[Lwvcnmtopics] PRC meeting on August 4

[George Richmond]

Today's meeting was noted for the PRC moving ahead on approving a right 
of way for solar storage which will add capacity before mi 2200 to help 
provide power during the peak summer season.  While an improvement, PNM 
is expected to buy power on the open market next year, but now supply 
will NOT be as tight.

In other news, Avangrid announces it will form local listening groups to 
hear from customers  (see below)

https://avangrid2019ir.q4web.com/investors/earnings-releases/earnings-releases-details/2021/Avangrid-Electric-and-Gas-Companies-Form-Local-Customer-Listening-Councils/default.aspx

In other news from the Rural Electric Co Op view, and the 20 Co Ops in 
NM provide service to around 200,000 New Mexicans or about 40% of the 
PNM client base.


  A MESSAGE FROM DUANE HIGHLEY, CEO


Those who are familiar with Tri-State know that one of our goals under 
our Responsible Energy Plan is the participation in a western regional 
transmission organization (RTO). Tri-State is a member of the Southwest 
Power Pool (SPP) RTO, with our eastern interconnected loads, and we 
participate in both the SPP and California Independent System Operator 
(CAISO) energy imbalance markets, resulting in 80% of our members’ loads 
being in an organized market. Importantly, we are working with other 
regional power providers to evaluate participation in a western 
expansion of SPP's RTO. Participation in a western RTO will help lower 
costs and increase reliability, and is a key component to economically 
and reliably integrate high levels of renewable resources and reduce 
emissions, as we transition our resource portfolio.



Tri State is a wholesale power generator supplying power to electric Co 
Ops in the western area, CO and NM.

They have moved from coal to renewables before PNM.

The clean energy transition of Tri-State Generation and Transmission 
Association is in sharp focus these days, given the rapid pace of our 
transformation and the opportunities ahead for electricity consumers. I 
could not be prouder of our cooperative’s role in the transition, which 
is driven by and for La Plata Electric Association and 41 other member 
electric distribution cooperatives and public power districts.

We’ve steadily accelerated the implementation of our Responsible Energy 
Plan that we announced with Gov. Jared Polis in January 2020. 
Remarkably, 50% of the energy consumed in our cooperative family will be 
from renewable sources in less than three years, growing to 70% clean 
energy by 2030. With the first of eight new renewable energy projects 
online earlier this year, in April 2021, 37% of the electricity our 
members use was from renewable sources.

Our greenhouse gas emissions are decreasing fast, with our Colorado 
emissions set for an 80% reduction by 2030. These emissions reductions 
are driven by a massive increase in renewable sources and the retirement 
of our remaining Colorado coal-fired power plant units in Craig between 
2025 and 2030. We retired our Nucla coal plant in Southwest Colorado in 
2019, and *our New Mexico coal plant in 2021.* We are supporting our 
employees and their communities through this transition.

We’re focused on increasing the use of electric vehicles, more efficient 
heating and cooling solutions, and other electric technologies that let 
every consumer play a part in a cleaner, lower-cost energy system.

*Our wholesale rates are decreasing, with a 2% reduction in March 2021, 
and another 2% decrease is less than a year away. As a result, some of 
our members are lowering their retail rates or increasing the return of 
capital credits. With a “green energy dividend” driven by nearly 3,000 
megawatts of low-cost clean energy in development or identified in our 
2020 electric resource plan, and by managing our costs, we are focused 
on being even more competitive and affordable.*

The record winter storm in February saw some electric utilities short of 
power, and energy prices skyrocketed even for some distribution co-ops 
outside of the storm’s path that were served by other power suppliers. 
During that weather event, Tri-State had sufficient power for our 
members and protected consumers from rate increases. I am also thankful 
for our employees, including your neighbors across Southwest Colorado, 
who safely and tirelessly work to keep the lights on including during 
challenging events.

Our members now have the flexibility to self-supply even more of their 
power requirements. We recently completed our first self-supply “open 
season,” when our members identified their interest in self-supplying 
more power, and we are working through the regulatory process to 
implement this new option. Members can keep all of the benefits of 
Tri-State membership while also taking on more of the responsibility of 
securing of up to 50% of their power locally if they wish.

As a cooperative, we know the value of working together. Tri-State is 
focused on the cost savings and clean energy benefits that come from 
participation with other power suppliers in a regional transmission 
organization that will further increase our ability to economically and 
reliably integrate more wind and solar power. Already, 80% of 
Tri-State’s load is in some form of an organized power market.

Tri-State’s delivery of flexibility with cleaner and lower-cost power 
while ensuring reliability and energy security are part of what makes 
Tri-State membership a unique value in a changing and uncertain power 
market. We are proud of the member-driven changes that will serve you 
well for years to come.

A few months ago, I spoke with Socorro Co Op about providing Internet 
connections to their rural customers. They do not have the capital to 
run line from their poles.  I fear this is true for most of the NM Co 
Ops as well, although Kit Carson which operates in the Taos area can do so.

The point is that providing internet service to most of rural New Mexico 
will require Federal funding.


George Richmond,

Your LWV CNM Observer to to the NM Public Regulation Commission


-- 
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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