NM wins San Juan proposal extension to Aug. 1

Jun 25 - McClatchy-Tribune Content Agency, LLC - Kevin Robinson-Avila Albuquerque Journal, N.M.

 

Also at the meeting, two commissioners implored parties in the San Juan case to reopen negotiations for a new settlement agreement, as did the Attorney General's office at a separate event on Wednesday.

The utility said it needed until Aug. 1 to get final approvals for the San Juan contracts, considered critical for the PRC to fully evaluate the costs and benefits of PNM's plan to close half of the coal-fired power station near Farmington. The partial closure is aimed at meeting federal environmental mandates, but it also ramps up the utility's ownership in one of two generating units that will remain open at the plant.

Other parties in the case opposed the extension, since the record from hearings last January has been closed since March. Accepting more evidence means another hearing must now be held to review the new information. Dates for that hearing must still be set, but most commissioners said they supported the deadline extension to make sure they have all needed information when they finally make a decision on San Juan's future.

The one "no" vote came from Commissioner Valerie Espinoza, who has been the most vocally opposed to PNM's San Juan plan.

Commissioner Linda Love-joy praised PNM for making significant progress on finalizing the contracts. That's in sharp contrast to her position at a PRC meeting on May 27, when Lovejoy berated the utility for "not making a good-faith effort" to abide by PRC rules and procedures.

"A few weeks ago I sounded like I was scolding my kid, but I really appreciate the progress PNM is now making," Lovejoy said Wednesday.

Commissioner Sandy Jones expressed frustration that PNM has still not filed the San Juan contracts despite multiple time extensions, but he voted anyway to move the deadline back to Aug. 1. "We just keep pushing the dates back, and it's creating problems," Jones said. "It's putting the commission against the wall. It's like playing a game of Russian roulette with severe consequences for the ratepayers of New Mexico."

Meanwhile, Jones and commission chair Karen Montoya called on PNM and all parties to come back to the bargaining table and negotiate a new agreement that breaks the gridlock. Attorney General Hector Balderas did the same, saying the current plan "is not good enough" and that a new one should be hammered out that includes more clean energy to replace coal generation with a more affordable price tag for ratepayers.

The AG is one of three parties that, until now, had continued to support PNM's current plan, despite the decision last January by three other groups to pull out of that accord and push PNM to replace more coal generation at San Juan with renewable energy.

Still, AG spokesman James Hallinan said Balderas has not withdrawn from the original settlement, or "stipulation," with PNM. PNM, however, may not be willing to reopen negotiations.

"We are confident this (current) plan is the best path forward for our customers and for the state," spokesman Pahl Shipley said.

www.abqjournal.com

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