[Lwvcnmtopics] April 14 NM PRC meeting

[George Richmond]

A rate case *going back to 2016 started by PNM* involving proposed rates 
for Time of Use power consumption will be moved into the next rate case.

Time of use pricing will mean smart electric meters which can measure 
time of use and thus correct pricing.  Current meters measure use from 
one meter reading to the next reading.

This will happen, but certainly after the Avangrid merger which is 
likely later this year, after pubic hearing start next month. Issues 
should include who pays for the meters and when..direct charge to rate 
payers or rolled into the Avangrid assets, then charged back.

The following is an article from the Santa Fe New Mexican relating to 
the proposed merger.



 From Santa Fe New Mexican: 
<https://www.santafenewmexican.com/magazines/prc-staffer-raises-concerns-about-proposed-merger/article_f60193f0-9b9b-11eb-b427-ab5969a4cf41.html#utm_source=santafenewmexican.com&utm_campaign=%2Fnewsletters%2Fyour-morning-headlines%2F%3F123%26-dc%3D1618311608&utm_medium=email&utm_content=read%20more>

PUBLIC SERVICE COMPANY OF NEW MEXICO 
<https://www.santafenewmexican.com/magazines/prc-staffer-raises-concerns-about-proposed-merger/article_f60193f0-9b9b-11eb-b427-ab5969a4cf41.html#utm_source=santafenewmexican.com&utm_campaign=%2Fnewsletters%2Fyour-morning-headlines%2F%3F123%26-dc%3D1618311608&utm_medium=email&utm_content=read%20more>


  PRC staffer raises concerns about proposed merger
  <https://www.santafenewmexican.com/magazines/prc-staffer-raises-concerns-about-proposed-merger/article_f60193f0-9b9b-11eb-b427-ab5969a4cf41.html#utm_source=santafenewmexican.com&utm_campaign=%2Fnewsletters%2Fyour-morning-headlines%2F%3F123%26-dc%3D1618311608&utm_medium=email&utm_content=read%20more>

·By Rick Ruggles rruggles at sfnewmexican.com 
<https://www.santafenewmexican.com/users/profile/rruggles>

·Apr 12, 2021 Updated 4 hrs ago

A company hoping to merge with Public Service Company of New Mexico 
already has two wind projects in the state, both of which dodged certain 
requirements early on, said a staffer from a regulatory agency.

John Reynolds of the New Mexico Public Regulation Commission has written 
that Avangrid, a Connecticut-based renewable energy company, needs to 
“address its regulatory shortcuts in New Mexico” before it wins approval 
to merge with PNM.

The alleged shortcuts at the Torrance County wind farms are among a few 
concerns Reynolds cited about the proposed PNM-Avangrid merger.

Besides Reynolds, a variety of organizations and government entities, 
such as the Sierra Club and Bernalillo County, have filed analyses, 
criticisms or outright opposition to the proposed multibillion-dollar 
merger.

Reynolds and others also expressed skepticism over the degree to which 
PNM would retain control of its operations if it’s absorbed into two 
huge organizations. Avangrid is largely owned by another energy company, 
Iberdrola of Spain.

The commission will hold hearings on the merger proposal early next 
month and has the authority to approve or disapprove of the plan.

Avangrid said Monday evening: “Regulatory compliance is of utmost 
importance to us and we can confirm the El Cabo and La Joya projects are 
in full compliance with the PRC regulatory requirements.

“We immediately addressed an inconsistency in the La Joya permitting and 
the appropriate filing was made on Friday of last week that has brought 
the La Joya project into full compliance. This merger will bring two 
companies together that are built on strong values and a commitment to 
our communities and the environment, in addition to bringing additional 
jobs to the state and rate benefits to New Mexico customers.”

Public Regulation Commissioner Theresa Becenti-Aguilar, who represents 
northwestern New Mexico, said Monday she would study the testimony 
submitted. She said it wouldn’t be appropriate to give an opinion at 
this point.

“I am very interested in getting the testimonies and seeing how we can 
make a decision that’s good for New Mexico,” she said.

Commissioner Joseph Maestas of Santa Fe said he wants no suggestion that 
he’s “prejudging” the matter and stopped at that.

Other commissioners didn’t call back or declined to comment.

In testimony filed with the commission, Reynolds said Avangrid already 
has energy projects called El Cabo Wind Farm and La Joya Wind Farm in 
Torrance County. Both of those received scrutiny from Reynolds, who is 
the commission’s utility division director.

Reynolds said early this month of the El Cabo project that Avangrid 
Renewables failed to gain approval from the commission for “location 
control” and right-of-way width.

Also on El Cabo, Reynolds wrote, it appears Avangrid Renewables 
“deliberately skirted the New Mexico statute” by stating it would 
produce a capacity of 298 megawatts of power. At 300 megawatts, the 
commission has control over the location.

The commission said Monday it “remains unclear” whether El Cabo can 
produce 300 megawatts, although output can increase “when it is windier 
than normal.”

On the La Joya project, Reynolds said the Avangrid Renewables subsidiary 
called Pacific Wind Development failed to file copies of construction 
permits with the commission and notification of when service started.

The commission said Monday the La Joya Wind Farm currently is not in 
service. It had been expected to start running late last year.

Reynolds also expressed concern, as did some others who filed testimony, 
about PNM’s ability to retain control of its services and operations if 
it merges. He said PNM would be owned by a financially powerful company, 
but “being bigger and stronger is not necessarily better.”

Participants in the proposed merger said the PNM board would have at 
least two “local leaders” from the state. Reynolds called this 
inadequate, as did another person who submitted testimony.

Maureen Reno, a New Hampshire economist with expertise in public 
utilities, testified for Bernalillo County that the pledge to have two 
local board members was weak.

Currently, all five PNM board members are New Mexicans, PNM said.

Reno said the change would represent “a direct loss of local control 
over PNM.”

She said she was appalled by the “nonchalance” shown by the applicants’ 
assertion that there would be only two board members from the state.


        Rick Ruggles
        <https://www.santafenewmexican.com/users/profile/rruggles>

Reporter

-- 
George M. Richmond
152 Juniper Hill Road, NE
Albuquerque, NM 87122-1913

C: 505-280-2105
E: geomrich1 at comcast.net



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