New mexico utility seeks to label gas plant as “zero emission” under controversial loophole

Southwestern Public Service Company has submitted a request to New Mexico regulators that environmental advocates are calling “profound greenwashing” — asking the state to classify roughly one-third of electricity generated by a proposed gas-fired power plant as a “zero-carbon resource,” equivalent to clean energy sources like solar panels.

The utility is seeking exceptions to New Mexico’s Energy Transition Act for two proposed natural gas plants, despite the law’s intent to move the state away from fossil fuels. Under the controversial proposal, the gas plant would receive the same environmental classification as renewable energy sources, even though natural gas combustion releases significant carbon dioxide and other greenhouse gases into the atmosphere.

Critics argue this scheme would unfairly burden New Mexico residents with the costs of new solar farms while simultaneously extending the operational lives of existing coal-fired power plants — undermining the state’s clean energy goals. The request highlights a growing trend of utilities seeking regulatory loopholes to maintain fossil fuel infrastructure while appearing to comply with state climate policies.

The proposal comes as New Mexico works to implement its Energy Transition Act, which aims to eliminate carbon emissions from electricity generation by 2045. Environmental groups warn that allowing gas plants to qualify as “zero-carbon” resources would set a dangerous precedent, potentially gutting the effectiveness of clean energy mandates across the Southwest and beyond.