MINUTES OF THE REGULAR OPEN MEETING NEW MEXICO PUBLIC REGULATION COMMISSION March 3, 2021

TIME: 9:30 a.m. PLACE: Zoom Virtual Meeting

A quorum was present remotely as follows:

Members Present: Commissioner Stephen Fischmann, Chair, District 5 [arriving later] Commissioner Jefferson L. Byrd, District 2 Commissioner Theresa Becenti-Aguilar, District 4 Commissioner Joseph Maestas, Vice Chair, District 3 Commissioner Cynthia B. Hall, District 1

Members Absent: None

Staff Present: Michael Smith, Acting General Counsel Jim Williamson, ASD Division Director Judith Amer, Associate General Counsel Hans Muller, Associate General Counsel Russell Fisk, Associate General Counsel Anthony Medeiros, Hearing Examiner John Reynolds, Utility Division Director Brad Borman, Legal Division Director

Others Present Carl Boaz, Stenographer

CALL TO ORDER

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 Joseph Maestas, Vice-Chairperson, called the Open Meeting to order at 9:30 a.m. through Zoom, with remote access for the public through Youtube.

A copy of the agenda is incorporated herewith to these minutes as Exhibit 1.

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I. PLEDGE OF ALLEGIANCE/STATE PLEDGE

The Pledge of Allegiance and Salute to the New Mexico Flag were recited, led by Commissioner Byrd.

II. CONSIDERATION AND APPROVAL OF THE AGENDA

Commissioner Becenti-Aguilar moved, seconded by Commissioner Hall, to approve the agenda. The motion was approved by a unanimous 4-0 roll call vote with Commissioner Becenti-Aguilar, Commissioner Byrd, Commissioner Hall and Commissioner Maestas voting in favor and none voting against. Commissioner Fischmann was not present for the vote.

III. CONSIDERATION AND APPROVAL OF PRIOR MEETING MINUTES

• Minutes of February 3, 2021 Open Meeting

Commissioner Becenti-Aguilar moved, seconded by Commissioner Byrd, to approve the minutes of the February 3, 2021 Open Meeting as presented. The motion was approved by a unanimous 5-0 roll call vote with Commissioner Becenti-Aguilar, Commissioner Byrd, Commissioner Fischmann, Commissioner Hall and Commissioner Maestas voting in favor and none voting against.

IV. INTRODUCTION OF SPECIAL GUESTS

Ms. Jimenez introduced Gabe Cassell, (ASD-HR Staff), as Employee of the Month for February 2021. She commented on his activities and read the Resolution honoring him.

Director Reynolds introduced their newest Utility Division employee, Brady Tolleson, returning from Georgia to New Mexico and graduate of NMSU.

Mr. Tolleson thanked the Commission and said he was glad to be here with the PRC.

Commissioner Hall welcomed him and glad to have a new economist on our staff.

Commissioner Byrd congratulated Mr. Cassell for being Employee of the Month and noted he stepped up to the plate right away and rolled with the punches.

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Commissioner Hall also congratulated Mr. Cassell and mentioned how he creates a positive atmosphere.

V. PUBLIC COMMENT

There were no public comments.

VI. PRESENTATIONS

• Presentation from El Paso Electric Company to Introduce New Mexico Team to Commission, Address EPE’s Decision to Join CASIO EIM and Provide Overall Vision of what EPE will Become. Staff Introduced will be Kelly Tomblin, CEO; David Hawkins, VP – Strategy and Sustainability; Nancy Burns, Deputy General Counsel; Rico Gonzales, Regional VP – New Mexico; Jordan Kessler, Senior Attorney (authorized by Jason Montoya on 2/24/2021)

Mr. Gonzales introduced the EPE staff who were present, including Jennifer Ortiz who was providing the PPT on screen.

Ms. Tomblin (CEO) shared her background and experience prior to becoming CEO of EPE. She put together a promotion for the utility called Vision for the Future – “Together we are powering the next hundred years of Growth, Innovation, Economic Vibrancy through clean energy, new technology offering, customer focused programs and will lead the transformation of the energy landscape.” Their goal is 270MW of solar by 2022 and 50 MW of storage. Right now, they are at 5% renewable, 29% nuclear and 66% natural gas. By 2022, the goals are 59% natural gas, 25% nuclear and 16% renewable. They are partnering with NMSU and Holloman Air Force Base for solar generation. They are developing infrastructure for EV charging, establishing friendly rates and tariffs for EV and plan for electrification of EPE ‘s own fleet. The goals include integration of ET in grid planning processes, development of new customer services through innovation and partnership, and customer empowerment with openness and transparency.

Mr. Gonzales praised Ms. Tomblin for her vision and leadership and the commitment to engage more with customers of all classes. Our customer service hours are 7 am to 7 pm for interaction as we move forward. EPE communicates with live chats on the website, email or text, mobile pay, high bill alerts, sharing tips for efficiency, kiosks for bill payments with a live person electronically. He also mentioned community partnerships and support of local nonprofits.

