standard requirements pursuant to Subsection A of Section
62-16-4 NMSA 1978.
[17.9.572.18 NMAC - Rp, 17.9.572.18 NMAC, 2/28/2023]
17.9.572.19 ANNUAL RENEWABLE ENERGY PORTFOLIO
REPORT:
A. Concurrent with the filing of an
annual renewable energy plan, each public utility shall file with the commission
a report on its renewable energy generation or purchases of renewable energy
during the prior plan year. This report
shall:
(1) itemize all
renewable energy generation or renewable energy certificate purchases and
sales;
(2) list, and include
copies of, all renewable energy certificates, including acquired, issued or
retired certificates;
(3) document from
WREGIS or its successor the renewable energy certificates acquired, sold,
retired, transferred, or expired; such documentation shall include reports from
WREGIS or its successor which allow the commission to determine, by fuel type,
the number of RECs in each calendar year:
(a) acquired;
(b) sold;
(c) retired;
(d) transferred;
and
(e) expired;
(4) describe the retirements
made to meet renewable portfolio standard compliance based on actual retail
sales and procurement costs, for the most recent reporting period including,
the reductions, if any, to the RPS for:
(a) purchases by
retail customers through an approved voluntary program; or
(b) due to the
reasonable cost threshold;
(c) explain and
demonstrate how the reduction was determined; and
(d) quantity of renewable
energy certificates banked for future compliance use;
(5) describe and quantify
the implementation of the voluntary renewable tariff requirements in 17.9.572.18
NMAC;
(6) present a full
explanation of approved recovery mechanisms for approved annual renewable
energy plan costs and a complete accounting of all collected and deferred
amounts; and
(7) describe and
tabulate the utility's compliance with its renewable portfolio standard for a
given report year and describe how the compliance relates to the first year a
new renewable portfolio standard becomes effective as established in Subsection
A of Section 62-16-4 NMSA 1978 and Subsection A of 17.9.572.10 NMAC and
describe how the compliance relates the first year of the next new renewable
portfolio standard.
B. The report shall include the
following to demonstrate compliance with the renewable portfolio standard:
(1) report year
total utility renewable portfolio standard requirement in megawatt-hours;
(2) report year
total utility renewable portfolio standard compliance in megawatt-hours;
(3) report year
total utility renewable portfolio standard provided by eligible renewable
energy resources in megawatt-hours listed by resource and totaled;
(4) percentage
of report year total utility renewable portfolio standard megawatt-hours
provided by eligible renewable energy resources; and
(5) report year kilowatt-hour
generation by facility from coal-fired generating facilities allocated to New
Mexico retail customers.
[17.9.572.19 NMAC - Rp, 17.9.572.19 NMAC, 2/28/2023]
17.9.572.20 REVIEW BY COMMISSION:
A. Interested
parties wishing to protest an annual Renewable Energy Act plan shall do so by
stating the bases for the protest within 30 days after the filing of the
utility’s annual renewable energy plan.
B. The
commission shall approve or modify annual Renewable Energy Act plans within 90
days and may approve such plans without a hearing, unless a protest is filed
that demonstrates to the commission’s reasonable satisfaction that a hearing is
necessary.
C. The
commission may modify a plan after notice and hearing, and may, for good cause,
extend the time to approve an annual Renewable Energy Act plan for an
additional 90 days.
D. If
the commission does not act within the 90-day period, a plan is deemed
approved.
E. The
commission may reject a plan, within 40 days of filing, if the commission finds
that the plan does not contain the required information; upon such rejection
the public utility’s obligation to procure additional resources will be
suspended for the time necessary to file a revised plan. In such instances, the total amount of
renewable energy to be procured by the public utility will not change.
[17.9.572.20 NMAC - Rp, 17.9.572.20 NMAC, 2/28/2023]
17.9.572.21 EXEMPTION AND VARIANCE:
A. The commission, upon its own motion,
may issue, or any interested person may file an application for, an exemption
or a variance from the requirements of this rule.
B. Such motion or application
shall:
(1) identify the
section of this rule for which the exemption or variance is requested;
(2) describe the
situation that necessitates the exemption or variance;
(3) set out the
effect of complying with this rule on the public utility and its customers if
the exemption or variance is not granted;
(4) define the
result the request will have if granted;
(5) state how the
exemption or variance will be consistent with the purposes of this rule;
(6) state why no
other reasonable alternative is preferable; and
(7) state why the
proposed alternative is in the public interest.
[17.9.572.21 NMAC - Rp, 17.9.572.21 NMAC, 2/28/2023]
17.9.572.22 FINANCIAL INCENTIVE:
(1) exceeds the
applicable annual renewable portfolio standard set forth in Section 62-16-4 NMSA
1978;
(2) results
in reductions in carbon dioxide emissions earlier than required by Subsection A
of Section 62-16-4 NMSA 1978; or
(3) causes
a reduction in the generation of electricity by coal-fired generating
facilities, including coal-fired generating facilities located outside of New
Mexico.
