Powering New Mexico’s Solar Future: Overcoming Barriers to Our Renewable Energy Revolution
New Mexico is blessed with an abundance of sunshine, and we can become a leader in renewable energy because of it. Despite our potential, significant challenges are holding us back from fully embracing the clean energy futures we want. At the heart of these obstacles is interconnection—the process of connecting solar projects to the electric grid.
Interconnection is a wonky topic typically reserved for regulators, industry professionals, and advocates, and yet it is essential to enabling energy transition. Through our outreach in New Mexico, we have heard many anecdotes about how interconnection delays have halted rooftop solar and community solar projects, which is a major obstacle experienced nationwide. Public Power New Mexico and the Initiative for Energy Justice undertook this research project on interconnection challenges and solutions as part of a larger toolkit Public Power New Mexico is developing to support community-owned renewable power. Our exploration of this topic was rooted in our research and conversations with different New Mexican stakeholders who shared their experiences and insights with us.
To achieve the solar futures our communities want and deserve, we must break the barriers to interconnection. Our report, Interconnection Challenges and Pathways for New Mexico's Solar Future, outlines what’s at stake, what we’ve learned, and how we can transform our energy systems for the better.
What is Interconnection—and Why Does It Matter?
Interconnection is an essential process that allows solar energy systems (like rooftop panels or large community solar farms) to connect to the grid. This step is key for solar projects to become operational and for New Mexico to meet our renewable energy goals.
Unfortunately, the current interconnection process is slow, costly, and inconsistent. Many solar projects face long delays, high upgrade costs, and a lack of transparency from utilities. This not only stalls our shift to clean energy but also keeps the benefits of solar power—like lower energy costs, resiliency, public safety, sustainability, and local job creation—out of reach for many New Mexicans. Without addressing these interconnection challenges, we won’t be able to transition to the renewable energy future we all envision.
Source: Interstate Renewable Energy Council
Source: Interstate Renewable Energy Council
Source: Interstate Renewable Energy Council
Source: Interstate Renewable Energy Council
Source: Interstate Renewable Energy Council
What We Learned from Our Outreach
Through conversations with solar developers, community leaders, utilities, and regulators, we’ve identified several key obstacles that are preventing New Mexico from unlocking its solar potential:
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Outdated Grid Systems: Our aging grid infrastructure wasn’t designed to handle distributed energy sources like solar, creating bottlenecks that delay projects.
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Lack of Transparency: Utilities often withhold critical information, making it difficult for developers to plan projects. Access to real-time data on grid capacity and costs is crucial for smoother interconnection.
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Unfair Cost Burden: Right now, solar developers and consumers bear the brunt of the costs for grid upgrades, while utilities continue to profit. We need fairer cost-sharing models that don’t overburden small projects or ratepayers.
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Weak Enforcement: Despite good interconnection policies on paper, enforcement is weak. New Mexico has the only interconnection rule graded "A" by the Interstate Renewable Energy Council, yet none of the state's three investor-owned utilities are compliant with the state's interconnection rule. The rule is great on paper, but the Public Regulation Commission has no power to enforce the rule. This needs a legislative fix. As a result, utilities often fail to follow the rule without facing consequences, slowing down progress on community solar projects, as well as limiting New Mexicans' access to solar.
Despite these challenges, there is a path forward. By modernizing our grid, ensuring transparency, and enabling the commission to enforce the rule and hold utilities accountable, New Mexico can unlock its vast solar potential and lead the way in clean energy.
Get Involved: How to Advocate for our
Community-Driven Clean Energy Future
Achieving a renewable energy future that is driven by our communities and benefits us all isn’t just about technology. It’s about people like you stepping up to shape a fairer, more sustainable energy system however you can. Whether you’re interested in community solar, increasing access to solar, holding utilities accountable, or pushing for stronger clean energy policies, there are many ways to get involved and make a real impact.
