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Combined Heat and Power Partnership

New Mexico Interconnection Standards

Date Last Updated8/13/2014
Policy TypeInterconnection Standard
State/FederalNM
Policy Administrator/Contact OfficeNew Mexico Public Regulation Commission (PRC)
Policy Initiation Date7/29/2008
Policy SummaryThe New Mexico PRC has adopted interconnection rules that apply to CHP. The rules apply to investor-owned utilities and electric cooperatives in the state. Rule 569 applies to all qualifying facilities (QFs) under PURPA, which generally includes all renewable energy systems and CHP systems up to 80 MW. Rule 568 applies to renewable energy systems and CHP systems up to 10 MW in capacity. The purpose of Rule 568 is to simplify the interconnection requirements for QFs up to 10 MW and to encourage the use of small-scale, customer-owned renewable or alternative energy resources. Four levels of capacity are distinguished:
  • Level 1: applies to systems up to 10 kW through a "Simplified Interconnection Process," which includes simplified applications.
  • Level 2: applies to systems >10 kW and <2 MW through a "Fast Track Process," which might include supplemental review.
  • Level 3: applies to systems >2 MW and up to 10 MW through the "Full Interconnection Study Process."
  • Level 4: applies to systems >10 MW through a "Case Specific Study Process."
All systems must comply with all local and national standards, including the NEC, IEEE and UL, and must also meet any additional requirements approved by the PRC. A redundant external disconnect device is required for all interconnected systems. Systems up to 10 kW must pay a $50 application fee. Systems between 10 kW and 100 kW must pay a $100 application fee, while systems >100 kW must pay $100 plus $1 per kW. In addition to these fees, a small utility with fewer than 50,000 customers may charge reasonable consulting fees for systems >10 kW.

The PRC may require the owner of a generating facility with a rated capacity of up to 250 kW to obtain general liability insurance prior to connecting with a utility if the utility provides a sufficient reason for doing so. A utility may directly and independently require owners of systems >250 kW to provide proof of insurance, with reasonable limits not to exceed $1 million, or other reasonable evidence of financial responsibility. A mutual indemnification agreement between the customer and the utility is required, and a basic procedure for dispute resolution is included in the rule.
CHP Eligibility RequirementsCHP systems that are QFs are eligible for standardized interconnection.
Eligible Project Size (MW)Standardized interconnection applies to systems up to 80 MW.
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