Public Service Company of New Mexico ("PNM"), by and through its attorneys, hereby

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1 BEFORE THE NEW MEXICO PUBLIC REGULATION COMMISSION IN THE MATTER OF THE APPLICATION OF PUBLIC SERVICE COMPANY OF NEW MEXICO FOR EXPEDITED APPROVAL OF POWER PURCHASE AGREEMENTS, SPECIAL SERVICE RATE AND SPECIAL SERVICE CONTRACT, NEW GREEN ENERGY RIDER, EXEMPTION FROM ENERGY EFFICIENCY RIDER, VARIANCES FROM (B AND PNM RULE NO. 4, 1 C AND FOR OTHER RELATED REGULATORY APPROVALS PUBLIC SERVICE COMPANY OF NEW MEXICO, Applicant. Case No UT PUBLIC SERVICE COMPANY OF NEW MEXICO'S MOTION TO ESTABLISH EXPEDITED PROCEDURAL SCHEDULE AND TO SHORTEN THE TIME FOR PROTESTS AND DECISION UNDER NMAC Public Service Company of New Mexico ("PNM", by and through its attorneys, hereby moves the Commission to promptly establish an expedited procedural schedule for review and approval of the Application, to allow the Special Service Rate ("SSR" and Green Energy Rider to go into effect by operation of law, and to shorten the time for protests of the long-term purchased power agreements ("PP A" and the time during which the Commission must act to deny approval of the PP A. As grounds, PNM states the following: 1. PNM is filing with this Motion an Application together with supporting testimony and exhibits seeking the following approvals by no later than August 31, 2016: (a a Special Service Contract ("Contract" between PNM and a potential new customer, Facebook, Inc. ("Customer" that, subject to certain conditions set forth in section 2 of the Contract, intends to develop, construct, own and operate a data center, 1

2 employing the best available energy efficiency technology and equipment, on a phased basis, consisting of one or more facilities at a site within PNM' s service territory; (b an associated new Special Service Rate ("SSR" No. 36B, which includes an initial rate effective for the first ten (10 years of the Contract and a formula for calculating the costs allocated to the SSR for the remaining term of the Contract after ten years; ( c associated Power Purchase Agreements ("PP As" between PNM and a PNM Affiliate addressing an Initial Solar Procurement by PNM ("Initial Solar Facilities PPAs" in accordance with Section of the Contract, pursuant to NMAC ("Rule 551" and in accordance with NMPUC Case No Order,,r A(5 (Dec. 18, 2001 ("Case 3137 Order"; (d an associated new Green Energy Rider, Rider No. 47, that, in accordance with section 5.1 of the Contract, will allow PNM to procure renewable energy resources equivalent to up to one hundred percent (100% of Customer's electric energy, as its datacenter' s electrical load and consumption grows over time, and recover all of the reasonable costs of procuring those resources; (e associated variances from the requirements of 17.l (B NMAC and PNM's 2nd Revised Rule No. 4,,r C; (f an associated amendment to PNM's Energy Efficiency Rider, Rider No. 16, to add Customer and the proposed SSR to the PNM rates to which Rider No. 16 does not apply or, in the alternative, a waiver of the applicability of Rider No. 16 to the proposed SSR; and 2

3 (g variances from (B(2(c NMAC (which requires a statement comparing proposed new rates with present rates and from ("Rule 530" (which prescribes minimum data requirements to be filed in support of a tendered new rate schedule ( collectively referred to as "Rate Filing Requirements". 2. The purpose of the Application is to grant PNM the authority to provide electric service to Facebook, Inc. ("Customer" in order to entice Customer to locate a new data center in PNM's service territory in New Mexico and to meet the special requirements of the Customer. Customer constructs, owns and operates data centers, which require a substantial amount of electric energy and typically with a high load factor of seventy five per cent (75% or more. Customer has special service requirements for addition of renewable energy resources which would not otherwise be built to match the addition of its new load. 3. Customer currently owns and operates data centers in other states. Earlier this year, Customer approached and informed PNM that it was investigating opportunities in New Mexico and in a number of other states for locating a new data center, to satisfy its growing data center capacity needs and in accordance with its sustainability objectives. After PNM expressed its interest in pursuing such an opportunity in its service area, PNM and Customer began working together to explore how that could be accomplished in a manner that met Customer's needs without adversely affecting PNM' s other retail customers. 4. In those discussions, Customer informed PNM that, in order for Customer to locate a new data center in PNM's service territory in New Mexico, PNM would need to procure a sufficient amount of renewable energy resources, along with its renewable energy attributes (i.e., associated renewable energy certificates to match the energy requirements of Customer's data center as they are projected by Customer to increase over time. To meet Customer's 3

