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MINUTES of the OPEN MEETING NEW MEXICO PUBLIC REGULATION COMMISSION April 22, 2020

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MINUTES of the OPEN MEETING NEW MEXICO PUBLIC REGULATION COMMISSION April 22, 2020 MINUTES OF THE OPEN MEETING NEW MEXICO PUBLIC REGULATION COMMISSION April 22, 2020 TIME: 9:30 a. m. PLACE: Virtual Meeting Through Zoom Platform NOTE: During the initial 41 minutes of the April 22, 2020 NMPRC open meeting, there were technical difficulties with the recording. Therefore, these minutes do not contain the amount of detail that the NPRC minutes ordinarily contain. Nevertheless, the April 22, 2020 minutes do contain the OMA requirements for minutes, including but not limited to the date, time, place of the meeting, the names of the Commissioners present or absent, the substance of the matters considered, a record of the decisions made and the votes taken, showing how each Commissioner voted. A quorum was present remotely as follows: Members Present: Commissioner Theresa Becenti-Aguilar, Chair Commissioner Jefferson L. Byrd, Vice-Chair Commissioner Valerie Espinoza, District 4 Commissioner Stephen Fischmann, District 5 Commissioner Cynthia B. Hall, District 1 Members Absent: None Staff Present: Jason Montoya, Chief of Staff Jim Williamson, ASD Division Director Anthony Medeiros, Hearing Examiner Ashley Schannauer, Hearing Examiner General Counsel Present: Michael Smith, Acting General Counsel Judith Amer, Associate General Counsel Others Present Carl Boaz, Stenographer CALL TO ORDER New Mexico Public Regulation Commission April 22, 2020 Page 1 The Open Meeting was scheduled at 9:30 a.m., pursuant to proper notice under NMSA 1978, 10-15-1(c), and the Commission’s Open Meeting Policy. Commissioner Becenti-Aguilar, Chairperson, called the Open Meeting to order at 9:30 a.m., in the Fourth Floor Hearing Room, PERA Building, 1120 Paseo de Peralta, Santa Fé, New Mexico with remote access for the public. A copy of the agenda is incorporated herewith to these minutes as Exhibit 1. A list of all people who registered for the meeting through the Zoom application is incorporated herewith to these minutes as Exhibit 2. (Please note this list only includes people who registered for the meeting online, it does not include those that called in by phone only; it may also include individuals who registered for the meeting but who did not actually attend) 1. PLEDGE OF ALLEGIANCE/STATE PLEDGE The Pledge of Allegiance and Salute to the New Mexico Flag were recited, led by Chair Becenti-Aguilar. 2. INTRODUCTION OF SPECIAL GUESTS There were no introductions. 3. CONSIDERATION AND APPROVAL OF THE AGENDA It was moved and seconded to approve the agenda as published. The motion was approved by 5-0 roll call vote with Commissioner Byrd, Commissioner Hall, Commissioner Becenti-Aguilar, Commissioner Espinoza and Commissioner Fischmann voting in the affirmative and none voting against. 4. CONSIDERATION AND APPROVAL OF PRIOR MEETING MINUTES • Minutes of March 25, 2020 Open Meeting It was moved and seconded to approve the minutes of March 25, 2020 as presented. The motion was approved 5-0 by roll call vote with Commissioner Byrd, Commissioner Hall, Commissioner Chair Becenti-Aguilar, and Commissioner Espinoza voting in the affirmative. 5. PUBLIC COMMENT There were no public comments. New Mexico Public Regulation Commission April 22, 2020 Page 2 6. BUREAU CHIEF REPORTS ● Rene Kepler, Human Resources Ms. Kepler provided a presentation about how Human Resources is dealing with the COVID-19 Situation. 7. CONSENT ACTION ITEMS A. Transportation Matters: NONE B. Utility Matters: 1) 19-00181-UT IN THE MATTER OF AV WATER CO. LLC ADVICE NO. 2 Russell Fisk POTENTIAL ORDER CANCELING ADVICE NOTICE, GRANTING VARIANCE FROM RULE 730, AND PERMITTING AV WATER TO BE REPRESENTED BY RECEIVER It was moved and seconded to adopt the order for Case 19-00181-UT. The motion was approved 5-0 by roll call vote with Commissioner Byrd, Commissioner Chair Becenti-Aguilar, Commissioner Hall and Commissioner Espinoza voting in the affirmative and none voting against. So Ordered. 8. REGULAR ACTION ITEMS A. Transportation Matters: NONE B. Utility Matters: 2) 19-00134-UT IN THE MATTER OF SOUTHWESTERN PUBLIC SERVICE COMPANY'S APPLICATION REQUESTING: (1) ACKNOWLEDGMENT OF ITS FILING OF THE 2018 ANNUAL RENEWABLE ENERGY PORTFOLIO REPORT; (2) APPROVAL OF ITS ANNUAL RENEWABLE ENERGY PORTFOLIO PROCUREMENT PLAN FOR PLAN YEAR 2020; (3) APPROVAL OF THE PROPOSED RATE FOR ITS 2020 RENEWABLE New Mexico Public Regulation Commission April 22, 2020 Page 3 PORTFOLIO STANDARD RIDER; AND (4) OTHER ASSOCIATED RELIEF Carolyn Glick RECOMMENDED DECISION Judith Amer POTENTIAL ORDER ON RECOMENDED DECISION Ms. Glick presented her Recommended Decision on 19-00134-UT. Ms. Amer presented an Order that would adopt the Recommended Decision in 19- 00134-UT. It was moved and seconded to adopt the order for Case 19-00134-UT. The motion was approved 5-0 by roll call vote with Commissioner Byrd, Commissioner Chair Becenti-Aguilar, Commissioner Hall and Commissioner Espinoza voting in the affirmative and none voting against. So Ordered. 