Transcript dddd - South Dakota Energy Infrastructure Authority

New Mexico’s Renewable
Energy Transmission Authority
Joanna Prukop, Cabinet Secretary
Craig O’Hare, Special Asst. for Renewable Energy
NM Energy, Minerals and Natural Resources Dept.
South Dakota Energy Infrastructure Authority
Rapid City, SD
June 2007
What is New Mexico’s Renewable Energy
Transmission Authority – “RETA”?
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The nation’s first statelevel financing
authority whose
primary focus is on
developing renewable
energy-related
transmission
infrastructure.
Another “first”: RETA
can fund energy
storage projects (e.g.
compressed air storage
for wind power) as
well as transmission
facilities.
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RETA Allows NM’s Renewable Energy Projects
to “Plug in” to the Regional Market

The critical “transmission side” of achieving NM’s clean
energy-related economic diversification objectives 
development of the state’s world-class solar and wind
energy resources for export to out-of-state markets.
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Presentation Outline
 New
Mexico's "vision" for
establishing the Authority
 Overview of RETA's mission and
responsibilities
 RETA complements NM’s focus on
renewable energy development
 Getting RETA up and running
 Coordination with other regional
transmission initiatives
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Why RETA?
Background to and Vision for
Establishing the Authority

Past century, NM a national leader in energy
resources and development.
– Crude Oil: 4th in production
– Natural Gas: 4th in production
– Coal: 12th in production
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State’s economy enjoys but is also heavily reliant
on traditional energy resource extraction and
power generation.
Governor Richardson and NM Legislature
recognize need to diversify state’s energy-based
economy into clean energy, clean tech industries
April 2004: Governor declares NM “The Clean
Energy State”  sets out aggressive clean energy
economic development policy agenda.
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Why RETA?
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2004: NM’s first “wind ranch” on the eastern plains
makes renewable energy’s economic development
potential “tangible” to policymakers.
2004-2006: Interest in aggressive wind resource
development and recognition of concentrating solar
power’s (CSP) long-term potential, highlight
transmission constraint problems.
RETA “sold” as an economic expansion tool to
facilitate development of in-state renewable energy
resources for export to out-of-state markets needing
to satisfy RPS and other policies
Third time’s a charm! 3 legislative sessions later,
RETA passed the state legislature in
March, 2007
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Overview of RETA
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Similar to the Wyoming, Kansas, and South
Dakota authorities.
Renewable Energy Emphasis: >30% of energy in
RETA- acquired or constructed transmission
infrastructure must be renewable. Up to 70%
may be from traditional sources.
8 member board:
– 3 by the Governor, w/consent of Senate
– 1 by the Speaker of the House
– 1 by the President Pro Tem of the Senate
– State Treasurer
– State Investment Officer
– EMNR Dept. Cabinet Secretary (non-voting)
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RETA Overview

Board: Politically-appointed but not political
appointees!
– Act dictates experience and qualifications
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No board member “shall represent a person that
owns or operates facilities”.
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RETA has financing (revenue bonds), contracting,
and eminent domain powers to develop projects.
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Storage projects: “…technologies that convert,
store and return electricity to help alleviate
disparities between electric supply and
demand…(or)…to facilitate the dispatching of
electricity …”.
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RETA Overview

RETA first identifies “projects” (transmission
infrastructure driven by one or more renewable
and traditional power generators)
– …then issues RFP to determine private sector’s interest
in constructing and operating the facilities
– … and only proceeds on its own to construct facilities in
the absence of private sector interest.

Any projects related to or affecting in-state retail
rates or reliability must be approved by the NM
Public Regulation Commission  NM’s elected
utility commission.
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RETA Overview
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RETA-developed projects are exempt from state
gross receipts (sales) and compensating taxes.
Interstate Projects: finance or acquire “…facilities
located in whole or in part within the state of
NM.”
Coordination with Regional Transmission
Initiatives: “through participation in appropriate
regional transmission forums, coordinate…plan…
and negotiate with entities within and outside the
state for the establishment of interstate
transmission corridors”.
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RETA Complements NM’s Commitment to
Renewable Energy Resource Development
2nd in Nation Solar Resource
1000s of MWs of Wind!
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RETA and NM’s Renewable Energy
Development: Projects
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Nearly 500 mw of wind farm development in the
past 4 years, including the state’s first merchant
wind farm.
State’s largest IOU signs on to 35 mw biomass
project.
Concentrating Solar Power: 5 different project
developers considering various projects
–
–
–
–
–
20 to > 100 MWs
Stand alone parabolic troughs
CLFR – trough “lite”
Solar field hybrid “add-on” to existing coal plant
Solar hybrid with new NGCC plant
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Renewable Energy in NM:
RPS & Nation’s Best Financial Incentives
Create “Market Pull”!
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RPS: increased in 2007 legislative session
– 15% by 2015, 20% by 2020
– Rural coops added: 5% by 2015 and 10% by 2020.
– Incentives added to go beyond RPS MW requirements
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RE Production Tax Credit – enhanced in 2007
session
– One of only 2 states with a RE PTC
– 1¢/kwh for wind and biomass  $4 million/facility/year for
10 years!
– 2.7¢/kwh (avg.) for Solar  equates to $54 million over 10
years!
– Credit is “refundable” – ie. fully “accessible” by RE project
developer regardless of NM tax liability
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Renewable Energy Incentives
Complement RETA
 Advanced
Energy Tax Credit
– 6% tax credit for solar (as well as
advanced coal)
– $200 million CSP project would receive
a $12 million tax break
 Overview
of Adopted Clean Energy
Legislation:
– http://www.emnrd.state.nm.us/main/
documents/
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RETA: Critical role in developing NM’s
merchant renewable power industry
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NM ideally situated to serve neighboring state’s RPS-driven
demand for RE  10s of 1000s of MWs over the next decade
NM straddles the Eastern and Western Interconnects
NM
RETA
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The Real Work Begins!
Getting RETA Up and Running
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Establishing the Board
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Recruiting a dynamic well-qualified Executive
Director
– Applications Due: 15 June 2007
– Interested? Know anyone who might be?!
– Job Announcement: (website)
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Preparing procedural materials for Board: bylaws, procurement procedures, personnel
policies, etc.
Getting the word out that RETA exists!
– Attending conferences and regional transmission forums.
– “Pinch hitting” for RETA until she’s up and
running!
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RETA will (must!) Coordinate with Other
Regional Energy and Transmission Initiatives
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Projects:
– High Plains Express
– Sun Zia Southwest
– Frontier Line, TransWest, etc.
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The Alphabet Soup of Regional Energy and
Transmission Forums:
– WIEB, WECC, SWAT, WIRAB, WSPP, WestConnect
– WY,KS, and SD transmission authorities
– ISOs and Control Areas
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FERC - and Order 890, in particular
DOE’s transmission corridors
NM and neighboring state utility commissions
In and out-of-state investor-owned utilities
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Questions, Comments?
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[email protected]
[email protected]
(505)476-3200
(505) 476-3207
Thank you!
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