Why is the proposal illegal?

A:

On page 2, lines 13-14, the Resolution states: “PNM is providing solar power to large entities such as Facebook and potentially other municipalities in New Mexico.” The contractual arrangement proposed by PNM to create a 3.5 megawatt system off site to offset the usage of 22 city facilities and give the City credit for the power produced is akin to “community solar.”[1]

Today community solar is illegal in New Mexico, primarily because PNM has vigorously opposed legislation to create such a financial arrangement despite that it has been adopted in many states.  

The financial arrangement between the City and PNM does not meet the legal requirement of a “Special Service Contract” between PNM and Facebook and the “Green Energy Rider” approved by the PRC in August 2016.  PRC's approval of that Green Energy Rider, only applies to large NEW customers with specified power demands, and not any of PNM's existing customers.



[1]community solar project—sometimes referred to as a solar garden or shared renewable energy plant—is a solar power plant whose electricity is shared by more than one household. The shared renewables project pools investments from multiple members of a community and provides power and/or financial benefits in return.

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