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SECOND QUARTER 2018

El Paso Electric Files for Community Solar Program in Low-income option to be offered to New Mexico customers

On Tuesday, April 24, 2018, El Paso Electric (EPE) filed for approval for a new Community Solar Program in New Mexico with the New Mexico Public Regulatory Commission (NMPRC). Under the proposed program, EPE’s New Mexico customers will have the opportunity to subscribe, on a voluntary basis, to solar generation from a new 2 megawatt (MW) solar facility to be constructed, owned and operated by EPE located near the intersection of highway I-10 and I-25, in Doña Ana County. As part of the filing, EPE is reserving solar capacity for a low-income customer option. El Paso Electric Community Solar Facility A low-income customer charge to be made available to qualifying customers will offer a we look forward to bringing this program 10 percent discount on the Community Solar to our New Mexico customers,” said Mary capacity charge. To qualify, EPE has proposed Kipp, President and CEO of El Paso Electric. to determine a customer’s eligibility based on “Community Solar is a way to give our Federal Poverty, Guidelines, which is the same customers another option for investment in INSIDE criteria used for EPE’s low-income energy renewable energy, and by proposing a low efficiency program. A total of 200 kW have income solution, access to renewable energy El Paso Electric 1 been set aside for this rate. is now truly available to all residents and businesses in New Mexico.” President’s Message 2 “We’ve been very happy with the success of New Mexico Gas Co. 3 the Community Solar Program in Texas, and The program is available to all New Mexico PNM 4 Tucson Electric Power 5 Continued on page 11 PRC Candidate Profile 6-9 Your Vote Matters! Arizona Public Service 10 Three Public Regulation Commission seats are up for election this year. One of those Executive’s Letter 12 seats will be determined in the primary election with no general election challenge. PRC candidate information inside – Please vote June 5, 2018 Save the Date – Annual Meeting October 18, 2018 Your membership is important to us! If you haven’t renewed for 2018, please do so today. (Form on p. 11) 2 2 From the President...

The PRC was created 22 years ago by voters in the 1996 election through a constitutional amendment and just barely passed, 51 percent to 49 percent. It merged two regulatory bodies that had difficult, troubled histories – the State Corporation Commission and the Public Utility Commission. One of the predecessors of the PRC --- the State Corporation Commission (SCC) -- the three commissioners were elected in state- wide elections. In the other predecessor, the Public Utility Commission (PUC), the three commissioners were appointed by the Governor with the advice and consent of the Senate. The current PRC is made of 5 members-- which took over the duties of both the SCC and the PUC-- are elected one each from five separate districts. Qualification requirements for all SCC commissioners and PUC commissioner were minimal, and like its predecessors, PRC Commissioners were originally required to have no special qualifications for serving. That changed with legislation passed in 2013, which implemented a constitutional amendment that voters approved in 2012. Now anyone seeking to become a PRC Commissioner will be required to have either ten years of professional experience in an area regulated by the PRC or ten years of combined relevant education and professional experience. The 2013 law also requires that all commissioners have ethics training and take 32 hours a year of continuing education. The commission is responsible for the regulation of public utilities, transportation companies, transmission and pipeline companies, insurance companies and other public companies. Commissioners are elected to staggered four-year terms beginning January 1 following their election. The commission currently includes the following members: • District 1: Cynthia Hall (D) • District 2: Patrick Lyons (R) • District 3: Valerie Espinoza (D) • District 4: Lynda Lovejoy (D) • District 5: Sandy Jones (D - PRC Commission Chair)

BOARD OF New Mexico’s Primary Election date is scheduled for June 5, 2018. The following DIRECTORS candidates have met requirements to be put on the primary election ballot: District 2 Current Commissioner Patrick Lyons is unable to run because of term limits. Officers: Democrat: Kevin Sanders Sonia Phillips, President Republican: Jefferson Byrd District 5 Ed Borchardt, Secretary Jerry Partin Democrats: Sandy Jones– Incumbent Dan Lyon, J.D., Treasurer PRC Commission Chair District 4 Steve Fischmann Directors: Democrat: Lynda Lovejoy - Incumbent Republican: Ben L. Hall Dr. Lenton Malry Theresa Becenti-Aguilar Joseph Bizzell Bill Hagler Janene Yazzie Chris Mathys Republican: No Republican candidate filed for election. Carla J. Sonntag Executive Director Be sure and vote in the Primary Election on June 5, 2018. New Mexico Utility Shareholders Alliance | Second Quarter 2018 3

