N.M. Admin. Code § 17.10.640.9

Current through Register Vol. 35, No. 20, October 22, 2024

Section 17.10.640.9 - APPLICATION FOR APPROVAL OF PGAC

A. Any gas utility without an approved PGAC that requests to use a PGAC for the recovery of gas costs must file an initial application with the commission. The filing requirements for the initial application are set forth in this section and in 17.10.640.12 NMAC.

(1) The utility's initial application for use of a PGAC shall include, at a minimum, the following:

(a) a detailed description and justification of the gas cost factor calculation methodology the utility proposes to use as a basis for the PGAC;

(b) proposed PGAC tariff provisions, which shall contain the specific methodology for calculation of the gas cost factor as provided for in 17.10.64012 NMAC;

(c) identification of the specific months in which the utility proposes to begin and end its annual reconciliation period, as provided for in Subsection C of 17.10.640.13 NMAC, identification of the specific months in which the utility proposes to begin and end its annual reconciliation factor implementation period, as provided for in Subsection E of 17.10.640.13 NMAC, and identification of the annual date proposed for the filing of the utility's gas supply plan and the beginning and ending months proposed for the utility's planning period, as provided for in Subsections B and D of this section;

(d) sufficient financial and other necessary information and data to identify and justify the inclusion and recovery of allowable gas costs through the utility's PGAC, including a demonstration that no amounts to be recovered under the operation of the PGAC are included in other tariffs or charges for service; and

(e) an initial gas supply plan, as provided for in Subsection B of this section.

(2) Sworn testimony and exhibits explaining the utility's proposal and demonstrating that its proposed PGAC complies with this rule shall accompany an initial application for approval to use a PGAC.

(3) The utility may submit portions of its gas supply plan and initial application under seal as provided for in Paragraph 3 of Subsection B of this section.

B. Any gas utility seeking commission approval to use a PGAC shall file with its initial application pursuant to Subsections A and C of this section a gas supply plan that describes the utility's plans to meet customer demands for supply and transportation services throughout its service area and shows that its procurement policies are designed to ensure that gas supplies are purchased at the lowest reasonable cost. Any utility intending to continue using its approved PGAC shall file a gas supply plan annually pursuant to Subsection D of this section.

(1) The utility's gas supply plan shall include, at a minimum, the following:

(a) for the utility's planning period, information on the utility's procurement related plans, including supply sources, projected significant system modifications or improvements, types and durations of contracts, generic pricing provisions, storage arrangements, and arrangements for processing, gathering, and transportation by others of utility-owned gas supply;

(b) for the utility's planning period, information on projected demands for sales and transportation services;

(c) a description of foreseeable market or regulatory developments that may affect the plans described in the gas supply plan; and

(d) any other matters as may be ordered by the commission.

(2) An officer of the utility shall verify the gas supply plan.

(3) The utility may submit under seal any portions of its gas supply plan that reveal its contracted portfolio, its major suppliers, transportation volumes, or its contract pricing, on a contract-by-contract basis, to the extent the utility deems specific information to be confidential. The utility also may seek a protective order under Subsection B of 17.1.2.8 NMAC for other portions of its gas supply plan it considers confidential, but the utility shall have the burden of proving its right to such protection. Any information submitted under seal pursuant to this Paragraph shall remain under seal for a period of two (2) years, after which time it shall become public unless the utility seeks and obtains further protection from the commission. Information submitted under seal shall be available for review by the commission and its designated representatives and by any person who has entered into a confidentiality agreement with the utility in a form approved by commission order.

C. An initial PGAC application shall be filed with the commission and shall be reviewed and approved as provided herein.

(1) A utility filing an initial PGAC application shall contemporaneously with such filing mail a copy of such application to the attorney general and notification of its filing to the intervenors in the utility's most recent general rate case.

(2) A utility's initial PGAC application and proposed PGAC shall be deemed approved thirty (30) days after the filing of the application unless otherwise ordered by the commission.

(3) Any person or staff may file a request for a hearing on an initial PGAC application no later than twenty (20) days after the filing of the application. The request for hearing shall set forth clearly the grounds for requiring a hearing and shall indicate whether the proposed hearing shall be limited to specific issues. Upon receipt of a request for hearing, or upon its own motion, the commission may order a hearing, upon reasonable notice, on the initial PGAC application and may suspend the operation of the PGAC proposed in the application, pursuant to NMSA 1978 Section 62-8-7.

(4) The commission may approve all or part of the initial PGAC application. Approval of the application shall constitute approval of the utility's use of the proposed PGAC unless otherwise provided in the commission's order.

(5) A utility operating with an approved PGAC shall continue to use its approved PGAC until the commission orders otherwise.

D. A utility operating with an approved PGAC shall file an annual gas supply plan pursuant to Subsection B of this section on or before the date specified for such filing pursuant to Subsection A of this section and Paragraph 5 of Subsection A of 17.10.640.12 NMAC. If the utility fails to timely file its annual gas supply plan as required by this subsection, the commission may terminate the utility's PGAC and the utility automatically shall be subject to sanctions in accordance with NMSA 1978 Sections 62-12-4 through 62-12-6.

(1) A utility filing an annual gas supply plan shall contemporaneously with such filing mail a copy of the report to the attorney general.

(2) An annual gas supply plan filed pursuant to this rule shall not be deemed approved by the commission.

(3) Staff, the attorney general, or any other interested party may file a request for a hearing no later than twenty (20) days after the filing of the annual gas supply plan. The request for hearing shall set forth clearly the grounds for requiring a hearing and shall indicate whether the proposed hearing shall be limited to specific issues. Upon receipt of a request for hearing or upon its own motion, the commission may order a hearing, upon reasonable notice, on any or all of the issues identified and on continued use of the PGAC, and may suspend the operation of any changes to the utility's procurement program as described in the gas supply plan, pursuant to NMSA 1978 Section 62-8-7.

E. If a utility determines that a deviation from its most recently filed gas supply plan is required to achieve its portfolio's purposes or the objectives of this rule, the utility shall file an update with the commission which explains the deviation from the plan. Such deviation shall be subject to the hearing provisions set forth in Subsection D of this section.

N.M. Admin. Code § 17.10.640.9

17.10.640.9 NMAC - N, 3-15-04