Hans Muller : "PRC Approves PNM Battery & Solar Projects"

1. PRC approves battery storage projects for solar energy
2. PRC grants approval for solar battery projects in PNM’s portfolio.

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State regulators have given the green light to the Public Service Company of New Mexico’s proposal to add new solar and battery storage resources, despite concerns raised by the Central Consolidated School District about the impact on property tax revenue. The decision, made by the New Mexico Public Regulation Commission, comes after a thorough review of the application and recommendations from the hearing examiner.

Background of the Case

The application, submitted in 2023, sought approval for the addition of 100 megawatts of solar power through a power purchase agreement with the Quail Ranch solar project, along with three energy storage agreements totaling 250 megawatts of four-hour storage at different sites. Additionally, the application included a utility-owned battery storage facility known as the BESS Sandia Storage Project. These resources were requested by PNM to meet peak energy load requirements in 2026.

However, concerns were raised during the case regarding the intended purpose of the Quail Ranch project, specifically in relation to the Rockmont Solar Project that was previously approved by the PRC as a replacement for the San Juan Generating Station. The Rockmont project, located within CCSD boundaries, faced delays and eventual cancellation by PNM.

Community Concerns and Commission Decision

CCSD and San Juan County have argued that the Energy Transition Act mandates PNM to install 450 megawatts of generation or storage capacity within the school district’s boundaries to offset the property tax revenue lost from the closure of the San Juan Generating Station. They contend that without the completion of the Rockmont project, PNM falls short of fulfilling this obligation.

Former PRC Commissioner Steve Fischmann, along with members of 350 New Mexico, emphasized the importance of replacing the San Juan Generating Station with solar and battery projects within the CCSD boundaries. They expressed disappointment that the current application did not address the specific requirements outlined in the Energy Transition Act.

Commission Chairman’s Perspective

Commission Chairman Pat O’Connell acknowledged the significance of replacing the Rockmont project but highlighted the challenges faced by PNM in locating projects within CCSD boundaries. He stressed the need to address the capacity shortfall in PNM’s system and the importance of moving forward with the approved resources while also considering the replacement power requirements.

O’Connell mentioned PNM’s upcoming request for proposals for an integrated resource plan, which will provide opportunities for stakeholder engagement. He encouraged PNM to engage with concerned parties during the IRP process to address any outstanding issues related to the San Juan Generating Station replacement resources.

While the decision to approve PNM’s application for new solar and battery storage resources has been made, the ongoing discussions around the replacement of the Rockmont project underscore the complex nature of transitioning to renewable energy sources in a way that benefits both the environment and the local communities affected by such transitions.