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PNM is requesting variances from Rule 17.1.21012(B) NMAC and PNM’s 2nd Revised Rule No. 4, ¶C because a requirement of the proposed transaction is that the CPCSSE component of the SSR remain fixed for at least the initial ten year period the Special Service Contract is in effect.

Q. Does Staff recommend that variances from Rule 17.1.210.12(B) NMAC and PNM’s 2nd Revised Rule No. 4, ¶C, as PNM has requested, be granted?
A. Yes. In negotiations between Customer and PNM, Customer required and PNM agreed that the CPCSSE component of the SSR remain fixed at $0.0231074 per kWh during the initial 10-year period when the Special Service Contract is in effect. In order to allow this to occur, PNM requires a variance from the two rules described above. Granting these variances will enable PNM to make its service offering to Customer, which, in Staff’s opinion, would provide a net benefit. …show more content…
Please describe the second set of variances PNM is requesting in this case.
A. PNM’s Application states that PNM is seeking variances from the requirements of 17.1.210(B)(2)(c) NMAC and 17.9.530 NMAC. Staff notes, however, that PNM has advised Staff that PNM’s reference to 17.1.210(B)(2)(c) is incorrect, and the correct reference should be to 17.1.2.10(B)(2)(b) NMAC.

Q. What does 17.1.2.10(B)(2)(b) NMAC require?
A. 17.1.2.10(B)(2)(b) requires that a utility shall submit the following with its application for new

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