It is important to build a strong and vibrant alternative-energy economy in New Mexico. The time is ripe to create, attract and grow local/national/global companies that are headquartered here.

The solar and wind industries are expected to grow at more than 10 percent per year for the foreseeable future. Because of our prevalent sunny and windy weather, we are in a perfect place to foster these industries for New Mexico. We should use the vast solar resources to stimulate the state economy and at the same time reduce our carbon footprint.

There are two cases, both involving PNM, before the Public Regulation Commission that will have an effect on these issues. The first asks the question, "Is it legal for consumers to contract with third-party purchase producers?" The city of Santa Fe has contracted with a third party to install a large number of photovoltaic (PV) panels on city-owned buildings to produce electricity and sell that power to the city. PNM argues that it is illegal under current regulations.

In the second case, PNM wants to roll back the financial incentives that encourage consumers to install PV systems. Right now there are two policies that PNM has to compensate customers for the power generated by the customer's PV array. One is the renewable energy credits (REC) program that pays a predetermined amount per kilowatt generated. The other is net metering, which the U.S. Department of Energy says is "a policy that allows homeowners to receive the full value of the electricity that their solar energy system produces."

These issues bring up several questions for public discussion.

* Does it serve New Mexicans' best interests for the utilities to have a complete monopoly on power generation or are there some instances where this should be re-thought?

* What state-sponsored or utility-mandated incentives will produce the fastest growth in the alternative energy field, have the biggest impact on the economy of New Mexico, and lead these industries to wean themselves of these incentives?

* Do we want PNM and the PRC deciding the fate of our state's renewable energy industry?

* Is it better for New Mexico to promote a wide range of small entrepreneurs or to allow this new industry development to be absorbed by existing large businesses?

* What is the role of ownership and management of the electric power transmission grid, and what incentives can be created to build a more extensive, accessible and less vulnerable grid?

While the answers to these questions are not crystal clear, they will prove extremely important to our future. The fundamental question is how we best utilize our regional resources to promote and build a robust renewable energy industry in New Mexico.

Santa Fe's contract to install PV arrays through SunEdison does benefit the global carbon footprint, but does it benefit New Mexico? Arguably, no. PNM is a local company and the power produced by PNM (while dirtier than PV) is local, whereas the majority of dollars to SunEdison will go out of state and the solar panels will be manufactured out of state. The net effect is less dollars circulating in New Mexico.

A primary focus when determining these new energy policies should be about maintaining a secure energy infrastructure in New Mexico. Our goal should not be to protect our utility companies, but should be about how to best structure policies to create the best long-term future for the people of New Mexico.


Kurt Faust is an artist, blacksmith, cabinetmaker, and homebuilder. He owns Tierra Concepts Inc. and Carpinteros with his two partners, Eric Faust and Keith Gorges. He may be reached at kurt@tierraconceptssantafe.com.