New Mexico
PRC approves PNM battery, solar projects – NM Political Report
State regulators moved forward with approving the Public Service Company of New Mexico’s application for new solar and battery storage despite concerns that there are not enough new energy projects in the Central Consolidated School District to replace property tax revenue lost when the San Juan Generating Station closed. On Thursday, the New Mexico Public […]
State regulators moved forward with approving the Public Service Company of New Mexico’s application for new solar and battery storage despite concerns that there are not enough new energy projects in the Central Consolidated School District to replace property tax revenue lost when the San Juan Generating Station closed.
On Thursday, the New Mexico Public Regulation Commission unanimously approved a recommended decision from the hearing examiner, Hans Muller, with one amendment.
The case stems from a 2023 application to add 100 megawatts of solar through a power purchase agreement with the Quail Ranch solar project as well as three energy storage agreements for a total of 250 megawatts of four-hour storage at different sites. The application also requested approval of a utility-owned battery storage facility known as BESS Sandia Storage Project. PNM requested the additional resources, including the contract with Quail Ranch, as a way to meet peak energy load requirements in 2026.
However, concerns arose during the case that the Quail Ranch project is intended to replace the Rockmont Solar Project that the PRC approved to replace the San Juan Generating Station.
The Rockmont project is located in northwest New Mexico and within CCSD boundaries. But it ran into delays and ultimately PNM canceled its contract with the developers.
Commissioner James Ellison noted that PNM never asserted that Quail Ranch was intended to replace the Rockmont project. However, replacing Rockmont with Quail Ranch is mentioned in Muller’s recommended decision.
Ellison said that the possibility that Quail Ranch would replace Rockmont was “never really litigated in this case.”
“I think it would be a mistake to reject the resources before us now over concerns that there is not a replacement in the school district,” Ellison said. “Rejecting them or delaying the process does risk these contracts falling apart and, given the timelines around the procurement process, it really leads to big questions about will we have resource adequacy in 2026 if we do that.”
CCSD and San Juan County maintain that the Energy Transition Act requires PNM to install 450 megawatts of generation or storage capacity within the school district’s boundaries to replace at least some of the property tax that was lost when the power plant closed.
They say that, without Rockmont, PNM is short of meeting that obligation.
Quail Ranch is located in Bernalillo County and the other resources in the application are in Valencia, Cibola and Bernalillo counties.
Former PRC Commissioner Steve Fischmann, who was on the PRC when the replacement resources were decided, said that part of the portfolio of solar and battery projects that PNM proposed in the current case needs to be treated as replacement for the San Juan Generating Station.
“In our commission, we took very seriously the need to get replacement resources into the San Juan community and the Central Consolidated School District to help ease the economic pain caused by the closing of the San Juan coal plant,” he said during public comment.
He said that he feels that the San Juan County community is “getting hosed” because the PRC did not discuss the current solar and battery projects in relation to replacing the San Juan Generating Station.
“It appears that all parties in the case failed to recognize the San Juan replacement aspect that needed to be considered in the record,” he said.
Fischmann was not alone in those concerns. Two members of 350 New Mexico who were involved in drafting the Energy Transition Act also spoke during public comment.
“I remember very clearly that one of the negotiated agreements was that PNM, in return for very favorable bond financing provisions, was to build about 450 megawatts of replacement resources in ‘the school district in New Mexico where the abandoned facility is located,’ meaning the San Juan Central Consolidated School District,” Tom Solomon with 350 New Mexico said.
He said only 300 megawatts of the 450 have been built and that PNM has no apparent plans to add another 150 megawatts in the CCSD boundaries.
The location of replacement resources and how many megawatts must be located within the CCSD has been a subject of debate since the passage of the Energy Transition Act in 2019.
This is because the ETA states that replacement resources means that “up to 450 megawatts” identified as a replacement for San Juan Generating Station “provided that such resources are located in the school district in New Mexico where the abandoned facility is located, are necessary to maintain reliable service and are in the public interest as determined by the commission.”
San Juan County and CCSD have maintained that the law means that PNM is required to locate 450 megawatts of replacement power such as solar arrays and battery storage in CCSD boundaries.
