New Mexico commission to allow energy storage in integrated resource plans

The New Mexico Public Regulation Commission (NMPRC) unanimously approved this week a rule change that would allow utilities to include energy storage in their integrated resource plans (IRP).

The commission came to the decision after hearing testimony at public hearings over several weeks. The NMPRC began its investigation to establish a rulemaking proceeding in March.

“All of the participants in this rulemaking case, including our three investor-owned utilities, supported this amendment to the IRP rule, a consensus reflecting that energy storage should be considered as a resource in New Mexico’s utilities’ long-term planning,” Commission Vice Chair Cynthia Hall said.

The NMPRC adopted the IRP Rule in 2007 to implement the 2005 Efficient Use of Energy Act (EUEA). According to the IRP Rule, investor-owned electric and natural gas utilities must complete a resource planning procedure that considers all feasible “supply side” and “demand side” resources.

Energy storage, however, was not a commercially viable resource when the rule was established.

“Storage technologies provide the opportunity to lower electricity bills and more efficiently integrate renewable energy onto the grid,” Hall said. “New Mexicans will benefit from this forward-looking change, which I am happy to have helped bring about.”