It’s a Wrap for NMGC’s Pipeline Project south of Taos

pipeline that is underground will be abandoned in place. The original Taos Mainline was installed on the west side of the Rio Grande between Rinconada and Pilar. Because of shifting soils, NMGC engineers decided to move the pipeline to the east side of the river on the highway shoulder. Three landslide areas were impacting the 8-inch pipeline, which was installed in 1964. Until now, strain gauges were used to monitor the pipeline, which needed periodic readjustments to ensure that natural gas is safely delivered to 16,000 customers in Taos County. “By relocating the pipeline, we are promoting greater service reliability for customers in north-central New Mexico,” NMGC President Ryan Shell said. “And by installing a larger pipeline, Workers examine their job site near Rinconada, N.M., shortly we can better position Taos and other communities in the after completing the final weld on March 15, 2018, to link the area for future growth.” old 8-inch Taos Mainline to a new 12-inch pipeline. Careful planning was conducted to ensure no service interruptions during construction. This included the temporary use of trucks hauling Liquified Natural Gas (LNG) to The work lasted longer than anticipated, but New Mexico feed the pipeline during the hours needed to connect the new Gas Company has completed a $14 million pipeline project system. in the Rio Grande Gorge. Natural gas began flowing March 15th through the new 12-inch Taos Mainline which delivers Many studies were conducted in the proposed corridors, to customers in Taos, Questa, Red River and surrounding including assessments of impacts to birds, viewsheds and communities. archaeological and cultural artifacts, as well as the potential biological and human impacts. Pipeline installation was completed in late February and New Mexico Highway 68 between Pilar and Rinconada was The environmental team worked to protect archeological sites fully reopened. It was commissioned after integrity testing in the canyon, including ancient Native American petroglyphs confirmed the pipeline was sound. and similar markings left on volcanic stones by Spanish colonial explorers. “This was a complex project in a challenging location and I want to commend our contractor and company employees “It required a comprehensive effort by several departments for their commitment to safety,” said Tom Bullard, NMGC’s to prepare and execute the project,” Shell said. “We are Vice President of Engineering, Gas Management, & Technical proud that we demonstrated our ability to tackle a complex Services. “It is a source of great pride for me that we engineering problem while simultaneously engaging a diverse completed the work with no injuries.” array of stakeholder groups.” The project initially was slated for completion by the end of November, but crews were challenged with more rock in the highway right-of-way than had been anticipated in addition to New Mexico Gas Company is the largest natural gas utility the narrow roadway. One side of Highway 68 sits just above in the state, serving 520,000 customers and operating in the Rio Grande and the other side is only a few feet from a 23 of New Mexico’s 33 counties. After a series of ownership cliff face. That didn’t leave much room for excavators, dump changes since 2009, NMGC is now an affiliate of Emera, Inc. trucks and other heavy equipment. Crews continued work into late spring on minor jobs In July 2016, the Canada-based energy and services firm associated with the project, such as landscaping and other completed a $10.6 billion acquisition of New Mexico Gas cleanup work. Over the summer, workers will remove the Company. The deal made Emera into one of North America’s old Taos Mainline in locations where it sits above ground. The 20 largest utility companies. 4 New Mexico Utility Shareholders Alliance | Second Quarter 2018