But PNM and some others have said it only requires that up to 450 megawatts must be located in the CCSD boundaries. During the replacement power case, the PRC ultimately ordered close to 450 megawatts of replacement power to be built in the CCSD boundaries. Those replacement projects were the San Juan Solar Project and the Rockmont Solar Project.
Commission Chairman Pat O’Connell said the issue of replacing the Rockmont project is important and that PNM has testimony on the record in this case that addresses the efforts the utility made and explains why none of the projects are located within the CCSD boundaries. O’Connell said there are challenges in getting projects within CCSD boundaries.
“It’s an important issue. It’s also, for me, an issue where we’re in a world of multiple truths,” he said.
He said that PNM’s system is short on capacity.
“Do we delay or postpone a decision on these resources now because another important decision is not being addressed?” he said.
O’Connell said he couldn’t support that.
But, he said, PNM is developing a request for proposals for an integrated resource plan. The IRP essentially serves as a roadmap for the utility and O’Connell said there will be opportunities for stakeholder engagement during that process. He encouraged PNM to reach out to the people who have expressed concerns about the Rockmont project not being completed during the IRP process.
O’Connell said that moving forward with the case that the PRC was hearing on Thursday does not negate the need to address the San Juan Generating Station replacement resources.
New Mexico
14 indicted in alleged Permian Basin crude‑oil theft scheme spanning New Mexico and Texas, prosecutors say
A federal grand jury in Lubbock has indicted 14 people accused of stealing crude oil in eastern New Mexico and hauling it into Texas to resell at cut‑rate prices.
Prosecutors say the scheme targeted the Permian Basin’s vast production network, the oil‑rich region spanning southeastern New Mexico and West Texas that covers more than 86,000 square miles and accounts for the majority of U.S. crude oil production.
All 14 defendants are charged with conspiracy to transport stolen property across state lines, and several also face counts of interstate transportation and receipt, possession, or sale of stolen property, according to the U.S. Attorney’s Office for the Northern District of Texas.
Indictment outlines alleged operation
Returned April 8, the indictment alleges the group stole crude oil in eastern New Mexico, some stored on U.S. government-leased land, and resold it to co‑conspirators at prices below the standard U.S. market benchmark.
Prosecutors say the conspirators transported the stolen oil into Texas for resale at a profit, knowing it was stolen.
Texas, New Mexico defendants identified by prosecutors
Texas defendants are James Darrell Reid, 65, and Randell Wayne Reid, 41, owners of Texas-based Reidco Enterprises and both of Electra – about 25 miles northwest of Wichita Falls and 115 miles from Fort Worth – along with Christopher Frederick Harris, 22, of Seminole, about 80 miles west of Midland.
The remaining 11 defendants are from Lovington, a southeastern New Mexico community of about 11,690 people, roughly 20 miles west of the Texas state line and squarely inside the Permian Basin.
They include:
- Louis George Edgett, 68;
- Brenden Floyd Strickland, 25;
- Sixto Herrera-Estebane, 43;
- Gyardo Gonzalez, 47;
- Jesus Martin Hernandez-Borja, 51;
- Diana Marquez Rojo, 45;
- Jose Luis Rojo, 49;
- Jose Mario Rivas-Mendoza, 37;
- Miguel A. Soto, 41;
- Tavares Montrail Cole, 48; and
- Danny Dale Brown Jr., 42.
Potential penalties outlined by DOJ
According to prosecutors, the defendants face up to five years in prison for conspiracy and up to 10 years per count for interstate transportation, possession, or sale of stolen property.
The investigation was conducted by the Bureau of Land Management, the FBI, the Texas Department of Public Safety’s Criminal Investigation Division, and sheriff’s offices in Lea and Eddy counties in New Mexico.
CBS News Texas will provide updates as additional information becomes available.
New Mexico
Governor establishes Energy Affordability and Grid Reliability Council – 13-member council designed to protect ratepayers, modernize the grid – Office of the Governor – Michelle Lujan Grisham
SANTA FE — Governor Michelle Lujan Grisham today signed an executive order establishing the New Mexico Energy Affordability and Grid Reliability Council to address the rising cost of electricity in a rapidly changing energy landscape.
The Council will convene state agency leaders, utility executives and experts in rural cooperative utilities, tribal energy, consumer advocacy, and energy policy and infrastructure to develop strategies for keeping energy affordable while ensuring the grid can meet the demands of a growing, modernizing New Mexico economy.
