PRC approves PNM energy plan despite objections

Hearing examiner found problems with aspects of geothermal, solar purchases; environmental groups criticize approval

A divided Public Regulation Commission on Wednesday approved plans by New Mexico’s largest utility to buy wind, solar and geothermal energy from various facilities and projects, despite a hearing examiner’s recommendation that planned geothermal and solar purchases were imprudent.

The hearing examiner, Carolyn Glick, found Public Service Company of New Mexico’s request for proposals for the solar project was “unfair and uncompetitive” with regard to certain potential bidders. Glick also found the time frame for bidders to respond was too short.

The utility failed to show a planned 50-megawatt “turnkey” agreement with Affordable Solar Inc. was the most cost-effective option, she said.

Glick also determined that PNM’s request for an amended agreement with a geothermal facility in Hidalgo County should have been rejected, writing that PNM did not consider an alternative bid when the facility operator filed for bankruptcy in 2016.

Commissioners nonetheless approved all three PNM procurements on a 3-2 vote after various motions to selectively approve one or two failed. Commissioners Valerie Espinoza and Patrick Lyons were in the minority.

PNM said the renewable power purchases will help the utility meet renewable portfolio requirements in coming years.

Pahl Shipley, a spokesman for PNM, said the commission’s ruling “will continue to benefit customers, local renewable energy companies and local communities for years to come.”

The plan, he said, is aimed at “the true goal of reducing carbon emissions and developing a cleaner and more sustainable mix of resources.”

But some environmental groups said parts of PNM’s plan falsely inflate the cost of renewable energy while allowing large companies to receive a windfall and that the plan enables the utility to hold an unfair monopoly.

Mona Blaber, with the Sierra Club’s Rio Grande Chapter, said this will instead “have a much greater [negative] long-term effect on renewables in New Mexico.”

Mariel Nanasi, who leads the nonprofit New Energy Economy, an outspoken critic of PNM, said she would file an appeal of the decision with the state Supreme Court.

Nanasi said PNM had been granted the “keys to the kingdom” through what she called an illegal order. “PNM’s continued ownership of all solar will kill solar energy business competition and damage our economy,” Nanasi said. “… PNM’s self-dealing was just rubber-stamped by the PRC to the detriment of New Mexicans.”