PNM Looking to the Future

On April 27, PNM Resources released the company’s 2018 Generating Station The Court ruled unanimously that first quarter earnings results. While overall earnings were there was ample evidence to support the approval of the down slightly from last year at this time, the results were settlement in the PNM filing and also determined that the anticipated, and the company is on track to have a good decision was reached in a public and transparent process. year. As you know, PNM went before the PRC last year with a 2018 First Quarter Review proposal to replace existing electricity meters with state of 2018 is off to a good start for the company in many ways, the art smart meters. After many months of testimony, the despite a few challenges. PNM set an all-time high for hearing examiner found that the proposal as written did overall customer satisfaction, according to the latest not provide sufficient customer benefit and recommended JD Power Electric Utility Residential Survey. The survey this spring that the Commission reject the proposal. The indicates the score is a result of improved customer Commission accepted the recommendation, but in doing service and performance across the company. Work has so, required PNM to submit a new proposal as part of its also begun to repair the San Juan Generating Station’s Unit next Energy Efficiency Plan application in 2020. 1 coal silo, which collapsed in March. No employees were injured in the incident, but Unit 1 has been off-line since it Community happened to make repairs and take care of some planned One of the core missions of PNM, beyond providing safe, maintenance that was originally scheduled for later this reliable, and affordable energy, is community service. year. Unit 1 is expected to come back on line in time for This spring, the city of Albuquerque recognized PNM for the summer peak demand period. All costs for repairs its outstanding community service and volunteer efforts, will be covered by insurance or absorbed into existing naming the PNM Community Crew the city’s Corporate operations and maintenance budgets. Volunteer Group of the Year. Overall in 2017, PNM and TNMP employee donated approximately 10,000 hours to Regulatory more than 500 projects or events that support nonprofit In the first quarter, PNM took steps to continue to expand agencies in their communities. the use of renewable energy. PNM filed two purchase power agreements (PPAs) with the PRC for authorization Looking Ahead to partner with two companies to provide additional wind As the year progresses, PNM’s parent company, PNM and solar energy for the Facebook data center expansion. Resources, will be focused on filing a new rate case for The New Mexico Public Regulation Commission (PRC) its other subsidiary, Texas New Mexico Power, in May. acted quickly to approve the plan, meaning an additional PNM will be rolling out new initiatives to enhance the 266 MW of renewable energy will be added to the customer experience. These programs will be prioritized PNM portfolio. Because of this construction, as well as into key areas such as billing and payment, new service construction of new wind farms in eastern New Mexico offerings, online interaction and employee engagement, for Xcel Energy, The American Wind Energy Association and are designed to help PNM continue to build value for has lauded New Mexico for having the highest wind customers and shareholders alike. power growth in the entire country. The agreement will also pave the way for PNM to increase its transmission capacity, which will in turn, help boost the state’s economy by attracting other industries that are looking to increase their reliance on cleaner energy. PNM Resources (NYSE:PNM) is an energy holding In March, the issued a ruling company based in Albuquerque, New Mexico. For rejecting New Energy Economy’s appeal of the PRC information about PNM and PNM Resources, visit www. order regarding the retirement of two units at San Juan pnmresources.com. New Mexico Utility Shareholders Alliance | Second Quarter 2018 5 Tucson Electric Power Ranks Among Nation’s Top Utilities for Expanding Energy Storage

TEP added two 10-MW battery systems last year:

• A lithium nickel-manganese-cobalt storage system at a TEP substation in midtown Tucson, built by a subsidiary of NextEra Energy Resources

• A 10-MW lithium titanate oxide storage facility linked to a 2-MW solar array at the University of Arizona Tech Park southeast of Tucson, built by E.ON Climate & Renewables

Both systems are now helping to maintain reliable service for customers during periods of high energy demand by TEP Prarie Fire Solar Array Storage supporting stable voltage on TEP’s local distribution grid.

TEP also is participating in a research and development Tucson Electric Power (TEP) has developed energy storage project with Chicago-based IHI, Inc. Energy Storage (IHI), systems at a scale that ranks among the utility industry’s which completed a 1-MW lithium ion energy storage leaders, according to a report released in April by the system at the site of TEP’s Prairie Fire Solar Array, a 5-MW Smart Electric Power Alliance (SEPA). system located southeast of Tucson. The IHI system is charged with energy generated by TEP’s solar array. TEP was ranked second in the nation for per-capita additions to its energy storage resources in 2017 with Additionally, TEP also announced plans for a new 30-MW 50 watts per customer. SEPA also ranked TEP third in the battery storage system that will be paired with a 100-MW nation for new energy storage capacity for adding 21 solar array. Both systems are scheduled to come online by megawatts (MW) of battery storage systems to its local 2019. electric grid. TEP is working to deliver at least 30 percent of its power from renewable resources by 2030, doubling Arizona’s “Energy storage systems are among the technologies 2025 goal. TEP anticipates adding an additional 800 MW we’re using to build a stronger, cleaner and more reliable of new renewable capacity, boosting its total renewable electric system for our customers,” said David G. Hutchens, energy portfolio to approximately 1,200 MW. Nearly 13 TEP’s President and Chief Executive Officer. “We will need percent of TEP’s power came from renewables last year, both storage and advanced, flexible generating systems well above the state’s 7 percent requirement for 2017. to maintain reliable service as we expand our use of renewable resources.” TEP provides safe, reliable electric service to Energy storage systems can boost power output levels approximately 424,000 customers in Southern Arizona. quickly to help maintain the required balance between For more information, visit tep.com. TEP and its parent energy demand and supply. They also can be used to store company, UNS Energy, are subsidiaries of Fortis Inc., the output of wind and solar power systems for use during which owns utilities that serve more than 3 million periods of high demand, adding versatility but also cost to customers across Canada and in the United States and renewable resources. the Caribbean. For more information, visit tep.com.

