New Mexico Utility To Challenge State Regulators Over Wind Procurement


The Public Service Company of New Mexico (PNM) is challenging a directive from state regulators that it purchase more wind power for its electricity customers.
A PNM spokesperson initially said the utility would comply with a state Public Regulation Commission order by spending up to $6 million annually for wind power from a New Mexico plant.Â

However, the company changed course and now says it will fight the commission's order.Â

PNM and other state utilities are bound by state law to diversify its energy portfolio by providing wind and other alternatives to coal and natural gas. Utilities can meet renewable energy directives by buying the power directly or purchasing renewable energy certificates from another company that has exceeded state requirements. Â

According to the Farmington, N.M, Daily Times, PNM wants to buy the certificates, but state regulators rejected the plan. The commission said it would not accept more paper certificates from PNM; it wanted wind power.Â

PNM executives say they were following the law, and should not be ordered to change course to suit the commission's desires.Â

If the commission holds firm, the company could appeal to the New Mexico Supreme Court.

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