New Energy Efficiency Rules

April 9th, 2009

Governor Bill Richardson Applauds the PRC for Establishing New Energy Efficiency Rules 

SANTA FE - Governor Bill Richardson today applauded the New Mexico Public Regulation Commission for adopting new energy efficiency rules that incentivize electric utilities to implement energy efficiency programs.

“Tackling climate change head-on is one of my top priorities,” said Governor Bill Richardson. “Encouraging efficiency is one way to achieve that and I’m pleased that the PRC adopted rules for electric utilities to offer more energy efficiency programs to their customers to save money and energy.”

The rules adopted today by Public Regulation Commission advance the state’s energy efficiency law adopted in 2007 to encourage utilities’ investments in energy efficiency programs.

Governor Richardson has championed clean energy through one of the nation's most ambitious and far-sighted agendas. His administration has made New Mexico the clean energy state by taking large steps to do the right thing for the environment - steps that are good for the state’s economy too. Some of his policy accomplishments include, among others:

• Requiring utilities to produce energy from renewable resources: to generate 15 percent of their electricity from renewable sources by 2015 and 20 percent by 2020;
• Creating the country’s first renewable energy transmission authority: to deliver New Mexico’s bountiful wind and solar energy to other states;
• Adopting strong new energy efficiency legislation requiring utilities to achieve a 10 percent greater efficiency by 2020, and encouraging efficiency elsewhere by retrofitting existing buildings and investing in new technologies;
• Changing out every incandescent traffic light bulb in the state to operate on LED bulbs, saving energy and dollars for local governments and the New Mexico Department of Transportation, and reducing carbon emissions;
• Investing approximately $40 million of federal stimulus funding in dozens of clean energy projects throughout New Mexico;
• Commissioning an energy efficiency potentials study so that every utility in New Mexico will have a game plan for maximizing investments in energy efficiency; and
• Issuing $20 million in bonds to pay for clean energy upgrades in K-12 schools, colleges, and state agency buildings.

PRC OKs New Utility Charge For Loss From Energy Savings
Copyright © 2010 Albuquerque Journal
By 2010 Michael Hartranft
Journal Staff Writer
Another bump in your utility bill appears to be in the offing.
The Public Regulation Commission on Thursday adopted a new rule for investor-owned utilities to recover lost revenue due to reduced energy use through their energy efficiency programs and to earn an incentive for investing in low-cost energy programs rather than new power plants.

What they collect initially would be based on 1 cent per kilowatt hour saved over the life of the energy efficiency programs, as well as a $10 per kilowatt for reduction in demand, PRC general counsel Robert Hirasuna said. The amount would be passed to customers in their bills to pay for the actual cost of the energy efficiency programs.

Under the rule, which goes into effect May 3, recovery of fixed costs eventually will be covered in the utility companies' rate proceedings, Hirasuna said. The incentive would then be based on a half cent per kilowatt hour saved or some other amount determined by the PRC.
It's wasn't immediately clear what the impact would be on PNM customer bills. Estimating by a draft rule to recover for 2009 and 2010, PNM said the average customer would pay 36 cents more a month the first year and 52 cents a month the second year. But the rule adopted Thursday says utilities can't recover until after it goes into effect and the PRC approves a request for recovery.

"We need to see the rule before we can comment," PNM spokesman Don Brown.
Utilities have argued that energy efficiency programs cause customers to use less energy, reducing revenues and creating a "disincentive" for them to develop more such programs. PNM's program ranges from recycling refrigerators to residential lighting program enabling customers to purchase compact fluorescent bulbs at discounts from various retailers. In 2008, the Legislature passed a bill telling the commission remove regulatory disincentives in a way that would balance public, consumer and investors' interests.