If the debate over grid modernization in New Mexico was a child, it would be preparing to graduate from high school.
After 18 years, New Mexico regulators will finally allow their largest investor-owned utility, PNM, to invest in smart meters, among other technologies, as part of a $344 million grid modernization plan.
In its recommended decision on Aug. 16, the New Mexico Public Regulation Commission acknowledged that the technology investments proposed by PNM, like advanced metering infrastructure (AMI) and an advanced distribution management system, are “neither novel nor new.” Instead, the approval allows PNM to “catch up” with peer utilities and the evolving needs of the energy transition.
The six-year plan lays the foundation for time-of-use rates in PNM’s service territory. The commission ordered PNM to present a plan for time-of-use implementation during its first review of the grid modernization implementation effort.
“We have waited eighteen years. That is enough waiting,” the regulator wrote, noting the commission first considered smart meter investments in 2006. “Cost management is important, but the time for achieving cost savings by waiting is over.”
More than half of the grid modernization funds, or $171 million, will be directed toward AMI, a wireless mesh network incorporating cellular LTE and a data management system. Full deployment of the smart meters will take around three and a half years.
PNM said the new AMI network will provide customers with “near real-time” visibility into their energy use, signaling an investment in the latest generation of AMI technology, referred to within the utility industry as AMI 2.0. These smart meters allow for computing at the grid edge and support applications like a smartphone. The regulatory decision did not identify an AMI vendor.
The commission also approved $4.7 million for cybersecurity to protect the vast amount of data collected and managed by an AMI network, including network security monitoring, SIEM, and software-defined networking.
“We are pleased with today’s approval and are looking forward to bringing new energy management capabilities to PNM customers,” said Pat Vincent-Collawn, TXNM Energy Chairman and CEO.
The approval allows PNM to upgrade from a “partial” ADMS platform. In its filing, PNM said a distributed energy resource management system (DERMS) would be included in the $15.4 million allotment.
