2050 W. Hadley Avenue, Suite B
Las Cruces, NM  88007

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575-524-2030

Our office is on the north side of Hadley Ave., just west of 17th St.  Look for the PV array on the front of the building!

Regulatory News for Southern New Mexico (updated December 2010)

• In their original plan, EPE proposed to lower the small (<10 kW) REC incentive from $0.12/kWh to $0.098/kWh, keeping the contract term at 12 years.  This is a 18% reduction.  The also proposed to lower the medium (10-100kW) REC incentive from $0.155/kWh to $0.124, a 20% reduction.  They also stated that at that time they had zero participants in the Medium Program.  EPE also requested a variance from their solar requirement for 2011.

• In my testimony, I proposed that the REC incentives stay at their current levels.  I also proposed that EPE not be allowed to simultaneously receive a variance for their solar requirement and reduce the incentive for distributed generation (DG) solar systems.

• PRC staff stated that EPE's proposed reductions may "inappropriately inhibit the development of renewable DG" and instead proposed to reduce the incentives "more moderately than EPE had proposed".  This "more moderate" reduction was to change the small system incentive to $0.11/kWh for ten years (24% reduction over the contract term) and the medium system incentive to $0.13 for ten years (30% reduction over the contract term).  These reductions are more extreme than EPE originally proposed.

• On the eve of the hearing, EPE agreed to "compromise" and accept PRC Staff's proposed changes.  As the other party in the case, I was not invited to these negotiations.

• In her Recommended Decision in the case, the Hearing Examiner ruled that the incentives should not be reduced, either in rate or contract term.

• EPE and PRC Staff each submitted Exceptions to the Recommended Decision, arguing that the rates should be lowered as stated above.

• On Thursday December 16, the five member elected PRC Commission voted unanimously to accept the Hearing Examiner's Recommended Decision.

2009 Renewable Energy Procurement Plan case

El Paso Electric has proposed to lower the REC incentive for homeowners with PV systems from $0.13/kWh to $0.10/kWh.  Mark Westbrock, Manger of Positive Energy's Las Cruces branch, is intervening in the case.  This site will be updated with new developments in the case.

12/22/2009

The Commission voted and issued their Final Order in the case.  Of note:

1. The REC incentive for Small PV systems (<10 kW) shall be $0.12/kWh)

2. Mark Westbrock's Exception #3 is granted in part.  There shall be no capacity limit for the Medium PV System REC program (10-100 kW) that is based on historic demand.  REC payments shall be made only for generated energy up to the actual usage of the building.  The REC incentive for the Medium program is $0.155/kWh.

3. Mark Westbrock's Exception #2 is granted in part.  If a homeowner with a PV system sells their home, the new home and PV system owner may opt in to the original terms of the REC contract.

Final Order (pdf)

12/3/2009

Mark Westbrock filed his Exceptions to the Recommended Decision:

"1. The RD’s use of an installed cost from a single vendor to calculate the REC incentive for EPE’s Small Solar REC Program is inappropriate.

2. The RD’s assertion that my proposed tariff changes are beyond the scope of this proceeding is unreasonable.

11/24/2009

The Hearing Examiner in the case filed her Recommended Decision.  Among her recommendations:

1. EPE's Motion to Strike Mark Westbrock's Proposed Findings and Conclusions was denied

2. The REC incentive for small PV systems shall be calculated in such a way that results in an incentive of $0.112/kWh.

3.  Mark Westbrock's request that REC contracts shall be transferable to the subsequent owner of a home was denied for being "beyond the scope of this proceeding".

4. Mark Westbrock's request that REC contracts shall remain valid if a PV system owner expands their system was denied for being "beyond the scope of this proceeding".

5. Mark Westbrock's request that the capacity limit for the Medium PV REC program be based on actual energy usage rather than historical power demand is denied.

Hearing Examiner's Recommended Decision (pdf)

10/29/2009

EPE filed an objection to Mark Westbrock's Proposed Findings and Conclusions.  The Company moved to strike the entire filing of the only intervenor in the case.

EPE's Objection (pdf)

10/20/2009

All parties in the case have submitted their proposed conclusions in the case.  The PRC staff agreed to the Proposed Recommended Decision of EPE, without changes, even though EPE's analyses to come up with the lower incentive were flawed.  PRC Staff found that lowering the incentive will put the payback time for a PV system at 16 years, although the PRC ruled in last year's case that 12 years was the appropriate payback goal.

Proposed Findings and Conclusions in EPE Renewable Energy Procurement Plan case 2009 (pdf)