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New Mexico’s Path to a Sustainable Energy Future

New Mexico’s Path to a Sustainable Energy Future. Jason Marks Commissioner, District 1 February 4, 2008. Wind Energy – Prime Mover in R.E. Approx 15,000 MW installed capacity (2007) 2,500+ MW added/year 2005-2007 Utility ownership has begun. Cost $23 - $60/mwh after PTC

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New Mexico’s Path to a Sustainable Energy Future

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  1. New Mexico’s Path to a Sustainable Energy Future Jason Marks Commissioner, District 1 February 4, 2008

  2. Wind Energy – Prime Mover in R.E. • Approx 15,000 MW installed capacity (2007) • 2,500+ MW added/year 2005-2007 • Utility ownership has begun • Cost $23 - $60/mwh after PTC • PTC = $18/mwh • Prices increasing due to materials, demand, • Exchange Rate

  3. Wind projects serving NM +Low Cost: <= 3 cents/kwh -Dispatchability +/-Integration

  4. N.M.: 400 MW of Installed Wind Generation 2003 - 2005

  5. Wind with Gas Backup: Good for Utilities, Good for Ratepayers.

  6. Wind with Gas Backup – Capacity + Reduced exposure to Gas Pricing Pressure

  7. Wind Typically Distant from Load

  8. Albuquerque HIGH PLAINS EXPRESS SunZia WYOMING Potential Multi-stateTransmission Projects Energy Resource Zones Dave Johnston LRS Pawnee/ Story COLORADO Limon Midway Comanche Lamar Holcomb NEW MEXICO ARIZONA Gladstone Phoenix Socorro Tucson 8

  9. Western Renewable Energy Zones www.westgov.org/wga/initiatives/wrez/comments.htm Comments thru March 2, 2009

  10. Solar Technologies • Photovoltaic (PV) Panels: • 1 – 3 kw home systems common (~$18,000 installed home system = 25¢/kwh) • Commercial (10 – 100 kw) • Major projects (4 – 8 MW) Concentrated Solar Power (CSP) • 10-15¢/kwh for 100MW+ projects • Thermal Storage/Backup Possible • Kramer Junction (1980s) 350 MW, Nevada Solar One (2007) 64 MW, Spain

  11. Potential Utility Scale Solar Projects in New Mexico • El Paso Electric – 64 MW solar thermal PPA w/ eSolar. Approved by PRC • PNM-led consortium - ~100 MW solar thermal trough plant. Bids currently being evaluated. Possible load-side (Abq) site.

  12. Biomass & Geothermal Biomass and Geothermal Opportunities Geothermal Plant in Valles Caldera • Dairy & Feedlot Waste • Wood Waste • Landfill Gas

  13. State Renewable Portfolio Standards Source: dsireusa.org/Sept 2007 MN: 25% by 2025 (Xcel: 30% by 2020) ME: 30% by 2000 10% by 2017 - new RE VT: RE meets load growth by 2012 *WA: 15% by 2020 ND: 10% by 2015 • NH: 23.8% in 2025 WI: requirement varies by utility; 10% by 2015 goal MA: 4% by 2009 + 1% annual increase MT: 15% by 2015 OR: 25% by 2025(large utilities) 5% - 10% by 2025 (smaller utilities) RI: 16% by 2020 CT: 23% by 2020 • *NV: 20% by 2015 IA: 105 MW • NY: 24% by 2013 • CO: 20% by 2020(IOUs) *10% by 2020 (co-ops & large munis) IL: 25% by 2025 • NJ: 22.5% by 2021 CA: 20% by 2010 • PA: 18%¹ by 2020 MO: 11% by 2020 • MD: 9.5% in 2022 • NC: 12.5% by 2021(IOUs) 10% by 2018 (co-ops & munis) • AZ: 15% by 2025 • *DE: 20% by 2019 • DC: 11% by 2022 • NM: 20% by 2020(IOUs) • 10% by 2020 (co-ops) *VA: 12% by 2022 TX: 5,880 MW by 2015 HI: 20% by 2020 State RPS State Goal Solar water heating eligible

  14. New Mexico Renewable Energy Act: NMSA § 62-16-1A Renewable Portfolio Standard (RPS) Law • R.E.: solar, wind, biomass, geothermal • Scope: IOUs, Co-ops (lower reqmts) • RPS 5% of retail sales in 2006 10% of retail sales in 2011 15% in 2015, 20% in 2020 • Reasonable Cost Thresholds • Annual Procurement Plans • PRC’s Diversity Rules – 20% Solar Target

  15. NM: Aggressive Targets / Small State

  16. Net Metering NMPRC Rule: Utilities must interconnect customer-owned generation via net-metering up to 80 MW NMPRC Orders: PNM Incentive Program: 13¢/kwh for resid RECs 15¢/kwh for comm’l RECs SPS/EPE Incentive Pgms

  17. Voluntary Programs Dec 2009: PRC effectively exempts Sky Blue use from fuel surcharge

  18. New Mexico R.E. Tax Incentives • Renewable Energy Production Tax Credit • Reduces consumer cost by 1¢ to 4¢ per kwh • One of the best in nation. • Advanced Energy Tax Credit • “Clean coal” bill, also applies to solar! • 6% of eligible plant costs • Other Tax Credits • Homeowner Solar Tax Credit – 30%, $9,000 • Gross Receipts (Sales) Tax exemptions • Bio-diesel PTC

  19. Integrated Resource Planning (IRP) • All utilities required to submit • Public process required • PNM IRP prioritizes energy efficiency

  20. 2009 Legislative Session • SB 315 (Keller) Accelerate RPS • SB 319 (Fischmann) Mandatory Inclining Block Rates and encourage efficiency/renewables for new development • HB 375 (Gonzales) 30% Tax Credit for Ground-Coupled Geothermal Heat Pumps • SB 62 (Martinez) $5 m appropriation for low-income energy efficiency • SB 420 (Griego) Severance tax investmnt in Green Indust.

  21. PRC Regulatory Dockets • Spring ’09: Net-Metered/Customer Owned Systems • Annual True-Up rulemaking • Permissibility of Third-Party Ownership • Fall ’09: Submission/Review of 2010 Renewable Procurement Plans

  22. Resources • PRC Website on Energy Efficiency & Renewable Energy in New Mexico – www.nmprc.state.nm.us • www.cleanenergynm.org - ENMRD website • www.jasonmarks.com

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