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Mr. Hawkins spoke about the Western Energy Imbalance Market and sustainability and how they will help with innovation and sustainability in company messages.

Ms. Tomblin said EPE incurred $19 million in fuel costs that won’t be passed on to customers from the recent temperature event. EPE is committed to leading a clean energy plan and working with our customers and communities in partnership. She committed to be present at conferences in Santa Fe and Albuquerque and was excited to be working with PRC. This is just turning a chapter.

Commissioner Maestas thanked EPE for the presentation and congratulated Ms. Tomblin for taking the reins.

Commissioner Hall was pleased to hear these plans and commitments and was encouraged by them, especially the emphasis on what EPE can do for and with the community. To hear their CEO is an environmentalist is a breath of fresh air – embracing the new technology the way utility companies have not done in the past. She also thought EPE’s performance during the winter crisis was exemplary, to avoid huge financial burdens for their customers.

Commissioner Fischmann thanked EPE for sharing what is going on. He too felt we are at a crossroads on electrification transportation and electrification in general looking at a real growth era in electric power industry.

VII. CONSENT ACTION ITEMS

A. Transportation Matters: NONE

B. Utility Matters:

1) 21-00031-UT IN THE MATTER OF PUBLIC SERVICE COMPANY OF NEW MEXICO’S APPLICATION FOR APPROVAL OF TWO PURCHASED POWER AGREEMENTS AND AN ENERGY STORAGE AGREEMENT PURSUANT TO 17.9.551 NMAC, AN ADDENDUM TO THE SPECIAL SERVICE CONTRACT WITH GREATER KUDU LLC, AND AMENDED RIDER NO. 49. Judith Amer POTENTIAL ORDER REGARDING ADVICE NOTICE NO. 574

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2) 19-00140-UT IN THE MATTER OF SOUTHWESTERN PUBLIC SERVICE COMPANY’S TRIENNIAL ENERGY EFFICIENCY PLAN APPLICATION REQUESTING APPROVAL OF: (1) SPS’ 2020-2022 ENERGY EFFICIENCY PLAN AND ASSOCIATED PROGRAMS; (2) A FINANCIAL INCENTIVE FOR PLAN YEAR 2020; (3) RECOVERY OF THE COSTS ASSOCIATED WITH A POTENTIAL ENERGY EFFICIENCY STUDY OVER A TWO-YEAR TIME PERIOD; AND (4) CONTINUATION OF SPS’ ENERGY EFFICIENCY TARIFF RIDER TO RECOVER ITS ANNUAL PROGRAM COSTS AND INCENTIVES Judith Amer POTENTIAL ORDER ON MOTION FOR TIME EXTENSION

Commissioner Maestas moved, seconded by Commissioner Hall and Commissioner Byrd to adopt the orders for both consent cases.

Mr. Smith read the captions for both cases.

The motion was approved 5-0 by roll call vote with Commissioner Becenti-Aguilar, Commissioner Byrd, Commissioner Fischmann, Commissioner Hall, and Commissioner Maestas voting in favor and none voting against. So Ordered.

VIII. REGULAR ACTION ITEMS

A. Transportation Matters: NONE

B. Utility Matters:

3) 20-00188-UT IN THE MATTER OF THE JOINT APPLICATIO NOF ARROYO SOLAR LLC AND ARROYO ENERGY STORAGE LLC FOR LOCATION APPROVAL OF THE ARROYO SOLAR AND STORAGE FACILITIES AND ASSOCIATED GEN-TIE FACILITIES IN MCKINLEY COUNTY, NEW MEXICO PURSUANT TO NMSA §62-9-3 Anthony Medeiros Judith Amer POTENTIAL ORDER REGARDING RECOMMENDED DECISION

Mr. Medeiros asked if he should display the RD for the February 12 decision on the screen.

Commissioner Hall said Mr. Medeiros could just present his RD but whichever was more comfortable for Mr. Medeiros.

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Commissioner Maestas recalled the consensus last time was that the Commission would get a summary on the high points and he deferred to the HE on comfort in displaying parts of the RD as they are speaking.

Mr. Medeiros shared the whole RD which was first filed on September 20, 2020 and dealt with Arroyo Solar and Arroyo Energy Storage with a request to approve the location for the Gen-Tie transmission line, and facilities that connect solar and storage to the grid in McKinley County.

He explained the background for these two entities, each a wholly-owned subsidiary of a company in Houston TX. In the RD, he included the 19 projects totaling about 1 GW and located in several states. He noted the applicants are not public utilities in New Mexico and not regulated by the PRC. However, if approved, would provide a total of 345 MW of solar power to the grid.

Mr. Mederios described the locations of the projects and how they would be connected. PNM would utilize the generation through a PPA and said they would tie into adjacent lines running north and east of the project location. Case 19-00195-UT included the Arroyo executed PPA with PNM and required PNM to submit new storage plan increased to 250 MW to replace SJGS energy generation.

