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Minutes - New Mexico Public Regulation Commission

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MINUTES OF THE<br />

REGULAR OPEN MEETING<br />

NEW MEXICO PUBLIC REGULATION COMMISSION<br />

October 11, 2012<br />

TIME: 9:30 a. m.<br />

PLACE: PERA Building<br />

4th Floor Hearing Room<br />

1120 Paseo de Peralta<br />

Santa F~, <strong>New</strong> <strong>Mexico</strong> 87501<br />

A quorum was present as follows:<br />

Members Present:<br />

<strong>Commission</strong> Chairman Patrick H. Lyons<br />

<strong>Commission</strong>er Vice Chair Theresa Becenti-Aguilar<br />

<strong>Commission</strong>er Ben L. Hall<br />

<strong>Commission</strong>er Jason A. Marks<br />

<strong>Commission</strong>er Douglas J. Howe [Telephonically]<br />

Members Absent:<br />

Staff Present<br />

Johnny Montoya, Chief of Staff<br />

Rick Blumenfeld, Acting Deputy Chief of Staff for Legal Affairs<br />

Sandra Skogen, Associate General Counsel<br />

Michael C. Smith, Associate General Counsel<br />

Ashley Schannauer, Hearing Examiner<br />

Anthony Medeiros, Hearing Examiner<br />

Mike Ripperger, Telecommunications Bureau Chief<br />

Jim Brack, Utility Division<br />

Arthur Bishop, PIO<br />

Others Present<br />

Carl Boaz, Stenographer<br />

CALL TO ORDER<br />

The Regular Open Meeting was scheduled at 9:30 a.m., pursuant to proper notice under NMSA 1978,<br />

10-15-1(c), and the <strong>Commission</strong>’s Open Meeting Policy. <strong>Commission</strong> Chairman Patrick Lyons called the<br />

Regular Open meeting to order at 9:30 a.m., in the Fourth Floor Hearing Room, PERA Building, 1120<br />

Paseo de Peralta, Santa Fe, <strong>New</strong> <strong>Mexico</strong>.<br />

A copy of the sign-in sheet for the Regular Open Meeting is incorporated herewith to these minutes as<br />

Exhibit 1.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 1


A copy of the Agenda for the Regular Open meeting is incorporated herewith to these minutes as<br />

Exhibit 2.<br />

1. PLEDGE OF ALLEGIANCE<br />

2. INTRODUCTIONS<br />

There were no introductions.<br />

3. MISCELLANEOUS ANNOUNCEMENTS<br />

¯<br />

Recognition of the Employee of the Month for September<br />

Chairman Lyons invited <strong>Commission</strong>er Hall to announce the recognition.<br />

<strong>Commission</strong>er Hall read Rose Ellen Guillen’s certificate of recognition and presented it to her. The<br />

<strong>Commission</strong>ers congratulated her on her award and pictures were taken.<br />

4. CONSIDERATION AND APPROVAL OF THE AGENDA<br />

<strong>Commission</strong>er Howe asked to have 12-00219-UT moved to the front of Regular Action.<br />

<strong>Commission</strong>er Becenti-Aguilar moved to approve the agenda as amended. <strong>Commission</strong>er Hall<br />

seconded the motion and it passed by unanimous (5-0) voice vote.<br />

5. CONSIDERATION AND APPROVAL OF MINUTES<br />

¯ <strong>Minutes</strong> of the Regular Open Meeting of September 13, 2012<br />

¯ <strong>Minutes</strong> of the Regular Open Meeting of September 18, 2012<br />

<strong>Commission</strong>er Marks moved to approve the minutes of September 13, 2012 and September 18,<br />

2012 as presented. Chairman Lyons seconded the motion and it passed by unanimous (5-0) voice<br />

vote.<br />

7. DISCUSSION/ACTION<br />

A. Utility Division<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 2


12-00219-UT<br />

IN THE MATTER OF SOUTHWESTERN PUBLIC SERVICE COMPANY’S<br />

APPLICATION REGARDING: (1)ITS 2011 ANNUAL RENEWABLE<br />

PORTFOLIO REPORT; (2) ITS 2012 ANNUAL RENEWABLE ENERGY<br />

PORTFOLIO PROCUREMENT PLAN; (3) ITS REQUESTS FOR VARIANCES<br />

FROM (A) THE DIVERSITY REQUIREMENTS FOR "OTHER" RENEWABLE<br />

ENERGY RESOURCES FOR 2012, AND (B) SPECIFIED PORTIONS OF THE<br />

MEDIUM SOLAR DISTRIBUTED GENERATION ("DG"_ TARIFF; 94) ITS<br />

REQUEST TO REVISE AND CANCEL CERTAIN DG TARIFFS; (5) ITS REPORT<br />

ON PROJECTED 2013 AND 2014 COST ACCRUALS IN THE REGULATORY<br />

ASSETS APPROVED IN PRIOR CASES; AND (6) APPROVAL OF REQUESTS<br />

RELATED TO WlNDSOURCE.<br />

(Ashley Schannauer, Michael C. Smith Recommended Decision<br />

Mr. Smith presented information regarding this matter to the <strong>Commission</strong>. SPS is requesting a variance<br />

