State Ex Rel. Egolf v. N.M. Pub. Regulation Comm'n

2020 NMSC 018, 476 P.3d 896
CourtNew Mexico Supreme Court
DecidedJuly 23, 2020
StatusPublished
Cited by8 cases

This text of 2020 NMSC 018 (State Ex Rel. Egolf v. N.M. Pub. Regulation Comm'n) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Egolf v. N.M. Pub. Regulation Comm'n, 2020 NMSC 018, 476 P.3d 896 (N.M. 2020).

Opinion

Office of the Director New Mexico 09:38:17 2020.12.09 Compilation '00'07- Commission

IN THE SUPREME COURT OF THE STATE OF NEW MEXICO

Opinion Number: 2020-NMSC-018

Filing Date: July 23, 2020

No. S-1-SC-38041

STATE OF NEW MEXICO ex rel. Representative BRIAN EGOLF, Senator JACOB CANDELARIA, Senator MIMI STEWART, Representative NATHAN SMALL, Governor MICHELLE LUJAN GRISHAM, and Navajo Nation President JONATHAN NEZ,

Petitioners,

v.

NEW MEXICO PUBLIC REGULATION COMMISSION, Commissioner VALERIE ESPINOZA, Commissioner JEFFERSON L. BYRD, Commissioner CYNTHIA B. HALL, Commissioner THERESA BECENTI-AGUILAR, and Commissioner STEPHEN FISCHMANN,

Respondents,

and

PUBLIC SERVICE COMPANY OF NEW MEXICO,

Intervenor-Real Party in Interest.

ORIGINAL PROCEEDING

Released for Publication December 15, 2020.

Keleher & McLeod, P.A. Thomas C. Bird Albuquerque, NM

for Petitioners Representative Brian Egolf, Senator Jacob Candelaria, Senator Mimi Stewart, Representative Nathan Small New Mexico Office of the Governor Matthew L. Garcia, Chief General Counsel Santa Fe, NM

for Petitioner Governor Michelle Lujan Grisham

Navajo Nation Department of Justice Paul W. Spruhan Window Rock, AZ

for Petitioner Navajo Nation President Johnathan Nez

Michael C. Smith, Acting General Counsel Judith Ellen Amer, Associate General Counsel Santa Fe, NM

for Respondents

PNM Resources, Inc. Patrick V. Apodaca, General Counsel Stacey J. Goodwin, Associate General Counsel Albuquerque, NM

Miller Stratvert P.A. Richard L. Alvidrez Albuquerque, NM

for Intervenor-Real Party in Interest Public Service Company of New Mexico

OPINION

BACON, Justice.

{1} In this original proceeding, members of both houses of the Legislature, along with the Governor and President of the Navajo Nation (collectively Petitioners), filed an emergency petition on behalf of the State of New Mexico seeking a writ of mandamus against the New Mexico Public Regulation Commission (Commission). Petitioners seek a writ of mandamus to direct the Commission and its individual commissioners to apply the Energy Transition Act (ETA), NMSA 1978, §§ 62-18-1 to -23 (2019), to proceedings related to Public Service Company of New Mexico’s (PNM) abandonment of Units One and Four of the San Juan Generating Station (San Juan). The critical question in the case before us is whether the Commission has the authority to initiate an abandonment proceeding. Concluding that the Commission does not have such authority, we granted Petitioners’ writ of mandamus on January 29, 2020, and ordered the Commission to apply the ETA to abandonment proceedings for San Juan Units One and Four. See Order at 2, Egolf v. New Mexico Pub. Regulation Comm’n, S-1-SC-38041 (Jan. 29, 2020); Writ of Mandamus at 2, Egolf, S-1-SC-38041 (Jan. 29, 2020). As stated in our January 29, 2020, order, we issue this opinion to more fully explain this Court’s ruling. Order at 3, Egolf, S-1-SC-38041.

