Competitive Resource Procurement for Electric Utilities SB 360 was introduced
yesterday. It will be referred to Senate Conservation and Senate Judiciary.

I’m more convinced than ever that an open, competitive and transparent process will
yield a cleaner, fairer, cheaper energy mix.  It  starts with a fair process, which
New Mexico does not currently have. When PNM has to compare its own coal and nuclear
with solar and wind renewables win! And that means jobs, health, environment,
climate wins too.
 
As for the “big picture” – I think we are on the threshold of major changes in the
way the nation supplies and consumes energy.  

Below are quick talking points and a one-pager.

Please contact the following people to support our bill:

Richard Martinez, richard.martinez@nmlegis.gov, 986-4487
Linda M. Lopez, linda.lopez@nmlegis.gov, 986-4737
Jacob R. Candelaria, jacob.candelaria@nmlegis.gov, 986-4380
Daniel A. Ivey-Soto, daniel.ivey-soto@nmlegis.gov, 
986-4270
William H. Payne william.payne@nmlegis.gov 986-4703
Liz Stefanics liz.stefanics@nmlegis.gov (505) 699-4808 

Thank you.

Mariel Nanasi
Executive Director
New Energy Economy
505-469-4060 (cell)
505-989-7262 (office)
www.NewEnergyEconomy.org

Procurement of New Power Generation Resources by Investor-owned Electric Public Utilities; Request for Competitive Proposals and Independent Evaluator Process.

The legislation requires utilities to perform a request for competitive proposals subject to scrutiny by an independent evaluator as a prerequisite for the procurement of a supply-side electric energy or capacity resource.

Once a generation resource procurement need is identified through a utility’s long-term resource plan, a competitive resource procurement process will be required that is transparent to regulators, unbiased, and free of conflicts of interest. The process will be designed to permit an objective evaluation of expected direct costs as well as the financial and operational risks associated with fuel price volatility, resource reliability, credit worthiness associated with potential suppliers, and environmental regulations.

The legislation brings New Mexico into line with the practice of many states, e.g. Oklahoma and Arizona, by opening utility resource choices to competitive bidding. Doing so will protect the public interest and ensure compliance with state law that requires utilities to select the least-cost solutions to energy resource demands with preference for the least environmentally damaging resource. Given recent controversy over ratemaking and resource replacement cases, this legislation will help to ensure that an unbiased evaluation of all resources is conducted and that it is informed by competitive market bids solicited through a transparent Request for Proposal (RFP) process.

Any application by an investor-owned electric public utility for commission approval of its proposed procurement of a supply-side electric energy or capacity resource for a duration greater than one (1) year, including but not limited to an application for commission issuance of a certificate of public convenience and necessity (CCN) or for commission approval of a power purchase agreement (PPA) for a resource or for inclusion of a resource in the utility’s rate base, must be accompanied by testimony by an independent evaluator providing and describing the results of a request for competitive proposals and competitive bidding process for the resource as well as the recommendation of the independent evaluator as to which, if any, resource should be selected.