on their renewable portfolio because two developers, Sunrise Energy Ventures and Infinergy Solar, were<br />

unable to complete their projects within the nine-month period required to qualify for the rate that was<br />

provided in the tariffs. The stated reason for inability to meet the deadline was beyond their control. The<br />

large number of applications was overwhelming and engineering slowed the process down. Their request<br />

for a variance was to allow extra time to qualify for that rate.<br />

The HE recommended the variance be granted on an equitable basis and he believed it was in the<br />

public interest to grant it.<br />

Mr. Schannauer had nothing to add and thought Mr. Smith did a good job of summarizing the RD.<br />

<strong>Commission</strong>er Howe noted in the memo it said one reason was that SPS had not informed the<br />

developers about the deadline but told them they could delay their work and that was a reason for the delay<br />

in project completion. So it was not beyond their control. He asked Mr. Schannauer about his thinking on it.<br />

Mr. Schannauer said he used a prior situation where PRC granted PNM a variance for the same<br />

reason. He agreed that part of the delay was miscommunication and misunderstanding created by SPS to<br />

the developers. The developer reasonably relied on SPS claiming that it had the authority to issue the<br />

extensions that it issued for both companies.<br />

<strong>Commission</strong>er Howe concluded that it wasn’t a matter of being beyond the control of the utility but the<br />

developer shouldn’t be penalized for the SPS mistake. Mr. Schannauer agreed.<br />

<strong>Commission</strong>er Howe said some of these projects were government projects and asked if Mr.<br />

Schannauer could identify those.<br />

Mr. Schannauer said Sunrise Energy Ventures of <strong>New</strong> <strong>Mexico</strong> had three agreements: City of Roswell,<br />

the Loving School District and <strong>New</strong> <strong>Mexico</strong> Military Institute (NMMI) in Roswell. Seventeen of the twentyfive<br />

projects were for the City of Roswell. Three installations were for the Loving School District and five<br />

were for NMMI and they apparently had some of their own wells so it was a combination of wells and power<br />

for those buildings.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11, 2012 Page 3


<strong>Commission</strong>er Howe said the only concem he had was that by doing so they would not open the door<br />

for every single delay that happens with any utility. What the <strong>Commission</strong> focused on was that it was not<br />

due to the fault of the developer. Chairman Lyons agreed.<br />

<strong>Commission</strong>er Marks read somewhere in the RD that the Sunrise developer testified on how much they<br />

would lose if the variance was not granted. He thought it was $2 million.<br />

Mr. Schannauer said they spent $2 million on solar panels but possibly could resell them. That was onpage<br />

11 in the bottom paragraph.<br />

<strong>Commission</strong>er Marks read the paragraph and asked how much they were going to earn on this.<br />

Mr. Schannauer said the hearing didn’t get into that.<br />

<strong>Commission</strong>er Marks said it was $1 million for ten years and the <strong>Commission</strong> didn’t know what the net<br />

profit would be. Mr. Schannauer agreed.<br />

<strong>Commission</strong>er Marks said he was at the hearing and asked questions. It seemed to be about 5% net<br />

profit. They wanted the variance and the other company had the same kind of projects. They got in the<br />

queue a little late.<br />

Mr. Schannauer agreed. It was January, 2011 right after the new tariff.<br />

<strong>Commission</strong>er Marks pointed out that was 3 months late. For Sunrise the seven cents was<br />

substantially pure profit. There is the economy of scale there.<br />

<strong>Commission</strong>er Marks asked if Infinergy was a third party agreement. Mr. Schannauer agreed.<br />

<strong>Commission</strong>er Marks asked if the combined impact on the RCT would be about 1%. Mr. Schannauer<br />

agreed.<br />

<strong>Commission</strong>er Marks was convinced in the hearing that they spent their money late last year to get the<br />

federal tax benefit and did the engineering. He asked why staff didn’t consider asking for a reduction in the<br />

REC rate from the over generous 20 cent rate in exchange for the variance. He asked who was protecting<br />

the consumer interest here or if anyone spoke for the consumer here.<br />

Mr. Schannauer said that SPS had trouble getting DG participation and needed something to get the<br />

programs going. He thought the <strong>Commission</strong> understood at that time.<br />

<strong>Commission</strong>er Marks noted that when these projects went into the queue the company dropped it down<br />

to 13 cents and if they had been on time there would be no question. But things got delayed. As it stands<br />

they didn’t have a legal stand. If it was your money you would want to renegotiate to save some money.<br />

He was surprised that no one brought that up. This is one percent on people’s bills with a substantial<br />

number of projects at the highest REC rate and if not done, SPS would purchase other DG at a lower rate.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 4


