Title
Application to the New Mexico Finance and Administration Capital Development Program Fund for an EA-4 Powerline Grant
Recommended Action
I move that the Board of Public Utilities recommend staff apply for grant funding from New Mexico Finance and Administration Capital Development Program Fund 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
Last year staff applied to the State of New Mexico, Energy, Minerals and Natural Resources Department (ENMRD) Energy Conservation and Management Division (ECAM), Grid Modernization Grant Program and was not successful in receiving the grant. This program was designed to serve microgrid and renewable type project which the EA-4 Power line replacement did not best fit.
The New Mexico Finance and Administration, Capital Development Program Fund program has proposed $30 Million to be funded by the New Mexico Legislature for projects that do not meet other state funded grant program criteria. There is a 25% match requirement, and awards are planned for July 1, 2027. Since the EA-4 Power Line Replacement is proposed to be state grant funded in both FY27 and FY28 this grant request fits within DPU’s CIP program. Given the 25% match requirement, if the grant is advanced through next year’s legislative session, then DPU will budget for a $1,250,000 CIP match. Applications are due September 28th.
The rebuild of the overhead EA4 power line from PCS to Rendija Canyon is designed and shovel ready for a construction bid.
Fiscal and Staff Impact
If the project advances to the New Mexico 2027 Legislative Session, then DPU will budget for the grant match of $1,250,000. While DPU had programmed a total of $4 million in construction cost over FY27 and FY28, it did not include construction administration or recent inflation. Staff are ...
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