Heather Berghmans Senate District 15 | Sierra Club Rio Grande Chapter
A coalition of community, faith, tribal, and environmental advocates in New Mexico expressed disappointment over the New Mexico Public Regulation Commission's (PRC) decision to delay the approval of two solar and battery storage projects. These projects were intended to partially replace electricity generated by the San Juan Generating Station.
The projects, which boast record-breaking low prices, were planned for rural areas in McKinley and Rio Arriba counties. They promised hundreds of construction jobs and would support the Central Consolidated School District. The PRC's delay risks losing these benefits as bids for the projects expire on April 30.
Acknowledging the commission's need to evaluate all resources before approval, hearing officers recommended prioritizing these projects due to their exceptional opportunity. Advocates argue that immediate approval was prudent given current economic uncertainties. The Arroyo Project involves 300 megawatts of solar and 40 megawatts of battery storage in McKinley County, while the Jicarilla Project includes 50 megawatts of solar and 20 megawatts of battery storage on the Jicarilla Apache Nation. Both are among the lowest-cost clean energy initiatives nationally and could create 700 construction jobs in northwest New Mexico.
Concerns were raised about suggestions to rebid all San Juan resource replacements, with nearly 400 bids already received. Rebidding could delay new resources until December 2023, affecting service rates following PNM's exit from San Juan Generating Station in mid-2022.
Despite this setback, there is hope that developers will stay committed to these projects. Once a complete replacement portfolio is presented to the commission, swift approval is anticipated alongside essential resources for San Juan County's Central Consolidated School District.
Support for the Energy Transition Act (ETA) came from labor unions, environmental advocates, Navajo Nation representatives, community organizations, businesses, and utilities in 2019. The law aims for investor-owned utilities' electricity to be renewable by 2030 and carbon-free by 2045. It also allocates $40 million for economic assistance related to coal plant retirements and encourages up to 450 megawatts of replacement power investment in San Juan County.
