FOR IMMEDIATE RELEASE
January 29, 2024
Contact:
Michael Kenney, Southwest Energy Efficiency Project | mkenney@swenergy.org
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[SANTA FE, NM] – The New Mexico Public Regulation Commission approved the Southwestern Public Service Company’s (SPS) grid modernization application on January 25, 2024. New Mexico remains one of the last states in the nation relying on outdated electric meters and distribution system controls. The current equipment limits the ability of electric utilities like SPS to integrate behind-the-meter rooftop solar, identify outages, help customers to understand how they use energy and when, and offer new energy saving programs. With this decision, SPS will update its metering infrastructure and modernize its distribution system for real-time monitoring and energy management. SPS customers will gain valuable insights into their energy usage and be more informed about steps they can take to reduce their bills. The Commission took an additional step requiring SPS to pursue a rigorous time-of-use (TOU) rate pilot to capture the benefits of grid modernization. A TOU rate sets different prices for electricity, typically a peak price and an off-peak price, encouraging customers to use energy when it is cheapest and limiting use when energy is expensive. When designed effectively and widely adopted, a TOU rate can keep overall system costs lower, prevent building new fossil fuel powered generation, and potentially lower customer bills.
The Southwest Energy Efficiency Project (SWEEP) presented expert testimony in support of the SPS grid modernization plan at the Commission hearing, working closely with attorneys from the Coalition for Clean Affordable Energy (CCAE). SWEEP and CCAE commend SPS and the Commission for moving ahead with advanced meters and distribution system upgrades. It will unlock more efficient management of the distribution system, new energy efficiency and load management program designs, and new rate designs that reduce greenhouse gas emissions and other harmful air pollutants, and lower system costs. SWEEP is especially appreciative of the Commission requiring the development of a pilot TOU rate that better reflects the costs of providing electricity. The TOU issue remained contested throughout the proceeding. SWEEP and CCAE argued that in order to maximize the customer benefits of grid modernization SPS needed to pursue a widely adopted TOU rate.
A modernized distribution system will also enable SPS to integrate behind-them-meter renewable energy more easily to the grid. All together, this decision will support SPS on its path to launch new energy efficiency and load management programs, integrate more renewable energy, and meet clean energy and climate goals.
“The Commission’s decision to approve SPS’ grid modernization application is a giant step forward that adds more tools to the toolbox for achieving energy savings, delivering renewable energy, and meeting greenhouse gas reduction goals. Modernizing the distribution system brings not only reliability and resilience benefits but also improved energy efficiency and load management programs, and better customer insight into energy usage.” – Michael Kenney, SWEEP
To learn more about the proceeding and to the decision see Case No. 22-00178-UT here: https://edocket.nmprc.state.nm.us/Login.aspx.
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The Southwest Energy Efficiency Project (SWEEP) is a public interest organization promoting greater energy efficiency and clean transportation in Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming. swenergy.org
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