September 6, 2017 1120 Paseo de Peralta Members Present: … docs/09-06-17 Minutes.pdf · 06-09-2017 · Michael Ripperger, Telecommunications Bureau Chief Others Present Carl Boaz,

MINUTES OF THECASE MANAGEMENT OPEN MEETING

NEW MEXICO PUBLIC REGULATION COMMISSIONSeptember 6, 2017

TIME: 9:35 a. m. PLACE: PERA Building4th Floor Hearing Room1120 Paseo de PeraltaSanta F6, New Mexico 87501

A quorum was present as follows:

Members Present:Commissioner Sandy Jones, ChairpersonCommissioner Cynthia B. Hall, Vice-ChairpersonCommissioner Valerie EspinozaCommissioner Lynda Lovejoy [telephonically]Commissioner Patdck H. Lyons

Members Absent:

Staff Present:Ernest D. Archuleta, Chief of StaffMichael Smith, Acting General CounselJudith Amer, Associate General CounselRussell Fisk, Associate General CounselDavid Black, Associate General CounselMark Cessarich, Telecommunications BureauMichael Ripperger, Telecommunications Bureau Chief

Others PresentCarl Boaz, Stenographer

CALL TO ORDER

The Case Management Open Meeting was scheduled at 9:30 a.m., pursuant to proper notice underNMSA 1978, 10-15-1(c), and the Commission’s Open Meeting Policy. Commissioner Sandy Jones, Chair,called the Case Management Open Meeting to order at 9:30 a.m., in the Fourth Floor Hearing Room,PERA Building, 1120 Paseo de Peralta, Santa F6, New Mexico.

A copy of the sign-in sheet for the Case Management Open Meeting is incorporated herewith to theseminutes as Exhibit 1.

New Mexico Public Regulation Commission September 6, 2017 Page 1

A copy of the Agenda for the Case Management Open meeting is incorporated herewith to theseminutes as Exhibit 2.

A copy of the Public Comment sign-in sheet for the Case Management Open Meeting is incorporatedherewith to these minutes as Exhibit 3.

PLEDGE OF ALLEGIANCE/STATE PLEDGE

The Pledge of Allegiance and State Salute to the Flag were recited.

2. INTRODUCTION OF SPECIAL GUESTS

There were no introductions.

A moment of silence was observed in memory of Lucky Varela and Mike Barlow, former HearingExaminer, who passed away last week.

3. CONSIDERATION AND APPROVAL OF THE AGENDA

Mr. Smith asked to table the minutes until next week.

Commissioner Espinoza moved to approve the agenda as amended withminutes postponed. Commissioner Lyons seconded the motion and it passed byunanimous (,5-0) voice vote.

=CONSIDERATION AND APPROVAL OF MINUTES

¯ Minutes of the Open Meeting on August 16, 2017

The minutes were postponed to September 13, 2017.

=CONSENT ACTION

A. Transportation Matters:

There were no Transportation Consent cases.

B. Utility Matters:

New Mexico Public Regulation CommissionSeptember 6, 2017 Page 2

1) 17-00139-UT IN THE MATTER OF THE APPLICATION FOR CONTINUATIONOF A FUEL AND PURCHASED POWER COST ADJUSTMENTCLAUSE AND FOR A VARIANCE BY COLUMBUS ELECTRICCOOPERATIVE, INC., PETITIONER.(David Black) ORDER

Commissioner Lyons moved to approve the order. Commissioner Espinozaseconded the motion and it passed by unanimous (5-0) voice vote. S._2oOrdered.

6. REGULAR ACTION AND DISCUSSION

2)

A. Transportation Matter:

17-00179-TR-R IN THE MATTER OF THE APPLICATION OF VELV, LLC. D/GIASANDIA SHUTTLE EXPRESS FOR A CHANGE TO ITS TARIFF

Mr. Black presented information regarding this matter to the Commission. The caseinvolves a change of tariff rates. The law on increases in rates requires it come to theCommission. VELV, LLC took over Sandia Shuttle recently and has been operating.When the transfer application was approved, they ran the old vans that had about700,000 miles on the odometers. They now have purchased 11 new vans using CNGand with larger seats. They have an excellent safety record, are hiring new drivers, newmaintenance staff and a new administrator. Management has increased the number oftrips to the Sunport to 19 trips daily. Those are the reasons given for the increase intariffs requested.

The proposed order would grant the new tariffs: $30 to $33 one way plus GRT.Round trip from $55 to $66 + GRT. The multiple group one-way tariff would go from $25to $33 + GRT.