4 commercial requirements, PNM needs to obtain final, non-appealable approval of its Application from the Commission by August 31, Consistent with that timetable, section of the Contract provides that either PNM or Customer have the right to terminate the Contract upon five (5 days' notice if PNM has not obtained the Commission's approval of its Application by August 31, Rocky Mountain Power Company ("RMP" filed an Application on June 16, 2016, with the Utah Public Service Commission ("UPSC" pursuant to Utah regulatory law to provide service to Customer. RMP has requested final UPSC approval by August 31, Upon information and belief, PNM understands that RMP is optimistic that the UPSC will act by that date. Lengthier regulatory proceedings in New Mexico will jeopardize New Mexico's chances of the Customer selecting New Mexico as the site for its new data center. 6. PNM therefore believes it is critical that the Commission expeditiously review PNM' s Application and approve it by no later than August 31, 2016, in order to create the best opportunity for the State of New Mexico to be awarded Customer's data center and for PNM's customers, and the State to realize the benefits of that award, which are addressed in the testimony filed in support of the Application. Among the most important benefits are that: ( a the rates proposed cover the incremental costs of providing the new service plus a contribution to fixed costs (reducing the amount of fixed costs allocable to other customers; (b service to Customer will result in the addition of renewable energy resources to match Customer's load as it grows over time, over and above the requirements of the Renewable Portfolio Standard ("RPS", thus promoting the policies expressed in the Renewable Energy Act, NMSA 1978, Section (2007, including providing incentives to add renewable energy resources that 4

5 exceed the amount required by the RPS pursuant to Section (A(5; and (c promotes economic development in New Mexico. 7. Pursuant to NMSA 1978, Sections (B and (C (2011, after thirty days' notice to the Commission, the Commission may allow the proposed Contract, the new SSR and the new Green Energy Rider to become effective without a hearing because they do not involve an increase in rates or charges. 8. Pursuant to Rule 551.lO(A, the Commission may approve the proposed Initial Solar Facilities PP As addressed in the Contract without a formal hearing if no protest of it is filed within sixty (60 days of the date notice is given pursuant to Commission order. The sixtyday requirement is not imposed by statute, but rather by Rule 551 and so is subject to variance by the Commission. Other customers will be unaffected by the Initial Solar Facilities PP As because its costs will be passed through directly to the Customer pursuant to the proposed Green Energy Rider. PNM is requesting a variance from the sixty-day requirement by virtue of the proposed schedule described below. 9. Pursuant to Rule 551.lO(B, the Commission will consider an application for approval of a long-term PP A approved if it has not been denied within six months after the date the application was filed. Again, the six-month requirement is not imposed by statute, but rather by Rule 551 and so is subject to variance by the Commission. PNM is requesting a variance from the six-month requirement by virtue of the proposed schedule described below, such that the Initial Solar PP As are deemed approved if approval is not denied by August 31, PNM has provided parties in its currently pending rate case, Case No UT, with copies of its filing so that they may immediately began their review without awaiting 5

6 formal notice from the Commission. In addition, PNM will host informal information sharing meetings to facilitate and expedite Staffs and Intervenors' review of the Application. 11. PNM requests that the Commission order protests to be filed no later than July 31, 2016, possibly contemporaneously with the filing of Staff and Intervenor testimony. PNM further requests that the Commission issue a final order no later than August 31, 2016, without a public hearing, other than the Commission's review of the documents filed in the case, or order that the six-month requirement for final action on the Initial Solar Facilities PP As is shortened to August 31, Protests shall describe the grounds upon which the protestor objects to approval of the Application, or any part thereof, in sufficient detail to allow the Commission to determine if the protest raises substantial doubt that the Application should be approved as filed. See State of Missouri ex rel. Assoc. Natural Gas Co. v. Pub. Serv. Comm 'n, 954 S.W.2d 520, 528 (Mo.App (adopting "substantial doubt" standard to test sufficiency of challenges. Factual matters alleged in the protests shall be supported by detailed affidavits. Factual matters raised in responses to protests shall also be supported by detailed affidavits or in filed testimony. 13. PNM has not sought the positions of Staff or potential intervenors for this Motion due to the need for immediate Commission action to commence the proceedings in this case. This Motion should be granted without awaiting responses so that this case can commence in time for approval on a schedule that will keep New Mexico in the running for the Customer's new data center. Any intervenor or Staff would have the opportunity to request necessary revisions to the procedural schedule upon good cause shown. WHEREFORE, PNM prays the Commission to adopt the procedural schedule proposed above without awaiting responses from Staff or potential intervenors; allow the Contract Rate 6

7 and Green Energy Rider to go into effect by operation of law; forgo oral hearings in favor of the paper hearings described above based on filing of detailed protests establishing substantial doubt that the PP As should be approved as filed; shorten the time within which protests to the PP As must be filed to July 31, 2016; shorten the time within which the Commission must act to deny approval of the PP As to August 31, 2016, or the PP As are deemed approved, with final approval of the Contract occurring at the same time; and for such further relief as the Commission deems appropriate under the circumstances. Respectfully submitted this 8th day of July PUBLIC SERVICE COMPANY OF NEW MEXICO enjamin Phillips, ssociate General Counsel Madonna Bixby, Senior Corporate Counsel PNM Resources, Inc. Corporate Headquarters - Legal Department Albuquerque, NM Phone: Ben.Phillips@pnmresources.com Madonna.Bixby@pnmresources.com Patrick T. Ortiz Cuddy & McCarthy, LLP 1701 Old Pecos Trail P.O. Box 4160 Santa Fe, New Mexico Phone: ( p01iiz@cuddymccarthy.com Attorneys for Public Service Company of New Mexico GCG#