New Mexico bill would let communities choose where they buy electricity, or make their own

SANTA FE - Aiming for lower electricity prices and cleaner energy sources, New Mexico could become the eighth state to permit local communities to purchase power from suppliers other than utility companies such as PNM and El Paso Electric, under legislation introduced Monday in Santa Fe. 

State Senators Jeff Steinborn, D-Doña Ana, and Benny Shendo, D-Bernalillo, introduced Senate Bill 374, the Local Choice Energy Act, aiming to give local governments the ability to purchase electricity from a supplier of their choosing and increase market competition.

The legislation adopts a model known as community choice aggregation, which allows tribal and other local governments to take bids on residential, commercial and municipal electricity supply. Delivery and maintenance services continue to be supplied by the utility company.

A growing trend 

The number of businesses and households powered through CCA's is growing rapidly. According to the National Renewable Energy Laboratory, 3.3 million customers in five states were powered by CCA's in 2016. By late 2018, California alone had 19 CCA's supplying power for eight million customers.

The senate bill would allow customers to opt out and continue purchasing energy from the utility company, a typical feature in state laws enabling CCA's. 

At a Monday afternoon press conference, Steinborn and Shendo argued the legislation would empower tribal governments and local communities to lower electricity rates through competitive markets and select for renewable energy over fossil fuels. They also said communities could produce their own energy and sell surplus electricity on the market. 

"All across New Mexico, across party, across race, age, people are clamoring for renewable energy," New Energy Economy Executive Director Mariel Nanasi said at the conference. "Fossil fuels have devastated our communities ... We have the possibility of 100 percent renewable energy but we can't get there with the current system."

Attempt to boost solar, wind energy

Steinborn also remarked that ambitious renewable energy goals and efforts to liberalize accessing and sharing of solar and wind energy were routinely opposed by major utility companies, which he described as "monopoly power energy that has fought us every step of the way to get greener power."

Among those speaking in favor of the legislation at the press conference was Las Cruces city councilor and Mayor Pro Tem Gill Sorg. Last April, the city set a goal to reach 100 percent clean-energy dependence by the year 2050. 

Per the New Mexico state legislature website, the bill's next stop will be a hearing before the Senate Conservation Committee.

Power companies respond

In response to a query from the Sun-News, Public Service Company of New Mexico (PNM) spokeswoman Shannon Jackson wrote, "PNM believes there are many technical questions as the bill is currently drafted. We are planning to address them with the sponsors."

El Paso Electric issued the following statement to the Sun-News:

El Paso Electric (EPE) is still currently reviewing all legislation that pertains to the electric and utility industry. It is the intention of EPE to work with stakeholders in the legislative process to evaluate and develop bills that would be both cost effective to customer rates and reliable in providing clean energy. Monitoring changes to legislation is integral to this process. 

Algernon D'Ammassa can be reached at 575-541-5451, adammassa@lcsun-news.com or @AlgernonActor on Twitter.

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