3) 18-00030-UT IN THE MATTER OF A COMMISSION RULEMAKING REGULATING PROCUREMENTS OF SUPPLY-SIDE OR DEMAND-SIDE RESOURCES MADE BY INVESTOR OWNED UTILITIES Judith Amer POTENTIAL ORDER ISSUING NOTICE RESCHEDULING RULEMAKING PUBLIC HEARING OR POTENTIAL ORDER CLOSING DOCKET AND TERMINATING RULEMAKING Ms. Amer presented information regarding this matter to the Commission. Commissioner Byrd moved, seconded by Commissioner Espinoza to close the docket and terminate rulemaking. Commissioner Hall moved to continue the rulemaking and reschedule the public hearing. Mr. Smith raised a point of order. He did not know if there was a second to Commissioner Hall's motion. If so, it would be considered a substitute motion, which is a form of amendment and the vote normally is taken first on a motion to amend before voting on the original main motion. It was confirmed there was no second to Commissioner Hall's motion. Commissioner Fischmann said he would second Commissioner Hall's motion. Chair Becenti-Aguilar acknowledged the second by Commissioner Fischmann. Commissioner Espinoza asked for a restatement of the motion. It is not an amendment but a second motion that was made. She thought by Robert's Rules there could not be two motions on the floor. New Mexico Public Regulation Commission April 22, 2020 Page 4 Mr. Smith agreed but it is a substitute motion. Commissioner Espinoza objected that the second did not come in until Mr. Smith pointed it out. Chair Becenti-Aguilar explained that Mr. Smith had clarified it for the Commission. Mr. Smith said by Robert's Rules, a substitute motion is considered first. Chair Becenti-Aguilar believed Commissioner Hall moved to proceed with the case and that was her motion. She did not say it was a substitute motion. Mr. Smith advised that it is the characterization of the motion which, in effect, amends the main motion in order to provide for something different. Chair Becenti-Aguilar asked then if Commissioner Hall's motion and second by Commissioner Fischmann was a substitute motion. Mr. Smith agreed. Chair Becenti-Aguilar asked Mr. Smith, if the substitute motion failed, whether it would revert to the motion made by Commissioner Byrd. Mr. Smith said that was correct. The motion failed (2-3) with Commissioner Hall and Commissioner Fischmann voting in the affirmative and Commissioner Byrd, Commissioner Espinoza and Commissioner Becenti-Aguilar voting against. Mr. Smith said the action goes back to the main motion. Chair Becenti-Aguilar said the original motion was to close the docket made by Commissioner Byrd, seconded by Commissioner Espinoza. The motion to close the rulemaking docket was approved 3-2 by roll call with Commissioner Byrd, Commissioner Espinoza and Commissioner Becenti-Aguilar voting in the affirmative and Commissioner Hall and Commissioner Fischmann voting against. So Ordered. 9. DISCUSSION AND POSSIBLE ACTION New Mexico Public Regulation Commission April 22, 2020 Page 5 4) 19-00195-UT IN THE MATTER OF PUBLIC SERVICE COMPANY OF NEW MEXICO'S CONSOLIDATED APPLICATION FOR APPROVALS FOR THE ABANDONMENT, FINANCING, AND RESOURCE REPLACEMENT FOR SAN JUAN GENERATING STATION Anthony Medeiros PURSUANT TO THE ENERGY TRANSITION ACT Ashley Schannauer RECOMMENDED DECISION Michael Smith ON REPLACEMENT RESOURCES, PART 1 Chair Becenti-Aguilar asked Mr. Smith if he had a memorandum on this case. Mr. Smith said he did not and explained that this is on only for presentation by the Hearing Examiners. It will be on for action at next week's meeting Mr. Schannauer presented information regarding this matter. He explained that Anthony would follow up with his presentation afterward. The Recommended Decision that we are presenting today addresses part of PNM's request for approval of generating resources to replace PNM's interest in the San Juan generating Station, units one and four. He recommended that the Commission approve the Arroyo 100 MW solar project and the Arroyo 40 MW solar project, both of which are in McKinley County. The Jicarilla 50 MW solar project and the 20 MW battery storage project in Rio Arriba County are also recommended for approval. He would be are presenting a further RD later for the rest of the resources needed to replace the San Juan units being abandoned. He said the primary reasons for the recommendation are that these resources are the lowest cost of all the resources in the portfolio proposed by the parties. They are also coming up on a deadline for approval and the RD leaves open the options to approve additional resources proposed by the parties, including additional battery storage and any potential carbon capture PPAs. He explained that no single resource has been proposed by PNM or any other party that is large enough to replace the capacity of the units being abandoned at San Juan. Parties proposed combinations of resources which they have called portfolios of resources. Because the parties are proposing large amounts of renewable resources, the portfolios also include resources capable of quick start times to supplement the renewable resources.
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