Environmental Project

PRC rejects argument that state law requires approval of full decoupling
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Asan increasing number of people install solar panels on their houses or make energy efficiency upgrades, the amount of electricity utilities sell may go down. This can impact the utility’s revenue streams, even as costs of maintaining and upgrading infrastructure remain. One way to address this is known as decoupling and the state’s largest utility, Public Service Company of New Mexico, argued that a 2019 amendment to the state’s Efficient Use of Energy Act requires the New Mexico Public Regulation Commission to approve applications for full decoupling. Decoupling is essentially a mechanism that removes the incentive for a utility to sell as much electricity as possible by reducing or eliminating the need to sell a certain amount of power to cover the fixed costs like maintenance and upgrades. During its Wednesday meeting, the commission unanimously rejected PNM’s argument, instead adopting a decision recommended by Hearing Examiner Anthony Medeiros.