Since last fall, with the active support of my fellow PRC Commissioners, I have been pressing PNM to seriously pursue utility-scale solar energy projects.* As a result, PNM is currently in negotiations that could lead to 150 megawatts of concentrating solar generation built in the Albuquerque area, enough to power 60,000 homes. This is on the same scale as plants now on order in California and Nevada, not to mention thousands of times the capacity of the Algodones plant.

Whether or not the 150 megawatt solar power contract now being considered moves to fruition, there are a number of promising projects being floated, with backing by private capital, that could be developed in New Mexico in the new few years. I will continue to use my position on the PRC to see that New Mexico makes good on its promise to be a leader in solar power, for the benefit of our economy, our environment, and our rate-payers.

I have learned that the technologies used in large-scale concentrating solar plants are significantly cheaper per kilowatt than the cost of the Algodones facility. Bid prices are in the 10 to 15 cents per kilowatt-hour range - very close to what we’re used to paying for retail electricity. With fossil fuel prices heading ever higher, it is not unlikely that concentrating solar plants built this decade will be saving consumers money 10-15 years from now – at the same time that they contribute to addressing the pressing problem of global warming. I hope that PNM’s small and relatively costly Algodones PV installation does not perpetuate the out-dated view that solar power is an expensive novelty.

Ratepayers will be protected from any additional costs resulting from PNM’s multiple changes in the installation siting.
PNM originally proposed the Algodones PV installation in 2004, and it was approved by the PRC at that time. Early in 2006, PNM requested a variance from the PRC to change its procurement plan to allow it to place part of the 25 kw of solar panels at a site in Santa Fe. Although I have fundamental concerns about the project, I supported the variance because it was in keeping with a plan that had been approved by the PRC in 2004, prior to my term.

Last month, PNM came back to us with another request for a variance, this time to abandon the Santa Fe site because of difficulties it encountered in obtaining site approval. At my urging, the Commission placed a condition on the approval of the second variance that prevents PNM from recovering any additional costs from ratepayers beyond what it would have spent to engineer and install the entire project in Algodones without the detour to Santa Fe.

*Marks’ active involvement in ensuring serious consideration of utility-scale solar projects:
1) PRC adopts Marks’ proposed order requiring utilities to consider utility scale solar projects in their renewable energy procurement plans. (September 2005)
2) Marks brings PNM before PRC to address deficiencies in PNM’s RFP for Renewable Energy projects; PNM re-issues the RFP. (November 2005)
3) Marks brings PNM back to explain why it decided not to pursue any of the proposals it received from its RFP, despite the fact that several appeared like they might meet New Mexico renewable energy reasonable cost thresholds (RCTs); PRC directs PNM to work with top solar and biomass bidders to further develop proposals. (April 2006)
4) PNM reports to PRC that discussions have resulted in a 150 MW solar proposal that meets the RCTs; PRC requests continued negotiations with both the solar and biomass developers. (May 2006)