Title
Application for Grid Resiliency Grant from New Mexico Energy, Minerals and Natural Resources Department
Recommended Action
I move that the Board of Public Utilities recommend staff apply for a grant funding from the State of New Mexico to support construction of the EA-4 electric line replacement and forward to Council for consideration.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve the motion as presented.
Body
The State of New Mexico, Energy, Minerals and Natural Resources Department (ENMRD) Energy Conservation and Management Division (ECAM) is requesting applications for the Grid Modernization Grant Program. The program has $70M funded by the New Mexico Legislature for achieving efficiencies and meeting the competing objectives of creating a reliable/resilient, clean, affordable electricity system. Applications are accepted on a monthly rolling basis on the first of each month starting on November 1, 2025. Applications are accepted until the funds are awarded.
The objectives are to improve the system while incorporating new technology or a new application of existing technology providing useful information to the residents of New Mexico and having a broad applicability to the state or utility service territories. Other objectives that can be met are public education on grid modernization, economic development or improving the resource planning of the public utilities. The Community Benefits Fund requires us to hold two public meetings or complete a negotiated Community Benefits Agreement.
Most of the funding (90%) is to go to construction projects and they must be completed within two years of the negotiated contract. There is currently not a requirement for matching funds for this grant. The rebuild of the overhead EA4 power line from PCS to Rendija Canyon is designed, ready for bidding and material order. It fits many of the project requirements identified by ENMRD and could possibly be fully funded by this grant. The requested amount of this grant is $3,410,356.00.
Attachments
A - Appendix B_Grant Analysis and Financial Matrix Form
B - Attachment 1_Community Benefits Plan (Draft)