New Mexico Public Regulation Commission March 3, 2021 Page 1

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New Mexico Public Regulation Commission March 3, 2021 Page 1 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. New Mexico Public Regulation Commission March 3, 2021 Page 1 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. New Mexico Public Regulation Commission March 3, 2021 Page 2 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. New Mexico Public Regulation Commission March 3, 2021 Page 3 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 New Mexico Public Regulation Commission March 3, 2021 Page 4 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. New Mexico Public Regulation Commission March 3, 2021 Page 5 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.
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