No one was looking out for the consumers.<br />

<strong>Commission</strong>er Hall asked Mr. Schannauer if SPS was paying 20 cents because they didn’t have<br />

enough people in the area to do the work and were paying extra to expedite the project.<br />

Mr. Schannauer said when they were offering the DG program SPS didn’t get any interest and this was<br />

necessary to fulfill their portfolio requirements.<br />

<strong>Commission</strong>er Hall asked if the two companies decided they could finish those projects in nine months<br />

and then realized they couldn’t.<br />

Mr. Schannauer said SPS specified the nine months. That was incorporated into the company’s tariff.<br />

<strong>Commission</strong>er Hall understood but now the same two companies were doing the same two projects but<br />

taking twice as long.<br />

Mr. Schannauer said SPS didn’t have enough engineers to analyze the project quickly. That required<br />

Sunrise to find an engineer to customize it to work with SPS equipment.<br />

<strong>Commission</strong>er Hall asked why they would start a project without knowing how it would be done instead<br />

of having a plan up front.<br />

Mr. Schannauer said they were planning to use the same equipment they used in previous<br />

applications. They didn’t discover that wouldn’t work until they got it started.<br />

<strong>Commission</strong>er Hall said he wouldn’t contract himself out unless he knew what he was doing. Here it<br />

looked like the contractor was admitting he didn’t know what he was doing and should have found out first.<br />

Mr. Schannauer said in the testimony, even SPS was surprised about it. They were both trying to figure<br />

it out.<br />

<strong>Commission</strong>er Hall felt the project was ill designed to start with.<br />

<strong>Commission</strong>er Becenti-Aguilar commented that SPS representatives attend the open meetings<br />

regularly and it is surprising that this confusion occurred. They are moving forward for renewable energy<br />

but when there is a delay, no matter whose fault it is, The <strong>Commission</strong> wants to have a good way to<br />

approve these projects. SPS will be able to accomplish their goals but we are looking at how they<br />

participate and looking out for the consumers.<br />

Chairman Lyons asked when the 20 cent approval took place.<br />

Mr. Schannauer said the initial case was in 2008. The <strong>Commission</strong> then approved an SPS<br />

procurement plan that had the 20 cent plan in place. He was skeptical when he first saw it but the<br />

<strong>Commission</strong> approved it last December several months late and felt that’s what the <strong>Commission</strong> wanted.<br />

The deadline was August 2011.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 5


Chairman Lyons believed in renewable energy but it needed to be the most cost-effective. Solar isn’t.<br />

The <strong>Commission</strong> should look at the cost to the consumer and weigh the cost regardless of what it is. He<br />

asked about the delay to Windsource.<br />

Mr. Schannauer said each year the company has to file their renewable procurement plan.<br />

Chairman Lyons reasoned that it didn’t just affect the DG.<br />

<strong>Commission</strong>er Marks said the <strong>Commission</strong> bifurcated the case.<br />

Chairman Lyons asked why Windsource was on there then.<br />

Mr. Smith explained it was the caption for the whole thing. That was expedited for consideration. They<br />

were trying to find out if they could get this. Every time any part of this case comes up, the whole caption<br />

comes up.<br />

<strong>Commission</strong>er Howe clarified that this is an opportunity to reopen the contract of SPS with developers.<br />

The interest of investors should be balanced with consumer interests. The developers have a right to rely<br />

on what SPS told them in December and if the <strong>Commission</strong> throws everything out the door in October, it is<br />

not a balanced approach. He asked why the developers should be penalized for SPS mistakes. They<br />

relied on the representation of SPS.<br />

<strong>Commission</strong>er Howe moved to approve the order but it failed for lack of a second.<br />

Chairman Lyons moved to approve the order as amended with sixteen cents for the REC.<br />

<strong>Commission</strong>er Marks seconded the motion for discussion.<br />

<strong>Commission</strong>er Marks agreed with that thinking but didn’t think the <strong>Commission</strong> could pull 16 cents out<br />

of the air. He wanted to approve Infinergy and send Sunrise back to the HE.<br />

Mr. Smith agrees that they didn’t know what the right rate should be.<br />

<strong>Commission</strong>er Marks thought Chairman Lyons wisely recognized that throwing the developer out on<br />

the street was not the right answer. This was not a balance. If the projects had been done a year ago they<br />

would be at 20 cents and the <strong>Commission</strong> would not debate them. The developer knew there was a nine<br />

month deadline. They were not at fault but to hold them completely harmless the rate was not 20 cents<br />

today but much lower. Legally the <strong>Commission</strong> needed to accomplish it by remanding it.<br />

Chairman Lyons said he attended part of the hearing and asked Sunrise if they could accept 19 cents<br />

but they refused.<br />

<strong>Commission</strong>er Marks understood but this would send a message and maybe they would accept it. If<br />

not, they could take it to the Supreme Court. He proposed a substitute motion to approve Infinergy and<br />

remand Sunrise part back with a rate to consider.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11, 2012 Page 6


