Current through Register Vol. 35, No. 18, September 24, 2024
A. No electric utility shall become irrevocably obligated under an LTPPA without first obtaining the commission's written approval of the agreement.
B. An electric utility shall file at the commission within 30 days after the execution of a LTPPA an application for the commission's review and approval of the LTPPA.
C. Copies of the application shall be served on commission staff, the New Mexico attorney general and parties in the electric utility's most recent general rate case, in accordance with Subsection C of 1.2.2.10 NMAC.
D. An application for commission review and approval of an LTPPA shall be accompanied by supporting testimony and exhibits that provide:
(1) a copy of the LTPPA;
(2) an explanation of the key terms and conditions of the LTPPA containing:
(a) the term of the LTPPA including any options to extend the agreement;
(b) the size in MW of capacity and the amount of energy in MWh or kWh per month 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 under which the electric utility will pay for the power and energy contracted for, including identification of when charges begin to be incurred, any price reopeners and any price escalation provisions;
(d) obligations by the electric utility to pay for any fixed or variable administrative, transactional, or operation and maintenance costs incurred through the operation of the generation facility, including start-up costs, taxes, insurance, environmental or reclamation-related costs, fuel costs, and any other costs that the electric utility may incur; and
(e) provisions relating to non-performance by the counter-party and the remedies provided;
(3) a description of transmission costs the electric utility will incur or pay to receive the purchased power, which may include the costs of third-party transmission wheeling, or construction of transmission to facilitate purchases under the LTPPA or both;
(4) an explanation of how the electric utility proposes to recover from ratepayers the costs incurred and an estimate of the effect on rates to customers;
(5) a general description of:
(a) the generating facility or facilities that will generate the purchased power; or
(b) if the power is to be generated from one or more specific generating units to be constructed outside New Mexico, a description of the anticipated siting of the generating unit, expected construction time, and the expected commercial operation date; and
(c) if the power is to be generated from one or more specific generating units to be constructed within New Mexico, a description of:
(i) the approvals required to construct and operate the generating unit, including air quality and other environmental permits;
(ii) the expected construction time;
(iii) the expected commercial operation date;
(iv) the fuel type and supply sources; and
(v) other provisions addressing the electric utility's ownership options for the generating unit during or after the term of the agreement;
(6) evidence that entering into the LTPPA 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;
(7) evidence of the LTPPA's impact on the electric utility's financial condition and financial metrics;
(8) evidence that the LTPPA is consistent with the electric utility's most recent commission-accepted integrated resource plan unless material changes that would warrant a different course of action by the electric utility have occurred, in which case, the testimony shall include justification for deviation from the integrated resource plan;
(9) evidence addressing whether a utility-owned generation resource could have been constructed as an alternative to the LTPPA with greater benefit to ratepayers;
(10) evidence addressing the methodology and criteria by which the purchased power agreement was selected; and
(11) any other information or evidence that the electric utility believes will assist the commission in its review of the LTPPA.
E. The electric utility may, as set forth in Subsection D of 17.9.551.8 NMAC, submit any portion of its application and supporting documentation under seal, to the extent that the electric utility deems the specific information to be confidential. The electric utility shall seek a protective order under Subsection B of 1.2.2.8 NMAC for the information it considers confidential.
