Saturday, March 17, 2007

PNM presents info, timetable on power plant

Julia M. Dendinger News-Bulletin Staff Writer; jdendinger@news-bulletin.com

The Valencia County Commission heard a presentation from Public Service Company of New Mexico (PNM) last Wednesday evening about the new power plant at the Rio Grande Industrial Park in Rio Communities. Michael Greene, a power marketer with PNM, came before the commission to bring it up to date on the project.

Greene began by saying that while People's Energy developed the plans for the plant some time ago and then nothing happened. "You are probably wondering why we are doing this now," he said.

Greene went on to say that since 1994, the number of PNM's residential New Mexico customers has increased by 32 percent and peak usage has grown by 62 percent since 2004.

One of the main reasons PNM wants to locate the plant in Valencia County, Greene said, is because it is near the need.

He added that the site already had the air and zoning permits and that it is located near the critical infrastructure for power transmission and the natural gas supply.

According to Greene, natural gas is the cleanest burning fossil fuel, and it fits the need for a resource that can quickly respond to peak demand.

While the original approved site plan had two 140-megawatt turbines, Greene said PNM is only going to put in one turbine at this time. The primary use of the plant will be during peak summer demand, and Greene estimates that the plant will run between 800 and 1,000 hours per year and possibly during emergencies.

The project is slated to start construction in early summer of this year and anticipated to be in service by June 2008. Greene said the project would produce up to 150 jobs during the peak construction time of the plant. After the plant is built, it is anticipated to employ seven full-time, permanent workers.

Greene said the economic impact of the project should translate into approximately $20 million in total wages during the first 10 years, including wages paid during the construction phase as well as an approximate $8 million in total tax benefits during the first 10 years. Of that, the county would receive $3 million, local schools would get $3 million and the remaining $2 million would go to the state.

The plant will be built, owned and operated by a third party company, Greenee said. "We are still in negotiations with them and should have a contract in two to three weeks," he said. While Greenee did not name the company, he did say that it is an investment grade, diversified energy company that has been in business for more than 120 years. The $2 billion company has operations in the west similar to PNM and has successfully completed similar projects.

Knowing that water in the valley is a concern, Greene said PNM asked its engineers to do an "exhaustive study on water use." He went on to say that the state engineer's office would do an analysis of the situation to determine the impact on nearby wells and the aquifer as a whole for the protection of the community.

The expected water use for the plant is less than 10 acre-feet per year, according to Greene. He went on to say that the plant might transfer in 40 acre-feet of existing PNM water rights from another site to meet the plant's water needs in case it has to run more than expected due to an emergency situation.

The turbine used at the power plant is the cleanest burning on the market, Greene said. The New Mexico Environment Department will enforce the air permit terms and conditions and will also have the right to inspect the facility and its records to ensure compliance, he said.

The plant will generate noise when it is in use, Greene said. At a radius of 1,000 feet from the plant, the noise will be near 54 decibels, which is slightly louder than light traffic or the noise in a private business office. At 2,500 feet, the noise goes down to 44 decibels, and at 3,300 feet to 40 decibels or the amount of noise found in a quiet library.

Greene said PNM is committed to following the approved landscaping plans laid out by People's Energy in the site plan. "We are not going to change things," he said. "We want to be a benefit to the community and not have a negative impact."

Commissioner Ron Gentry said he had questions for Greene, since the plant was going to be built in his district. "I've had a lot of people call me with questions about the plant," he said. "One particular group inundated me with calls. I'm disappointed that they aren't here."

Gentry went on to say that it was his understanding that a previous commission in 2002 approved the power plant. "I want to know what authority we have and what the obligations of this commission are," he said.

Gentry asked Greene if the plant would be built according to the original site plans proposed by Peoples Energy and approved by the county. Greene said that it would be. "Basically change the logo and take one turbine off," he said.

Gentry asked if alternative energy sources, such as a solar field, would be installed on the power plant property, and Greene answered that only the power plant would be built on the property.

According to the building permit issued by the county, significant construction of the plant must be under way by mid-August of this year. Gentry asked if that would be the case, and Greene said it would.

Gentry then asked if PNM would be using the same easements and disbursement routes as People's Energy. Greene said that PNM would most likely follow the routes already planned.

On the subject of water, Gentry asked if the 40-acre feet of water PNM is proposing to bring to the site would be new or existing water rights. Greene said they were rights PNM already owned. "We are using less water at other sites and will transfer those rights down here," he said.

Gentry asked if the water was coming out of the Rio Grande Basin. Greene said it was and would continue to come from the same basin once the rights were transferred to the Belen site.

Would the landscaping be new plants or semi-mature trees, Gentry asked. Greene said the landscaping plans from Peoples Energy called for very specific types and heights of trees and PMN would be sticking to those plans. "Well that's good," Gentry said. "You plant seedlings and 100 years later, you have a tree."

Gentry asked Greene if the maximum height of the facility was still at 50 feet and Greene confirmed that. The commissioner also asked Greene about the lighting plan for the plant at night. "I've seen some plants that look like the space platform with lights glaring out everywhere," he said.