His RD reviewed the submission and testimony, supporting exhibits, etc. the application demonstrates the Arroyo project and Gen-tie facility complies with all requirements including environment and economic benefits. A McKinley County letter supports it, and the County Soil and Conservation District did not oppose it. PRC Staff recommended approval of the Arroyo application.

He found by preponderance of the evidence supported the solar generation and the storage facility complies with all regulations. The Gen-tie application adequately described it and it will not violate any local requirements. Testimony supporting the exhibits was effective. So he reasoned it meets all requirements and he recommended approval.

Commissioner Becenti-Aguilar asked if there were any protests within the 60-day rule.

Mr. Medeiros said there were none and no opposition to the RD.

Commissioner Becenti-Aguilar asked if the PPA had been capped.

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Mr. Medeiros said this would be the first PNM replacement to go into operation (SFGS), but another will be forthcoming later. It will be 150 MW solar and storage with no others in operation up until now.

Commissioner Becenti-Aguilar felt this project was needed in the Four Corners region and glad PNM had reached the agreement. The economic challenges in Four Corners are severe. Those living in the Four Corners deserve an orderly transition. She was excited to read the RD. Mr. Medeiros always looks for every aspect that would affect the community. This is a green light for many.

Mr. Medeiros shared page 17 of his RD that showed the economic benefits Commissioner Becenti-Aguilar had mentioned.

Commissioner Byrd asked what the expected profit is for Arroyo Solar and Storage.

Mr. Medeiros said that is not in the record and it would be speculating.

Commissioner Maestas thought Mr. Medeiros did an outstanding job. It was easy to follow. And for people who have general interests out there, it helps to follow along.

Ms. Amer presented the proposed order which would adopt the RD in its entirety.

Commissioner Maestas proposed an amendment. He noted there was considerable discussion n the safe harbor rule. The transmission lines were included in 500’ buffer but there was confusion that since the switchyard also falls in the 1,200-foot buffer as safe harbor, only the Arroyo’s facilities were included in the location approval application - and not PNM’s facilities. He thought that was improper and PNM should apply for location approval separately.

Mr. Medeiros showed Rule D of 62-9-3 on location control. The placement in the switchyard is subject in subsection D. The transmission line being added to is a PNM line and switchyard. The Safe Harbor applies to the terminus and tap lines that modify the facility. They are high voltage and would require approval as recommended in his RD and the bulk of the utilities in the right of way applies to tap and new terminus and are not near a developed area. Therefore, PNM’s facility there is not required for location approval. No location approval is required for that.

Commissioner Maestas pointed out that there is no testimony from PNM or their representative to clarify the switchyard is part of the transmission line or that it should be excluded from the approval. He was not sure how it would be dealt with. So he felt

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there needs to be subsequent action from the PRC. He also would like Ms. Amer to speak to the legal question.

Ms. Amer said it was clear that Arroyo was applying for location of the substation and Gen-tie line. Those were the subjects of this case. She agreed no testimony by PNM was needed. The RD is just approving the request of the applicant and not any determination of the switchyard. She also agreed with Mr. Medeiros’s request.

Commissioner Maestas asked if she was saying it is interdependent from PNM.

Ms. Amer clarified that this is only approving the Arroyo’s request for location and gen- tie line. We are not making a determination on PNM’s line or substation. It was not an issue in the case. By approving the application, that is all the Commission would be hearing.

Commissioner Maestas said his amendment just clarifies the scope. He read a new paragraph 12.

Chair Fischmann was confused here because as he read the order, part of what Mr. Medeiros was saying was that there was no need for approval of the switchyard.

Mr. Medeiros agreed. No approval is required in this case for the switchyard. But before PNM can break ground on these facilities, that must be approved.

Commissioner Maestas asked what part of his amendment does not fit with RD. We need to pay attention and know what parts are being approved.

Mr. Medeiros explained that it is a high voltage switch station whether of solar or gas combustion. That goes to the HE and this was getting beyond his RD.

Commissioner Maestas recalled initially that Mr. Medeiros spoke of the application and that it could be getting out of the bounds with the switchyard.

Mr. Medeiros said he was describing what a switchyard was. The statute applies to the rest of the switchyard. The Safe Harbor applies to the transmission facilities that the parties are more concerned about emphasizing. He did not devote much time to that in the RD.

Commissioner Maestas asked if Arroyo can propose to connect to PNM facilities that do not exist. He couldn’t see that the switchyard is a point of this proceeding.

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Mr. Medeiros agreed with that. Whatever PNM needs to do is not part of this case.

Commissioner Hall thought that was right. This language is kind of beyond the scope of the order and the proceeding. It is a finer point but, to the extent PNM sees it, they are free to address that.