Transportation Staff looked at the application. There were anomalies discoveredduring the preapplication period and brought to their attention, and those were resolvedto Staff’s satisfaction. A detailed analysis by Staff showed the rates are honest,economical and efficient and would allow the applicant to achieve revenue adequate tooperate the motor transportation system. They have a staff member present to answerquestions.

Commissioner Lyons asked if the Sunport is their only destination.

Mr. Black agreed.

The Commission had a brief discussion about the impressive mileage on theirvehicles and the good price they got on the new vehicles.


Commissioner Espinoza moved to approve the order for the new tariffs.Commissioner Lovejoy seconded the motion and it passed by unanimous (5-0)voice vote. So Ordered.

B. Utility Matters:

3) 17-00189-UT IN THE MATTER OF THE FORMAL COMPLAINT OFENCHANTED WINDS, LLC. AGAINST CENTRAL NEW MEXICOELECTRIC COOPERATIVE CONCERNING ITS RULE17.9.579.11 FILING AND ITS FIRST REVISED RATE 31.(Judith Amer) ORDER

Ms. Amer presented information regarding this matter to the Commission. It involvesPURPA which is always complicated. This matter comes before the Commission upon the FormalComplaint filed on the Formal Complaint filed on July 31, 2017 by Enchanted Winds, LLC against CentralNew Mexico Electric Cooperative (CNMEC) and upon Tri-State Generation and Transmission Association,Inc.’s Motion to Intervene filed on August 11, 2017.

The proposed Order grants Tri-State’s Motion to Intervene because Tri-State has a substantial anddirect interest in this proceeding; that no other party can adequately represent the interests of Tri-State; andthat intervention by Tri-State will not unduly burden the issues in this proceeding, unduly prejudice otherparties, or unduly disrupt the proceeding

She wanted to bring that in order to discuss the issues of the complaint. The Staffwill respond and then OGC will bring it back for disposition.

On July 31,2017, Enchanted Winds filed a Formal Complaint against CNMEC. TheComplaint alleged two causes of action regarding CNMEC’s avoided cost energy rateand its Rate 31 for sale of electricity to customer taking service from CNMECinterconnected to the bulk electric system. The Complaint alleges, among other things,that: i) CNMEC unlawfully used Tri-State’s avoided cost rate rather than CNME’s ownavoided cost rate, and ii) that CNMEC’s Revised Rate No. 31 violates Commission Rule17.9.570 NMAC (Rule 570).

The Complaint alleges that Rule 570 is pre-empted by federal law and the U.S.Constitution’s Supremacy Clause because FERC Rule 18 requires CNMEC’spurchased of power produced by Enchanted Winds to be based on CNMEC’s avoidedcost, not Tri-State’s avoided cost. Rule 570.13(F)(1) states that a distributioncooperative with a "full power requirements contract" with its supplier (Tri-State) has theoption of transferring the purchase obligation to its supplier. The Complaint alleges thisconflicts with federal law, which gives the right to approve transfers of the purchase


obligation to the QF, not to the utility. The difference would be in the annual report whichstated the rate. They would be paid less by using Tri-State’s avoided cost rate.

In the joint response on August 23, Enchanted Wind offered to meet with both Tri-State and CNMEC to discuss the matter. They requested a non-discriminatory rate ofwhat other wind farms are charged.

According to the Tri-State membership agreement, they have a right to elect toreceive 95-100% from Tri-State but there are no self-generation provisions. In theannual report, the avoided cost rate for 2017 - is 0.02896/KVVh but CNMEC isrequesting a rate of .04/KWh.

The Commission is now awaiting Staff response.

Commissioner Hall asked what the motion would be.

Ms. Amer said the motion would be to grant Tri-State the ability to intervene. It has aright to purchase from Enchanted Winds and not CNMEC. The Palmer Wind case wasvery similar to this case.

Commissioner Hall asked what she said about Palmer Wind.

Ms. Amer said Palmer Wind and Enchanted Winds are owned by the same personand Tri-State argues that it has the right to purchase from Enchanted Wind and that it isthrough an agreement of Tri-State with Enchanted Wind; not with CNMEC.

Commissioner Hall moved to approve the order. Commissioner Espinozaseconded the motion.

Commissioner Lyons said the real question is at what cost they can sell theenergy and not if they can sell it.

Ms. Amer agreed. It is about the price of energy and which rate should be used.

Commissioner Lyons asked if they could sell excess to someone at their avoidedcost rate.

Ms. Amer said PURPA says they have an obligation to purchase but the issue isat what price. Then the other end is how much Enchanted Wind must pay for electricity.Enchanted Wind just needs standby service but think they should be paid retail rates.