Ms. Ellis said Sunrise was present and would like to speak.<br />

<strong>Commission</strong>er Becenti-Aguilar said the <strong>Commission</strong> was very concerned and were not taking it lightly.<br />

She asked the company to consider it seriously.<br />

<strong>Commission</strong>er Marks moved to table this case temporarily. <strong>Commission</strong>er Becenti-Aguilar<br />

seconded the motion.<br />

<strong>Commission</strong>er Howe couldn’t agree unless it was tabled until Tuesday because he would be unable to<br />

get back on the phone later.<br />

Mr. Parker said it was based on the record. They knew the costs and how much they stood to make.<br />

<strong>Commission</strong>er Marks said the <strong>Commission</strong> didn’t know that.<br />

Mr. Schannauer said it was not in the record.<br />

Mr. Parker asked if that mattered. He could be comfortable with making a decision based on the record<br />

at 16 cents.<br />

Mr. Smith asked if Infinergy had a representative present. [They were not represented.]<br />

<strong>Commission</strong>er Marks, in deference to <strong>Commission</strong>er Howe, moved to partially approve,<br />

adopting the recommendation for Infinergy and taking no action on the rest which would be<br />

brought back. <strong>Commission</strong>er Howe seconded the motion.<br />

Chairman Lyons explained to the public that they would delay the Sunrise portion to next Tuesday.<br />

During a brief discussion on whether to table until Tuesday or later in the meeting, the SPS and<br />

Sunrise representatives had departed to a conference room and <strong>Commission</strong>er Howe was lost to the<br />

phone.<br />

<strong>Commission</strong>er Marks moved to table this matter and return to the agenda. <strong>Commission</strong>er Hall<br />

seconded the motion to return to agenda and the motion passed by unanimous (4-0) voice vote.<br />

<strong>Commission</strong>er Howe was not present for the vote.<br />

o<br />

REGULAR ACTION<br />

A. Transportation Division<br />

12-00297-TREN<br />

IN THE MATTER OF THE FORMAL COMPLAINT OF HENRY AND GEORGIA<br />

ROMERO AGAINST ANAYA’S ROADRUNNER WRECKER SERVICE, INC.<br />

AND BOBS TOWING.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 7


(Sandra Skogen)<br />

Order<br />

Ms. Skogen presented information regarding this matter to the <strong>Commission</strong>. Both parties were<br />

present. She explained there were a number of complaints against the company and a number were under<br />

PRC jurisdiction. It alleged they had two locations in addition to a main location. The location on Industrial<br />

Road appeared to be an unstaffed storage facility which violated <strong>Commission</strong> rules. They alleged some<br />

vehicles were left overnight unsecured and without lighting in violation of rules and the complaint was that<br />

their vehicles were licensed, registered or uninsured and the two principals had no CDL licenses. The final<br />

complaint was that the companies had not filed annual reports for a number of years which she had<br />

confirmed.<br />

The towing companies did not file an answer within the 20 day period so she prepared an order<br />

directing Transportation Division staff to conduct an investigation and report back to the <strong>Commission</strong> within<br />

30 days.<br />

One minor change was made to the order on page 2 at item 6 where she quoted the <strong>Commission</strong> rule<br />

to insert "<strong>Commission</strong> or" before Director of Transportation to initiate an investigation.<br />

<strong>Commission</strong>er Marks asked Mr. Anaya if he received the September 6th notice requiring a response.<br />

Mr. Anaya didn’t remember and said his wife was out of the room.<br />

<strong>Commission</strong>er Marks noted there were two companies with two different locations.<br />

Ms. Skogen said according to the last annual report filed by each towing company their official location<br />

for both was 2876 Industrial Road which was secured but not staffed.<br />

<strong>Commission</strong>er Marks thought there could not be two towing companies with the same location. Mr.<br />

Parker agreed.<br />

<strong>Commission</strong>er Marks asked if staff checked that out. They wouldn’t have to go to the location to figure<br />

that out. Ms. Skogen didn’t know.<br />

<strong>Commission</strong>er Marks asked if the Transportation Division staff members were aware of this complaint.<br />

Ms. Skogen agreed and said the notice required an answer. She said typical protocol was that staff<br />

relied on General Counsel to bring it to the <strong>Commission</strong> for action.<br />

<strong>Commission</strong>er Hall asked why it needed <strong>Commission</strong> action if the Transportation Division knows there<br />

was a violation.<br />

Ms. Skogen explained that the rules required that. Her legal position was that they could order the<br />

investigation.<br />

<strong>Commission</strong>er Marks asked Ms. Anaya if his wife received a notice of complaint on September 6.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 8


Ms. Anaya said she received it and faxed it to her attorney.<br />

<strong>Commission</strong>er Marks said just based on the record, it appeared they were in violation of the rules and it<br />

didn’t need an investigation for that.<br />

Mr. Parker recommended the <strong>Commission</strong> do what Ms. Skogen recommended.<br />

