New Mexico Faces Electricity Shortages Due to Supply Chain Disruptions and Poor Resource Planning

Strategic Insights -

New Mexicans are facing possible electricity blackouts this summer and into 2023 due to the Public Service Company of New Mexico's lack of adequate resources. While some are blaming the shortage on an overreliance on renewables, the actual cause is a combination of supply-chain issues due to the COVID-19 pandemic and poor resource planning by PNM. The Public Regulation Commission approved substantial clean energy projects in 2020 to replace the closing San Juan coal plant, but these projects were delayed due to supply-chain problems. PNM's failure to acquire demand-response resources and its unilateral decision to relinquish 114 MW of its Palo Verde interest have further compounded the projected shortfalls.

Key Takeaways:

  • PNM faces possible electricity blackouts this summer and into 2023 due to lack of adequate resources.
  • Supply-chain issues caused by the COVID-19 pandemic have delayed the approval of clean energy projects, including solar and battery storage projects.
  • PNM's poor resource planning and failure to acquire demand-response resources have contributed to the projected shortfalls.
  • PNM's unilateral decision to relinquish 114 MW of its Palo Verde interest has exacerbated the situation.
  • The Public Regulation Commission was correct in approving a suite of renewables, storage, and other clean resources to replace San Juan and move the state towards a clean energy future.
  • PNM's attempt to blame the shortage on the Public Regulation Commission for denying approval of a natural gas plant is unfounded.
  • The electricity disruptions in the United States in recent years have been caused by severe weather stemming from climate change, and relying on fossil fuel generators will only worsen the problem.

Statistics:

  • 114 MW: The amount of PNM's Palo Verde interest relinquished to Salt River Project.
  • 2020: The year the Public Regulation Commission approved the acquisition of substantial clean energy projects to replace the closing San Juan coal plant.
  • 280 megawatts: The proposed capacity of the natural gas plant denied by the Public Regulation Commission in favor of clean solar and battery storage projects.
  • Months: The duration of hearings and expert testimony regarding the replacement resources for San Juan.

Sources:

  • "(Name not provided) is an attorney for the Coalition for Clean Affordable Energy."
  • Public Service Company of New Mexico
  • Public Regulation Commission
  • Texas blackouts last year
  • COVID-19 pandemic
  • San Juan coal plant
  • Palo Verde interest