Commissioner Lyons asked where Enchanted Winds is located.

Ms. Amer said it is in New Mexico within the CNMEC territory.


Commissioner Lyons asked if this is an open case and when the hearing isscheduled.

Ms. Amer said it is not assigned to a Hearing Examiner yet. We await staff’sresponse first. The complaint was filed at end of July and the response on August 23.

Commissioner Lyons said this is a big case. The Memo said the line loss is 1.5and that’s a lot of line loss.

Ms. Amer said the difference is the avoided cost rate for using only the variablecosts. She wasn’t 100% sure but it seems to be Tri-State avoided cost rate.

Commissioner Lyons asked for clarification on the first revised rate or wholesalerate.

Ms. Amer said that is rate charged to consumers connected to the Wind Facilityand not made available to retail consumers. It is a wholesale rate and not a retail rate,according to the complaint. They are also charging that rate to other wind generators.And they claim they are doing nothing different for Enchanted Wind.

Commissioner Lyons asked if PURPA allows these wind farms to sell energy asa standby.

Ms. Amer said yes, if they qualify and meet other criteria - the utility shall purchasefrom that qualifying facility. There are other questions about it. But how muchEnchanted Wind would get paid is the issue.

Commissioner Lyons knew that California is dumping lots of solar and Arizona willbuy it. He asked if New Mexico would have to buy it if they dump solar here in NewMexico.

Ms. Amer said it depends on what is enforceable in the agreement.

Commissioner Lyons believed Tri-State should be allowed to be an intervener.

The motion passed by unanimous (5-0) voice vote. So Ordered.

4) Undocketed IN THE MATTER OF THE APPLICATION OF CONTINENTALDIVIDE BROADBAND FOR CERTIFICATE OF REGISTRATIONTO PROVIDE COMPETITIVE LOCAL EXCHANGETELECOMMUNICATIONS WITHIN THE STATE OF NEWMEXICO(Russell Fisk, Mark Cessarich) ORDER


Russell Fisk and Mark Cessarich presented this matter.

Mr. Fisk said this is a CLEC registration application by Continental Divide ElectricCoop. It comes from their diversification plan in 2016 to form a broadband division. Theapplication, under the rule, is reviewed by staff for completeness and if complete, ispresented to the Commission, who must determine if they have finances and technicalcompetency and that certificate is in the public interest. The company provided end of2016 financial statements as required. In his opinion, it appears they do have sufficientfinances. The Financial Statements include the statement of Robert Castillo onInformation Systems. His resume is very impressive, although he doesn’t have anytelecom experience. He was not able to assess their competency on Tech.

The application wants to provide internet broadband to members only along withfiber optic system.

Chairman Jones asked if those aren’t normally on consent.

Mr. Fisk said they haven’t been on consent from him.

Mr. Cessarich said that years ago, CLECs were on consent. But it was decided sixmonths ago to not bring them on consent. Broadband is a new service for an electriccompany.

He said Mr. Castillo has experience in electrical service and the IT experience willcarry over. When they decide to have voice service, they will return for a review.

Mr. Fisk recommended approval.

Commissioner Lovejoy asked Mr. Cessarich if they retained someone forengineering and design services.

Mr. Cessarich didn’t know but they do have the experience for laying fiber-opticcable.

Commissioner Lovejoy moved to approve the order. Commissioner Espinozaseconded the motion and it passed by unanimous (5-0) voice vote. So Ordered.

=DISCUSSION AND POSSIBLE COMMISSION ACTION

¯ Resolution Proposed by Chairman Jones Regarding Applications forEconomic Development Rates

Chairman Jones pulled his resolution off the agenda for today.


=PUBLIC COMMENT

There were no public comments.

9. CONSIDERATION AND POSSIBLE ACTION REGARDING ADVICE NOTICES

¯ Public Service Company of New Mexico - Advice Notice No. 542

Mr. Smith explained there is no action for this advice notice since it is already inactive status.

Mr. Chades Gunther agreed.

10. COMMUNICATION WITH GENERAL COUNSEL

There were no communications with General Counsel.

11. COMMUNICATIONS AND POSSIBLE ACTION WITH CHIEF OF STAFF, ERNESTD. ARCHULETA, P.E.

Mr. Archuleta said they are conducting interviews for State Fire Marshal this week.He hoped to have a candidate to present by the next meeting.

Mr. Archuleta said the PRC has been invited to the LFC on November 16 and he willsend out a memo on it.

