Mandatory Utility Green Power Option

In addition to meeting the requirements of the state renewable portfolio standard, the New Mexico Public Regulation Commission may require IOUs to offer customers a voluntary program for purchasing renewable energy. The voluntary renewable energy tariff may also allow consumers to purchase renewable energy within certain energy blocks and by source of renewable energy. IOUs are also required to develop an educational program communicating the benefits and availability of the green power option. The three IOUs that serve New Mexico customers offer the following programs: Public Service Company of NM (PNM) PNM’s program is called “Sky Blue.” The electricity that is part of this program is generated from wind (85%) and solar (15%). The wind is generated at the NM Wind Energy Center close to Fort Sumner, New Mexico and the sun from 22,000 solar panels in central New Mexico near Los Lunas. PNM offers two options for participating in Sky Blue: (i) buy 100 kWh blocks of electricity for a monthly cost of $1.70 more than the customer’s normal electricity charge or (ii) purchase Sky Blue kWh as a percentage (between 1% and 85%) of one’s regular monthly electricity cost with a cost of $0.017 per kWh used additional above regular electricity charge. The first option adds a fixed charge to the monthly bill while the second option adds a variable charge since it is based on a percentage. For more information, visit the PNM program website. Southwestern Public Service (SPS) SPS’s program is called “Renewable*Connect.” The energy is generated from two solar facilities operated by third parties, totaling 80 MW.

The program specifically targets large customers. Subscriptions must be at least 5 MW, but cannot exceed the customer's annual peak. Contracts must be for 10 or 16 years. The cost of the program is based on production-related demand charges. The 2025 prices are $9.79 per summer kW and $8.18 per winter kW. For more information, visit the SPS program website. Rural Electric Distribution Cooperatives The state's rural electric distribution cooperatives may also offer a voluntary green power program if their suppliers make such renewable resources available under their supply contracts. They are also required to report to the commission by April 30th of each year concerning the availability of renewable energy to them and the annual demand from their customers for renewable energy.