<strong>Commission</strong>er Hall moved to approve the order/Chairman Lyons seconded the motion and it<br />

passed by unanimous (4-0) voice vote. <strong>Commission</strong>er Howe was not present for the vote. So<br />

Ordered.<br />

<strong>Commission</strong>er Marks asked Ms. Anaya to let their attorney know about the action today.<br />

Mr. Anaya said he wouldn’t have known about the hearing today except by a call from Mr. Montoya.<br />

B. Utility Division<br />

11-00158-UT<br />

IN THE MATTER OF THE PETITION OF VIRGIN MOBILE USA, L.P. FOR THE<br />

DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER FOR<br />

LIFELINE SERVICES.<br />

(Margaret Caffey.Moquin) Order<br />

Ms. Caffey-Moquin presented information regarding this matter to the <strong>Commission</strong>. She said the<br />

<strong>Commission</strong> had directed her to return with a final order after questions last week and an extensive<br />

presentation by Mr. Medeiros. She highlighted parts of the order and pointed out minor changes since the<br />

last meeting. She had consulted extensively with Mr. Medeiros on it.<br />

The main question had to do with the fact the RD made clear that Virgin Mobile under the ETC<br />

designation would not be permitted to serve on tribal lands and the reasons were first that Virgin Mobile<br />

didn’t apply for that and also that the FCC order expressly forbade Virgin Mobile from operating on tribal<br />

lands. The <strong>Commission</strong> had to follow the FCC.<br />

In a related issue on page six of the order was disclaimer language regarding Virgin Mobile materials<br />

and their exceptions she recommended that the exception now say that in their marketing materials they<br />

made sure customers knew how to decide which company to go with. The difference in price was $25 per<br />

month versus $1 per month. The changes in the order were on page six in the middle of the page right at<br />

the end of the first sentence, "from other carriers who provide that service" because there were other<br />

carriers who were providing service on tribal lands.<br />

<strong>Commission</strong>er Hall asked if they couldn’t even sign up with Virgin Mobile if they lived on tribal lands.<br />

Ms. Caffey-Moquin said they could sign up but couldn’t be served with enhanced service but the<br />

consumer had no way to know. They could buy a prepaid card in Santa F~ without knowing.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 9


The other changes were editorial in nature to clarify language with the opening of the new docket. The<br />

HE suggested a separate order to open a new docket as on pages 7-8 of the draft. She quoted the<br />

improved language. It would also designate Mr. Medeiros as HE for the new docket. She recommended<br />

adopting the final order with those modifications.<br />

<strong>Commission</strong>er Becenti-Aguilar said she had asked that it be tabled was to take a second look at the<br />

language and she had chance to visit with Mr. Medeiros. Customers could go to a store and buy a prepaid<br />

card and now that has been clarified and all that information was there. She thanked Mr. Medeiros for his<br />

work on it and Ms. Caffey-Moquin for fielding the questions and clarifying it for her.<br />

Chairman Lyons noted that Mr. Albright had wanted to address comments made by Ms. Caffey-Moquin<br />

that he felt were not supported in the record.<br />

<strong>Commission</strong>er Becenti-Aguilar was not in favor of allowing such statements. The HE and Ms. Caffey-<br />

Moquin have had it for quite some time and were able to resolve the issues.<br />

<strong>Commission</strong>er Marks asked about the FCC prohibiting Virgin Mobile from serving on tribal lands.<br />

Mr. Medeiros explained that under the federal act the states have primary authority over ETC<br />

designations. Certain states relinquished that so the FCC had designations for those states.<br />

<strong>Commission</strong>er Marks understood that in four states they decided but <strong>New</strong> <strong>Mexico</strong> was not preempted.<br />

Mr. Medeiros agreed and said Pennsylvania took their authority back.<br />

<strong>Commission</strong>er Marks asked if the <strong>Commission</strong> could make a different judgment call.<br />

Mr. Medeiros said Tracfone had been excluded.<br />

<strong>Commission</strong>er Marks understood they couldn’t offer lifeline on tribal lands but this was a different life<br />

line.<br />

Mr. Medeiros said the customer could be confused about that.<br />

<strong>Commission</strong>er Marks asked if any other carriers were offering special tribal lifeline and if any of them<br />

were wireless.<br />

Mr. Medeiros thought there were eight wireless carriers. Most of them participated in the high cost<br />

program- both programs. And they were supposed to use that funding to expand their facilities but<br />

Tracfone and Virgin Mobile have a different model. All major carriers were required to provide tribal life line.<br />

Tribal lifeline was expansive. The prepaid cards were the confusing parts of it. It was not a perfect firewall<br />

when prepaid cards were in stores. They were trying to catch that so that customers could get the full<br />

benefit offered.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 10


Mr. Medeiros explained how the disclaimer could work.<br />

<strong>Commission</strong>er Becenti-Aguilar asked if Ms. Caffey-Moquin felt this was the best legal language the<br />

