N.M. Admin. Code § 17.9.573.13

Current through Register Vol. 35, No. 23, December 10, 2024

Section 17.9.573.13 - INTERCONNECTION AND ADMINISTRATIVE COSTS

A. The commission may determine on a case-by-case basis whether the cost of distribution system upgrades necessary to interconnect one or more community solar facilities may be eligible for some form of cost-sharing:

(1) among subscriber organizations using the same distribution facilities;

(2) among all ratepayers of the qualifying utility via rate base adjustments; or

(3) among ratepayers of the same rate class as subscribers to the community solar facility via a rate rider for that class.

B. In making a determination that there are public benefits to such a cost-sharing mechanism, the commission will employ the analysis that the commission employs when considering cost sharing or rate basing grid modernization projects as defined by 71-3 NMSA 1978, the Grid Modernization Act, to make a finding that the approved expenditures are:

(1) reasonably expected to improve the utility's electrical system efficiency, reliability, resilience and security;

(2) reasonably expected to maintain reasonable operations, maintenance and ratepayer costs;

(3) reasonably expected to meet energy demands through a flexible, diversified and distributed energy portfolio;

(4) reasonably expected to increase access to and use of clean and renewable energy, with consideration given to increasing access to low-income subscribers and subscribers in underserved communities; or

(5) designed to contribute to the reduction of air pollution, including greenhouse gases.

C. The commission will consider approving sharing of interconnection costs with nonsubscribing ratepayers only to the extent that the costs borne by such ratepayers are matched or exceeded by demonstrable benefits to such ratepayers, so that there will be no subsidization of interconnection costs by nonsubscribing ratepayers in appropriate cases.

D. A utility may recover administrative costs of carrying out its responsibilities concerning the community solar program through a rate rider from which nonsubscribing ratepayers are exempt. A utility may apply to the commission to establish such a rider.

N.M. Admin. Code § 17.9.573.13

Adopted by New Mexico Register, Volume XXXIII, Issue 13, July 12, 2022, eff. 7/12/2022