Remarks by Jason Marks at the Signing of the Solar Energy Tax Credit Bill - March 2006

Bill Signing Ceremony at Indian Pueblo Cultural Center Odes Armijo-Castor (Sacred Power Corporation, Renewable Energy Industries Assoc of NM), Rusty Schmidt (Advent Solar), Senator Dede Feldman (bill sponsor), Energy Scty Joanna Prukop (behind Feldman), Governor Richardson, Jeff Sterba (CEO, PNM), Commissioner Jason Marks (PRC), and Ben Luce (Chair, CCAE; VP, New Mexico Solar Energy Association)

Having the Governor here reminds me of a certain visionary statesman who often spoke of America’s need to build a bridge to the 21st century.

Well, we are standing on that bridge today.

Looking right behind us, we see how coal, oil, and gas catapulted our society into an era of general prosperity, albeit at significant environmental costs.

Ahead, we see the necessity of a future in which fossil fuels retreat to a supporting role, and renewable generation is the mainstream.

Many of you are here, I imagine, because you know that the environment cannot survive continued burning of fossil fuels. But transition to renewable energy is an economic imperative, as well.

This year’s price spikes for gasoline and natural gas have been a preview of what’s to come as increasing energy demand bumps up against finite supplies.

New Mexico began building its bridge to the new energy economy in 2002, when the CFCAE brought the RPS to my predecessors on the Commission.

In response, our utilities built wind farms and today about 8% of our electricity is wind generated. And, lo and behold, wind-produced electricity - which comes in at only 3 cents per kwh - is saving New Mexico consumers money.

One utility, Excel, has told us it intends to go to 15% wind on its system within the next 18 months, so as to avoid the fuel costs of natural gas, which has spiked as high as 12 cents/kwh recently as is projected to stay above 6 cents.

Utility-scale projects using solar-thermal technologies, such as the Stirling engines developed at Sandia Labs, are being bid at 8 to 10 cents a kwh - within spitting distance of conventional power sources.

If we are still meeting our electricity needs 25 years from now exclusively from coal and natural gas, 10 cents a kwh is going to be as nostalgic as a 5 cent candy bar.

In order put ourselves in a position to avoid fossil fuel cost crises in the future, we need to start putting as much renewable generation as possible in place over the next few years.

This past winter, the PRC approved PNM’s solar REC buy-back plan - including my amendment that locks-in long term certainty for program participants.

The REC buy-back, in conjunction with the New Mexico Solar Markets Tax Credit, makes it more affordable for folks to make a commitment to roof-top, distributed generation.

The Solar Market Development Tax Credit is another important piece of superstructure we are adding to our 21st Century Bridge and I am pleased to be here today to add my thanks to all who have made it possible.