<strong>Commission</strong> could adopt today. Ms. Caffey-Moquin agreed.<br />

<strong>Commission</strong>er Becenti-Aguilar said she was aware of families that used prepaid cards when their child<br />

went off to college. They could also buy a Master Card and keep track of it item by item.<br />

<strong>Commission</strong>er Becenti-Aguilar moved to adopt the order with revised language on page six and<br />

seven. <strong>Commission</strong>er Marks seconded the motion and it passed by unanimous (4-0) voice vote.<br />

<strong>Commission</strong>er Howe was not present for the vote. So Ordered.<br />

8. DISCUSSION<br />

A. Transportation Division<br />

11-00052-TRR<br />

IN THE MATTER OF THE APPLICATION OF AMERICAN MEDICAL<br />

RESPONSE AMBULANCE SERVICE, INC., D/G/A AMERICAN MEDICAL<br />

RESPONSE, FOR A TARIFF INCREASE.<br />

(Ashley Schannauer, Michael C. Smith Recommended Decision on Remand<br />

Mr. Smith said AMR representatives were present and this was back before the <strong>Commission</strong> from<br />

remand to the HE for staff to develop a record for financial support on the request for an 18% increase.<br />

There was a big difference on the increase between emergency and non-emergency service.<br />

The HE determined it was a reasonable increase and recommended approval. Emergency was more<br />

costly. Medicare didn’t allow AMR to recover their actual costs. The law allowed that cost shifting. The<br />

question was whether the increase was reasonable.<br />

<strong>Commission</strong>er Marks said the HE used the 2012 test year and asked if that procedure applied to<br />

transportation as well as utilities.<br />

Mr. Schannauer said there was nothing in statute or rules about it.<br />

<strong>Commission</strong>er Marks asked if there had been other such cases using a proposed test year.<br />

Mr. Schannauer said no.<br />

<strong>Commission</strong>er Marks asked if staff looked at 2011 actuals.<br />

Mr. Schannauer said they included actuals for 2010 and 2011.<br />

<strong>Commission</strong>er Marks asked what the difference was of 2012 actuals and 2012 budgeted.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 11


Mr. Medeiros gave the data on financials for 2011 and 2012.<br />

<strong>Commission</strong>er Marks asked how many total runs AMR made in 2011.<br />

Mr. Medeiros said they made 16,040.<br />

Chairman Lyons noted the 2012 projection was 16,355.<br />

<strong>Commission</strong>er Marks concluded expenses were going up 6% and volume only 2%. Through August<br />

they said their expenses went up 6.5% but looking at actuals that was not the case. It looked like expenses<br />

were only up 2%. There was a 4% discrepancy on page 7. Their margin was $200,000 above expenses<br />

for the 2012 year to date and he asked if there were capital numbers included. Mr. Schannauer agreed.<br />

<strong>Commission</strong>er Marks asked if they provided a financial statement - a balance sheet. Mr. Schannauer<br />

agreed. <strong>Commission</strong>er Marks examined it.<br />

Chairman Lyons said the <strong>Commission</strong> remanded this on June 28th and granted a higher interim rate but<br />

he thought there were some that decreased.<br />

Mr. Medeiros said there were no decreases.<br />

Chairman Lyons asked how the proposed amount on page 9 related to the state-wide rates.<br />

Mr. Schannauer said the initial RD was shown on page 5.<br />

Chairman Lyons asked if there was no basic life support rate.<br />

Mr. Medeiros said the statewide basic life support rate was $715.<br />

Chairman Lyons read the statewide and proposed rates and thought their proposed rates looked okay.<br />

<strong>Commission</strong>er Marks thought it looked a little high because they made $200,000 under current rates<br />

and raising it to their proposed rate would give $700,000 on $7 million of revenue.<br />

Mr. Parker said the period for exceptions was still open and he would bring it back after that<br />

The <strong>Commission</strong> took no further action or discussion on it.<br />

12-00219-UT<br />

IN THE MATTER OF SOUTHWESTERN PUBLIC SERVICE COMPANY’S<br />

APPLICATION REGARDING: (1)ITS 2011 ANNUAL RENEWABLE<br />

PORTFOLIO REPORT; (2) ITS 2012 ANNUAL RENEWABLE ENERGY<br />

PORTFOLIO PROCUREMENT PLAN; (3) ITS REQUESTS FOR VARIANCES<br />

FROM (A) THE DIVERSITY REQUIREMENTS FOR "OTHER" RENEWABLE<br />

ENERGY RESOURCES FOR 2012, AND (B) SPECIFIED PORTIONS OF THE<br />

MEDIUM SOLAR DISTRIBUTED GENERATION ("DG"_ TARIFF; 94) ITS<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 12


REQUEST TO REVISE AND CANCEL CERTAIN DG TARIFFS; (5) ITS REPORT<br />

ON PROJECTED 2013 AND 2014 COST ACCRUALS IN THE REGULATORY<br />

ASSETS APPROVED IN PRIOR CASES; AND (6) APPROVAL OF REQUESTS<br />

RELATED TO WlNDSOURCE.<br />

(Ashley Schannauer, Michael C. Smith Recommended Decision<br />

<strong>Commission</strong>er Marks moved to take case 12-00219-UT off the table. <strong>Commission</strong>er Lyons<br />