Mr. Medeiros shared Commissioner Maestas’s concern and respected his concern about this matter and configuration of the facilities. That gen-tie line raised concerns for him because of the 90-foot ROW. It is completely on private land and the way it was configured is legal.

Commissioner Hall agreed that the point that it is not a subject of this order and needs to be considered in a new order, is correct. So the amendment needs to be toned down or not adopted.

Commissioner Maestas noted that Mr. Medeiros mentioned that the statute does apply to the switchyard and if it was entirely under the Safe Harbor, so that would apply. But he didn’t see how the Commission can deal with Safe Harbor when PNM is not the applicant. The location of the switchyard is the issue. They may be exempt from location approval if it is part of the Safe Harbor. It is unfortunate the location approval statute allowed the Safe Harbor exemption.

Mr. Medeiros said the RD speaks for itself and applies to the generation and transmission facilities on a required location approval. They must connect to this facility to get energy to the load. But location approval for those facilities is not required in this docket.

Commissioner Hall agreed with Mr. Medeiros. She suggested he could take administrative notice of the facility in this proceeding.

Ms. Amer did not think any HE should take an administrative notice. She agreed with Mr. Medeiros, that PNM was not the subject of this case. Everyone seems to agree it would be granted by adoption of this proceeding. She suggested regarding Commissioner Maestas’s amendment that it could just add the first sentence but not the rest. Nothing more needs to be said about it. It doesn’t have to be further explained in the amendment.

Commissioner Maestas accepted Ms. Amer’s proposal to delete all but the first sentence of his proposed amendment.

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Ms. Amer read the amendment to add as paragraph 12, “The Commission finds that adoption of the RD’s recommendation that the NMPRC approve the application is limited solely to NMPRC approval of the Arroyo solar and Storage project, the Arroyo substation, an the 500’ Arroyo get-tie line to the 345Kv transmission system, owned and operated by the Public Service Company of New Mexico (PNM) to be connected to an unbuilt switchyard, PNM’s switched, collectively.”

Commissioner Maestas moved, seconded by Commissioner Byrd, to approve the amendment a read by Ms. Amer. The motion was approved 5-0 by roll call vote with Commissioner Becenti-Aguilar, Commissioner Byrd, Commissioner Fischmann, Commissioner Hall, and Commissioner Maestas voting in favor and none voting against. So Ordered.

Commissioner Maestas moved, seconded by Commissioner Fischmann, to approve the order as amended. The motion was approved 5-0 by roll call vote with Commissioner Becenti-Aguilar, Commissioner Byrd, Commissioner Fischmann, Commissioner Hall, and Commissioner Maestas voting in favor and none voting against. So Ordered.

Commissioner Maestas was concerned about NEPA and whether the facilities impair environmental values. The Commission needs to be clear on the results of the EA for those transmission lines and contingency plans during construction.

Mr. Medeiros referred to Mr. Snidely’s testimony on page 29. He noted that In the RD are several protection measures, one of which was in quarterly reports to the Commission. It is an iterative process.

4) 20-00201-UT IN THE MATTER OF THE APPLICATION OF ZIA NATURAL GAS COMPANY, A DIVISION OF NATURAL GAS PROCESSING CO., FOR CONTINUED USE OF ITS PURCHASED GAS ADJUSTMENT CLAUSE Judith Amer POTENTIAL ORDER REGARDING IMPACT OF RECENT SEVERE WEATHER EVEN ON PENDING APPLICATION

Ms. Amer presented information regarding this matter to the Commission. It came upon the Commission’s own motion. The RD was issued on February 19 by Robert Lennon. It comes today, because subsequent to the issuance of the RD which recommended approval, there was a severe cold weather event.

As the Commission heard last week, there were three IOUs reporting having to pay extremely high gas prices. As high as 100 x normal rate levels and would force customers

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to incur high rates or it affects the stability of electric provider due to the extraordinary event.

Mr. Lennon had asked Staff and Zia to respond to questions before approving the RD as was recommended. The questions she drafted could be added to or modified and are the starting point. Should Staff or Zia be instructed to file additional updated supplemental information? If supplemental testimony should be filed, should the case be reopened for hearing and should the HE then update the RD? She stood for questions.

Commissioner Hall moved, seconded by Commissioner Maestas, to approve the order as presented. The motion was approved 5-0 by roll call vote with Commissioner Becenti- Aguilar, Commissioner Byrd, Commissioner Fischmann, Commissioner Hall, and Commissioner Maestas voting in favor and none voting against. So Ordered.

IX. DISCUSSION AND POTENTIAL ACTION

5) Jason Montoya DISCUSSION AND POTENTIAL APPROVAL OF LEASE ON BOKUM BUILDING

Ms. Amer announced that Mr. Montoya cannot be present. He had asked Ms. Amer to request a vote on the lease and she could review the terms again, if needed. He said he would be signing the agreement today. It would be a vote on approving the lease as detailed last week. That is all that would be needed.

