Energy plan ignites solar storm in New Mexico

Debate over solar development is reaching critical mass at the New Mexico Public Regulation Commission.

The PRC is reviewing the Public Service Co. of New Mexico’s revised renewable energy procurement plan for 2010, which it filed in January, and interveners are lining up for and against the proposal.

If approved, the plan would generate about 80 megawatts of new solar electric output in PNM’s service territory – up from about two megawatts now and enough to power about 26,000 homes.

The proposal aims to comply with the state’s renewable portfolio standard (RPS), which requires utilities to derive 10 percent of their power from renewable sources by 2011, and 20 percent by 2020. Under PRC rules, utilities must also diversify their renewable procurements, with at least 20 percent coming from solar generation.

Environmental groups and solar companies support the plan as a positive step toward building a new energy economy. But the Attorney General’s Office and the New Mexico Industrial Energy Consumers say solar is too expensive and should be discarded, at least for now.

“We should bring solar in as it becomes cost competitive, not while we’re in a recession and people are out of work,” said Assistant Attorney General Jeff Taylor. “PNM has sufficient generation right now through the next five to seven years, so we don’t need it.”

But Brian Cassutt, president of the Renewable Energy Industry Association, said that’s a short-sighted argument.

Read the full story in the New Mexico Business Weekly.