New Mexico

New Mexico’s first community solar projects are closing in on energization and the PRC’s stakeholder process in advance of the phase 2 rulemaking is coming to a close. The PRC announced the following schedule moving forward: rule proposals from the stakeholder groups are to be completed by August 27; Staff will submit a summary report to the PRC by October; the Commissioners will hold a workshop on November 6; the formal Notice of Proposed Rulemaking (NOPR) will be released by December. All that said, everyone working on the program recognizes the challenge of moving forward with this second batch of capacity quickly enough to allow for projects to capture the full ITC before it’s phased out, so there’s still a chance we can build consensus on an expedited pathway for releasing more capacity, in which case the next steps in the program could be adjusted.

In our last newsletter, we shared that the PRC finally allowed for community solar enrollments to begin. Solstice has hit the ground running and will be ramping up our efforts in the coming months. The PRC continues to facilitate a stakeholder process that will inform the future rulemaking docket (24-00253-UT). Four separate working groups have been established to update different parts of the rule: bill credit methodology, project selection, potential amendments that would apply to the first 200 MW, and low-income subscriber issues.

On March 7, 2025, the PRC finally confirmed that community solar providers could begin enrolling subscribers. The utilities still have some cleaning up to do on the latest round of tariffs, but currently filed bill credit and administrative cost rates are sufficient inputs to populate disclosure forms and subscription contracts for potential subscribers. The PRC also hosted an all-day workshop on March 5 to discuss potential amendments to the community solar rules for phase two, during which Solstice had the chance to advocate for the implementation of consolidated billing. 

At its open meeting on February 6, 2025, the PRC approved an order that rejected the currently filed community solar bill credit tariffs and required that the utilities file new tariffs, reflecting the latest guidance, by February 21. These (hopefully) final versions will be subject to a 30-day comment period, after which the published rates will take effect. Once we have PRC-approved initial bill credit rates, Solstice will finally launch enrollments. In addition, the PRC has announced that it will host a workshop to discuss phase two of the community solar program on March 5. 

It was a hectic holiday period for community solar in New Mexico. In late November, the PRC finally issued a decision in the community solar docket. Just before the new year, El Paso Electric, Xcel Energy, and a coalition of community solar stakeholders all filed motions asking the PRC to reconsider different elements of the decision. At a January 9 open meeting, the PRC ignored much of those responses and voted to approve the final order with minor modifications. Now, we’re waiting for the Commission to rule on objections to the utility tariffs, which were filed on January 8.

Since our last newsletter, the PRC has held two open meetings (plus one closed-door meeting dedicated to community solar) but failed to present a final decision on 23-00071-UT. At the November 14 meeting, the commissioners expressed uncertainty around the bill credit calculation methodology and appropriate level of subsidization from non-subscriber ratepayers. Chair O’Connell made clear that he’s eager to issue a final decision at the next meeting on November 26, but many questions remain. On the bright side, the Commission swiftly approved industry’s petition to align the 30% low-income subscription deadline with each project’s commercial operation date.

In early October, the PRC issued an order in 24-00094-UT which enabled streamlined self-attestation as a form of income verification and raised the program cap by an additional 300 MW. There will be another competitive application process later in 2025. The PRC also opened a new docket (24-00258-UT) to consider further amendments to the community solar rule; a workshop will begin in December before a formal rulemaking kicks off. REIA-NM filed a petition for variance which pushes to align the 30% low-income subscription deadline with each project’s commercial operation date. Lastly, we’ll be watching the Commission’s October 31 meeting where there could be a final decision in 23-00071-UT.

We’re waiting for a final order from the PRC in docket 23-00071-UT which will address outstanding implementation issues. Meanwhile, the PRC finally heard CCSA’s petition and approved the request to extend the August deadline for enrolling 30% of each project with income-qualified subscribers – the deadline is now 12 months from the date of executing an interconnection agreement. The PRC denied the petition’s second request to allow for self-attestation without additional documentation, but that conversation is already continuing in docket 22-00020-UT (where the PRC has asked for feedback on the program) and the newly opened docket 24-00094-UT, which is where stakeholders and the Commission will consider amendments to the community solar rules.