Commissioner Hall moved, seconded by Commissioner Becenti-Aguilar, to approve the least as it was presented last week.

Commissioner Maestas reiterated his concerns on contingency of the lease – to make all approved improvements before April 1. He wanted to make sure we are working closely with the landlord to get those improvements completed before moving in. He was excited to get into it, despite the inability to include all staff members.

Chair Fischmann added that the Commission would not pay until improvements are completed.

Ms. Amer had no update on status of the improvements.

Commissioner Byrd was concerned about the term of the lease. We only have money for sure for three months. What happens if we get no more money from the Legislature?

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Ms. Amer said the Commission has the right to terminate as soon as we find we did not get an appropriation. That would mean at the end of the discussion that by next week, we would know if we got the appropriation, and it is included in our general budget. We would know and give notice of termination in the 90-day window. It obviously would not make sense to move in.

Commissioner Byrd said, “Let’s hope for the best and pray it is not the worst.”

Commissioner Becenti-Aguilar said the Bokum Building owner was well aware we were without offices since last year. He wondered why they made no improvements last year and asked why we are waiting for them to make improvements. She was skeptical about that.

Ms. Amer said the Commission did not negotiate with the lessor of Bokum Building until the fall. And they were hesitant to make improvements without a signed lease. They would start making them such as the hearing room. And Mr. Montoya had said they have begun with some improvements already.

Director Williamson agreed. What Ms. Amer stated was absolutely correct. That they would not make improvements until they had a signed lease if understandable.

Commissioner Maestas added that Santa Fe County offices had occupied the Bokum Building up until fall. He truly hoped this never happens to any state agency with no time to find another location. He thanked our staff for their patience, although some might be happy to be working from home. He hoped anyone concerned about this action would support the PRC or whoever has it happen. We need citizens more involved and cannot do that without public offices. This is an appeal to all voters to make sure it doesn’t happen again.

The motion was approved 5-0 by roll call vote with Commissioner Becenti-Aguilar, Commissioner Byrd, Commissioner Fischmann, Commissioner Hall, and Commissioner Maestas voting in favor and none voting against. So Ordered.

At 11:35, the Commission took a ten-minute break and resumed at 11:46.

6) Theresa Becenti-Aguilar DISCUSSION AND POTENTIAL ACTION ON INQUIRY, FORMAL ASSESSMENT, REPORTING PROCESS AND/OR OTHER ACTION(S) RELATED

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TO WHOLESALE GAS AND ELECTRIC PRICING DURING FEBRUARY 2021 EXTREME WEATHER EVENT AND FUTURE IMPACT ON CUSTOMER BILLS

Commissioner Becenti-Aguilar mentioned hearing from major utilities about the storm in February and letter from the NMAG. She wanted to have a record in place with our Commission. This would get a formal process going. It is important to know exactly what they experienced when the winter storm occurred. She stressed that in the reports, it is made clear who is bearing the cost of gas prices. She would ask for a written report from the utilities. Some of them mentioned they have already prepared some reports. She wanted to see an order put in place to address the issues impacting the ratepayers. What was signaled by this? Would they face much higher bills and who would bear the costs and how this affects those who cannot pay their bills? Other Commissioners could sign in on whether this is propre or improper and add their own requests for the report. If all utilities could be on the record, then when another such storm happens, we can see this report to review and reanalyze in making decisions for their customers.

They have been very forthcoming, for which she was thankful. This report can be shared with others some help to utilities if and when another storm is experienced.

Chair Fischmann asked if she had a mockup prepared.

Commissioner Becenti-Aguilar said no, but she could if she receives approval from other Commissioners to prepare a framework. Now, she was just asking for feedback.

Commissioner Hall liked it. It is worthwhile recording what utilities did as lessons learned from it. And have something to refer back to when it happens next time. She recalled a utility having purchased ahead of the storm.

Commissioner Byrd preferred to leave out the disconnects in order to not duplicate those efforts. Regarding the timeline, it is usually a bill for what was used 45 days before. The Commission should give them 60 days, so we have real data from the time of the storm.

Commissioner Maestas added that it would be helpful to know the NMAG results to find out about price gouging. A post-mortem is a good idea. But we see the AG is headed toward an investigation and that behooves us to suggest questions. NMAG has a wider view than we do in dealing with unregulated companies and to look at the elements of rates that provide the rate shock. And include FFPCAC elements of rate shock. He would like to look at those adjustment clauses for some kind of shock absorbing mechanism and the current financial state of IOUs. The largest coop in Texas, Brazos, just filed for bankruptcy from gas costs. And we should look at rate structures to include shock

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absorbing mechanisms. We also need to look at reserves each utility has. The manager of Caverns was forced to buy more on the market.

