New Mexico Increases Net Metering Peak Capacity to 80 MW

January 19, 2007

The New Mexico Public Regulation Commission (PRC) approved expanding the state's net metering policy in the second week of January. The ruling allows electric utility customers to use net metering on electricity generated from renewable energy systems with a peak capacity of up to 80 megawatts (MW).

Under the old rule, net metering was limited to systems smaller than 10 kilowatts (kW). The increased capacity allowance is expected to boost business for commercial size, net-metered systems in the state.

The ruling modifies NMPRC Rule 570, which governs the interconnection of qualifying facilities (QFs) under the federal Public Utilities Regulatory Policy Act of 1978, which allows QFs to interconnect with their local utility and sell their power back into the grid at avoided cost – roughly equal to the wholesale rate for electric power generation.

While the new modification allows electric customers to net meter renewable energy systems up to 80 MW, the interconnection process will govern the size of the system allowed to interconnect. The PRC is currently considering that process.

Source: January 18 story in Renewable Energy Access.