{2} The Commission exceeded its constitutional and statutory authority by initiating proceedings for abandonment of San Juan Units One and Four, and as a result, lawful abandonment proceedings were not initiated until after the ETA became operative. As the ETA was effective at the time abandonment proceedings began, the Commission had a nondiscretionary duty to apply the ETA. The Commission’s equivocation to administer applicable law to abandonment proceedings necessarily invoked this Court’s mandamus jurisdiction in order to preserve New Mexico’s constitutionally required separation of powers. See N.M. Const. art. III, § 1.

I. BACKGROUND

A. The Commission’s Initiation of Abandonment Proceedings

{3} The genesis of this case is rooted in the proceedings for abandonment of San Juan Units Two and Three, which PNM initiated in 2013. San Juan is a four-unit, coal- fired power plant near Farmington, New Mexico, that is operated and partially owned by PNM. Previous abandonment proceedings targeted only San Juan Units Two and Three and were docketed by the Commission as Case No. 13-00390-UT (2013 Docket). 1

{4} Abandonment of Units Two and Three was authorized by the Commission through a modified stipulation (Modified Stipulation). The Modified Stipulation served as the final order in the 2013 Docket but also contained provisions for the future use of the remaining units at San Juan—Units One and Four. See New Energy Econ., 2018- NMSC-024, ¶¶ 6, 9-10. Of significance to the instant case, Paragraph 19 of the Modified Stipulation required PNM to seek Commission review of any agreements that would commit PNM to the use of Units One and Four past 2020. Paragraph 19 states, in relevant part:

After July 1, 2018, but no later than December 31, 2018, PNM shall make a filing with the commission, and serve all parties to this case, to determine the extent to which [San Juan] should continue serving PNM’s retail customers’ needs after June 30, 2022. The filing shall be made before PNM has made a binding commitment to a post-2022 coal supply agreement, but after PNM has received firm pricing and other terms for the supply of coal at [San Juan], unless PNM proposes not to pursue a coal supply post-2022. . . .

1For more factual details regarding the abandonment of San Juan Units Two and Three, as well as information about San Juan as a whole, see New Energy Economy, Inc. v. New Mexico Pub. Regulation Comm’n, 2018-NMSC-024, ¶¶ 2-10, 416 P.3d 277. Paragraph 19 further provided that signatories to the Modified Stipulation agreed “to support expedited Commission review and decision within six months after the date of PNM’s filing.”

{5} In response to Paragraph 19, PNM filed a “verified compliance filing” on December 31, 2018, in the 2013 Docket. The compliance filing informed the Commission that PNM did not intend to operate San Juan past 2022 and that a majority of San Juan’s owners sought to close San Juan by 2022. Because PNM did not intend to operate San Juan past 2022, PNM did not consider it necessary to request the Commission’s review or approval of PNM’s planned course of action, as had been contemplated by Paragraph 19. For these reasons, PNM asked that the compliance filing be accepted in lieu of procedures outlined in Paragraph 19. PNM further stated it would formally file for abandonment of San Juan Units One and Four in the second quarter of 2019.

{6} On January 10, 2019, the Commission responded to PNM’s compliance filing by opening a new case, Case No. 19-00018-UT (January 2019 Docket), and entering an order simultaneously in that newly created docket and the 2013 Docket. In that order, the Commission requested all parties to the 2013 Docket to brief whether the Commission should take one of two courses of action. The Commission’s first proposed course of action was to accept PNM’s compliance filing and not take further action until PNM filed its abandonment application in the second quarter of 2019. The second proposed course of action called for the Commission to instead immediately initiate abandonment proceedings for San Juan Units One and Four under the newly created January 2019 Docket, because PNM had “irrevocably committed itself to abandonment of [San Juan].” Based on the parties’ responses, the Commission proceeded with the second proposal and entered an order on January 30, 2019 (Abandonment Order) initiating an abandonment proceeding pursuant to authority ostensibly derived from NMSA 1978, Section 62-9-5 (2005). The Abandonment Order mandated that PNM file an application for abandonment by March 1, 2019.

B. PNM’s Petition for Writ of Mandamus

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2020 NMSC 018, 476 P.3d 896, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-egolf-v-nm-pub-regulation-commn-nm-2020.