B. A financial
or other incentive proposed under 17.9.572.22 NMAC shall be to encourage the
public utility to produce or to acquire renewable energy to accomplish, in the
future, at least one of the following purposes:
(1) exceeding
the public utility’s annual RPS requirements;
(2) reducing
carbon dioxide emissions earlier than required by Subsection A of Section
62-16-4 NMSA 1978; or
(3) reducing the
generation of electricity by coal-fired generating facilities, including
coal-fired generating facilities located outside of New Mexico that serve the
utility’s customers.
D. The public utility or other person requesting a financial or other
incentive shall have the burden to prove by a preponderance of evidence that
the terms and duration of the proposed incentive meet the requirements of this
rule and are just and reasonable in light of the utility’s costs, its
authorized return, and the magnitude of any other incentives that have been authorized
by the commission. Any application or
motion requesting a financial or other incentive shall be supported by written
testimony and exhibits.
E. No
incentive shall be awarded under 17.9.572.22
NMAC with respect to a particular investment if the cost
of that investment exceeds the demonstrable value of the corresponding
reduction in carbon dioxide or other emissions. A utility requesting a financial or other
incentive under this rule shall establish that the benefits of achieving the
goals set out in Subsection B of 17.9.572.22
NMAC above are not exceeded by the costs it incurred to
achieve them. To establish this, the utility shall provide detailed analysis
for each applicable period, including but not limited to:
(1) the utility’s total carbon dioxide
emissions;
(2) the reduction in the
utility’s carbon dioxide emissions attributable to the measures described in Subsection
B of 17.9.572.22 NMAC;
(3) the estimated value of
the reduction in carbon dioxide emissions described in Paragraph (2) of this
subsection based on an analysis of relevant carbon dioxide markets;
(4) the cost of the
measures implemented by the utility that resulted in the lower carbon dioxide
emissions identified in Paragraph (2) of this subsection and the dates when
each measure was implemented; and
(5) any other costs
necessary to implement each of the measures identified in Subsection B of 17.9.572.22 NMAC.
F. The total
financial incentive authorized for recovery in rates pursuant to 17.9.572.22
NMAC shall not exceed the product (expressed in dollars) of:
(1) the
utility’s annual weighted average cost of capital (expressed as a percent); and
(2) the cost of the
measures described in Subsection B of 17.9.572.22
NMAC.
G. A financial incentive shall only
be granted to encourage a public utility to produce or to acquire renewable
energy to accomplish the requirements of Subsection D of Section 62-16-4 NMSA
1978, and it shall not be granted to incentivize only an abandonment or closure
of a carbon dioxide emitting generating resource.
H. Public utilities shall file any
motion or application under 17.9.572.22 NMAC concurrently with their annual
Renewable Energy Act plan.
[17.9.572.22 NMAC - Rp, 17.9.572.22 NMAC, 2/28/2023]
HISTORY OF 17.9.572
NMAC:
Pre-NMAC History: None.
History of Repealed
Material:
17 NMAC 10.572, Renewable Energy Development Program (filed 11/30/1998)
repealed 7/1/2003.
17.9.572 NMAC, Renewable Energy as a Source of Electricity (filed 6/16/2003)
repealed 1/14/2005.
17.9.572 NMAC, Renewable Energy for Electric Utilities (filed 12/29/2004)
repealed 8/30/2007.
17.9.572 NMAC, Renewable Energy for Electric Utilities (filed 8/15/2007)
repealed 5/31/2013.
17.9.572 NMAC, Renewable Energy for Electric Utilities (filed 5/10/2013)
repealed 5/4/2021.
17.9.572 NMAC, Renewable Energy for Electric Utilities (filed
4/21/2021) repealed 2/28/2023.
Other History:
17 NMAC 10.572, Renewable Energy Development Program (filed 11-30-98)
replaced by 17.9.572 NMAC, Renewable Energy as a Source of Electricity,
effective 7/1/2003, 17.9.572 NMAC, Renewable Energy as a Source of Electricity
(filed 6/16/2003) replaced by 17.9.572, Renewable Energy for Electric
Utilities, effective 1/14/2005. 17.9.572
NMAC, Renewable Energy for Electric Utilities (filed 12/29/2004) replaced by
17.9.572 NMAC, Renewable Energy for Electric Utilities (filed 8/15/2007)
replaced by 17.9.572 NMAC, Renewable Energy for Electric Utilities effective 5/31/2013.
Renewable Energy for Electric Utilities (filed 5/10/2013) replaced by
17.9.572 NMAC, Renewable Energy for Electric Utilities effective 5/4/2021.
Renewable Energy for Electric Utilities (filed 4/21/2021) replaced by
17.9.572 NMAC, Renewable Energy for Electric Utilities effective 2/28/2023.