Chair Fischmann commented that it is a real disconnect that in an emergency is when price gouging can occur. As a matter of public policy, affordable, reliable service is the public policy. But that becomes inconsistent when suppliers can price gouge. We need to prevent profiteers from doing it during these emergencies that flies in the face of public policy. There must be a better way to draw up contracts. He wrote down a list – what are we doing in response that we can act on for the future and what is the plan for ratepayer relief to not get a huge bill all at once. We want an estimate of total cost utilities incurred in the process.

It sounds like we want communications with the AG to be sure what we are picking up doesn’t conflict or get in the way but also just to keep each other informed.

Commissioner Hall thought the Commission identified prices but not in the report. The Commission needs to address what weatherizing utilities should initiate to avoid the same situation happen again. She noted the Texas Commission Chair resigned and companies considered this a chance to increase revenues. We need to address how to prevent the need for price gouging. The Texas Commission had ordered the utilities to further weatherize after the event in 2011. This is an opportunity to learn what the utilities would do in anticipation that this could happen to us.

Chair Fischmann asked Commissioner Becenti-Aguilar, if we take our items to be reported on and circulate it for people to add or fine tun and at next week’s meeting, put out the order or request for utilities to respond.

Commissioner Becenti-Aguilar agreed. We need to look out for the ratepayers and the fuel cost charges. She would open the door for any commissioner to schedule mtg with AG staff members. Maybe a new policy could be established in preparation for a future event and incorporated into the utilities’ policies. The utilities need to look ahead in long- term planning processes. She asked that reports be sent to Jennifer Baca and then share it in the meeting. From there, for OGC to give us a layout for dealing with it.

Chair Fischmann asked that we might vote on something next week. If Commissioners could, respond quickly to Commissioner Becenti-Aguilar. He also asked that utilities give any suggestions for dealing with it.

Commissioner Becenti-Aguilar asked Mr. Smith if utilities could help compile these.

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Mr. Smith agreed. We do have the prior incident in 2011 with gas supplies curtailed. And what actions the gas utilities could take to prevent price gouging.

We should be staying away from more requests for PPAs that deal with wholesale gas prices. There were no curtailments or blackouts by customers. But we have the ability to work with NMAG in the effort. The AG does have confidentiality in some of its investigation. But we should identify those factors needed to avoid this in the future. There are definitely lessons to be learned. We can reach out to AG to work with them and have the results of their efforts as well.

Commissioner Becenti-Aguilar reported letters were sent out today as a response to the AG and let him know we are in the process of compiling causes and proposals from IOUs. And a second letter to all utility companies for a report on the storm with the items we have mentioned. She would like Mr. Smith to assist in the process.

Chair Fischmann asked for Commissioners to suggested the items we would like utilities to report on. We would like OGC to draft a memo to the utilities that make those specific requests and a letter for coordination with NMAG.

Mr. Smith proposed to open a docket for Inquiry – a formal docketed case.

Chair Fischmann agreed.

X. DISCUSSION ITEMS

7) Steven Fischmann DISCUSSION REGARDING COMMISSIONER WORK PLANS; EACH COMMISSIONER MAY PRESENT A BRIEF TIMELINE AND MILESTONES FOR IMPLEMENTING THEIR PROJECTS

Commissioner Hall was working on two rulemakings this year – one for IRP and attempt to get process. Nothing formal yet but she could bring a NOPR to the Commission in the next couple of weeks. She hoped to complete a process this year. Second is not rulemaking yet but Notice of Inquiry as something projected to take at least one year to get through all the issues and how to speed up the process. She was keen on making that happen in less than two years.

Commissioner Maestas asked if we are now decoupling our part of the work plan from Staff’s?

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Chair Fischmann clarified that this is just a review of what Commissioners are working on for their goals this year. He wanted to wait on Staff’s work plan until the Session is over.

Commissioner Maestas was trying to ensure some contractual services with external expertise to help us with some of the rulemakings that had stagnated. We have made progress and with Mr. Montoya had hoped to have Staff work together on a new budget. He is working on ETA where we have heard we are behind on getting a rule in place. He was also working on getting responses from the IOUs. He is also working with technical support from NARUC on rulings in the past. He would collect all the responses. He did not have a clear timeline yet, but hoped to have it finished by end of December. He also volunteered for the energy efficiency ruling initiated with all filings in. Hans was assigned and he expected to have a NOPR before the Commission in April.

Commissioner Byrd said he was working as the representative to SPP with monthly meetings now instead of quarterly. He will probably be asked into a leadership role. The other thing is helping Commissioner Becenti-Aguilar on the broadband dispersion.

Commissioner Becenti-Aguilar has reached out regarding broadband to help recruit participants on the Committee that will work on telecommunications, broadband, public accessibility, telemedicine and related issues. A conference is planned for September and they are scheduling meetings for the Committee. She was also working on a Staff retreat in August for renewing interactions among Staff.

