Title
Recommendations and Possible Action Regarding Los Alamos County's Participation in the San Juan Generating Station Post 2022
Recommended Action
I move that the Board of Public Utilities authorize the Utilities Manager to notify the San Juan Project Participants in writing of the County's intentions to exit the station at the end of the current Project Participation Agreement, June 30, 2022 and forward to County Council for approval.
Staff Recommendation
Staff recommends that the Board approve as presented.
Body
Per the New Exit Date Amendment Amending and Restating the Amended and Restated San Juan Project Participation Agreement (PPA) Among Public Service Company of New Mexico (PNM), Tucson Electric Power Company, The City of Farmington, New Mexico, The Incorporated County of Los Alamos, New Mexico and the Utah Associated Municipal Power Systems, section 40B.1 requires all of the project participants to notify PNM (Plant Operator) in writing whether they wish to extend the Coal Sales Agreement and term of the PPA beyond July 1, 2022.
On January 20, 2016, the Board of Public Utilities adopted several strategic Initiatives for Electrical Energy Resources. One of the recommendations was to “plan to exit San Juan Generating Station ownership share in the
mid-2020’s, under the most opportune circumstances.”
In October of 2016, BPU approved a contract with Pace Global a Siemens Business to develop an Integrated Resource Plan (IRP), which was completed in August of 2017. The IRP identifies a preferred strategy for satisfying the County’s electric power requirements over the 2017 - 2036 timeframe while also meeting DPU’s goal of being a carbon neutral electrical energy provider by 2040. The IRP concluded the County need not rush to commit to new resources until several uncertainties regarding SMNR’s, solar and storage are resolved. A staged approach to add smaller and incremental capacity resources on a need basis provides overall cost benefits for the Lo...
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