How New Mexico is addressing this challenge

Thanks to New Mexico’s strong leadership, which has focused on clean solutions to meet the challenges of our growing energy needs, the state is a national leader in renewable energy and is taking action to address global climate change by reducing greenhouse gas emissions, lessening dependency on foreign sources of fuel and increasing economic development opportunities for businesses and landowners.

Much hard work has backed our commitment to the preservation of New Mexico’s environmental heritage, such as offering tax incentives to promote
renewable energy. New Mexico is actively promoting solar, wind and biomass development, and is requiring utilities to produce more of their energy from diverse renewable resources.

Working together, Governor Richardson and the state legislature have enacted legislation that represents landmark clean energy initiatives for New Mexico: increases to the Renewable Portfolio Standard and establishment of the Renewable Energy Transmission Authority (RETA) Act. These initiatives position our state to competitively develop our vast renewable solar and wind energy resources and export New Mexico’s clean energy to other states.

Renewable Portfolio Standard

The Renewable Portfolio Standard complements RETA by requiring our state’s major utilities to produce more of their electricity from diverse renewable sources. Increased use of renewable energy will not only create jobs, stimulate our economy and protect our health and environment; it will also help protect New Mexico consumers from higher electrical rates caused by volatile natural gas prices.

RETA

RETA is a state instrumentality and a state authority that focuses entirely on developing new transmission projects to promote renewable energy. It is the nation’s first state-level financing authority whose primary focus is on developing renewable energy-related transmission infrastructure. Another “first” is that RETA can fund energy storage projects (e.g., compressed air storage for wind power) as well as transmission facilities with focus on transmission infrastructure planning, financing, and implementation. No single entity in New Mexico currently has this responsibility.

RETA will rely on revenue from the projects it initiates, not the state’s full faith and credit to issue revenue bonds to fund electrical transmission development.

A seven-member RETA board has been established. The Governor, with the consent of the NM Senate, has appointed three members. The President Pro Tempore of the Senate has appointed one member, and the Speaker of the House has appointed one member. Additionally, the State Treasurer or designee and State Investment Officer or designee serves as members. The Secretary of the Energy, Minerals, and Natural Resources Department serves as an advisory, non-voting member of the RETA board.

RETA’s enabling legislation requires that at least 30% of a transmission project’s energy be from renewable derived electricity – other electricity may be from traditional sources.

RETA’s endeavors will offer the following benefits to New Mexicans:

1. Economic development in New Mexico’s rural areas
2. Existing wind projects already represent over $500 million of capital investment in the state
3. RETA will continue to stimulate renewable energy related economic development for export to out of state markets
4. Greater access to clean renewable energy
5. Improved transmission system reliability
6. Increased tax revenues for New Mexico

It is an innovative and bold move to stimulate clean energy production and create high paying jobs, capital investment, and greater economic development in rural areas.

Conclusion

New Mexicans should be proud of how their leaders have worked together to set an example for the rest of the country and the world. By building on the initiatives our leaders have taken, we will make our journey to true energy independence shorter and more profitable for generations of future New Mexican families.

Lisa Szot is Executive Director of the New Mexico Renewable Energy Transmission Authority.
505-983-1594, email:lszot@nmreta.net

Editor’s note: At press time, RETA had been named a finalist in the Platts 2008 Global Energy Awards under the category of Sustainable Energy Initiative of the Year. There were over 200 nominees and 10 finalists.