By Hannah Grover
The Town of Clayton, located in northeast New Mexico, hopes to soon receive all of its daytime electricity from a community solar project, but has reached a disagreement with the Public Service Company of New Mexico over allocation of costs.
The municipality and the developer CSolPower filed a complaint with the New Mexico Public Regulation Commission in late January asking state regulators to weigh in on the fees that PNM has said it will charge the project. PNM has until Feb. 20 to file an answer to the complaint in the PRC docket.
These fees would add approximately $265,000 in annual transmission costs. According to the filing, those additional fees make any potential community solar project in Clayton unfeasible.
CSolPower, Clayton and PNM have met several times in an attempt to resolve the issues.
“PNM has and continues to work closely and in good faith with CSol Power on this project,” the utility said in an emailed statement. “PNM and CSol have been unable thus far to reach a resolution as to allocation of additional transmission fees. We welcome this complaint as a mechanism for NMPRC guidance as to how to appropriately allocate costs incurred as a result of CSol’s community solar project in Clayton. We look forward to a swift resolution of this issue.”
The crux of the disagreement is that PNM relies on TriState Generation and Transmission Association to deliver electricity to the Town of Clayton.
Should CSolPower’s Gonzo Sol project come to fruition, PNM would need to update its agreement with TriState to accommodate moving electricity from Clayton to other parts of the PNM system.
Gonzo Sol would provide the Town of Clayton with 1 to 3.5 megawatts of electricity. The remainder of the 5 megawatt generation capacity would be distributed to customers outside of Clayton.
Changes to PNM’s agreement with TriState will result in an increase in the cost that PNM pays to use the transmission lines. Clayton and CSolPower would like to see PNM spread that increased cost out to all customers by including them in the rate base.
The town and CSolPower argue that including these fees in the rate base is consistent with current PNM practices.
The Town of Clayton argues there’s more at stake than just its ability to receive more reliable electricity. The Gonzo Sol project will bring an estimated $25 million in economic benefits to the community.
Community solar program update
InClime, the community solar program administrator, released the subscriber enrollment forms and instructions this week. The forms include documents explaining how community solar works.
Those who subscribe to receive some of their electricity from a community solar array will end up paying two bills — one to the utility and the other to the community solar provider.
“Community solar companies typically charge less than your utility for electricity. Most customers will save money with community solar, even though they are paying two bills,” the documents state.
The informational documents also include tips for people interested in subscribing to a community solar array.
One of those tips is to compare quotes from multiple community solar companies.
“Comparing quotes can help ensure that you are receiving the best offer and that you are working with a reputable company,” the document states.