More than two dozen state lawmakers have stepped into a fray over whether churches, nonprofits and the such can help generate renewable energy, the Santa Fe New Mexican reports today.
The issue at stake is whether an entity other than Public Service Company of New Mexico can own and operate solar plants. And those lawmakers say yes.
Here’s an excerpt of Staci Matlock’s story:
A bipartisan group of legislators has filed a brief with state regulators on an issue that will affect who provides renewable energy in New Mexico.
The state legislators support allowing third parties — entities besides Public Service Company of New Mexico — to own and operate solar plants and other renewable energy systems under contract with the utility’s customers.
PNM, the state’s largest utility, contends such third-party arrangements within its exclusive service area are illegal.
It’s a very interesting issue, one that may affect the details over how New Mexico fits into the future of renewable energy production.
Here’s more from Matlock’s story:
A third-party power purchase agreement is a long-term contract that allows an energy developer to install, own and operate a solar photovoltaic system — for example, on rooftops belonging to another utility’s customer such as a city or business. The energy developer charges the customer for kilowatt hours produced and in return benefits from federal and state tax credits.
The Public Regulation Commission is conducting a hearing on whether third-party energy developers are public utilities and whether they can own and operate solar energy systems that serve another utility’s customers.
Renewable-energy advocates and the legislators say the third-party arrangement is a critical financing method to help boost renewable energy use among municipalities and nonprofits such as schools and hospitals.
The city of Santa Fe and energy developer SunEdison are working on the kind of third-party arrangement that’s brought the debate to the fore. The city of Santa Fe is a PNM customer. Santa Fe’s City Council approved a 20-year power agreement June 24 with SunEdison to place solar photovoltaic systems on eight city-owned properties that will be tied into the electric grid serviced by PNM.
Stay tuned on this issue.