12. COMMUNICATIONS WITH COMMISSIONERS

Chairman Jones reminded the Commissioners about the 2017 Fire Expo. It is thesixth annual expo and is happening this week. It would be nice to support them.

He announced a Commissioner’s birthday is tomorrow when CommissionerEspinoza will be 29 years old and congratulated her.

Commissioner Hall announced she would attend the NW Intermountain PowerCoalition conference on Sunday through Tuesday.

Commissioner Lyons asked if we have to have legislation to move the money.


Mr. Archuleta said he would continue that discussion.

Commissioner Lyons wanted to see those discretionary funds be a subject ofdiscussion.

Chairman Jones was in Socorro last week, where Don Tripp extended hiscompliments to our State Fire Marshal’s office for their inspections of his property andwould forward such a letter to Mr. Archuleta. They apparently made the former Speakerof the House very happy.

Commissioner Lovejoy announced that starting Monday, she would be at the 2017state policy meeting on World Hunger in San Francisco and would try to participate onWednesday which is the heaviest day for state policy makers. She added that shewould be reimbursed for travel expenses.

Commissioner Espinoza said they now have $12,000 for travel, where they first had$10,000. She suggested using some of that extra for training of employees and helpthem do their jobs.

13. ADJOURNMENT

The meeting was adjourned at 10:28 a.m.


ATTEST:

Carl , Stenographer

SAI~’DY 3ONI~IRPERSON

"PATRICK H. LYON’S, COMMI,~I~rONER

.ERIE ESPINOZA,


NEW MEXICO PUBLIC REGULATION COMMISSION

OPEN MEETING: CASE MANAGEMENT MEETING

Date: ~e~-gw~o~ (o~ Z01"-/

NAME COMPANY NAME(Ua~y)

Thank you for attending this meeting. EXHIBIT 1

PRC - September 6, 2017

II.

III.

IV.

V.


OPEN MEETING: CASE MANAGEMENT MEETINGWednesday, September 6, 2017

9:30 a.m.PERA Building, 4t" Floor Hearing Room

1120 Paseo de Peraita, Santa Fe, NM 87501

AGENDA

PLEDGE OF ALLEGIANCE/STATE PLEDGE

INTRODUCTION OF SPECIAL GUESTS

CONSIDERATION AND APPROVAL OF THE AGENDA

CONSIOERATION AND APPROVAL OF THE MINUTES

Minutes of the Case Management Open Meeting on August 16, 2017

CONSENT ACTION

A. Transportation Matters:

NONE

B. Utility Matter:

1) 17-00139-UTDavid Black

IN THE MATTER OF THE APPLICATION FORCONTINUATION OF A FUEL AND PURCHA_~EDPOWER COST ADJUSTMENT CLAUSE AND FOR AVARIANCE BY

COLUMBUS ELECTRIC COOPERATIVE, INC.,

Petitioner,

ORDER

Open Meeting: Case Management Meeting AgendaWednesday, September 6, 2017Page I of 4 EXHIBIT 2

PRC - September 6, 2017

Vl. REGULAR ACTION AND DISCUSSION

A. Transportation Matter:

.z)

17-00179-TR-RDavid Black

IN THE MATTER OF THE APPLICATION OF VELV,LLC D/B/A SANDIA SHUTTLE EXPRESS FOR ACHANGE TO ITS TARIFF

ORDER

B. Utility Matters:

3)

4)

17-00189-UTJudith Amer

UndocketedRussell FiskMark Cessarich

IN THE MATTER OF THE FORMAL COMPLAINTOF ENCHANTED WINDS, LLC AGAINST CENTRALNEW MEXICO ELECTRIC COOPERATIVECONCERNING ITS RULE 17.9.570.11 FILING ANDITS FIRST REVISED RATE 31

ORDER

IN THE MATTER’OF THE APPLiCATI0~i’"’0FCONTINENTAL DIVIDE BROADBAND FOR ACERTIFICATE OF REGISTRATION TO PROVIDECOMPETITIVE LOCAL EXCHANGETELECOMMUNICATIONS WITHIN THE STATE OFNEW MEXICO

ORDER

VII. DISCUSSION AND POSSIBLE COMMISSION ACTION

Resolution Proposed by Chairman Jones Regarding Applications for EconomicDevelopment Rates

VIII. PUBLIC COMMENT

IX. CONSIDERATION AND POSSIBLE ACTION REGARDING ADVICE NOTICES

Open Meeting: Case Management Meeting AgendaWednesday, September 6, 2017Page 2 of 4

