NM PRC Approves Plan for PNM San Juan Generating Station

NMPRC Office of General Counsel Attorney Rick Blumenfeld provided the Commission with a detailed review of the history of the case, assessing the many exceptions filed in the case by NEE and providing responses disputing each exception in his final order. Vice-Chair Lynda Lovejoy moved to adopt the final order as presented to the Commission, and that motion was seconded by Commissioner Patrick Lyons. The Commission ultimately elected to adopt the final order, with a vote of 4-1, with Commissioner Valerie Espinoza placing the sole dissenting vote. 

From the New Mexico Public Regulation Commission:

Commissioners with the New Mexico Public Regulation Commission (NMPRC) on Wednesday, December 16, reached a decision in a case that has been in the works at the NMPRC for nearly two years – the application sought by Public Service Company of New Mexico (PNM) to abandon two units at the San Juan Generating Station located in northwestern New Mexico. On Wednesday morning, Commissioners heard oral arguments from interveners in this highly contentious case.

Opponents and proponents were given a total of 30 minutes to state their cases. The opponents split their 15 minutes between two speakers, while the proponents split their allotment between five speakers. Santa Fe-based renewable energy attorney Bruce Throne, an opponent to this case, stated that the burden of proof regarding the feasibility of options for renewable resources associated with this proposal rests on the shoulders of the utility, however, that matter has never been satisfactorily rebutted, and spoke of protecting the public interest. Another opponent, Mariel Nanasi of New Energy Economy (NEE), spoke of a clean energy future including wind and solar energy, and spoke of the lower costs of renewable when compared to coal and nuclear power. Coal markets are collapsing in light of the evidence associated with global warming, she stated, adding that “no other utility in the nation is investing in coal except PNM.” On the side of the proponents, PNM Attorney Rick Alvidrez stated that a successful settlement to this case was presented, and all of the parties who signed onto this agreement are united. “What we are talking about here is shutting down half of San Juan, and that is not an insignificant reduction,” he stated. “Long term, the savings to customers will be $290 million. This is the most economical outcome for New Mexico consumers, and all agree, with the exception of NEE’s expert.” NMPRC Staff Attorney Patrick Lopez stated that a solvent utility protects ratepayers, and that the modified stipulation agreed upon starts on a path to renewable energy. Lopez spoke of the process undertaken by numerous parties working together to come to the agreement presented to the Commission. He recommended the Commission adopt the modified stipulation as it has been presented. Cholla Khoury, of the New Mexico Attorney General’s Office, stated that New Mexico is a poor state with a fragile economy. “The modified stipulation provides important benefits,” she stated. “It reduces the rate impact on ratepayers throughout the state while transitioning away from coal.” Attorney Chuck Noble of the Coalition of Clean & Affordable Energy – a coalition that represents 12 environmental, consumer and health groups – asked that the modified stipulation be approved as is. “This modified stipulation is important because it provides an opportunity in 2018 to evaluate the remaining units at San Juan,” he stated. “The burden of proof will be on PNM.” “It’s important that this case not be decided on sound bites in the media, but on informed judgments, and facts and evidence,” stated Steve Michel, Western Resource Advocates’ Chief Counsel for the Clean Energy Program. “We support the modified stipulation because it provides less coal and more renewable energies than any litigated outcome could provide. The modified stipulation provides the best result.” At the conclusion of oral arguments,

NMPRC Office of General Counsel Attorney Rick Blumenfeld provided the Commission with a detailed review of the history of the case, assessing the many exceptions filed in the case by NEE and providing responses disputing each exception in his final order. Vice-Chair Lynda Lovejoy moved to adopt the final order as presented to the Commission, and that motion was seconded by Commissioner Patrick Lyons. The Commission ultimately elected to adopt the final order, with a vote of 4-1, with Commissioner Valerie Espinoza placing the sole dissenting vote. 

Statement from PRC Vice-Chair and Dist. 4 Representative Lynda Lovejoy:

It has taken a lot of hard work on the part of the Hearing Examiner, Utility Division staff, attorneys and Commissioners to finally get to where we are today in reaching a decision in the San Juan case. I know that I personally have reviewed thousands of pages of information over the course of the last several months, as have my fellow commissioners. This case has been extremely important to the New Mexico Public Regulation Commission due to the long term, potential impacts throughout the state of New Mexico stemming from the decision the Commission has been tasked with making. As the Commissioner representing District 4, where the San Juan Generating Station is located, I was particularly aware of the impacts that would be felt by the ratepayers as well as the communities that are directly tied to San Juan. At the end of the day, I believe the very best compromise has been reached, and that the Four Corners region as well as ratepayers throughout the state will greatly benefit from the hard work undertaken by numerous dedicated professionals who worked tirelessly to ensure a fair and reasonable outcome was met. The modified stipulation has broad support geographically from every area of PNM’s service territory.