The New Mexico Public Regulation Commission denied a group of legislators’ request to intervene in a case involving new generation and energy storage assets for the state’s largest utility. The legislators also asked the regulators to reconsider a final order issued in the case.
The legislators argued that the Public Service Company of New Mexico was violating the Energy Transition Act by not locating 130 megawatts of new resources within the Central Consolidated School District.
The Energy Transition Act included a location requirement for generation assets intended to replace the shuttered San Juan Generating Station, which was located within CCSD boundaries.
Initially, PNM entered into agreements to purchase power from two solar projects that had battery storage components and were within CCSD boundaries—San Juan Solar and Rockmont Solar. But Rockmont eventually defaulted on its agreement, leaving PNM short on the amount of replacement power within CCSD.
Then, in October, PNM filed an application with the PRC for new solar and battery projects, none of which were located within CCSD. The PRC approved these projects in May and said that they are not replacements for San Juan Generating Station, but that they are needed for reliability.
But advocates, like New Energy Economy, say that the only reason why the projects are needed is because the San Juan Generating Station closed, which means that the new resources are replacing the coal-fired power plant. The group of legislators who sought to intervene agreed with New Energy Economy’s position. That bipartisan group of legislators include Democrats, Reps. Anthony Allison, of Upper Fruitland, Mark Duncan, of Kirtland, Joanne Ferrary, of Las Cruces, and Patricia Roybal Caballero, Eleanor Chávez, and Liz Thomson, all of Albuquerque. The list also includes Republican Rep. Rod Montoya, of Farmington and William Hall, of Aztec, as well as Republican state Sens. William Sharer and Steven Neville, both of Farmington. Democrat state Sens.Shannon Pinto, of Tohatchi, William Soules, of Las Cruces, and Antoinette Sedillo Lopez, Harold Pope and Bill Tallman, all of Albuquerque, were also part of the group of legislators trying to intervene.
However, the PRC denied the request to intervene because it came after a decision had already been made in the case.
The legislators also requested that the PRC reconsider its decision to approve the resources that are located outside of CCSD; however, only people who are considered parties to the case, such as intervenors, are able to request a rehearing.
Commissioner Gabriel Aguilera said the denial of the legislators’ request is “strictly procedural” and does not go into any of the substance behind the lawmakers’ concerns.
Commissioner James Ellison said it would be “highly problematic” for the commission to grant the legislators’ requests for reconsideration of the application for new resources and that he does not know how procedurally the regulatory body could allow the legislators to intervene after a final order has already been adopted in the case.
In a statement to NM Political Report, PNM said that the utility is “fully supportive and compliant with the Energy Transition Act and would also like to see more projects developed in the Central Consolidated School District and surrounding areas.”
The utility further says that it is including a preference for projects within CCSD in its request for proposals for future resources.
Aguilera highlighted that PNM has indicated it will file an application this fall for new resources that will come online in 2028 that includes projects within the CCSD boundaries.
However, critics say that this does not address the current need for replacement resources to make up for lost property tax within the school district that primarily serves students on Navajo Nation.
“I agree that the legislators have a legitimate concern, and it is one that I share,” Aguilera said.
But, he said, he is satisfied that PNM intends to locate new resources within the CCSD boundaries in the future.
