Letter to the Editor: Co-ops can now self-generate

Editor:

Socorro Electric Co-op, and many other rural electric co-ops in New Mexico and other western states, buy electricity for customers from Tri-State Generation and Transmission (“Tri-State”).

The latest Tri-State newsletter had both good and not so good news: Electric rate increases for Tri-State were approved - not so good.

But rural electric co-ops which buy power from Tri State can now generate up to 40% of their own power load - good news!

The Federal Energy Regulatory Commission (“FERC”) approved Tri-State’s requested rate increase of 6.2%. But FERC also approved Tri-State’s request to allow your local co-op to self generate its own power by up to 40% of its load.

Currently the SEC, and many other rural electric co-ops, have contracts with Tri-State only allowing 5% self generation.

There is more good news. I’ve received two cost estimates from Albuquerque solar companies for a 20 MW solar array and three mega pack battery storage units. The batteries keep the lights and appliances running after the sun goes down.

The bids’ average a total cost of $40 million, a chunk of change. But with the Inflation Reduction Act from the Biden Administration, a co-op would receive a 30% direct payback or $12 million and with a federal Rural Utilities Service (“RUS”) stackable loan at 1 or 2% and its 20% forgiveness another $8 million would bring the cost way down.

So the actual cost for the 20 MW solar/ battery generation for the co-op is $20 million. And other grants for solar and battery back-up are available. The $20 million solar/battery self-generation system would be owned by the Co-op and would produce/offset $3.5 million per year of the electricity cost purchased from Tri-State.

The bottom line: the 20 MW system owned by your co-op would shave $2 million a year off the cost of the power the Co-op now buys from Tri-State.As an example, Socorro Electric Co-op spends just over $14 million a year on electric power purchased from Tri-State. Right now 60% of your electric bill is used to buy Tri-State power. A renewable solar/battery installed system could save one/seventh or a 14% savings on your bill cost for electricity. On a $100 monthly electric bill that would save a customer $8.40 a month.

Not only will your co-op bill be lower, the investment in the $40 million solar/battery array will create construction jobs, some permanent jobs, and tax revenue for the local economy. Tri-State is switching from coal powered electrical production to solar/wind/battery electrical production. Why? Because it’s half as expensive as coal. Fortunately, Tri-State realizes the sun shines just as brightly on our Co-ops as it does on a 200 MW utility scale solar field. Thank you Tri-State for giving our member Co-op boards the ability to self generate their own, less costly, renewable energy. Doing so opens the door widely to saving co-op members money and allowing them to invest in the future of their local economies.

Ward McCartney

Belen

Publisher’s Note: McCartney is a District I trustee with the Socorro Electric Co-operative.