Justia Utilities Law Opinion Summaries

Articles Posted in New Mexico Supreme Court
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New Energy Economy (NEE) appealed a New Mexico Public Regulation Commission (Commission or PRC) order approving Public Service Company of New Mexico’s (PNM) renewable energy procurement plan (Plan) for the year 2018. In its application, PNM sought to demonstrate its compliance with Renewable Energy Act requirements and obtain the Commission’s approval of renewable energy procurements, among other items. NEE challenged the Commission’s approval of PNM’s 2018 Plan by arguing that PNM’s proposed procurement of solar energy generating facilities relied on an unfair request for proposal (RFP) process. NEE contended PNM designed its RFP to limit the universe of potential bidders and select its predetermined, preferred type of renewable energy bid. After review, the New Mexico Supreme Court concluded NEE did not meet its burden of proving that the Commission’s approval of the solar energy procurement was unreasonable or unlawful because evidence in the record supported the Commission’s determination that the challenged provisions of the RFP were reasonable under the facts and circumstances of this case. The Court, therefore, affirmed the Commission's final order approving PNM's 2018 Plan. View "N.M. Indus. Energy Comm'n v. N.M. Pub. Regulation Comm'n" on Justia Law

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This appeal arose from the final order of the New Mexico Public Regulation Commission (Commission) granting part, but not all, of the increase in retail electric rates sought by the Public Service Company of New Mexico (PNM). The Commission’s final order was appealed by PNM and cross-appealed by the Albuquerque Bernalillo County Water Utility Authority (ABCWUA), New Energy Economy (NEE), and the New Mexico Industrial Energy Consumers (NMIEC). On appeal, PNM, NEE, ABCWUA, and NMIEC all raised numerous issues with the Commission’s final order. In this opinion the New Mexico Supreme Court addressed challenges made to the Commission’s decisions regarding Palo Verde Nuclear Generating Station, the installation of balanced draft technology at San Juan Generating Station, the new coal supply agreement at Four Corners Power Plant, the inclusion of Rate 11B in rate banding, PNM’s prepaid pension asset, and the adoption of Method A. The Supreme Court rejected each of the arguments on appeal except one: the Court concluded that, by denying PNM any future recovery for its nuclear decommissioning costs related to the Palo Verde capacity at issue in this case, the Commission denied PNM due process of law. Therefore, the Court declared all other aspects of the Commission’s final order to be lawful and reasonable, yet annulled and vacated the final order in its entirety pursuant to NMSA 1978, Section 62-11-5 (1982). The matter was remanded to the Commission for further proceedings as required and the entry of an order consistent with the Court’s opinion. View "Public Serv. Co. of N.M. v. N.M. Pub. Regulation Comm'n" on Justia Law