New Mexico state goverment, formerly under the command and control of Governor Bill Richardson, managed to pass legislation that micro-managed the electrical utilities in the state. With his policies Richardson forced the state's electricity providers to spend millions of dollars on very expensive "renewables." It seems that hundreds of thousands of consumers are going to have to foot the bill for enabling their government to require expensive energy sources to replace efficient energy sources.
Earlier this week Public Service Company of New Mexico, which is the state's largest electric utility, filed with state regulators for approval to add a new line item to customers' bills. The request will enable the company to recover costs for building government's so-called mandatory "renewable" energy production facilities.
PNM Files to Recover Huge Outlays for "Renewables"
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No question that PNM should be allowed to do this. Consumers need to see how the NM Renewable Portfolio Standard is affecting their power bills. "Renewable" power is not free, and it's not cheaper than nuclear, coal or even NG. Every bill should list the fuel/purchased cost from each source: nuclear, coal, NG, industrial solar, industrial wind, residential solar, residential wind, biogas, etc. These lines should include any additional amounts that the utilities have to pay in the form of Renewable Energy Credits (RECs).
EPE recovers the cost of purchased solar PV power and solar REC's through the "Fuel and Purchase Power Cost Adjustment". The solar PV power from the Roadrunner array in Santa Teresa costs EPE 12.745 c/kWh and from the Hatch array it's 11.9 c/kWh. Those costs are over 2 and half times what EPE pays for "base fuel" at 4.396 c/kWh, and more than what EPE charges retail residential customers.
EPE pays residential solar array owners full retail for any power produced (approx 10 c/kWh) PLUS 8-12 c/kWh for each Solar REC. With the 30% Federal tax credit, the 10% state tax credit and GRT exemption on solar arrays, each utility bill should state, "Your neighbors' solar arrays have been paid for by other rate- and taxpayers, including yourself."
"The request will enable the company to recover costs for building government's so-called mandatory "renewable" energy production facilities."
Nothing "so-called" about it ... the NM Renewable Porfolio Standard REQUIRES utilities to use specific percentages of "renewable" energy, while explictly excluding sources like hydroelectric and nuclear as qualifying sources. Just one more legacy of the Richardson administration from a man who should have never been the Secretary of Energy.
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