Supreme Court Ruling, January 29, 2020
Today, the New Mexico Supreme Court heard oral argument on the above referenced docket which just concluded. Both Justices Vigil were present, along with Justices Ortiz, Thompson and Bacon. The Justices asked several questions. Several Justices separately expressed concerns about why the Commission has not decided already or upfront whether or not the ETA applied. There were also questions expressing concerns about the authority that the Commission had to initiate an abandonment proceeding in January 2019.
Tom Bird presented argument on behalf of Senators Candelaria and Stewart. Matt Garcia provided argument on behalf of the Governor. Rick Alvidrez provided rebuttal argument on behalf of PNM. Michael Smith of the NMPRC’s General Counsel provided argument for the NMPRC. Commissioners Espinoza and Becenti-Aguilar were both present and at the table with Mr. Smith.
Following the oral argument, the Court recessed for about fifty minutes before returning and rendering a decision. The Court announced that they granted the Emergency Verified Petition described below and the ETA applies to PNM’s consolidated application filed on July 1, 2019. The request for a Stay was denied. Any previous Orders issued by the NMPRC that are inconsistent with today’s order should be vacated including the January 10 and 30th orders related to abandonment and ETA applicability. An Order is expected later this afternoon and a Court opinion will be later.
Background: On December 9, 2019 Governor Lujan Grisham, Senators Candelaria and Stewart, Representatives Egolf and Small, and Navajo Nation President Nez filed an Emergency Verified Petition for Writ of Mandamus in the Supreme Court. The petition requests that the Court require the NMPRC to comply with its duties under the NM Constitution and apply the ETA to PNM’s application to abandon, finance and replace SJGS being considered in NMPRC Cases 19-00018-UT and 19-00195-UT. On December 16, 2019 Chief Justice Nakamura recused herself from this proceeding, and the Court issued an Order designating District Judge Manuel I. Arrieta to participate in the case. On this date the Court also issued an Order requiring responses by January 3, 2020.
On December 20, 2019 New Energy Economy filed its Motion to Intervene and a Motion to Dismiss Proceeding. On December 23, 2019 NEE re-filed its Motion to Intervene due to an Order of Non-conformance, and on December 24, 2019 the Court issued an Order requiring responses to NEE’s motion by January 3, 2020. On December 27, 2019 PNM filed its Motion to Intervene, which was granted by the Court the same day. On January 3, 2020 PNM filed its Response the Petition for Writ of Mandamus and to NEE’s Motion to Dismiss, supporting the Petition and recommending NEE’s motion be denied. Western Resources Advocates and Coalition for Clean Affordable Energy also filed to intervene in the Court proceeding, and filed their support for the Petition as well. On January 27th, the New Mexico Supreme Court issued its Order denying NEE’s Motion to Reconsider Denial of its Intervention.
Stakeholder Outreach
PNM is hosting Stakeholder Outreach meetings in New Mexico to have a two-way conversation about the filing. In addition, the PNM Director of Tribal Affairs and the Vice President of Generation have reached out to the Navajo Nation to set up chapter meetings, as well as a briefing to the Navajo Nation President and Administration.
Tuesday, July 9, internal employee meeting to discuss plans for the San Juan Generating Station, the replacement scenarios we outlined and the assistance we will be providing not only for our workers, but the San Juan coal company workers as well. We are holding this internal meeting first, out of respect for those directly affected by the closure of the San Juan Generating Station.
Thursday, July 18, 2019 8:30-11:30 am, Albuquerque Museum
Tuesday, July 30, 2019 1:00-4:00 pm, San Juan College - Henderson Fine Arts Building Room 9008
Wednesday, July 31, 2019 Navajo Nation
Sunday, August 11, 2019 12:00 pm, Shiprock Chapter
Monday, August 12, 2019 3:00 pm, Nenahnezad Chapter
Tuesday, August 13, 2019 4:00 pm, San Juan Chapter
September 17, 5:00 pm, 2019 Upper Fruitland Chapter
September 26, 6:30 pm, 2019 Tse’ Daa’ Kaan Chapter
SJGS Team,
I would like to start by recognizing the great improvements you have all made in safety, employee commitment to continuous improvement, and thirst for knowledge development. As a team we have made some tremendous strides in each of these areas and will continue to make improvements both at San Juan and wherever you may find yourself in the coming years. These are commitments and values that are never achieved as a destination but rather a journey we will continue at San Juan and beyond.
We find ourselves in an ever-changing world with technology advancements. As PNM begins this technology advancement in how we generate electricity in this great state we live in, we want to make sure the most valuable resource, you, has a transition plan, too.
PNM leadership is committed to helping each of you successfully transition into your next chapter. For some, their legacy will be finishing San Juan strong and transitioning into a successful retirement. For others, it will be finding a new position with your existing skills. While others will have an opportunity to expand skill sets by embarking on a new career.
Regardless of which path is right for you, the relationships and bonds built with the San Juan team will be life-lasting and impact each of you in ways you never imagined. Please don’t undersell the accomplishments you have made at San Juan. The decision to close the facility is not a reflection of your values and commitment.
Please take full advantage of the resources available to you. If you have other ideas or suggestions that are not already outlined, please reach out to me or anyone of the management team for support. These resources are available to you now and will continue past the planned shutdown in 2022.
To the San Juan Team, I thank you for your commitment to safety and dedication to what you do each and every day and look forward to improving that performance through the last megawatt generated from San Juan. It is those core values that will sustain you. I don’t have to remind you that the most important thing we do in a day is returning to our families and loved ones better than we left.
Sincerely,
Omni Warner
