NMRETA Report – 5/15/2012
Possible New Power Transmission Lines in Sandoval County
On May 15, 2012, Reid Bandeen and I met with Jeremy Turner, Executive Director for NMRETA (New Mexico Renewable Energy Transmission Authority). We were representing both Las Placitas Association and ES-CA. This was a follow up to a meeting that Reid and I had with Mr. Turner in October of 2010. The present meeting was largely prompted by a May 3 article in the Albuquerque Journal (“$350M Power Line Proposed”) discussing the proposed preliminary map of the transmission line route. The article stated that the line would “then stretch west – just north of the Sandias – into Sandoval County to PNM’s Rio Puerco switching station.” This naturally raised concerns in Placitas that the new lines would go through Placitas, adding to the transmission lines already present in Indian Flats.
First things first. Let me report what Mr. Turner said about the projected route “just north of the Sandias”. NMRETA is presently in talks with the San Felipe and Santa Ana Pueblos, regarding locating the new line near to the present power easement which crosses I-25 just north of Algodones, significantly north of Placitas. (You can see this power line crossing the freeway as you’re driving on I-25.) According to Mr. Turner, this is not only the preferred route for the new lines, but the only viable route. For the present easement running through Placitas to be used, it would have to be widened by 200 feet, and would require massive eminent domain condemnation of property, and the attendant complications of public process, environmental surveys and permitting. NMRETA is an agency under the control of the state, and is highly resistant to such condemnation. Furthermore, such a route would not only have to run through the northern portions of the Placitas area (and BLM lands immediately north of Placitas), but also through Bernalillo and Rio Rancho, requiring far more extensive condemnations in urban areas. (Mr. Turner considers Placitas to be an “urban” area for the purpose of this evaluation.)
To route the line significantly north of the San Felipe and Santa Ana lands would also be impractical.
Therefore the only route across I-25 that makes sense from an engineering, environmental, financial and public policy standpoint is the one running through the San Felipe and Santa Ana lands. So agreements with those tribal councils for the proposed route heading north of Algodones are necessary if the project is to happen at all, according to Mr. Turner. Lacking those agreements, the project would probably die, according to Mr. Turner.
It should be noted that NMRETA does have condemnation authority. Their authorized eminent domain condemnation procedures can be found here: http://www.nmreta.com/images/stories/pdfs/eminent_domain_rule_17.8.3_published.pdf
Having such authority, however, does not imply a willingness to use it where costs and public resistance would be high. There are more than enough other complexities and difficulties involved in bringing this project for renewable energy transmission to fruition, for the partners in the project to wish to add to these by entering into very contentious condemnation proceedings in urban areas.
The present status of the NMRETA project is outlined in the May 2 PNM Press Release copied below. Everything hinges on “fast tracking” the process for acquiring transmission rights, which must be approved by the FERC (Federal Energy Regulatory Commission), which is something like a federal-level NMPRC (New Mexico Public Regulation Commission). NMRETA has requested an expedited hearing with the FERC, and might receive FERC’s response as soon as August, 2012.
As pointed out above, agreements with both the San Felipe and Santa Ana tribal councils are also crucial. There are ongoing discussions with these councils, and positive signs of potential agreement. This project could be a benefit to the two Pueblos, providing some revenue from the purchase of easements, and also the possibility of revenue through generating power on the tribal lands, which could then be connected to the new power lines.
Were everything to go just right, the new lines could be constructed and power running through them by mid 2015. There could be as much as 1500 megawatts of new power running through these lines, which is considerable given that PNM’s total use is now 2600 megawatts.
Here is the press release from PNM:
For Immediate Release: May 2, 2012 Contact: Susan Sponar / (505) 803-1008 / susan.sponar@pnmresources.com; NMRETA: (505) 983-4458, nmreta.com
STEP TOWARD REALIZING N.M.’S SUN AND WIND POTENTIAL:
PNM, RETA Request to Clear the Way for Merchant Transmission Line
(ALBUQUERQUE, NM) — PNM, the N.M. Renewable Energy Transmission Authority (RETA), and Power Network New Mexico filed a joint request with federal regulators today that would clear the way for construction of a new merchant transmission line to deliver renewable energy from eastern and central New Mexico to western markets. Power Network was created to develop the new power line.
“PNM supports this project because it represents a practical near-term solution for addressing the lack of transmission needed for additional New Mexico renewable energy development. We will continue to work with transmission customers to implement long-term process changes that improve access for all projects,” said Jeff Mechenbier, PNM director of Transmission/Distribution Planning and Contracts, noting that RETA has arranged for private capital that protects PNM customers from any cost risk.
“RETA was created to meet the public interest objective of developing transmission to facilitate renewable energy projects in New Mexico, and this project will accomplish this goal. This project will provide significant job and tax benefits to the state,” said Jeremy Turner, executive director of RETA.
RETA and Power Network are jointly developing the Central New Mexico collector transmission line, a $350 million transmission project that will deliver 1,500 megawatts of renewable energy from eastern and central New Mexico to PNM’s Rio Puerco switching station northwest of Rio Rancho. From there, existing PNM transmission lines can carry the energy north and west to the Four Corners switchyard, which is a gateway to western markets.
The project was sized based on the existing New Mexico transmission system capabilities and the need expressed by developers who are ready to build solar and wind projects that depend on the new power line. Anchor customers have committed to participate in the development — and the project is backed by equity from GS Infrastructure Partners II, the primary vehicle through which Goldman Sachs invests in infrastructure assets and companies.
The project is targeted to be in service in 2015. To accomplish this result, there must be a change to the current federal rule governing the process for acquiring the rights to deliver electricity via the transmission system. Currently, PNM must study customer request on a first-come, first-served basis, but those at the front of the line may not be ready to proceed. PNM solved a similar logjam with approval from the Federal Energy Regulatory Commission (FERC) by adopting a first-ready, first-served approach for developers interconnecting with the transmission system. Almost immediately, the logjam cleared, with developers themselves selecting how they wanted to proceed on an expeditious basis toward execution of an interconnection agreement.
Given that success, PNM, RETA, and Power Network are asking FERC to permit a similar first-ready, first-served approach for the project by allowing a limited one-time waiver of the first-in-time rule. If FERC grants this request, PNM can study the Power Network request before studying the many other pending requests so that new renewable energy resources that are most ready to proceed with their development can proceed quickly by signing up for service with Power Network.
In the meantime, PNM will work with others that have requested transmission service from PNM on process changes to help eliminate any remaining logjam of customers not ready to take service from the collector system. PNM must submit any such change for FERC approval.
“With the level of interest in developing renewable energy in New Mexico, a first-come, first-served rule has resulted in lengthy waits and frustration for PNM and its customers. We need improved processes that are fair and meet the needs in our region for timely and efficient transmission and generation development,” said Mechenbier.
With headquarters in Albuquerque, PNM is the largest electricity provider in New Mexico, serving 500,000 customers in dozens of communities across the state. PNM is a
subsidiary of PNM Resources, an energy holding company also headquartered in Albuquerque. For more information, visit PNM.com.