Current through Register Vol. 35, No. 18, September 24, 2024
A. An electric utility may, but is not required to, request approval or request ratemaking treatment other than as provided in Subsection A of 17.9.551.9 NMAC, for a purchased power agreement with a term of two years or more but less than five years, by filing the same type of application applicable to a LTPPA. The provisions in 17.9.551.10 NMAC shall apply to an application regarding a purchased power agreement with a term of two years or more but less than five years.
B. An electric utility entering into a purchased power agreement with a term of two years or more but less than five years for which the utility intends to seek rate recovery either in base rates or its fuel and purchased power cost adjustment clause, shall file with the commission a notice of purchased power agreement within 30 days of execution.
C. A notice of purchased power agreement shall include a copy of the agreement and:
(1) an explanation of the key terms and conditions of the agreement, including:
(a) its term;
(b) its size in MW of capacity and any conditions regarding the minimum or maximum amount of energy or capacity made available or required to be purchased;
(c) the price or pricing formula, including any escalation provisions, and, if applicable, any obligations of the utility to pay for any fixed or variable operation and maintenance costs incurred through the operation of any generation facility providing service under the agreement, including start-up costs, taxes, insurance, environmental or reclamation-related costs and fuel costs; and
(d) any other costs for which the public utility is obligated;
(2) a description of transmission costs the utility will incur or pay to receive the purchased power and any impact on the transmission system of the agreement, including any needed construction of transmission facilities to facilitate purchases under the agreement;
(3) an explanation of how the utility intends to recover costs incurred under the agreement from ratepayers;
(4) an explanation of the impact of the agreement on the electric utility's financial condition or financial metrics;
(5) an explanation of how entering into the agreement is consistent with the provision of safe and reliable electric utility service at the lowest reasonable cost, considering both short- and long-term costs and all other relevant factors;
(6) an explanation of whether the agreement will result in the deferment or delay of any capacity addition by the public utility, and whether the agreement is consistent with the utility's most recent commission-accepted integrated resource plan;
(7) evidence addressing the methodology and criteria by which the purchased power agreement was selected; and
(8) any information that the electric utility believes will assist the commission in its review of the agreement.
