1. Case No. 15-00355-UT PNM Workshop Comments
NOVEMBER 9, 2016

2. SKY BLUE OVERVIEW
PNM Sky Blue® is a voluntary program that gives customers the opportunity to offset their energy use with wind and solar energy.
PNM Sky Blue gives residential and business customers the opportunity to support wind and solar generation in New Mexico without a long-term commitment. They can increase, decrease or cancel their subscription at any time.
The program launched in 2003 with wind only and was ranked one of the top 10 voluntary renewable programs by the National Renewable Energy Laboratory (NREL).
In 2013, solar was added to the program.
The energy devoted to PNM Sky Blue is produced at the New Mexico Wind Energy Center near Ft. Sumner and from 1.5 MW of solar capacity in Los Lunas at the Manzano Solar Energy Center.
Sky Blue is a premium priced product. The price includes the cost for the renewable resources and a credit from their fuel charge.
Customers can subscribe to 100 kWh blocks for $1.70 per month or for a set percentage of their energy use ($0.017 per kWh).

3. SKY BLUE PROGRAM PERFORMANCE
PNM Sky Blue Sales in MWh by FERC Class
Residential
Commercial
Industrial
Total MWh
2013
9,169
1,192
1,716
12,077
2014
14,680
1,698
2,588
18,966
2015
13,677
1,459
1,200
16,336
End-of-Year Customer Totals
Residential
Commercial
Industrial
2013
3,636 66 2
2014
3,625 1
2015
3,432 60

4. FACEBOOK OVERVIEW
PNM received approval of an application to serve a new Facebook data center in August 2016, which included the following provisions:
A Special Service Contract that requires PNM to procure sufficient renewable energy to match the data center’s annual energy requirements.
A proposal that PNM would enter into Initial Solar Facilities PPAs with a PNM affiliate to provide the initial solar resources needed to supply the data center.
A Special Service Rate (Original Rate No. 36B) which is available to eligible new customers who wish to have PNM acquire renewable resources in an amount equal to some or all of the customer’s electric utility service requirements that includes the following components:

5. FACEBOOK OVERVIEW (CONT.)
Special Service Rate (Original Rate No. 36B) (Components)
a “Customer Charge” and a “Transmission Demand Charge”;
an “Energy Charge” and an “Energy Related Non-Fuel Charge” for system supplied energy;
a “Contribution to Production Charge” for system supplied energy. For Facebook this component is a charge of $ per kWh that is fixed for a 10-year period;
a “Green Energy Rider” (Original Rider No. 47) that allows recovery of the cost for the renewable energy and capacity for any new renewable resources;
an “Other Applicable Riders” component(s) for PNM’s Renewable Rider (Rider No. 36) and any other applicable rate riders; and
a “Special Tax and Assessment Adjustment” charge to pass-through applicable taxes.