BPU_Agenda_07-18-12 - Los Alamos County

DRAFT BOARD OF PUBLIC UTILITIES MEETING ‐ MINUTES
June 20th, 2012
DPU Conference Room ‐ 170 Central Park Square
Los Alamos, NM
annual transmission revenue requirements (ATRR) be increased from $58,500,000 to $99,347,540 along
with an increase in the transmission loss factor from 3.0 percent to 3.58 percent effective for all NITSA and
Point‐to‐Point transmission customers on June 1, 2011 subject to refund. The County, via the Department
of Public Utilities, and other PNM transmission customers intervened and protested the increases at the
FERC.
Mr. Cummins explained that there were six intervenors in the rate case. These were Los Alamos County, El
Paso Electric, Western Area Power Administration (Western), Tri State Generation & Transmission, Navajo
Tribal Utility Authority and Navopache Electric Coop. Mr. Cummins discussed the qualifications and
experience of the legal representation and subject matter experts of the intervenors, listing specifically the
following: Doug John (Attorney – Power Pool), Jack Lumberg (SME – Power Pool), Jay Kumar (SME‐Western)
and Riley Rhore (SME – Western). He spoke highly of their abilities and their effectiveness in arguing a
reasonable settlement for the intervenors. Mr. Ortega also spoke highly of the qualifications and
experience of Jay Kumar, Doug John and Riley Rhore.
Mr. Cummins explained that on March 1 st , 2012, PNM and the active intervenors reached an agreement in
principle for complete resolution of the proceedings. PNM and the transmission customers settled on an
ATRR of $79,500,000 and a transmission loss factor of 3.2 percent to be retroactive to June 1 st , 2011. The
Third Revised NITSA, the NITSA Specifications and Third Revised NOA incorporate the terms of the
transmission rate settlement.
Mr. Cummins noted a success for the County in that The United States (DOE‐LANL) and/or Los Alamos shall
have the right to file with the commission under section 30.9 of PNM’s Open Access Transmission Tariff
(OATT) for Network credits for all new transmission facilities interconnected with PMN’s transmission
system irrespective of the location and ownership. This will help the department to support LANL/County
loads.
Mr. Powell asked where the rates in dollars could be found. Mr. Cummins explained that they are listed by
reference to the PNM OATT in the NITSA or the NOA.
Mr. Powell asked how the County’s share is calculated based on PNM’s $79,500,000 transmission loss factor.
Mr. Cummins explained that every month they take our coincidental peak with PNM, subtract the credit for
the SVC 10 MW’s and the credit for the Western Power and average it over a rolling 12 months. We then
pay the ratio of the 12 month rolling average to the PNM monthly peak load times 1/12 of the ATRR of
$79,500,000.
Mr. Ortega asked if the other intervenors have already signed the agreements and how long it would take to
approve the agreements once submitted. Mr. Cummins responded that the other intervenors are already
on board and that Los Alamos is the last to sign. He does not know how long the approval will take but
stated that it is supposed to be filed by July 3 rd , 2012.
Mr. Powell asked if Council had to also approve the agreements and questioned if they would be able to
really understand all the details. Mr. Arrowsmith responded that it is on the consent calendar for June 26
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