Contact us -TODAY - to start receiving this newsletter electronically! 6 New Mexico Utility Shareholders Alliance | Second Quarter 2018

2018 Public Regulation Commission Candidate Survey The candidates for Public Regulation Commission Districts 2, 4 and 5 answers to questions that NMUSA considers important in fulfilling the requirements of their job.

Lynda Lovejoy, Incumbent, Democrat, District 4

Specific qualifications: Served nearly 12 years as PRC Commissioner; 6 years in NM State Senate, 10 years in State House and 20+ years in various management capacities. Associate of Arts – Elementary Education, Bachelor of Science – Public Administration and 22 credit hours towards an MBA. I have functioned in judicial, legislative, advocacy and administrative management capacities over the course of nearly 30 years. Top priorities: Continue incorporating more renewables into the resource mix while ensuring such incorporations are economical and affordable to consumers. Continue to ensure that utilities maintain system reliability. Continue engagement in public policy discussions and examination of issues related to utility regulation with a view to enhance consumer benefits at state and federal levels. PRC Commissioner Role: Use my knowledge and experience to bring about common sense solutions by ensuring fair and balanced decisions on utility cases. Maintain system reliability, consumer protection and utility recovery of costs as a priority. Ensure reliable and affordable home energy services are maintained. Return on Equity: This would be determined on a case-by-case basis providing that the utility can recover prudently incurred costs to provide adequate, efficient and reliable service to customers. Both regulators and utilities need to continually examine rate design and structure to keep pace with changing technologies. Improving the working relationship with 1) PRC staff: Improve communication and reliable information exchange, more engagement on both sides is needed. Maintain professionalism on both sides, avoiding any behavior which leads to distrust. 2) PRC Attorneys: The PRC is now advertising to hire a permanent General Counsel which will improve case management and communication overall. Position on electricity productions from: Coal: New Mexico is transitioning away from coal to renewable sources through established energy targets. It will be in use for a few more years while continuing to provide much needed jobs in the Four Corners area. Nuclear: Nuclear power is a clean source of energy that can be produced at any time. If the price is right, it will continue to benefit the state. Natural Gas: Natural gas prices have become very affordable and lessen the risks of future environmental regulation. It is also an important source of jobs in San Juan County. Wind: Use of wind energy reduces emissions and is a substantial benefit to the public interest. Wind power is on the increase in New Mexico as it enhances important environmental values for consumers. Solar: This is another source of energy that provides substantial benefit to the public interest and enhances environmental values for consumers. Geothermal: The PRC recently approved a utility case that involves use of geothermal energy projects that will also serve as an important environmental benefit to consumers. New Mexico Utility Shareholders Alliance | Second Quarter 2018 7