seconded the motion and it passed by unanimous (4-0) voice vote. <strong>Commission</strong>er Howe was not<br />

present for the vote.<br />

The representative from Sunrise said they were willing to stipulate to a 17 cents amount. It was a big hit<br />

but fair in light of the fact that they relied on <strong>Commission</strong> rates but to get it done today SPS and the<br />

contractor were willing.<br />

<strong>Commission</strong>er Hall asked what the difference was between Sunrise’s scope of work and Infinergy’s.<br />

Mr. Schannauer said they were in different places but didn’t know the details on how the projects would<br />

differ.<br />

<strong>Commission</strong>er Hall said if Sunrise and Infinergy were performing the same tasks her wondered why<br />

one was 13 cents and the other 17 cents.<br />

Ms. Sakya said when Sunrise purchased their solar equipment it was at a different time than when<br />

Infinergy did and was at a higher cost. Also, the customers they were working with had different rates -<br />

some were irrigation and others were municipal customers and those SPS electric rates were different.<br />

Regarding the nine-month extension, she didn’t know why they were coming at the same time. Sunrise<br />

made their application in October, 2010 when the <strong>Commission</strong>’s rate was 20 cents. They invested a<br />

substantial amount and were working to complete the projects. The delays they experienced were<br />

engineering technical reasons.<br />

<strong>Commission</strong>er Hall pointed out that Sunrise had four months longer to complete their project than<br />

Infinergy had.<br />

Ms. Sakya said SPS took much longer with the engineering for the Sunrise projects.<br />

<strong>Commission</strong>er Marks moved to adopt the order adopting the HE’s RD except with a reduction to<br />

17cents from 20 cents as stipulated by the parties. Chairman Lyons seconded the motion and it<br />

passed by unanimous (4-0) voice vote. <strong>Commission</strong>er Howe was not present for the vote. S._9o<br />

Ordered.<br />

9. PUBLIC COMMENT<br />

There were no public comments.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 13


10. COMMUNICATIONS WITH CHIEF OF STAFF FOR LEGAL AFFAIRS, BOB PARKER<br />

There were no communications with Chief of Staff for Legal Affairs.<br />

11. COMMUNICATIONS WITH CHIEF OF STAFF, JOHNNY MONTOYA<br />

There were no communications with Chief of Staff.<br />

12. COMMUNICATIONS WITH COMMISSIONERS<br />

There were no communications with <strong>Commission</strong>ers.<br />

13. ADJOURNMENT<br />

<strong>Commission</strong>er Becenti-Aguilar moved to adjourn the meeting. <strong>Commission</strong>er Hall seconded the motion<br />

and it passed by unanimous voice vote.<br />

The meeting was adjourned at 11:37 am.<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 14


ATTEST:<br />

Carl B~g~~<br />

APPROVED:~~’~~-~ ~<br />

FrATRICK H. LYONS, CH~MA~<br />

;UILAR, VICE C<br />

JASON A. MARKS, COMMISSIONER<br />

BEN L.3,tA~L, COIV~MISSIONER<br />

DOUGLAS J. HOWE, C~:I’MMISSIONER<br />

<strong>Minutes</strong> of the Regular Formal Open Meeting October 11,2012 Page 15


NEW MEXICO PUBLIC REGULATION COMMISSION<br />

OPEN MEETING<br />

SIGN-IN SHEET<br />

DATE:<br />

!<br />

Company Name (if any)<br />

Thank you for attending this meeting.<br />

EXHIBIT 1<br />

PRC 10/11/12


NEW MEXICO PUBLIC REGULATION COMMISSION<br />

REGULAR OPEN MEETING<br />

Thursday~ October 11~ 2012<br />

9:30 A.M.<br />

PERA Building~ ~i. th Floor Hearing Room<br />

112o Paseo de Peralta~ Santa Fe~ NM 87501<br />

AGENDA<br />

PLEDGE OF ALLEGIANCE<br />

2o<br />

INTRODUCTIONS<br />

MISCELLANEOUS ANNOUNCEMENTS<br />

Recognition of the Employee of the Month of September<br />

CONSIDERATION AND APPROVAL OF THE AGENDA<br />

CONSIDERATION AND APPROVAL OF MINUTES<br />

¯ <strong>Minutes</strong> of the Regular Open Meeting of September 13, 2012<br />

¯ <strong>Minutes</strong> of the Regular Open Meeting of September 18, 2012<br />

