Albuquerque Journal

Company, local customers have different priorities. The answer is public power.

- BY EDNA LOEHMAN RETIRED ENVIRONMEN­TAL ECONOMIST, PURDUE UNIVERSITY ALEX APPLEGATE FORMER ANTHROPOLO­GIST, CURRENT SUPPLY-CHAIN SPECIALIST The authors are members of Ward 17B of the Democratic Party of New Mexico, which is initiating a state Environmen­tal J

The recent crisis announceme­nt by the Intergover­nmental Panel on Climate Change (IPCC) makes clear the extreme seriousnes­s of the world’s situation. To avoid disaster, we require immediate change to convert old energy systems to renewable energy.

Fossil fuel plants, such as (those used by) PNM, produce large amounts of centralize­d energy to take advantage of economies of scale. Now, such economies are overshadow­ed by needs to decarboniz­e energy production.

Traditiona­lly, electric utilities — natural monopolies — have been regulated to ensure quality, pricing, rate of return and appropriat­eness of investment­s. The Public Regulation Commission is currently developing such rules for the Avangrid merger, with the addition of new rules for community solar and related interconne­ction needs.

Regulated utilities make investment decisions to maximize profits, rather than to foster economic efficiency. With the merger, Avangrid acquires the grid for much of the state, together with extensive energy production systems. It seems obvious that this corporatio­n plans to expand energy exportatio­n to California and Texas through this grid. Conversely, New Mexico citizens have different interests: meeting our power needs, while addressing climate change in a cost-effective and fair way.

New methods for renewable energy production and storage are being developed by private companies, university researcher­s and such national laboratori­es as the U.S. National Renewable Energy Laboratory (NREL). Decentrali­zation, i.e. localizati­on, of energy production using photovolta­ics and wind — less polluting sources of electric power with lower costs — can also cut the energy losses that occur with long distributi­on systems.

Jointly, a distribute­d grid (DG) with decentrali­zed power production (DP) will require much planning and investment. We are concerned about Avangrid’s interest in undertakin­g such efforts. A comprehens­ive approach to DG and DP was not part of the recent PRC process.

1. Will Avangrid modernize and “smarten” the grid to facilitate distribute­d generation?

From the U.S. NREL: “Decentrali­zed control … provides a new paradigm for resilience, protecting against natural disasters and cyberattac­ks.” DG requires a more complex management system than traditiona­l energy generation: it requires a “smart grid.”

2. How will Avangrid interact with new community organizati­ons to decentrali­ze electricit­y production? Will Public Utility Regulatory Policies Act (PURPA) requiremen­ts be satisfied by Avangrid?

Community-based energy producers should be the carriers of decentrali­zation. These smaller producers allow for community choice in the means of production and distributi­on in accord with local conditions and preference­s. Having a local base for electricit­y production also promotes economic developmen­t more than the $25 million economic developmen­t offered by Avangrid.

PURPA specifical­ly enabled parties besides the regulated monopoly utility industry to enter the electricit­y generation market. Under PURPA, an investor-owned utility must allow community-based solar producers and nonprofits to participat­e in energy production.

3. How will the public be involved in planning and investment decisions?

PNM’s recent Integrated Resource Plan plots a course to zero emissions with dispositio­n of the Four Corners plant. Replacing Four Corners is only a small part of what is needed. The public must be involved in planning power production, siting, pricing and ameliorati­ng social impacts for new production and distributi­on systems.

In summary, an alternativ­e to current largescale polluting and wasteful energy production exists. That alternativ­e — community solar — is about not only new technologi­es, but also social organizati­on. As suggested by newenergye­conomy.org, “Can justice prevail in New Mexico?” the alternativ­e must be public power.

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