SENATE MEMORIAL 10

55th legislature - STATE OF NEW MEXICO - second session, 2022

INTRODUCED BY

Carrie Hamblen and Elizabeth "Liz” Stefanics

A MEMORIAL

REQUESTING THE NEW MEXICO LEGISLATIVE COUNCIL, IN CONJUNCTION WITH THE PUBLIC REGULATION COMMISSION, TO CONDUCT AND OVERSEE A STUDY TO DETERMINE THE PUBLIC, RATEPAYER, ENVIRONMENTAL AND ECONOMIC BENEFITS AND COSTS AND THE TECHNICAL FEASIBILITY OF A STATE-LEVEL PUBLIC UTILITY MODEL FOR NEW MEXICO.

     WHEREAS, the transition to renewable energy sources for New Mexico presents numerous opportunities to not only achieve statewide one-hundred-percent renewable energy and storage electricity needs at lower cost but also, through the provision of renewable energy and storage on its grid, to explore the possibility of exporting renewable energy and developing new markets; and

     WHEREAS, New Mexico has the second-highest solar capacity and eleventh-highest wind capacity of any state in the nation and has the ability to deliver terawatts of energy to western states such as California and Arizona, which require a one-hundred-percent clean energy supply by 2045; and

     WHEREAS, the legislature established the New Mexico renewable energy transmission authority in 2007 to facilitate development of electric transmission and storage projects; and

     WHEREAS, the New Mexico renewable energy transmission authority found that:

          A. New Mexico has the potential to develop one hundred thirty-seven thousand megawatts of wind energy and eight hundred twenty-four thousand megawatts of solar energy on state trust and private lands;

          B. the total investment in the development, construction and operation of new renewables and transmission ranges from nine billion three hundred million dollars ($9,300,000,000) to eleven billion two hundred million dollars ($11,200,000,000) through 2032; and

          C. three thousand seven hundred development and construction jobs will be created by 2032, with eight hundred permanent jobs in the future; and

     WHEREAS, in the 2021 regular legislative session, the New Mexico legislature passed Senate Bill 112, which created the sustainable economy task force and developed a plan to transition the state's economy from over-dependence on extractive industries; and

     WHEREAS, a workforce solutions department study overwhelmingly supports the diversification of the state's economy and recommends procurement of as much of the state's electricity from wind and solar energy as possible; and

     WHEREAS, despite only ten percent of electricity in the United States coming from public power facilities, approximately forty percent of this electricity was generated from non-carbon-emitting sources; and

     WHEREAS, public power utilities generate more than sixty billion dollars ($60,000,000,000) in annual revenue and invest more than two billion dollars ($2,000,000,000) annually directly back into their communities; and

     WHEREAS, public power utilities invest this revenue back into their communities through payments in lieu of taxes, providing local jobs with great benefits, offering free or reduced-cost electric services and supporting local causes and charities;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the legislature recognize the immediate need to build and invest in large-scale renewable energy projects, the opportunity to become a leader in the renewable energy market and that immediate participation in this market may generate significant ongoing revenue for the state; and

     BE IT FURTHER RESOLVED that the New Mexico legislative council be requested to cooperate with the New Mexico public regulation commission to investigate, pursue discovery and continue regulation to evaluate and determine if public power ownership for New Mexico would result in a net public benefit; and

     BE IT FURTHER RESOLVED that the New Mexico legislative council, in conjunction with the public regulation commission, conduct and oversee a study to determine the public, ratepayer, environmental and economic benefits and costs and the technical feasibility of a state-level public utility model for New Mexico; and

     BE IT FURTHER RESOLVED that the study be requested to explore how best to deliver electricity to consumers in light of the technological changes in electricity supply devoted to the generation and delivery of renewable electricity; and

     BE IT FURTHER RESOLVED that the public regulation commission and other stakeholders be requested to report to the legislative finance committee, the interim committee that hears topics related to water and natural resources and the interim committee that hears topics related to economic development and policy as to the progress of the study; define the potential viability of public power, including evaluation of the costs and benefits; identify best practices and lessons learned from other states' experiences in implementing public power or community choice energy; and define the best pathways for implementation; and

     BE IT FURTHER RESOLVED that the study be requested to develop recommendations for a reconstituted energy supply system in New Mexico based on a public power model and a new regulatory framework for the public regulation commission to guide the implementation of the new system; and

     BE IT FURTHER RESOLVED that the new system have a goal of giving New Mexican consumers as much local power and control as possible, while ensuring enough operational power and control for major public policy goals such as the export of renewable energy to bolster the state budget, performance incentives incorporated into any wholesale power purchase, rate equity and reliability standards; and

     BE IT FURTHER RESOLVED that the New Mexico legislative council, the public regulation commission and other stakeholders be requested to report to the legislative finance committee, the interim committee that hears topics related to water and natural resources and the interim committee that hears topics related to economic development and policy as to the findings and conclusions of the study by December 1, 2022; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the co-chairs of the New Mexico legislative council, the chair of the public regulation commission and the chair of the legislative finance committee.

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