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Saturday, October 24, 2009
Solar Advocates Cheer Initial Ruling
By Michael Hartranft
Journal Staff Writer
Solar energy advocates say they are on the brink of an important victory for the industry after a hearing examiner's recommended ruling Friday that third-party arrangements for power generation are allowed under state law.
The ruling is subject to approval by the state Public Regulation Commission, which initiated the case last summer.
The commission asked whether it is legal for a developer to install a renewable-energy system on the property of a customer of a regulated utility and sell the power to the customer. A primary issue is whether the developer should be considered a public utility.
Utility companies, including the state's largest, PNM, contended third-party arrangements aren't legal and would infringe on their franchise rights.
Hearing examiner Carolyn Glick held that such arrangements would be legal, noting the developer is not a public utility but serves a customer under a private contract. She said developers provide "a green alternative" with systems that offset rather than replace the customer's use of grid electricity.
Glitch said an exception would be a developer serving multiple customers that installed distribution lines to transport energy from one location to another. In that case, the developer would be a public utility.
"Obviously, we see it as a big victory but it wasn't unexpected," said Patrick Griebel of the Renewable Energy Industries Association of New Mexico, one of the numerous intervenors in the case. "The case law was very clear these entities were not public utilities. What I will tell you is this will allow several projects to move forward that otherwise would have been stalled."
PNM spokesman Don Brown said while the company is still reviewing the decision, "It's important to remember this is simply a recommended decision. We still will have an opportunity to present our own views to the commission itself before a final decision is made."
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