Here are a few ways you can make an impact:
Engage in Regulatory Advocacy:
For-profit electric utilities have long enjoyed the financial benefits of operating as regulated monopolies, with guaranteed profits and significant political power. But advocates for clean energy and energy democracy are increasingly using regulatory processes to hold these utilities accountable and demand affordable, reliable electricity for everyone.
There are many great resources that can help you understand the regulatory landscape and how to take action. Here are a few:
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IEJ Utilities 101: Initiative for Energy Justice's beginner-friendly guide breaking down the basics of the electric utility industry with a focus on justice.
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People's Utility Commons Workbook: This workbook is an interactive guide designed to support individuals and groups to learn together about the past, present, and future of the energy utility system.
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People's Utility Justice Playbook: Energy Democracy Project’s People’s History of Utilities and Utility Justice Playbook give us the tools and knowledge we need to organize strong local campaigns for energy democracy.
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Who Holds the Power: Demystifying Public Utility Commissions: This report from The Chisholm Legacy Project explains how Public Utility Commissions work, and who represents people in this decision making authority.
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Energy Justice: An Evolved Model: This report from the Climate and Clean Energy Equity Fund is part of a series on the transformation of the utility system, and frameworks for developing equitable utility policies.
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Connecting to the Grid: The Interstate Renewable Energy Council has many resources on interconnection best practices and state policy that can inform your efforts.
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Amp Up the People – A Guide for Energy Justice Advocates in Utility Regulation: Initiative for Energy Justice and Vote Solar made this great resource to help energy justice advocates understand and engage in utility regulation.
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REFOCUS Messaging Tools: Energy Democracy Project's REFOCUS campaign has excellent tools to help build effective narratives for our organizing strategies.
By learning more about the regulatory process, you can influence utility decisions that impact your community’s energy future. Here are some organizations actively engaged in this work:
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Pushing for Energy Justice with Fairbanks Climate Action Coalition
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Vote Solar (workshops on energy policy and collective activism)
Advocate for Legislative Change in New Mexico:
Source: Albuquerque Journal, Photo by Eddie Moore
Many of the solutions explored in our report will be proposed in various policies introduced in future legislative sessions. The New Mexico Legislature is the last unpaid, part-time, “citizen” legislature in the United States. Many groups are working to modernize the legislature to include more paid staff, longer sessions, and to pay legislators to improve the legislative process and our elected representatives' capacity for community engagement in the policymaking process.
The New Mexico legislative session begins on the third Tuesday of January each year. Odd-numbered years have 60-day sessions, while even-numbered years have 30-day sessions. Interim committees meet between sessions across the state to take deeper looks at the state’s big issues and budget planning, without passing legislation, while standing committees meet during the session itself, and move proposed bills along through the sessions. All committee meetings are open to the public and can also be viewed online. Committees allow the public comment on legislation during the session, and sometimes interim committees do as well.
How a Bill Becomes Law:
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Bill Drafting: Bills are drafted with input from interested parties and sponsored by legislators. Bills are then assigned numbers and referred to standing committees.
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Committee Hearings: Committees hold hearings on the bill, where they can either pass it, not recommend it, or table it.
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Floor Debate: If bills are passed through committee, they move to the full Senate or House for debate and a vote.
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Second Chamber: If passed by one chamber, the bill goes through the same committee and floor process in the other chamber.
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Governor's Approval: If passed by both chambers, the bill is sent to the Governor. If the Governor signs the bill, it becomes law.
To effectively advocate for or against a bill, it's important to establish a relationship with your legislators, gather support from others, and clearly communicate your perspective. Using resources like the New Mexico Legislature website and attending pre-legislative forums can help you stay informed and engaged in the legislative process.
Here are more resources on navigating the legislative process in New Mexico as an advocate:
Engaging with the Public Regulation Commission:
The New Mexico Public Regulation Commission (PRC) is a three-member board within the New Mexico state government responsible for regulating various industries, including utilities (electricity, natural gas, water, and wastewater), and telecommunications. The Commission's authority is derived from Article XI of the New Mexico Constitution and is tasked with ensuring safe, reliable utility services at fair and reasonable rates in line with the state's legal, economic, environmental, and social policies.
