Current through Register Vol. 35, No. 18, September 24, 2024
A. Any gas utility without an approved PGAC
that requests to use a PGAC for the recovery of gas costs must file an initial
application with the commission. The filing requirements for the initial
application are set forth in this section and in 17.10.640.12 NMAC.
(1) The utility's initial application for use
of a PGAC shall include, at a minimum, the following:
(a) a detailed description and justification
of the gas cost factor calculation methodology the utility proposes to use as a
basis for the PGAC;
(b) proposed
PGAC tariff provisions, which shall contain the specific methodology for
calculation of the gas cost factor as provided for in 17.10.64012
NMAC;
(c) identification of the
specific months in which the utility proposes to begin and end its annual
reconciliation period, as provided for in Subsection C of 17.10.640.13 NMAC,
identification of the specific months in which the utility proposes to begin
and end its annual reconciliation factor implementation period, as provided for
in Subsection E of 17.10.640.13 NMAC, and identification of the annual date
proposed for the filing of the utility's gas supply plan and the beginning and
ending months proposed for the utility's planning period, as provided for in
Subsections B and D of this section;
(d) sufficient financial and other necessary
information and data to identify and justify the inclusion and recovery of
allowable gas costs through the utility's PGAC, including a demonstration that
no amounts to be recovered under the operation of the PGAC are included in
other tariffs or charges for service; and
(e) an initial gas supply plan, as provided
for in Subsection B of this section.
(2) Sworn testimony and exhibits explaining
the utility's proposal and demonstrating that its proposed PGAC complies with
this rule shall accompany an initial application for approval to use a
PGAC.
(3) The utility may submit
portions of its gas supply plan and initial application under seal as provided
for in Paragraph 3 of Subsection B of this section.
B. Any gas utility seeking commission
approval to use a PGAC shall file with its initial application pursuant to
Subsections A and C of this section a gas supply plan that describes the
utility's plans to meet customer demands for supply and transportation services
throughout its service area and shows that its procurement policies are
designed to ensure that gas supplies are purchased at the lowest reasonable
cost. Any utility intending to continue using its approved PGAC shall file a
gas supply plan annually pursuant to Subsection D of this section.
(1) The utility's gas supply plan shall
include, at a minimum, the following:
(a) for
the utility's planning period, information on the utility's procurement related
plans, including supply sources, projected significant system modifications or
improvements, types and durations of contracts, generic pricing provisions,
storage arrangements, and arrangements for processing, gathering, and
transportation by others of utility-owned gas supply;
(b) for the utility's planning period,
information on projected demands for sales and transportation
services;
(c) a description of
foreseeable market or regulatory developments that may affect the plans
described in the gas supply plan; and
(d) any other matters as may be ordered by
the commission.
(2) An
officer of the utility shall verify the gas supply plan.
(3) The utility may submit under seal any
portions of its gas supply plan that reveal its contracted portfolio, its major
suppliers, transportation volumes, or its contract pricing, on a
contract-by-contract basis, to the extent the utility deems specific
information to be confidential. The utility also may seek a protective order
under Subsection B of 17.1.2.8 NMAC for other portions of its gas supply plan
it considers confidential, but the utility shall have the burden of proving its
right to such protection. Any information submitted under seal pursuant to this
Paragraph shall remain under seal for a period of two (2) years, after which
time it shall become public unless the utility seeks and obtains further
protection from the commission. Information submitted under seal shall be
available for review by the commission and its designated representatives and
by any person who has entered into a confidentiality agreement with the utility
in a form approved by commission order.
C. An initial PGAC application shall be filed
with the commission and shall be reviewed and approved as provided herein.
(1) A utility filing an initial PGAC
application shall contemporaneously with such filing mail a copy of such
application to the attorney general and notification of its filing to the
intervenors in the utility's most recent general rate case.
(2) A utility's initial PGAC application and
proposed PGAC shall be deemed approved thirty (30) days after the filing of the
application unless otherwise ordered by the commission.
(3) Any person or staff may file a request
for a hearing on an initial PGAC application no later than twenty (20) days
after the filing of the application. The request for hearing shall set forth
clearly the grounds for requiring a hearing and shall indicate whether the
proposed hearing shall be limited to specific issues. Upon receipt of a request
for hearing, or upon its own motion, the commission may order a hearing, upon
reasonable notice, on the initial PGAC application and may suspend the
operation of the PGAC proposed in the application, pursuant to NMSA 1978
Section
62-8-7.
(4) The commission may approve all or part of
the initial PGAC application. Approval of the application shall constitute
approval of the utility's use of the proposed PGAC unless otherwise provided in
the commission's order.
(5) A
utility operating with an approved PGAC shall continue to use its approved PGAC
until the commission orders otherwise.
D. A utility operating with an approved PGAC
shall file an annual gas supply plan pursuant to Subsection B of this section
on or before the date specified for such filing pursuant to Subsection A of
this section and Paragraph 5 of Subsection A of 17.10.640.12 NMAC. If the
utility fails to timely file its annual gas supply plan as required by this
subsection, the commission may terminate the utility's PGAC and the utility
automatically shall be subject to sanctions in accordance with NMSA 1978
Sections
62-12-4
through
62-12-6.
(1) A utility filing an annual gas supply
plan shall contemporaneously with such filing mail a copy of the report to the
attorney general.
(2) An annual gas
supply plan filed pursuant to this rule shall not be deemed approved by the
commission.
(3) Staff, the attorney
general, or any other interested party may file a request for a hearing no
later than twenty (20) days after the filing of the annual gas supply plan. The
request for hearing shall set forth clearly the grounds for requiring a hearing
and shall indicate whether the proposed hearing shall be limited to specific
issues. Upon receipt of a request for hearing or upon its own motion, the
commission may order a hearing, upon reasonable notice, on any or all of the
issues identified and on continued use of the PGAC, and may suspend the
operation of any changes to the utility's procurement program as described in
the gas supply plan, pursuant to NMSA 1978 Section
62-8-7.
E. If a utility determines that a
deviation from its most recently filed gas supply plan is required to achieve
its portfolio's purposes or the objectives of this rule, the utility shall file
an update with the commission which explains the deviation from the plan. Such
deviation shall be subject to the hearing provisions set forth in Subsection D
of this section.
