Federal Energy Regulatory Commission Approves Revisions to Four Corners Power Plant Agreements

Strategic Insights -

The Federal Energy Regulatory Commission has issued a delegated order approving revisions to the Four Corners Co-Tenancy Agreement and the Four Corners Operating Agreement, effective September 29, 2021. The agreements, filed by Arizona Public Service Company (APS) on July 30, 2021, and amended on September 17, 2021, provide for seasonal operation of the Four Corners Power Plant, a coal-fired generating facility located on the Navajo Nation in Fruitland, New Mexico. The revisions are subject to the transfer of PNM's ownership interests in Four Corners to NTEC on or before December 31, 2024.

Key Takeaways:

  • The Federal Energy Regulatory Commission has approved revisions to the Four Corners Co-Tenancy Agreement and the Four Corners Operating Agreement, effective September 29, 2021.
  • The revised agreements provide for seasonal operation of the Four Corners Power Plant, a coal-fired generating facility located on the Navajo Nation in Fruitland, New Mexico.
  • The revisions are subject to the transfer of PNM's ownership interests in Four Corners to NTEC on or before December 31, 2024.
  • APS states that if the Condition Subsequent is not met, then the revisions proposed in this proceeding will terminate, and APS shall make the necessary filings with the Commission to reinstate the previously effective versions of the Agreements.
  • The Commission's action does not constitute approval of any service, rate, charge, classification, or any rule, regulation, contract, or practice affecting such rate or service provided for in the filed documents.
  • Requests for rehearing by the Commission may be filed within 30 days of the date of issuance of this order, pursuant to 18 C.F.R. § 385.713 (2020).

Statistics:

  • Effective date of revisions: September 29, 2021 (18 C.F.R. § 375.307 (2020))
  • Deadline for transfer of PNM's ownership interests: December 31, 2024
  • Date of Commission's action: November 12, 2021
  • Timeline for filing requests for rehearing: Within 30 days of the date of issuance of this order (18 C.F.R. § 385.713 (2020))

Sources:

  • Document Accession #: 20211112-3006
  • 18 C.F.R. § 375.307 (2020)
  • 18 C.F.R. § 385.713 (2020)