Sandy Jones, Incumbent, PRC Chair, Democrat, District 5

Specific qualifications: 30 years small business owner Sandy Jones Construction, Sierra County Flood Control Director, Sierra County Director of Planning and Construction. Top priorities: 1. To expand on my broadband initiatives and advocate for more funding for broadband expansion in rural New Mexico. 2. To continue to encourage global renewable energy companies, like Facebook, to do business in New Mexico. Facebook just announced a $1 billion expansion, which translates to thousands of construction jobs and $1 million dollars a month in gross receipts to Los Lunas. 3. Fight for the firefighters and ensure they get their full funding allotment that the legislature took away when they swept funds for the budget. 4. Continue to approve large-scale renewable energy projects in New Mexico. 5. Revisit my proposal for an independent ethics review committee. Return on Equity: I think a fair return should be between nine and fourteen percent based on the risks associated with the utility’s position. Along with the utility’s obligation to serve all customers in its certificated territory, the utility is entitled to receive a fair return on equity. It is important that utilities maintain a healthy debt to equity ratio. A utility’s strong financial position is a key component to providing safe and reliable service. The regulatory model should not change: safe, reliable and affordable. Improving the working relationship with 1) PRC staff and 2) Attorneys: The current structure at the commission is workable. The challenge is staffing level. Those challenges include attracting and retaining employees. Due to competition in wages with private industry and surrounding states, NMPRC budgets have not allowed the agency to grow with the increase in demand of a rapidly changing market and public policy. Position on electricity productions from: Coal: The healthiest position a utility can be in is a diverse mix of generation to provide for pricing stability and reliability. Public policy and tax incentives are driving the construction of more renewable energy. Market prices, cheaper renewables, and public policy are driving the closing of coal-fired plants across the nation, as well as in New Mexico. Unless there is some drastic public policy change, most coal-fired plants will soon close. We face a challenge to replace coal-fired in our energy mix. There are many people whose livelihood depends on the coal industry. We must address the economic impact that shutting down the coal industry will have on the workers and communities in the Four Corners and provide resources that will help them adapt to our changing energy economy. Nuclear: New Mexico utilities depend on nuclear as a part of the base-load generation and that commitment needs to remain in place due to the reduction of coal-fired generation. Natural Gas: Natural gas generation can provide base load and peak load and is the only logical back-up source for the renewable energies. Wind: In today’s market, wind is the cheapest renewable energy resource available. Solar: Solar pricing continues to fall and New Mexico certainly is in a good position to expand solar in both the regulated and unregulated markets. Biomass: Biomass has had a hard time competing in the marketplace. There has been one biomass project in my knowledge in New Mexico. Geothermal: We approved a $40 million upgrade to a geothermal energy plant in Hidalgo County to boost output to 10 megawatts, up from four. Unfortunately, New Energy Economy has appealed this decision and other renewable energy projects in the Supreme Court which has jeopardized these projects and PNM’s ability to achieve its RPS requirement. 8 New Mexico Utility Shareholders Alliance | Second Quarter 2018

Steve Fischmann, Democrat, District 5

Specific qualifications: Co-founder of Southwest Energy Alliance, Served on Senate Conservation Committee, have intervened or provided analytical support for intervenors on rate cases and IRP’s Chaired Legislative Science and Tech interim committee. MBA from UCLA in Finance & marketing. 20 years of management experience as a Finance, operations and general manager dealing with Transportation and Telecom issues. Top priorities: Leveling the playing field for consumers. Updating PRC staff expertise in 21st century renewable and storage technologies. Rulemaking that improves transparency from utilities, and shifts the regulatory emphasis from procedural issues to moving forward. Return on Equity: I have no pat answer. That depends on interest rates, inflation, market conditions, amount of risk regulators ask utilities to assume, and many other factors. Improving the working relationship with 1) PRC staff: Advocacy staff requires independence, but must have up to date skills particularly in 21st century technologies. Commissioners must create an environment that values up to date expertise, and respects staff input. 2) PRC Attorneys: Advocacy staff attorney expertise on fair and due process requires more respect from commissioners. Position on electricity productions from: Coal: It is a dying industry. The only question is how to treat parties fairly as we transition away. Nuclear: Existing technologies are proving too expensive to build new and uncompetitive in restructured markets. It needs monitoring for potential phase out over a period of time. Need to stay open to new fuel reprocessing technologies. Natural Gas: Price volatility of fuel a long term concern. Cost effectiveness being challenged by wind and solar plus storage. WIND: An economical growth resource, especially with advances in energy storage and grid management. Reduced carbon pollution is a big benefit. Solar: Same as wind. Biomass: Desirable where cost effective. Geothermal: Desirable where cost effective.

Join NMUSA TODAY!

