Albuquerque Journal

PRC grants rehearing on renewable charge

Government entities, industry seek to keep fuel savings from renewable investment­s

- BY KEVIN ROBINSON-AVILA JOURNAL STAFF WRITER

Large-scale electric customers have won a fresh chance to convince state regulators to let them keep fuel savings that they currently receive as a result of Public Service Co. of New Mexico’s investment­s in renewable energy.

The Public Regulation Commission voted 5-0 on Dec. 23 to vacate an earlier decision that would have forced industrial and government­al energy users to repay those savings to PNM. The issue will be reheard on Jan. 13 by the full commission, which could still decide to uphold its original order from November.

“I don’t know how it will shake out in the end, but the large-scale consumers will have another hearing to get these issues addressed,” said Commission­er Sandy Jones. “All sides will be able to make their arguments, and the commission will either leave its November order in place or amend it.”

Industrial consumers and the Albuquerqu­e Bernalillo County Water Utility Authority filed motions opposing the PRC’s November decision, which ordered about two dozen industrial users, ABCWUA and the University of New Mexico to pay a combined total of about $2 million in annual fuel savings back to PNM.

The PRC ruled that those customers are receiving “windfall” benefits through lower fuel charges on their PNM bills without paying their fair share for the renewable investment­s that have allowed PNM to lower its consumptio­n of fossil fuels.

Residentia­l and commercial customers pay for PNM’s renewable investment­s through a rate rider on their bills that in 2015 amounted to a 2.32 percent monthly charge.

State statutes, however, limit the amount large industrial consumers pay to just 2 percent of their annual electric consumptio­n — with a hard cap of $99,000 per year — to protect them against excessive costs for renewables.

ABCWUA and UNM, meanwhile, are entirely exempt from renewable charges because they are committed to investing at least 2.5 percent of their annual electric consumptio­n to build their own renewable systems.

The industrial and government­al consumers say the statutes insulate them from having to repay PNM for fuel savings.

The PRC will now hear those arguments, but it’s unclear if commission­ers will actually alter their November decision.

“We decided to re-hear this to see if we missed anything, but I don’t know if in the end the decision will be any different than before,” said Commission­er Pat Lyons.

Commission­ers will be under pressure from environmen­tal groups, which want industrial customers to pay back fuel savings so PNM can redistribu­te them to residentia­l consumers. Environmen­talists, however, want UNM and the water utility to keep their savings, since those entities are building more renewable systems, and, as government­al entities, any fuel savings they receive benefits taxpayers in general, said Steve Michel, chief attorney for Western Resource Advocates.

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