We believe, and the evidence is available that shows, that PNM-owned solar is NOT the most cost effective resource among feasible alternatives and will result in unreasonably high solar procurement costs to the City of Santa Fe. Why? PNM enjoys a guaranteed return on assets of 9.575% annually. So, PNM will charge the City the cost of electricity plus a nearly 10% return. Can independent local power producers install solar on City owned facilities for less than PNM-owned solar + 10%? Most Probably. In fact, recent actual PNM evidence shows that independent power producers’ prices have come in dollars per megawatt cheaper than PNM-owned solar. If the City owns the solar at some point the solar-produced electricity is free!
The title of this Resolution and content of this Resolution prefers a PNM development study to the exclusion of City of Santa Fe-owned OR other local companies without any analysis that:
- Known PNM costs on said 22 facilities are less/more than PNM’s proposed costs for the 3.5 PNM-owned development;
- Known PNM costs on said 22 facilities are less/more than City of Santa Fe owned solar;
- PNM’s proposed costs on said 22 facilities are less/more than any other financial arrangements, including development by other local companies.
PNM’s fiduciary duty must maximize its financial arrangements to create the highest return on equity for Wall Street shareholders and long-term monopoly control of resources at the expense of customers, if the Council adopts this Resolution, the City of Santa Fe.