Law Requires More Renewable Power
Feb 24 - Albuquerque Journal
ENERGY DIVERSITY
New Mexico legislators have given their stamp of approval to the state's
commitment to renewable energy.
A law that requires the state's major utilities to derive 10 percent of the
electricity they sell from renewable sources was approved by both houses and
awaits the governor's signature.
The law incorporates rules passed by the Public Regulation Commission in late
2002.
The commission, Public Service Company of New Mexico, El Paso Electric and
Xcel Energy, the Attorney General's Office, the Coalition for Clean Affordable
Energy (an environmental group) and New Mexico Industrial Energy Consumers
(which represents large power users) all supported the new rule and the new law.
The groups pushed for the rule to be codified into law so any major changes
would require legislative approval, said Lee Huffman, a PRC staff counsel who
worked on the renewable energy rule.
"Having it in law gives us greater certainty," said Don Brown,
spokesman for Public Service Company of New Mexico.
Now that the law has passed, El Paso said it will reconsider the need for an
appeal it filed in state Supreme Court that challenged the PRC's authority to
pass the rule.
The law included a few provisions not in the PRC rule. It:
* Gives the PRC authority to set a cap on how much of the cost of renewables
can be passed on to consumers in rates;
* Sets a limit on the amount large industrial consumers will have to pay for
renewable energy; and
* Allows utilities a freer hand to trade credits that show power comes from
renewable sources, if the PRC deems it is in the public interest.
The law still requires PNM, Xcel and El Paso Electric to provide 5 percent of
the energy they sell to retail customers from renewable sources by 2006. That
must increase to 10 percent by 2011.
Rural electric cooperatives were exempt under the rule. They are still exempt
under the new law.