REGULAR ACTION<br />

Transportation Division<br />

12-o0297-TREN<br />

IN THE MA~rER OF THE FORMAL COMPLAINT OF HENRY<br />

Sandra Skogen<br />

AND GEORGIA ROMERO AGAINST ANAYA~S<br />

ROADRUNNER WRECKER SERVICEr INC. AND BOBS<br />

TOWING.<br />

Order<br />

Regular Open Meeting Agenda<br />

Thursday, October 11, 2012<br />

Page I of 3<br />

EXHIBIT 2<br />

PRC 10/11/12


B. Utility Division<br />

11-OO158-UT<br />

Margaret Caffey-Moquin<br />

IN THE MATTER OF THE PETITION OF VIRGIN MOBILE~<br />

USA~ L.P. FOR DESIGNATION AS AN ELIGIBLE<br />

TELECOMMUNICATIONS CARRIER FOR LIFELINE<br />

SERVICES.<br />

Order<br />

a<br />

DISCUSSIONIACTION<br />

A. Utility Division<br />

12-oo219-UT<br />

Ashley Schannauer<br />

Michael C. Smith<br />

IN THE MATTER OF SOUTHWESTERN PUBLIC SERVICE<br />

COMPANY’S APPLICATION REGARDING: (1) ITS 2Oll<br />

ANNUAL RENEWABEL PORTFOLIO REPORT; (2) ITS 2012<br />

ANNUAL RENEWABLE ENERGY PORTFOLIO<br />

PROCUREMENT PLAN; (3) ITS REQUESTS FOR<br />

VARIANCES FROM (A) THE DIVERSITY REQUIREMENTS<br />

FOR "OTHER ~ RENEWABLE ENERGY RESOURCES FOR<br />

2012~ AND (B) SPECIFIED PORTIONS OF THE MEDIUM<br />

SOLAR DISTRIBUTED GENERATION ("DG ~’) TARIFF; (4)<br />

ITS REQUEST TO REVISE AND CANCEL CERTAIN DG<br />

TARIFFS; (.5) ITS REPORT ON PROJECTED 2013 AND 2014<br />

COST ACCRUALS IN THE REGULATORY ASSETS<br />

APPROVED IN PRIOR CASES; AND (6) APPROVAL OF<br />

REQUESTS RELATED TO WINDSOURCE.<br />

Recommended Decision<br />

DISCUSSION<br />

Transportation Division<br />

11-ooo52-TRR<br />

IN THE MATTER OF THE APPLICATION OF AMERICAN<br />

Ashley Schannauer MEDICAL RESPONSE AMBULANCE SERVICEr INC.~ D/B/A<br />

Michael C. Smith<br />

AMERICAN MEDICAL RESPONSE~ FOR A TARIFF<br />

INCREASE.<br />

Recommended Decision on Remand<br />

Regular Open Meeting Agenda<br />

Thursday, October 11, 2012<br />

Page 2 of 3


9- PUBLIC COMMENT<br />

10. COMMUNICATIONS WITH CHIEF OF STAFF FOR LEGAL AFFAIRS, BOB PARKER<br />

11. COMMUNICATIONS WITH CHIEF OF STAFF, JOHNNY MONTOYA<br />

12. COMMUNICATIONS WITH COMMISSIONERS<br />

13. ADJOURNMENT<br />

The <strong>Commission</strong> will make reasonable efforts to post the agenda on the <strong>Commission</strong>’s<br />

website 36 hours before the open meeting, but the inability to do so within the 36 hours<br />

prior, will not require the <strong>Commission</strong> to delay the meeting or to refrain from taking action<br />

on any agenda item on which it otherwise could act.<br />

At any time during the Open Meeting the <strong>Commission</strong> may close the meeting to the public<br />

to discuss matters not subject to the <strong>New</strong> <strong>Mexico</strong> Open Meetings Act. The <strong>Commission</strong><br />

may revise the order of the agenda items considered at this Open Meeting.<br />

Notice is hereby given that the <strong>Commission</strong> may request that any party answer clarifying<br />

questions or provide oral argument with respect to any matter on the agenda. If the<br />

<strong>Commission</strong> makes such a request~ any party present at the meeting, either in person or by<br />

telephone, shall have an equal opportunity to respond to such questions or argument. In<br />

the event a party whose case is on the agenda chooses not to appear~ the absence of that<br />

party shall not cause such discussion or argument to become ex-parte communications.<br />

PERSONS WITH DI~ABIUTIES<br />

ANY PERSON WITH A DISABILITY REQUIRING SPECIAL ASSISTANCE IN ORDER TO<br />

PARTICIPATE IN THIS PROCEEDING SHOULD CONTACT THE OFFICE OF DIRECTOR OF<br />

ADMINISTRATIVE SERVICES OF THE COMMISSION (827-4084) AS SOON AS POSSIBLE<br />

PRIOR TO THE COMMENCEMENT OF THE OPEN MEETING.<br />

Regular Open Meeting Agenda<br />

Thursday, October 11, 2012<br />

Page 3 of 3

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