PNM’s Withdraws Application for Gas Plant & Gas Pipeline Case
In Response to New Energy Economy’s Opposition Filing & Expert Testimony
Ratepayers Declare $100 Million Victory
 
SANTA FE, NM – PNM filed a Motion to Vacate their (Second) Withdrawal of an
Application for a 100 million dollar Gas Plant & Gas Pipeline Case pending before
the NM Public Regulation Commission (PRC).

New Energy Economy was the only party to file oppositional testimony. Attached
herewith. 
Earlier this month PNM filed a Motion to Vacate the Procedural Schedule for their
gas case following testimony from New Energy Economy that proved PNM’s proposal to
add a natural gas plant and pipeline into rates was entirely unnecessary and
unfounded, because in fact, they did not need MORE capacity (their own numbers
didn't justify it). Also, New Energy Economy provided evidence showing that PNM
never considered the risks inherent in this investment. PNM stated that it needed to
reassess its own “load forecast” (meaning, PNM needed to refigure how much capacity
PNM actually needs on its system to meet customer demand). PNM said it would review
its load forecast and then either dismiss the case or file additional testimony on
November 21st.

New Energy Economy filed discovery (questions we have the legal right to ask)
quickly after PNM filed its Motion to Vacate the Procedural schedule. New Energy
Economy asked PNM for ALL internal documents relating to the reason that PNM filed
their Motion to Vacate. Discovery is due Monday, October 31.
Yesterday, in a sudden shift, PNM filed a Motion to withdraw its gas plant and gas
pipeline case and asked to halt discovery, see attached. Why? Because PNM doesn’t
want to answer the discovery questions asked.

“We are thrilled that PNM is dismissing their gas plant and gas pipeline case. PNM’s
request for more resources is wasteful, pure greed. PNM is trying to drive up
shareholder profit on the backs of the poorest people in New Mexico, to the tune of
nearly $100 million!” states Mariel Nanasi, Executive Director, New Energy Economy.
New Energy Economy expressed outrage that PNM seeks to skirt answering legitimate
questions about PNM’s past misrepresentations to the PRC about fictitious load
needs.
PNM is required under the law to provide a transparent basis for its resource
requests to legitimate its needs and rate hikes. Under scrutiny, PNM could not meet
this standard. “Unfortunately, PNM has a habit of misrepresentation, and the PRC
rarely holds it accountable. PNM presented fabricated data about alleged “need”. In
fact, consumer demand is actually going down, but despite this, PNM thought they
could get away with even more bloat: $100 million for a superfluous gas plant and
gas pipeline just to line the pockets of PNM’s senior management off the misery of
the poor, Nanasi explained.”
“There was no merit to PNM’s gas case – simply, it wasn’t warranted or necessary,”
states Nanasi.  “No other party even challenged PNM’s request, but PNM couldn’t
stand the test, because PNM’s own numbers didn’t add up,” continued Nanasi. “New
Energy Economy argued that PNM did not need this excess energy, because PNM’s
customers are favoring conservation and solar which are both much less expensive,
and PNM had to concede.”

Eleanor Bravo from Food and Water Watch applauded the decision: “Tremendous thanks
go to New Energy Economy for its successful challenge to PNM's inflated and
unsubstantiated proposal. Their intervention and testimony on behalf of ratepayers
won the dismissal of an unnecessary and costly new natural gas plant and gas
pipeline proposal. New Energy Economy has become an essential watchdog for the
public interest, helping to expose the truth and hold the corporate crooks
accountable.  With this victory, New Energy Economy has saved New Mexicans close to
a hundred million dollars and curbed the seemingly relentless obsession with fossil
fuels driving more drilling and fracking and causing untold environmental and health
costs.” Said Eleanor Bravo, National Pipeline Campaigner for Food & Water Watch.
This is now PNM’s second defeated application (16-00105-UT) for its Gas Plant & Gas
Pipeline. Last year, New Energy Economy and other intervenors prevailed against PNM,
in their last gas case, 15-00205-UT, which was rejected by the PRC because PNM
failed to provide sufficient evidence to substantiate their proposal.
PNM’s Motion does not address the irreparable harm and cost to parties that have had
to address both these filings (time, experts, discovery, etc). PNM should not be
allowed to recoup “cost recovery” for the expenses related to both these withdrawn
cases.

PNM was suggesting spending $100 million on the gas plant and gas plant and admitted
that the plant would only employee three (3) full-time employees. So much for the
“economic development” argument.

In a spate of downturns for the company, the PRC rejected PNM’s initial rate
case,[1] then when PNM re-filed the rate hike the PRC Hearing Examiner recommended a
6% rate increase,[2] rejecting PNM’s nuclear purchases as “imprudent”. Even though
the PRC overruled the Hearing Examiner’s recommended decision, the PRC Commissioners
accepted the finding of “imprudence” but nevertheless granted upping the rate
increase for costumers to 9.5%. This case is on appeal in the New Mexico Supreme
Court, and a cross-appeal has been filed by numerous parties, including New Energy
Economy.