N.M. Admin. Code § 17.9.572.12

Current through Register Vol. 35, No. 22, November 19, 2024

Section 17.9.572.12 - REASONABLE COST THRESHOLD

A. The reasonable cost threshold in any plan year is adjusted for inflation starting in 2021 by the amount of the cumulative increase change in the consumer price index, urban, all items, published by the bureau of labor statistics between January 1 of the year prior to the procurement plan year and January 1 of the procurement plan year. Each public utility shall include in its annual Renewable Energy Act plan a reasonable cost threshold analysis by proposed procurement for the plan year for which it seeks commission approval. This analysis shall show how each procurement compares for that plan year with the inflation adjusted reasonable cost threshold.

B. If, in any given year, a public utility determines that the average annual levelized cost of renewable energy that would need to be procured or generated for purposes of compliance with the renewable portfolio standard would be greater than the reasonable cost threshold, the public utility shall not be required to incur that excess cost; provided that the existence of this condition excusing performance under the renewable portfolio standard in any given year shall not operate to delay compliance with the renewable portfolio standard in subsequent years. The provisions of this rule do not preclude a public utility from accepting a project with a cost that would exceed the reasonable cost threshold. When a public utility can generate or procure renewable energy resources at or below the reasonable cost threshold, it shall be required to do so to the extent necessary to meet the applicable renewable portfolio standard. To the extent a procurement is greater than the reasonable cost threshold and results in excess costs, the public utility shall explain in detail why the public utility cannot procure renewable energy resources at a cost less than or equal to the reasonable cost threshold along with a demonstration of the public utility's efforts to procure renewable energy resources at or below the reasonable cost threshold.

C. Apublic utility that believes its procurement will exceed the reasonable cost threshold may file with the commission a request for waiver of the renewable portfolio standard for the applicable plan year. The waiver request shall:

(1) explain in detail why the public utility cannot procure resources at a cost less than the reasonable cost threshold;

(2) include an explanation and evidence of all efforts the public utility undertook to procure resources at a cost within the reasonable cost threshold; and

(3) be deemed granted if not acted upon within sixty days of the date the waiver request was filed.

N.M. Admin. Code § 17.9.572.12

17.9.572.12 NMAC - Rp, 17.9.572.11 NMAC, 5-31-13, Adopted by New Mexico Register, Volume XXXII, Issue 09, May 4, 2021, eff. 5/4/2021, Adopted by New Mexico Register, Volume XXXIV, Issue 04, February 28, 2023, eff. 2/28/2023