PRC proposes renewable energy rules for rural electric co-ops

By 2025, rural electric cooperatives in New Mexico must have at least 40% renewable energy. By 2030, the utilities must have at least 50% renewables. And by 2050, electric co-ops should — if possible — have 80% renewables.

Those are proposed rules recently released by the New Mexico Public Regulation Commission on renewable energy standards for rural electric co-ops.

The PRC commenced its formal rulemaking and issued the proposed rule Aug. 22.

The commission has been working toward that for a while.

The matter goes back to 2019 with the passage of the Energy Transition Act, which included renewable goals for both investor-owned utilities and rural co-ops. The PRC that year started rulemaking to implement the law, and in 2020, the commission separated IOUs and co-ops into two separate rulemakings.

Since then, the PRC has engaged with Kit Carson Electric Cooperative, the New Mexico Rural Electric Cooperative Association and the Tri-State Generating and Transmission Association on its proposed renewable energy standards rule.

The proposed rule includes the 40% renewables by the 2025 deadline, which is quickly approaching and will likely come before the PRC approves the proposed rule.

The next two deadlines are 2030, when renewable energy has to comprise at least 50% of a co-ops total retail sales, and 2050, when at least 80% of electricity generated should come from renewable energy resources.

Unlike IOUs, the 2050 deadline for rural co-ops only applies if it’s technically feasible and the utility can continue providing affordable and reliable service.

The same is true for another 2050 deadline included in the proposed rule. That’s when distribution co-ops should provide carbon-free energy, if it’s possible to do so while delivering affordable and reliable service.

The PRC is considering the zero-carbon resources standard separately from the renewable standards, according to the order, because “zero carbon resources are not necessarily synonymous with renewable energy,” potentially creating barriers to meet a carbon-free agenda.

The PRC will revisit the issue when it’s closer to 2050.

“The commission has many years to consider the details and mechanics of a rural electric cooperative’s implementation of the 2050 zero carbon resources standard,” the August rulemaking order states.

The PRC likely won’t finalize its proposed rule before 2025, according to the order issuing the rulemaking.