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New Mexico Supreme Court Upholds Community Solar Program
In a landmark ruling, the New Mexico Supreme Court has firmly dismissed attempts by electric utility companies to alter the state’s community solar initiative. The court released an extensive 58-page analysis that reinforces its verbal determination made in March 2024, which supported the operational guidelines set forth by the Public Regulation Commission (PRC).
A Glimpse into New Mexico’s Community Solar Initiative
Established in April 2021, New Mexico’s community solar program allows individuals, small businesses, and nonprofit entities access to solar energy without needing individual installations. A key feature of this initiative is its requirement for at least 30% of subscribers to be low-income residents, enabling participants to enjoy savings on their electricity bills of up to 30%. This inclusion aims to broaden access and offer financial relief where it is most needed.
Challenges Faced During Implementation
The launch of this program has been marred by significant delays due primarily to legal disputes instigated by three major investor-owned utilities: Public Service Company of New Mexico (PNM), El Paso Electric (EPE), and Southwestern Public Service (SPS). These utilities challenged various rules laid out by the PRC regarding billing practices — notably opposing the commission’s rule against imposing transmission charges on community solar users.
The Court’s Verdict
“We conclude that the Utilities failed in their challenges by not providing adequate proof that the [Community Solar] Rule is unlawful or unreasonable based on the [Community Solar] Act,” stated Justice Briana H. Zamora in a unanimous decision. The court reaffirmed PRC’s authority in banning deductions for transmission costs from bill credits as a legitimate exercise of policy-making powers assigned to it.
Validation of Key Components
The ruling also confirmed other contentious elements related to the program such as using third-party administrators for selection processes and dismissing SPS’s billing proposal without further examination. Following this decision, PNM indicated readiness to proceed with implementation while EPE and SPS representatives refrained from commenting on its implications.
A Mixed Reaction Among Advocates
This judicial outcome was met with enthusiasm among renewable energy proponents; however, there remains frustration over ongoing delays in executing projects under this program. “This landmark ruling clarifies how community solar bill credit rates should be calculated per previous commission directions, guaranteeing fair compensation for all subscribers,” remarked Christian Casillas, executive director at Coalition of Sustainable Communities New Mexico.
Criticizing utility actions more sharply was Mariel Nanasi from New Energy Economy who accused them of fostering confusion solely aimed at stifling market competition.
A Stagnant Start Despite Clearances
Despite receiving approval for various projects during its inaugural round — along with an increased capacity limit for upcoming project bids — construction has yet to commence on any approved initiatives. In March’s order noted that these appeals have culminated alongside efforts hindering effective implementation of the Community Solar scheme; consequently urging prompt action from PRC moving forward.
A Path Ahead?
This court ruling signals a considerable triumph for advocates supporting community solar efforts while potentially paving a way toward active project development; nonetheless history suggests numerous obstacles may still interfere before tangible operational achievements are realized through this initiative.
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