PNM Resources : Sierra Club-CCAE

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

1. [e-mail]

Cara Lynch

Attorney for Coalition for Clean Affordable Energy 3305 Lykes Drive NE

Albuquerque, NM 87110

1. [phone] [e-mail]

May 9, 2022

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TABLE OF CONTENTS
TABLE OF AUTHORITIES	v
I. INTRODUCTION	1
STANDARD OF REVIEW	9
ARGUMENT	10
FACTUAL BACKGROUND	10
B. PNM'S Proposed Merger with Avangrid	12

1. Negotiations Between PNM and NTEC Concerning Transferring

PNM's Interest in Four Corners to NTEC

13

1. THE ETA INSTRUCTS THE COMMISSION TO DENY A FINANCING ORDER APPLICATION IF IT DENIES AN ABANDONMENT
   APPLICATION, AS THE COMMISSION PROPERLY DID HERE. 19

1. THE COMMISSION PROPERLY DENIED THE ABANDONMENT

AND FINANCING APPLICATIONS.

20

1. 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

1. The Commission Properly Concluded that PNM Did Not Provide an

Accurate Baseline in its Analysis of Abandonment.

30

1. 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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1. 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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