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City official warns Aztec customers may see higher bills as regional transmission rules take effect
Summary
A city official reported Feb. 10 that participation in a regional transmission organization (Southwest Power Pool) and resource adequacy requirements could raise municipal power-related costs by roughly $400,000 a year, adding about $6 a month for a typical residential customer; commissioners were told the first SPP bill is expected in May.
A city official identified in the transcript as John told the Aztec City Commission Feb. 10 that forthcoming charges associated with a regional transmission organization could increase the city’s power costs by several hundred thousand dollars a year.
John said Farmington had earlier signaled a transmission-cost reduction of about $288,000 annually, but participation in the Southwest Power Pool (SPP) will carry resource adequacy requirements — an additional reserve/capacity charge estimated at about 16% in winter and 32% in summer. He estimated the new charges could amount to roughly $400,000 a year and that, for an average residential user of about 490 kilowatt-hours per month, the change could increase bills by about $6 per month once passed through the city’s power cost adjustment clause.
“Talking about what it's gonna cost, I got that bad news yesterday... they will be required to have that capacity... and charge us for it to the tune of about 8,000,000 kilowatt hours a year, and that with their increase in the rate, that's gonna cost us a little over $400,000 a year,” John said.
John said the city expects to receive its first SPP bill in May and plans to present possible responses and proposals at a March 10 workshop; he invited commissioners to raise the issue with state legislators and said he would provide binders with research before the workshop.
He also raised concerns about Senate Bill 18, saying it would require the state to transition to only renewable energy by 2050 and could create additional fiscal pressures.
What’s next: John will present options and binders at a March workshop and expects the city’s first SPP charges to arrive in May; commissioners may consider policy or advocacy steps in response.
