The largest utility in New Mexico is transitioning away from coal-fired generation, and that means by the summer of 2022 it must have other electricity sources ready to provide the power that it currently receives from the San Juan Generating Station.
Those replacement sources must be approved by the New Mexico Public Regulation Commission, which regulates investor-owned utilities like Public Service Company of New Mexico reported the Farmington Daily Times.
The PRC must make a decision by the end of the month or certain contracts for solar arrays will no longer be options for replacing the power from the San Juan Generating Station. The expiration dates on those contracts have already been extended.
PRC General Counsel Michael Smith said he is in the process of drafting a proposed final order. That means the PRC could rule on the case next week during its 9:30 a.m. Wednesday meeting, which is held via Zoom.
If those solar contracts expire, hearing examiners warn that future proposals for solar could have higher price tags.
However, the commissioners may choose to reject the various proposed scenarios and order PNM to go through a new process of soliciting proposals for replacing the power it currently receives from the coal-fired power plant.
That could allow Enchant Energy to present a proposal to provide PNM with baseload power from the San Juan Generating Station following a carbon capture retrofit. Enchant Energy would likely be able to submit the proposal by June next year.
The commissioners expressed mixed opinions on that matter.
Commission Chairwoman Theresa Becenti-Aguilar pointed out that the proposed resources to replace the San Juan Generating Station do not create many permanent jobs while the coal-fired power plant has been a stable source of employment for decades. She also pointed out the need for reliable power during pandemics, including for the health-care industry.
“What is more important — the cost of solar going up or losing human lives in Four Corners?” she said.
She said in light of the pandemic, the commission should reprioritize “in favor of projects that directly impact reliability of electric systems.”
Meanwhile, Commissioner Stephen Fischmann said Enchant Energy does not need a contract with PNM to make its project successful.
Source: Farmington Daily Times