“At a time of dramatically rising energy prices, it’s imperative that we do everything we can to protect New Mexico ratepayers while ensuring abundant clean energy supply,” said Governor Lujan Grisham. “The experts I’ve appointed to the New Mexico Energy Affordability and Grid Reliability Council are well-positioned to make smart, insightful recommendations and I look forward to their findings.”
The Council will evaluate and recommend strategies across four interconnected areas:
- Ratepayer protection: Ensuring that large-load growth — including data centers and onshore manufacturing — does not disproportionately increase costs for residential, rural, tribal and small business customers.
- Grid modernization and reliability: Recommending rate designs and financing strategies that enable prudent infrastructure investment while minimizing long-term rate escalation.
- Clean energy progress: Advancing New Mexico’s net-zero goals under the Energy Transition Act by expanding zero-carbon generation and storage while maintaining affordable access.
- Permitting efficiency: Identifying opportunities to streamline and coordinate state and local permitting for electricity infrastructure — accelerating deployment of clean energy projects without compromising environmental review, tribal consultation, or regulatory safeguards.
The Council will deliver a final report — including legislative, regulatory and administrative recommendations — to the Governor and the Legislature by November 1, 2026.
The Council consists of 13 members representing state government, utilities, rural cooperatives, tribal communities and independent experts:
- Erin Taylor, acting secretary, Energy, Minerals and Natural Resources Department
- Rob Black, secretary, Economic Development Department
- Cholla Khoury, chief of staff, Public Regulation Commission
- Lynn Mostoller, executive director, Renewable Energy Transmission Authority
- Sunalei Stewart, deputy commissioner for operations, State Land Office
- Don Tarry, president and CEO, TXNM Energy (PNM)
- Kelly A. Tomblin, president and CEO, El Paso Electric
- Zoe Lees, regional vice president, regulatory policy, Xcel Energy
- Vince Martinez, CEO, New Mexico Rural Electric Cooperative Association
- Javier Bucobo, vice president of markets and regulatory affairs, Avangrid (grid infrastructure expert)
- Joseph Yar, attorney, Velarde & Yar (consumer/ratepayer advocate)
- Sandra Begay Keeto, retired, Sandia National Laboratories; member, Navajo Nation (tribal energy expert)
- Rep. Meredith Dixon, New Mexico House of Representatives, District 20 (energy policy expert)
The Council is administratively attached to the Department of Finance and Administration. Members will serve without compensation, other than per diem and mileage as permitted by law.
The executive order can be viewed here.
New Mexico
Duke Rodriguez challenges state’s universal child care in lawsuit
ALBUQUERQUE, N.M. – Republican candidate for governor Duke Rodriguez is suing Governor Michelle Lujan Grisham over her executive order that started universal free child care before a new law takes effect.
The governor enacted the program through executive order in November.
Lawmakers passed a universal child care law during the past session, but that law does not take effect until May 20.
Rodriguez says he objects to some of the rules and to how the governor started the program. The suit asks the Second Judicial District Court to prohibit further enforcement of any regulations tied to the program.
“You could understand an outgoing governor trying to do it for political capital, for expediency just to say, I’m first in the nation.” Rodriguez said.
Rodriguez says he is confident he will win and that the rules he is challenging will be struck down.
“We also now have what we call pre emptive eligibility, which means you don’t even have to prove you’re eligible and you’re covered the moment you walk in,” Rodriguez said. “All of those things individually and collectively that have been proposed and changed probably invite fraud, waste and abuse and you know it.”
The governor’s office responds
The governor’s office sent a statement saying the program was properly implemented and that the governor is confident the lawsuit will be rejected.
A spokesperson for the governor sent KOB 4 the following statement:
“This lawsuit makes clear that Mr. Rodriguez has a fundamental misunderstanding how state government works. He states that ECECD did not have the authority to undergo rulemaking regarding universal childcare. They do. He states that ECECD did not have the funding to implement the program when they did their rulemaking. They did. That is why the program was operational in December – before the 2026 Legislative session started. Perhaps more importantly, the lawsuit ignores that the legislature passed SB 241, which codified the program and its future funding into law. The governor is confident that the courts will reject his meritless claims.“
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