Dive Brief:
- More robust renewable portfolio standards went into effect at the beginning of 2015 four states, including Texas, Montana, New York and New Mexico, the Hill reports.
- In New Mexico, PNM has begun purchasing power from the Red Mesa Wind Energy Center to assist in meeting the state's renewable standards.
- PNM has also requested a $107.4 million rate increase, which the utility said is necessary for reliability and to continue the shift to a cleaner power mix.
Dive Insight:
Utilities in four states will begin the year delivering more renewable power, The Hill pointed out, and the more robust renewable portfolio standards have some seeking additional clean generation. To meet increased renewable mandates, PNM is now purchasing the energy output from the 102-MW Red Mesa facility, located about 50 miles west of Albuquerque. The project came online in 2010 and its 64 turbines produce the energy used by 29,000 average residences.
The utility's 12% rate increase request, announced in December, would go towards integrating greater renewable power.
"We take bill increases and the impact they can have on our customers very seriously and have worked hard to mitigate the need for this request," said Pat Vincent-Collawn, PNM's chairman, president and CEO. "These steps are critical for PNM to be able to maintain reliability, continue the move toward cleaner energy resources and to best serve our New Mexico customers. The regulatory improvements we are also seeking are needed to align our rate structure with the way that people use energy today, and to fairly allocate the cost of the electric system among all customers."
The rate increase would include $79 million for four new solar centers planned to be online by 2016 and capable of powering 16,200 average homes.
Not all states are boosting renewable use, however. Over the summer Ohio Gov. John Kasich signed legislation freezing the state’s mandates for renewables and efficiency until 2017.