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New Mexico

Sites with Clean Energy: 16

Total Installed Megawatts: 227

Sample Companies and Facilities Using Recycled Energy:

Key New Mexico Contacts:

• New Mexico Public Regulation Commission
• New Mexico Energy, Minerals, and Natural Resources Dept.
• Public Service Company of New Mexico
• Southwestern Public Service Co (Xcel Energy)
• New Mexico Gas Company

New Mexico Policies Affecting Recycled Energy

Statewide Interconnection Procedures: Yes

• Interconnection standards in New Mexico are decent but could be made better by eliminating the requirement for additional insurance. Customers with grid-tied DG systems already carry their own general liability insurance, and the rules already have provisions for indemnification, making the requirement for additional insurance redundant and an extra, unneeded expense. See the policy for 10 MW and under, the policy for more than 10 MW and interconnection manual.
• About statewide interconnection policies

Waste Heat Included in Renewable Portfolio Standard: Unknown

• While New Mexico's renewable portfolio standard does not explicitly mention recycled energy, it does contain a provision that allows new technologies to be considered. It is presently unknown if the public service commission would allow a recycled energy project to count. See the policy.
• About waste heat in renewable portfolio standards

CHP in Utility Demand-Side Management: No

• About CHP in efficiency portfolio standards

Output-based Emission Standards: No

• About output-based emission standards

Fair Standby Rates: Unknown

• We have not heard direct reports of New Mexico utility standby rates either helping or hurting CHP projects. Neither the legislature nor the public service commission has studied the issue. If you know of standby rates in New Mexico affecting individual projects, contact us.
• About standby rates

Recycled Energy Specific Incentives: Some

• Waste heat projects that do not combust additional fossil fuel are eligible for an advanced energy income tax credit of up to 6% of the eligible generating plan costs. See the policy.
• Tri-State provides power to 44 rural electric cooperatives in parts of NM, CO, WY, and NE. Tri-State offers some incentives for its member cooperatives to develop distributed and/or renewable energy projects, and recycled energy projects qualify. See the Policy Summary, FAQs (part 1) and FAQs (part 2).

New Mexico Electricity Prices

Electricity prices in New Mexico have remained fairly low in comparison to the national average over the past five years, staying about a cent and a half per KWh lower for commercial power and about half a cent lower for industrial power. The power prices have stayed fairly consistent with very little volatility over the five year time period. Overall, New Mexico falls in the middle of the intermountain states in respect to electricity prices.

Source: EIA; data is year-to-date through December 2010.
Note: All data post January 2010 are preliminary estimates based on a cutoff model sample.

New Mexico Natural Gas Prices

Natural gas prices in New Mexico have stayed fairly close to the national average in terms of volatility, while remaining, on average, more than a dollar cheaper than the national average(per thousand cubic feet or TCF) for commercial customers, but about a half a dollar more expensive than the national average for industrial customers. This puts New Mexico in the middle of the intermountain states ranking as far as both price and volatility are concerned.

When evaluating CHP, a considerable amount of attention needs to be placed on the price of natural gas, and where it may be headed in the future. The combination of relatively low electric prices and rising natural gas prices makes it more difficult for a CHP project to be economic and generate cost savings, but there are still going to be successful applications for the appropriate use of CHP. The best applications are those that value high reliability, have higher electric rates during peak times, spend a high percentage of their energy bill on air conditioning, and/or potentially could make use of a "waste fuel."

Source: EIA; data is year-to-date through December 2010.

** Click on a state to learn more about the
status of recycled energy in that state

Incentives in New Mexico Check for incentives for clean energy projects in New Mexico at the Database of State Incentives for Renewables and Efficiency (DSIRE), or Contact Us to see if we know of others for which you may be eligible.

Project Profiles in New Mexico Search for 2-page Project Profiles on successful New Mexico recycled energy projects in our new database.

Must Read Article from the Albuquerque Journal: Recycled Energy Adds Jobs and Strengthens Manufacturing in New Mexico

$ for Projects in Rural Areas Tri-State G&T offers incentives for distributed and/or renewable projects in areas served by its 44 member co-operatives, and recycled energy qualifies. See the Summary, FAQs (part 1) and FAQs (part 2).