Commissioner Fischmann was working on creating a procurement rule. He thought it could merge with Commissioner Hall’s IRP rule into a cohesive rule. His hope was not to have many workshops but just to issue the NOPR and move ahead quickly. I would provide a context for CCB’s and PPA’s approvals. He was striving to have the rule drafted sometime in April. Then the Commission could have input by July and updated draft rule in August and an approved rule by October. He also is examining anomalies in determination of ROE for utilities. There seems to be a disconnect between what is authorized and what happens in the marketplace that could be unfair to consumers. It would become an ongoing process. He found himself getting involved in the processes with rate classes falling apart and what should be included in the analysis of rate design

Commissioner Becenti-Aguilar asked Chair Fischmann about setting a timeline for the issues being worked on by Commissioners. Perhaps at the end of May we could have a status report on it.

Chair Fischmann suggested having a check-in at the end of each month for what is going on among Commissioners. He thought that could include OGC and Staff reports once the Legislative Session was over. He clarified that these projects being reported now were not using any Staff time. The work was solely with Commissioners and their executive assistants. New Mexico Public Regulation Commission March 3, 2021 Page 16

8) Steven Fischmann DISCUSSION REGATRDING TIMING OF PREPARATION OF AGENDA MATERIALS FROM OGC

From last week’s meeting, Chair Fischmann had agreed to spend more time with OGC about this and got a lot of pushback – well thought out issues on timing.

Mr. Smith said the point of it was the idea that giving more time for cases coming to the Commissioners was an aspirational luxury that did not correspond with the work flow of the agency and the way cases came to OGC. The proposal was that OGC’s materials for the next Wednesday would be due the Wednesday before (which really meant the Tuesday before since Wednesday is an open meeting date) to have items ready to put on the agenda. He said that would violate the OGC staff time for working on cases by working at the same time on preparing the dockets for the open meetings. There were lost of competing interests on their time already and listed many of them. The result was no uninterrupted work time to work on substantive matters. He pointed out that the resolution at the beginning of the year is intended to address the issue.

Ms. Amer pointed out that often their workload is changed by what took place in the prior week’s meeting such as when a matter is postponed to next week. They have already committed to have it all ready by Friday.

Commissioner Fischmann heard from a few OGC staff that it would cause scattered thinking when having to consider two different agendas at the same time. And Commissioners who were not ready to act on an agenda item could asked that it be postponed to the next week’s agenda.

Commissioner Hall recalled when the Commission had two different meetings each week – Tuesdays and Thursdays, which was very challenging. So OGC had overlapping responsibilities. She remembered how hard is was for her when she was part of OGC. What she is trying to do is to get familiar with the case ahead of when OTC has a report to submit for consideration by the Commissioners. She proposed each Commissioner started preparing when the case was first filed to be better prepared in advance.

Mr. Smith urged Commissioners to review the RD right away when it is finished to have extra time on it. OGC is also reading it then and available to talk with Commissioners about it even before exceptions are received.

Commissioner Fischmann requested that the RDs be distributed to all five Commissioners by email at the time they are received.

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Commissioner Hall and Mr. Smith noted that is already happening. They come from the Hearing Examiners directly.

Commissioner Maestas thanked Mr. Smith for responding to him. He also wanted a quality report, but felt they should have a look-ahead table so Commissioners could see what was coming up. He would like a two-four week window with options available to act and be prepared. If there were questions on the evidentiary record, they could be asked prior to the open meeting.

He understood there were services OGC provided that perhaps they should be relieved of. But he felt a look-ahead would help greatly and keep the deadline on Fridays.

Commissioner Fischmann said he had worked on it with John Reynolds and Brian Harris in a timeline chart. He would send a copy to all Commissioners as a proposal format for it.

Commissioner Hall thought it was more of a GANTT Chart.

Mr. Reynolds said he would look for it and share it.

Mr. Smith reminded the Commissioners of the more detailed calendar OGC put out last November and it would be great to have that all the time. The statutory deadlines at the end of the year had provoked that. One way to make it more meaningful would be to confer with the HE’s since OGC doesn’t have control on their schedules that don’t have statutory deadlines.

Commissioner Hall thought that would be great.

Commissioner Fischmann requested not altering the OGC proposed orders and use a formal amendment procedure to keep things cleaner.

9) Steven Fischmann DISCUSSION REGARDING DISPLAY OF MEMOS AND ORDERS DURIGN OPEN MEETINGS

Commissioner Byrd thought the way Mr. Medeiros did his RD today was exactly what he wanted to see. He put up charts on screen that we needed to see – maps and pictures and tables. He understood what we were looking for.

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Commissioner Maestas agreed. It was an ideal job today without needing to go through many other details. He agreed the memos and actual orders in them. He saw those as the same.

Commissioner Hall agreed.

10) Steven Fischmann DISCUSSION REGARDING DISPLAY OF RECOMMENDED DECISIONS DURING OPEN MEETINGS

Commissioner said the discussion on #9 covered #10.

XI. COMMUNICATIONS WITH CHIEF OF STAFF

Mr. Montoya was not present for communications.