If you aren’t a member or haven’t paid dues recently, we hope you’ll join us! Dues are voluntary but help us attend regulatory and legislative meetings to advocate the interests of utility shareholders. Your contribution also helps fund this newsletter, our web site (www. nmusa.org) and membership meetings. New Mexico Utility Shareholders Alliance | Second Quarter 2018 9

Chris Mathys, Republican, District 5

Specific qualifications: United States Army, Conservative Republican member of the Fresno City Council, National Rifle Association, New Mexico Right to Life Committee, Knights of Columbus. MBA, University of the Southwest, Hobbs, New Mexico, Bachelor’s Degree in Political Science, Fresno State. Top priorities: As a businessman, I understand the need for excellent customer service. I realize that the money government spends comes from hard-working taxpayers. I will bring strong, Conservative leadership as your Commissioner. I will fight the environmentalists, progressives and RINOs from leading us to more expensive and unreliable sources of power. Return on Equity: No response.

Improving the working relationship with 1) PRC staff:Cooperation and respect toward all parties; 2) PRC Attorneys: Cooperation and respect toward all parties. Position on electricity productions from: Coal: good source of power. Nuclear: good source of power. Natural Gas: good source of power. WIND: No response. Solar: effective if commitments are kept in place and reimbursements are fair and equitable. Biomass: No response. Geothermal: No response.

The following candidates did not reply to our request for information by the deadline:

District 2: Kevin Sanders, Democrat District 5: Joseph Bizzell Jefferson Byrd, Republican Ben Hall, Republican Jerry Partin, Republican

District 4: Theresa Becenti-Aguilar, Democrat Janene Yazzie, Democrat

Obama Energy Official Wants Democrats to Support Trump Appointee

According to a May 16th edition of Axios, Amos Hochstein, a former top energy official in President Obama's State Department, is urging Senate Democrats to support the nomination of President Trump's nominee for the same post. Why it matters: Bipartisanship is nearly extinct in Washington, particularly when it comes to Trump's appointees. This support, conveyed in a letter sent to all Senate Democrats May 9 and viewed by Axios, is a sign that energy as a geopolitical issue is less polarizing than most others, even others in the same arena like climate change and coal. 10 New Mexico Utility Shareholders Alliance | Second Quarter 2018

PALO VERDE CAMPAIGN ADDRESSES NUCLEAR INDUSTRY HEADWINDS

Political posturing is putting pressure on Arizona utilities To reinforce Palo Verde’s importance to the entire to increase the percentage of their energy mix that comes southwest, the plant is stepping up efforts to solidify from renewable sources, which could force the closure of public and policymaker support. baseload plants, including Palo Verde Generating Station. One year ago, Palo Verde launched a rebranding An out-of-state group primarily funded by California campaign, aimed at elevating the station’s image as a billionaire Tom Steyer has filed a ballot initiative to amend national clean-air energy leader. This year, in phase two of Arizona’s State Constitution to require select Arizona the campaign, Palo Verde is working hard to ensure long- investor-owned utility companies to obtain 50 percent of term policy support for nuclear energy in states where their energy from renewable sources by 2030, less than Palo Verde supplies electricity, including New Mexico. 12 years from now. In addition to meeting with policymakers and other Along with other negative impacts, including doubling community leaders, the effort features an outdoor and electricity costs for the average customer of APS, the print advertising campaign, “Generation for Generations”; state’s largest energy company, and a $15 billion cost to sponsorship of the Albuquerque Isotopes minor league Arizona taxpayers by 2030, this proposed initiative could baseball team; sponsorship of National Nuclear Science force the closure of the Palo Verde Generating Station, Week, including ads in the Albuquerque airport; and the nation’s largest source of clean, carbon-free energy, an updated Palo Verde educational display at the costing 3,000 Arizona families their jobs. Smithsonian-affiliated National Museum of Nuclear Science and History. Palo Verde Generating Station generates enough Now more than ever, the U.S. nuclear faces challenges, electricity to meet the needs of more than 4 million and it’s vital that thought leaders and policymakers in the people in the American Southwest. The nuclear power Southwest view nuclear – and Palo Verde, in particular – plant is owned by seven participants located in four as a critical part of a clean energy mix. different states that have diverse political, market and social environments – Arizona, New Mexico, California and Texas. While each owner has differing ownership percentage, they have equal shares in decision-making. APS serves about 2.7 million people in 11 of Arizona’s Therefore, the political, market and social forces in any 15 counties, and is the Southwest’s foremost producer owner territory have the potential to affect Palo Verde’s of clean, safe and reliable electricity. Using a balanced long-term operation. energy mix that is nearly 50 percent carbon-free, APS has one of the country’s cleanest energy portfolios, On top of the political forces in Arizona and the including both Palo Verde Generating Station and southwest, the United States nuclear industry already is renewable energy. The company is also a proven facing headwinds of low growth in electricity demand, low leader in introducing technology and services that natural gas prices, state and federal policies to promote offer customers choice and control over their energy renewables, transmission constraints, unfavorable public consumption. With headquarters in Phoenix, APS is the perceptions and more. principal subsidiary of Pinnacle West Capital Corp.