EXHIBIT 2PRC - September 6, 2017

¯ Public Service Company of New Mexico - Advice Notice No. $42

X. COMMUNICATIONS WITH GENERAL COUNSEL

XI. COMMUNICATIONS AND POSSIBLE ACTION WITH CHIEF OF STAFF, ERNEST D.ARCHULETA, P.E.

Xll. COMMUNICATIONS WITH COMMISSIONERS

Xlll. ADJOURNMENT

To obtain a copy of this agenda please log in the Commission’s website at

The Commission will make reasonable efforts to post the agenda on the Commission’swebsite at least 72 hours before the open meeting, but the inability to do so within the 72hours prior, will not require the Commission to delay the meeting or to refrain from takingaction on any agenda item on which it otherwise could act.

At any time during the Open Meeting the Commission may close the meeting to the public todiscuss matters not subject to the New Mexico Open Meetings Act. The Commission mayrevise the order of the agenda items considered at this open meeting.

Notice is hereby given that the Commission may request that any party answer clarifyingquestions or provide oral argument with respect to any matter on the agenda, if theCommission makes such a request, any party present at the meeting, either in person or bytelephone, shall have an equal opportunity to respond to such questions or argument. In theevent a party whose case is on the agenda chooses not to appear, the absence of that partyshall not cause such discussion or argument to become ex-parte communications.

PERSONS WITH DISABILITIES

ANY PERSON WITH A DISABILITY REQUIRING SPECIAL ASSISTANCE IN ORDER TO PARTICIPATEIN THIS PROCEEDING SHOULD CONTACT THE OFFICE OF DIRECTOR OF ADMINISTRATIVESERVICES OF THE COMMISSION AT (505) 827-4042 AS SOON AS POSSIBLE PRIOR TO THECOMMENCEMENT OF THE OPEN MEETING.

PUBLIC COMMENT

All members of the public wishing to provide public comment must sign a sign-up sheet



prior to the start of the meeting and identify their name and the name of the organization theyrepresent (if any), and the topic or issue on which they desire to comment. The portion of theagenda allocated for public comment at any one open meeting shall be limited to a maximumof 30 minutes for all persons wishing to provide comment. The order of speakers will be basedon the order in which speakers sign up, but public officials may be taken out of order. If aspeaker is not present at the time he or she is called to provide comment, that speaker shallforfeit their opportunity to speak. Public comment by an individual or entity shall be limited tono more than three (3) minutes unless the Commission acts to extend the period. If thenumber of individuals on the sign-up sheet desiring to provide comment would exceed theallotted 30-minute period, the Chairman may limit individual remarks to a shorter time period.Individuals represented by or representing a common organization or association may be askedto select one individual to act as spokesperson to speak for the group. Individuals who sign upto comment, but either fail to do so or choose to speak for less than their allotted time, maynot cede or yield their time to another speaker. Written comments of individuals who cannotbe physically present may not be read aloud at the meeting but may be submitted to theCommission.

The subject matter of public comments shall be relevant to matters within theCommission’s jurisdiction. Public comment will not be permitted on matters that should beaddressed appropriately as the subject of an informal or formal complaint before theCommission or on pending rulemaking proceedings before the Commission once theopportunity for public comment in those proceedings has closed. Public comment by parties toa proceeding or adjudication pending before the Commission will not be permitted where thecomment concerns matters at issue in such proceeding. The Chairman shall retain the right tostop any speaker who raises an issue that is not under the Commission’s jurisdiction or issubject to the restrictions above. Public comment will be received without Commissioncomment or response. However, individual Commissioners may at their option seekclarification or additional information from speakers through the Chairman. No speakers willbe accommodated after the public comment portion of the agenda has closed. The Chairmanretains the right to exercise discretion in the implementation of this policy and may overridethe above rules in case of emergency or other unforeseen circumstances.

Speakers providing comment shall at all times conduct themselves in accordance withproper decorum. Profane or vulgar language or gestures will not be tolerated. Audiencemembers shall not disrupt an open meeting by speaking without being recognized by theCommission and shall not incite others to do so. The Commission retains the right to removedisruptive attendees and individuals who fail to conduct themselves in accordance with theseprovisions from the Commission meeting.




OPEN MEETING: CASE MANAGEMENT MEETING

Date: ~e~-~e~- ~) 2.o V7

NAME PHONE NUMBER TOPIC

Thank you for attending this meeting.


Documents

September 6, 2017 1120 Paseo de Peralta Members Present: … docs/09-06-17 Minutes.pdf · 06-09-2017 · Michael Ripperger, Telecommunications Bureau Chief Others Present Carl Boaz,