By Hannah Grover
The New Mexico Supreme Court upheld state regulators’ decision to prohibit investor-owned utilities from subtracting transmission costs from the bill credits that community solar subscribers will receive.
Subtracting transmission costs from bill credits could reduce the benefits that community solar subscribers receive for receiving power from a solar array. The Community Solar Act was intended to help low-income households and organizations access renewable energy.
However, the utilities argued that if the transmission costs are not subtracted from the bill credits, people who choose not to subscribe will end up subsidizing credits for those who do.
The three investor-owned utilities — the Public Service Company of New Mexico (PNM), Southwestern Public Service Company, which is a subsidiary of Xcel Energy, and El Paso Electric — argued the New Mexico Public Regulation Commission violated the Community Solar Act by prohibiting the subtraction of transmission costs from rate credits.
The high court upheld the PRC’s rule and found it doesn’t violate the Community Solar Act.
This is not the first time the utilities have challenged the community solar rule the PRC adopted.
“We hold that the Utilities, in their various challenges, failed to meet their burden in demonstrating that the Rule is unreasonable or unlawful in light of the Act,” State Supreme Court Justice Briana Zamora wrote in the court’s opinion.
The Community Solar Act doesn’t mention transmission expenses, though it prevents utilities from passing along the costs of distribution to community solar subscribers.
Transmission involves moving high voltage electricity, usually across long distances. Distribution moves electricity shorter distances and in lower voltages.
The court opinion states “electricity generated by a community solar facility is distributed and consumed locally, without requiring use of a utility’s transmission system.”
The PRC found the exclusion of distribution costs from the formula for calculating bill credits “renders the Legislature’s silence on transmission costs as an intentional omission” and therefore decided the utilities cannot subtract the transmission costs from the bill credit rates.
The state Supreme Court ruled that doing so was within the PRC’s policy-making authority.
I am one person who did not get solar power for several reasons. Nothing has ever really explained how PNM can buy electricity back from the solar customer….But PNM constantly hikes their prices claiming that they will come down after the season is over…In the winter it is the higher use due to shorter days…In the summer it is the use of refrigerated air use and then I receive letters that I should get air condition because with the water cooler I use too much water and the cost for electricity is higher…which is totally wrong….I have never seen PNM get lower after a season is over or for any other reason. One PNM “Specialist” even told me that they had to charge me “travel charge” because my house was in Eldoraddo and it is costing more if one lives outside the city……..Did that guy ever go to school and learn anything about electricity? The constant up and up of PNM’s bills is known to all of us….I was married to a PNM employee…The income of the executives went higher with every bill increase…the service to the consumer went lower….Something needs to be done to lower the GREED OF PNM
Meanwhile Jemez Electric, which is supposed to be a co-op, charges individuals who have solar panels whether they are supplying energy or using it. We have to pay a monthly fee even when we supply energy. I don’t know if there are any laws or rules governing what I see as an unfair practice. It certainly doesn’t encourage people to install solar units.