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News Release
March 26, 2003
PNM Seeks To Offer Wind Power to Customers
Albuquerque: PNM has asked state regulators for permission
to offer clean, renewable wind energy to its 385,000 New Mexico
electric customers.
The company's proposal, outlined in a green tariff filed
with the Public Regulation Commission (PRC) yesterday, would
allow customers to subscribe to renewable energy produced
at New Mexico Wind Energy Center in return for a small, monthly
premium.
"This product will give PNM customers who are concerned
about the environment, air emissions and water conservation
a way to voice their support for renewable energy," said
Sarita Loehr, PNM vice president of customer and market services.
New Mexico Wind Energy Center, now under construction near
House, N.M., will not produce air emissions or use water to
generate electricity. Once complete, it will be the nation's
third-largest wind generation facility.
Under the plan, residential customers and small businesses
could sign up for renewable energy by choosing one of two
packages, each based on a renewable energy premium of 2.5
cents per kilowatt-hour:
- The first would allow customers to purchase renewable
energy in 100-kilowatt-hour blocks, at a cost of $2.50 for
each block. A customer could choose one, two or more blocks
per month. This rate means the customer would pay a fixed
rate for renewable energy every month, regardless of changes
to monthly electric consumption.
- The second would allow customers the fullest level of
participation, setting the renewable energy they purchase
at 90 percent of monthly electric consumption. With this
package, the amount a customer pays for renewable energy
each month would go up or down depending on monthly consumption.
The average PNM residential customer uses about 550 kilowatt-hours
of electricity per month.
Large business customers also could participate in the program,
paying the same 2.5 cent-per-kilowatt-hour rate for renewable
energy. But they would purchase the energy as a proportion
of their overall electric usage rather than in blocks. A large
business could select to purchase renewable energy equal to
one percent, two percent, three percent, five percent, 10
percent, 50 percent or 90 percent of its overall electric
monthly usage.
The renewable premium would show up as a separate line item
on the monthly bills of those customers who choose to participate.
The premium charge for renewable energy is in addition to
base charges for electricity.
The monthly premium is designed to help cover the added cost
of bringing renewable energy into PNM's electric system.
"While the energy we receive from New Mexico Wind Energy
Center is competitively priced, the reality is that wind energy
is still more expensive than energy from our other power resources,"
Loehr said. PNM's proposed renewable energy premium is similar
in price to those offered by some of the most progressive
utilities in the country, she said.
The PRC will need to review and approve PNM's renewable energy
tariff before customers can sign up to participate. PNM hopes
to begin taking customer signups later this year or early
in 2004.
PNM is the principal subsidiary of PNM Resources,
an energy holding company based in Albuquerque. PNM provides
natural gas service to 441,000 gas customers and electric
utility service to 385,000 customers in New Mexico. The company
also sells power on the wholesale market in the Western U.S.
PNM Resources stock is traded primarily on the NYSE under
the symbol PNM. For more information about our company, visit
PNM.com.
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