XII. COMMUNICATIONS WITH GENERAL COUNSEL

Mr. Smith said he had no other communications.

XIII. COMMUNICATIONS WITH COMMISSIONERS

Commissioner Maestas said they had a meeting last week on the solar innovator program, trying to get another one assigned here, and progress was moving well. He said the program manager at DOE was trying to assist with the solar innovator program. They are willing to help us get another solar innovator assigned to the PRC.

Regarding the Transportation Director position, he and Commissioner Byrd met with Renee Kepler on the process for advertising, short list, interviews, etc. He signed off on the ad, job description, and signed off on interview questions. They have no dates yet but a goal to have someone in place before June 1. Commissioner Byrd signed off on it as well.

Commissioner Maestas said a coop in his district found reporting on the moratorium overly burdensome. He would meet offline with Mr. Smith and Ms. Amer to see if there is any variance on reporting or maybe revise the frequency on reporting.

His last topic was on technical reviews and PRC actions on them, like CCN, IRP, applications for replacement resources, etc. We need to clarify our expectations with Staff. He will bring a proposal back when it is ready. New Mexico Public Regulation Commission March 3, 2021 Page 19

Chair Fischmann announced that Sandia Labs is getting together a project to push forward some modeling on how New Mexico can best go forward with energy transition on renewables. They have asked us to participate and literally, it is a meta-modeling project about how it happens across the whole state. It is exciting and they have funding for it. They want PRC to be part of the five-member team. We will keep everyone apprised of it as it develops. Brian Harris has been lobbying him to be the liaison. Sandia was anxious to have him be the liaison on the project. We don’t have to decide now.

XIV. DISCUSSION AND POTENTIAL ACTION REGARDING LEGISLATIVE MATTERS

Bill Title Number HB 2 GENERAL APPROPRIATION ACT OF 2021 HB 9 CLIMATE SOLUTIONS ACT HB 10 BROADBAND DEVELOPMENT DIVISION HB 28 CRAMMING & SLAMMING ACT DEFINITIONS HB 51 ENVIRONMENTAL DATABASE ACT HB 106 COMMUNITY SOLAR ACT HB 137 CLEAN ELECTRIFICATION ACT HB 206 UTILITY AFFORDABILITY & RELIEF ACT HB 245 UTILITY DISTRIBUTION SYSTEM HARDENING HB 271 DEPOSIT OF CERTAIN FEES IN MOTOR TRANS FUND SB 24 PARITY OF REGULATION OF TELECOMMUNICATION SB 38 CLARIFY DEFINITION OF PHONE CRAMMING SB 67 FACILITIES FOR CLEAN ENERGY GENERATION SB 73 CERTAIN FEES TO MOTOR TRANSPORTATION FEE FUND SB 83 LOCAL CHOICE ENERGY ACT SB 84 COMMUNITY SOLAR ACT SB 93 BROADBAND ACCESS & EXPANSION ACT SB 113 WIRING FOR PHOTOVOLTAIC SYSTEM SB 132 PHOTOVOLTAIC SYSTEMS IN NEW HOMES SB 156 RATEPAYER RELIEF ACT SB 167 MINIMUM CREW FOR TRAIN OPERATION SB 204 RURAL TELECOMMUNICATIONS ACT

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SB 329 AMBULANCE SERVICES SB 360 UTILITY EASEMENTS FOR BROADBAND SB 361 RURAL TELECOMM FUND FOR BROADBAND SB 409 TRANSFER PIPELINE SAFETY FROM PRC TO OCD

Commissioner Becenti-Aguilar noted Mr. Montoya sent email to all Commissioners on the latest developments. She thought Commissioners can review those and get with Mr. Montoya.

Chair Fischmann reported HB 137 was put on hold in committee and the Chair would have legislators meet with the PRC on it.

Commissioner Maestas asked Commissioner Byrd if he supported SB 361.

Commissioner Byrd said he would also oppose it as the rest of the Commission did.

Commissioner Maestas noted that Mr. Montoya keeps a record on our support or opposition on a bill. When it moves to a new Committee, our position should be shared as the bill progresses.

XV. ADJOURNMENT

The meeting was adjourned at 1:36 p.m.

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ATTEST:

/s/ Carl Boaz, electronically signed Carl Boaz, Stenographer

APPROVED: May 26, 2021

/s/ Cynthia B. Hall, electronically signed CYNTHIA B. HALL, COMMISSIONER

/s/ Jefferson L. Byrd, electronically signed JEFFERSON L. BYRD, COMMISSIONER

/s/ Joseph M. Maestas, electronically signed JOSEPH M. MAESTAS, COMMISSIONER

/s/ Theresa Becenti-Aguilar, electronically signed THERESA BECENTI-AGUILAR, COMMISSIONER

/s/ Stephen Fischmann, electronically signed STEPHEN FISCHMANN, COMMISSIONER

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