CHP in New Mexico

• Number of Sites
• Installed Megawatts
• Sample New Mexico Companies Using CHP
• Electricity Prices
• Natural Gas Prices
• Key New Mexico Contacts
• Major Electric Utilities
• State-Wide Interconnection Provisions
• Financial Incentives for CHP

NUMBER OF SITES: 20

INSTALLED MEGAWATTS: 294

SAMPLE NEW MEXICO COMPANIES USING CHP:

Education Sector

• New Mexico State University
• University of New Mexico

Healthcare Sector

• Lovelace Medical Center

Resorts and Lodging

• Santa Fe Hilton

Government/Public Buildings

• City of Albuquerque Southside Water Reclamation *renewable energy
• Town of Taos Coronado Center

Industrial

• Conoco Inc.
• El Paso Field Services
• Phelps Dodge Mining Co.
• Williams Field Services

(See the Installation Database for more information on these installations)

ELECTRICITY PRICES

In New Mexico, electricity prices for commercial and industrial customers have not changed significantly over the past five years, and were below the national averages in 2006. CHP projects would have to have compelling reasons other than a desire for stable costs, for serious consideration.

NATURAL GAS PRICES

Natural gas prices in New Mexico have, amid seasonal swings and a spike in the winter of 2005/2006, increased 40 to 65 percent in the past five years. Any gas fired CHP plans should consider the possibility of a similar increase in the next five years.

When evaluating CHP, a considerable amount of attention needs to be placed on the price of natural gas, and where it may be headed in the future. The combination of relatively low electric prices and rising natural gas prices makes it more difficult for a CHP project to be economic and generate cost savings, but there are still going to be successful applications for the appropriate use of CHP. The best applications are those that value high reliability, have higher electric rates during peak times, spend a high percentage of their energy bill on air conditioning, and/or potentially could make use of a “waste fuel”.

KEY NEW MEXICO CONTACTS
New Mexico Public Regulation Commission
Energy Conservation and Management Division (state energy office)

MAJOR ELECTRIC UTILITIES
Public Service Company of New Mexico
Southwestern Public Service Co. (Xcel Energy)
El Paso Electric Co.
City of Farmington

STATE-WIDE INTERCONNECTION PROVISIONS

• A standard guideline was developed by the New Mexico Public Regulation Commission (PRC) in NMPRC Rule 570 in response to PURPA. Energy from qualifying facilities is paid for at the average economy energy price for that month. If dependable capacity is available to the utility, the qualifying facility must negotiate with the utility for the sale of that power.
• Check the DSIRE Database for the latest updates.

FINANCIAL INCENTIVES FOR CHP

• Check our Grants Page for any state or federal grants that may be applicable for CHP systems in New Mexico.
• Check the DSIRE Database and the EPA CHP Partnership for additional incentives for New Mexico.
• If you are thinking of putting in a project, you may  to see if we know of any one-time grants or other funding opportunities.