Prior to 2023, the PRC consisted of five elected commissioners serving staggered four-year terms. A constitutional amendment changed the structure to a three-member board with commissioners appointed to staggered six-year terms.
The PRC's regulatory oversight is extensive, encompassing various aspects of the industries it regulates. In the utility sector, the Commission oversees rate setting, certificates for building and acquiring generating resources, mergers and acquisitions, territorial disputes, service quality, cost recovery for purchased power and gas, interconnections, arbitrations, mediations, abandonments of utility plants or services, complaints, permits, financing, and enforcement actions. In telecommunications, the Commission's role includes registering and ensuring compliance for intrastate long-distance service providers, local exchange carriers, and inmate operator service providers. It also reviews tariff and interconnection agreement filings, addresses customer and carrier complaints, reviews legislation, and oversees numbering resources.
The Commission is actively involved in rulemaking proceedings related to critical issues like utility reliability standards, distribution planning, greenhouse gas emissions, grid modernization, and cybersecurity. It is also leading discussions on integrating New Mexico's utilities into regional markets to leverage the state's strategic geographic location.
How to Engage with the PRC:
Source: New Mexico Political Report
The PRC is actively working on several key initiatives to enhance its effectiveness and public engagement. It is implementing a new strategic plan focusing on improving staff morale and support, modernizing agency operations and processes, and increasing transparency and accessibility for stakeholders and the public.
The public may sign up for free access to view PRC dockets here.
PRC staff is working diligently on improving engagement and access for the public.. The Commission holds regular open meetings, typically bi-weekly on Thursdays at 10:00 a.m. The schedule and agendas for these meetings are posted on the Commission's website and at the Bokum Building in Santa Fe. The public can participate in these meetings in person, via Zoom, or by telephone. To provide public comment, individuals must sign up by emailing public.comment@prc.nm.gov or calling (505) 490-7910 by 5:00 p.m. the day before the meeting. The public may provide comments at a designated time at any open meeting. Written comments are also accepted at prc.records@prc.nm.gov.
Dockets worth paying attention to include:
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Interconnection Variance Docket - 23-00072-UT: None of the utilities regulated by the PRC currently comply with the state's interconnection rule, necessitating variances. PNM, the state's largest utility, is seeking nine variances due to challenges integrating distributed energy resources (DERs).
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Grid Modernization Docket - 22-00058-UT: PNM is seeking approval for a six-year implementation plan for grid modernization projects. This includes advanced metering infrastructure (AMI), intelligent grid devices, communication networks, distribution system hardening, and cybersecurity enhancements. The estimated cost for the first six years is $344 million.
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Community Solar Phase II Rulemaking Docket - 24-00094-UT: Docket No. 24-00094-UT is a rulemaking proceeding by the New Mexico Public Regulation Commission (Commission) to consider amendments to the Community Solar Rule. The Commission seeks to modify the statewide program capacity cap, its allocation among utilities, and low-income qualification provisions. Stakeholders, including REIA, CCSA, Lightstar Renewables, and PNM, have submitted responses with recommendations. Key issues include the appropriate size and allocation of the capacity cap, the frequency of cap reviews, the effectiveness of the RFP process, and the need for consolidated billing and self-attestation for low-income customers. Additionally, there are discussions on the inclusion of energy storage resources and the potential for a value-of-solar methodology to ensure long-term program sustainability. Initial written comments were due Monday, July 22nd. A hearing is scheduled on August 21st which is after the date of writing this report and before the date of publishing.
Other PRC Work to Monitor:
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Distribution Planning: The PRC is exploring revisions to its distribution planning process to incorporate more public input.
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Rate Cases: PNM is introducing a new cost allocation method in its next rate case, focusing on customer classes and renewable portfolio savings.
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2027 Integrated Resource Planning: New Mexico's next Integrated Resource Planning (IRP) cycle is in three years.
Additionally, the PRC's Consumer Relations Division (CRD) serves as the agency's point of contact for New Mexicans with inquiries or disputes related to regulated services.