Sample artwork from Palo Verde’s Generation for Generations campaign. New Mexico Utility Shareholders Alliance | Second Quarter 2018 11

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Emera, Inc. El Paso Electric (New Mexico Gas Co.) Pinnacle West Fortis, Inc. (Arizona Public Service) (Tucson Electric Power) PNM Resources Xcel Energy Other ______(Southwestern Public Service)

Mail to: NMUSA, P.O. Box 95735, Albuquerque, NM 87199 Email: [email protected] TEL: (505) 836-4223 FAX: (505) 836-4522

El Paso Electric continued from Cover customers - homeowners, renters and business owners pilot program was fully subscribed in just one month without distributed generation; and the subscription since the opening of subscriptions in mid-March of is portable anywhere within EPE’s New Mexico service 2017, with about 1,500 customers enrolled, and several territory. Customers are able to subscribe to solar hundred Texas customers on the waiting list. In March generation in 1 kW blocks and will pay a fixed rate of of this year, EPE filed to expand the Texas Community $18.55 per kW for this capacity, with solar and fuel credits Solar Program from a 2 MW facility, and the petition is offsetting the price. Low income customers would pay currently undergoing the approval process with EPE’s Texas $16.52 per kW for the capacity, reflecting the proposed regulators. 10 percent discount. There is no penalty for leaving the program, and the rate is fixed as long as customers remain in the program. El Paso Electric is a regional electric utility providing generation, transmission and distribution service to About El Paso Electric’s Texas Community Solar Program approximately 418,900 retail and wholesale customers The Texas Community Solar 3 MW facility, located in Far in a 10,000 square mile area of the Rio Grande valley East El Paso, TX, began operating in June of last year. The in west Texas and southern New Mexico. PreSorted STD US Postage PAID Permit 1893 Albuq. NM P.O. Box 95735 Albuquerque, NM 87199

From the Executive Director... Carla J. Sonntag

We hope you find the Shareholder News useful and Here are the major consumer issues regulated by the informative. We work hard to provide current information on NMPRC’s five commissioners: gas and electric companies operating in New Mexico and to Utilities: Natural gas, propane, investor owned water and keep you informed of important issues that may require your sewer, public utilities and electric co-ops;Transportation: attention. This issue has important candidate information for ambulances, limos, taxis, towing, and intrastate motor vehicle the upcoming NM Public Regulation Commission (NMPRC) registrations; Telecom; Pipeline Safety; and the State Fire races. We were disappointed that many candidates did not Marshall. respond by the deadline for this issue. We understand, however, they are very busy with their campaigns. Commissioner seats are staggered for election so that not all five are up for election at the same time. This year, there The NMPRC is one of the most important government are three open races. One seat is being vacated by Pat Lyons agencies in New Mexico. The Commission operates who has served the limited two terms and two seats with autonomously with little direct oversight. In fact, they answer incumbent Commissioners, Sandy Jones and Lynda Lovejoy, to the Legislative body for funding, but decisions can only who are being challenged while they seek re-election. be challenged by filing a case with the New Mexico Supreme We encourage you to learn about the candidates and VOTE on Court. Because the NMPRC is a Constitutional body, it would JUNE 5, 2018! take a vote of the people to make substantive changes to its structure. That’s why voting for Commissioners to represent My best, your interests is so important.