Energy Transition Act proving its worth

With all the misery 2020 is leaving in its wake, it has also brought transformational climate and environmental-justice progress in New Mexico, thanks to the work of front-line community members and implementation of the Energy Transition Act.

As the now-retired attorney for Coalition for Clean, Affordable Energy, I was proud to see broad support by community and environmental groups at the Public Regulation Commission for our proposal to replace the coal power at San Juan Generating Station with 100 percent solar energy and battery storage, investing $1.1 billion in San Juan, McKinley and Rio Arriba counties.

The PRC unanimously decided in July to adopt our coalition’s solar/storage proposal over PNM’s preferred plan, which had relied heavily on gas. Now that the contracts have been signed and approved, the calculation of average monthly savings has been revealed: $7.46.

Yes, the average PNM customer will save $7.46 per month because of the transition from coal to clean. Why? Because renewables are cheaper than coal, and because the Energy Transition Act allowed plant debt that customers have been paying back to PNM at a 10 percent rate of return to be paid off through AAA bonds at roughly 3 percent instead.

Those savings create millions in Four Corners transition funding, including severance and job-training funds for coal workers that would have been unavailable without the ETA.

Shiprock High School students encouraged the PRC to approve our coalition’s solar/storage plan because of the tax income it will provide for their school. Jicarilla Apache Nation President Darrell Paiz testified about the economic boost from the Hecate solar facility that will be built on Jicarilla land in Rio Arriba.

Input like that from Navajo Nation, San Juan, Rio Arriba and McKinley County residents, in addition to hearing examiners’ guidance, helped lead commissioners to choose this powerful path forward.

Under prior law, the PRC had only a utility’s resource selection (PNM’s gas-reliant plan) to approve or reject. But the Energy Transition Act expanded the PRC’s authority to allow it to select different replacement resources.

The ETA’s guidance on location and environmental impact of replacement power made the coalition’s portfolio the clear choice because it places about $447 million of investment in the school district impacted by the plant closing — almost triple the investment of the gas-heavy portfolio.

Under prior law, the choice would have been PNM’s gas-reliant plan, which by a slim margin was projected to be cheapest. That would have resulted in more fossil fuels, more pollution and more CO2 (but not more jobs).

The outcomes already are apparent. This summer, the Rio Arriba County Commission announced that despite pandemic-reduced revenue, the county wouldn’t have to cut public services or employee hours because of $1.6 million in payments in lieu of taxes from solar developers.

The ETA, which requires utilities to provide 80 percent renewable energy by 2040 and 100 percent carbon-free by 2045, is making a difference in other cases, too.

Our coalition successfully opposed El Paso Electric’s attempt to build an unnecessary gas generator near Chaparral, where families already endure dangerous air-pollution levels.

The ETA has proved itself a win for all, delivering clean energy, investment in the community, funding for workers and impacted communities, and savings for ratepayers while maintaining the financial integrity of the utility with low-interest bonds to pay off the plant’s balance — as promised.

As a lawyer fighting for clean energy and a safer climate for all, I’m more thankful for the Energy Transition Act every day.

Chuck Noble is a retired environmental and public utility attorney who represented Coalition for Clean A≠ordable Energy until last spring