Filed
Supreme Court of New Mexico
5/9/2022 12:53 PM
Office of the Clerk
IN THE SUPREME COURT OF THE STATE OF NEW MEXICO
NO. S-1-SC-39138
PUBLIC SERVICE COMPANY OF NEW
MEXICO,
Appellant
v.
NEW MEXICO PUBLIC REGULATION COMMISSION,
Appellee,
and
SIERRA CLUB, NEW ENERGY ECONOMY,
WESTERN RESOURCE ADVOCATES, AND
COALITION FOR CLEAN AFFORDABLE
ENERGY,
Intervenor-Appellees.
IN THE MATTER OF THE APPLICATION OF
PUBLIC SERVICE COMPANY OF NEW MEXICO
FOR APPROVAL OF THE ABANDONMENT
OF THE FOUR CORNERS POWER PLANT
AND ISSUANCE OF A SECURITIZED FINANCING
ORDER, NMPRC CASE NO. 21-00017-UT
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ANSWER BRIEF OF SIERRA CLUB AND CCAE
Jason Marks
Jason Marks Law, LLC
Attorney for Sierra Club 1011 Third St. NW Albuquerque, NM 87102
- 385-4435lawoffice@jasonmarks.com
Cara Lynch
Attorney for Coalition for Clean Affordable Energy 3305 Lykes Drive NE
Albuquerque, NM 87110
- (505) 977-3025 Lynch.cara.nm@gmail.com
May 9, 2022
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TABLE OF CONTENTS | |
I. INTRODUCTION | 1 |
STANDARD OF REVIEW | 9 |
ARGUMENT | 10 |
FACTUAL BACKGROUND | 10 |
B. PNM'S Proposed Merger with Avangrid | 12 |
- Negotiations Between PNM and NTEC Concerning Transferring
PNM's Interest in Four Corners to NTEC | 13 |
- THE ETA INSTRUCTS THE COMMISSION TO DENY A FINANCING ORDER APPLICATION IF IT DENIES AN ABANDONMENT
APPLICATION, AS THE COMMISSION PROPERLY DID HERE. 19
- THE COMMISSION PROPERLY DENIED THE ABANDONMENT
AND FINANCING APPLICATIONS. | 20 |
- The Record Supports the Commission's Conclusion that PNM did not
Prove that Adequate New Resources were Available. | 20 |
1. Based on the Specific Facts in the Record, the Commission Concluded that PNM Had Not Identified Potential New Resources that Would be
Adequate to Replace Four Corners. | 22 |
2. The Commission's Interpretation of the ETA Gives Effect to the Entire
ETA and is Reasonable. | 25 |
3. PNM's Arguments Regarding Alleged Inconsistencies with the Hearing
Examiner's February 2021 Order on Motions is Unavailing. | 28 |
- The Commission Properly Concluded that PNM Did Not Provide an
Accurate Baseline in its Analysis of Abandonment. | 30 |
- The Commission Did Not Reach Numerous Other Grounds for Denying the Abandonment Applications; the Commission's Decision Can be Upheld on
Any of those Alternative Grounds. | 34 |
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- Even if PNM Were to Prevail, the Proper Remedy would be to Remand the Case to the Commission to Rule Upon the Many Outstanding Objections to
PNM's Abandonment and Financing Applications. | 36 |
IV. PNM'S CLAIMS REGARDING A FUTURE PRUDENCE REVIEW ARE | |
NOT RIPE AND LACK MERIT. | 37 |
A. PNM's Claims Regarding a Future Prudence Review are Not Ripe. | 38 |
B. Even if Ripe, PNM's Claims Regarding the Deferred Prudence Review | |
Would Lack Merit. | 40 |
CONCLUSION | 42 |
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TABLE OF AUTHORITIES | ||
Cases | ||
Albuquerque Bernalillo Cty. Water Util. Auth. v. N.M. Pub. Regulation Comm'n, | ||
2010-NMSC-013 .......................................................................................... | 34, 45 | |
Albuquerque Cab Co., Inc. v. New Mexico Pub. Regul. Comm'n, 2017-NMSC-028 | ||
........................................................................................................................ | 31, 32 | |
Am. Fed'n of State v. Bd. of Cty. Comm'rs of Bernalillo Cty., 2016-NMSC-017 ... | 42 | |
Citizens for Fair Rates & the Env't v. New Mexico Pub. Regul. Comm'n, 2022- | ||
NMSC-010 ..................................................................................................... | 41, 42 | |
Egolf v. Public Regulation Commission, 2020-NMSC-018 ...................................... | 1 | |
Morningstar Water Users Ass'n v. N.M. Pub. Util. Comm'n, 1995-NMSC-062... | 12 | |
New Energy Econ., Inc. v. New Mexico Pub. Regul. Comm'n, 2018-NMSC-024 .. | 45 | |
New Energy Econ. v. Shoobridge, 2010-NMSC-049.............................................. | 39 | |
New Mexico Atty. Gen. v. New Mexico Pub. Regul. Comm'n, 2013-NMSC-042 ... | 11 | |
Plains Elec. Generation & Transmission Coop., Inc. v. N.M. Pub. Util. Comm'n, | ||
1998-NMSC-038 ................................................................................................. | 11 | |
Rio Grande Chapter of Sierra Club v. N.M. Mining Comm'n, 2003-NMSC-00517 | ||
............................................................................................................................... | 11 | |
Rodriguez v. Permian Drilling Corp., 2011-NMSC-032 ....................................... | 11 | |
Yount v. Millington, 1993-NMCA-143 ................................................................... | 40 | |
Statutes | ||
NMSA 1978 § 62-18-4 ............................................................................................ | 29 | |
NMSA 1978 § 62-18-4(A)........................................................................ | 2, 3, 22, 23 | |
NMSA 1978 § 62-18-4(D)....................................................................................... | 25 | |
NMSA 1978, § 62-11-5 (1982) .............................................................................. | 12 |
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PNM Resources Inc. published this content on 09 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 May 2022 12:20:33 UTC.