Greene said the lights would be pointing down and in towards needed areas. He also said the security lights for the facility would be on motion sensors.

Commissioner David Medina said that while the plant won't be built in his district, he still had concerns about how the power generated by the plant would be distributed. Greene said lines running north to the Tomé station would distribute the power.

Gentry asked if PNM would follow the same supply and distribution routes as Peoples Energy. "It was my understanding that they were going to overbuild on existing lines instead of building a line of new steel towers through Rio Communities," he said.

Greene said that is still the plan. "We are basically getting out the drawings and dusting them off," he said.

"So nothing new is coming on board," Gentry asked. "I don't want to tell people there is a whole new plan." Greene said he would double check PNM's plans for transferring the power out of the plant first thing Thursday morning.

"I don't have a problem with it," Gentry said. "As long as it's not changing. I think this is the cleanest plant that could be put there."

The county's regional planner, James Aranda, said since there is already an approved site plan, it was within the county's discretion to review and approve any changes. "However, that doesn't necessarily come back to this commission," he said. "There is a review process, and it goes before planning and zoning, but it does not automatically come back to the county commission."

Gentry added that the presentation from PNM was just a public update. "This is not up for a yes or no decision," he said. "Just so people know, this is not moving forward to the next meeting for a vote."

Once the commissioners were through with their questions, Commission Chair Pedro Rael moved on to the next action item on the agenda. However, the audience members gathered vocally objected over not being given the opportunity to speak about the power plant.

Rael said that the presentation by PNM was for the commission's information and no action was going to be taken at a subsequent meeting. Gentry stated that even though that was the case, he would still like to hear what people had to say.

Rael asked that those who were opposed to the power plant come forward and gave them two minutes each to speak.

Dr. Joe Rizzo of Rio Communities addressed the commission first, reading from a prepared statement. He said that while he could agree with PNM on the need for additional power generated locally, he did not agree that the Rio Communities site was the best or most acceptable site.

He pointed out that while the sound levels and exhaust pollution might be appropriate for a large urban industrial park, they would be a marked increase on a rural place like the Rio Grande Valley. Rizzo pointed out that the 50-foot cooling tower would also pose the same problem. "It is customary and accepted in large industrial parks and open county, but it will be a visual blemish here," he said.

Rizzo continued, saying that by waiting until there was virtually no time for objection or negotiation, PNM was working alone in a generally antagonistic way. "Whether by intention or chance, they have waited until it appears that there is no time for any other option," he said. "This is a legalistic reading of a physical problem."

He went on to say that PNM has fulfilled its obligation to provide15 percent extra capacity for emergencies through wind power. "This is to be commended, but it can't be depended on to provide peak power when it is needed" Rizzo said. "It is simply not clear when the real demand and the 15 percent reserve will actually be needed."

Rizzo said that the projected need for power is being dictated by a housing boom curve when there is actually a real estate slowdown and asked that the speed of the project could and should be relaxed.

Rael interrupted at that point saying that Rizzo's two minutes were up and that he had spoken for three minutes. Rizzo objected, saying that the most relevant part of his comments had not been made. Rael thanked him for his comments but asked him to allow the next person to speak.

The remainder of Rizzo's written statement urged the county to work with PNM to find a better location that would enhance the community. His statement read that it could be a win-win situation if the two groups cooperated.

Los Chavez resident William Dean said the county should think about putting limits on future expansion or changes to the plant. "It is so easy to double the size of the plant," he said. "The only thing to do is say this big and no more."

Dean went on to say that, with a third party coming in to operate the facility, the county would be hard pressed to control the situation. "You need to put teeth into your acceptance of this," he said.

Gloria Sanchez spoke next, saying she was totally against this type of plant. "I have no vested interest in this," she said. "I live on the west side of Belen, but I am concerned about the valley."

Sanchez went on to say that the plant has the option to expand and that not only would it run during peak times, but it would be sending power to Albuquerque and selling it out of state. Greene said that, according to the agreement between PNM and the third party operating the plant, all power would come directly to PNM.

Sanchez also expressed concern about the pollutants produced by the plant contributing to the problem of global warming. "Are we so isolated that we aren't affected?" she asked.

Earl Gleason of Belen asked the commission if it was considering putting limits on the plant. "You can hold them to that and no more," he said.

Gentry replied, saying that the company would only build what was permitted. "You are only building half the turbines permitted?" he asked Greene. Greene responded that at this time they were only planning for one turbine.

Gentry went on to say that if there were changes to the plant, those changes would go back through the public. Audience member Bob Gostischa asked if the operation of the plant was going to be by a third party, who was responsible for them. Rael said it was up to the county to make sure the plant operators followed the county's ordinances.

Gentry asked if PNM would still hold the building permits on the plant. Greene said PNM would transfer the air and building permits to the third party.

"Then you are no longer responsible," Gostischa said.

In other business, the commission called an emergency closed meeting. After it came back into open session, Rael stated that matters regarding personnel were discussed, which were totally confidential and no action was taken. County Manager Francisco Apodaca and County Attorney Cynthia Wimberly did not participate in the majority of the hour-long closed session.

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