By Frank Andorka, Senior Correspondent

Saying the fees were arrived at using flawed studies and without taking into account the advantages that solar customers bring to the grid, the New Mexico Public Resources Commission eliminated Rate 59, a fee previously charged only to solar customers and cost them, on average, $300 per year.

The New Mexico PRC also said it would start a rulemaking proceeding to ensure that the state law concerning solar surcharges was followed in future. At issue was the charge levied by Southwestern Public Service, the state’s largest regulated utility.

As Vote Solar reported:

In its final order, the Commission identified a number of problematic aspects with Rate 59:

• The standby rate is not cost-based;
• SPS’s study of the costs and benefits of distributed generation was “riddled with errors” and unreliable; and
• SPS did not calculate the benefits of distributed generation to the SPS system.

Predictably, Vote Solar and its supporters were thrilled with the decision:

“Today’s decision is a victory for SPS customers who finally have the freedom to choose affordable solar and the opportunity to save money on their electric bill. Ending this punitive charge is especially welcome news for low-income and fixed-income residents who spend a higher portion of their income on utility bills, yet for years were unable to lower their bills with solar because of this charge,” said Rick Gilliam, Vote Solar’s program director of DG regulatory policy and expert witness in the proceeding. “We applaud Hearing Examiner Carolyn Glick and the Commission for reviewing the facts and putting control over energy bills back in the hands of New Mexico residents.”

Vote Solar reports that thanks largely to Rate 59, Southwestern Public Service had only 112 solar customers in its service area. The removal of the charge, it believes, will allow solar to expand well beyond those households and will bring New Mexico more in line with its fellow Southwest states like Nevada and Arizona.