ELECTRICITY GENERATION AND WATER CONSIDERATIONS

• Jurisdiction: United States

Water-Energy Nexus: Acquisition, Use, and Disposal of Water for Energy and Mineral Development
(Sep 2012)
CHAPTER 8B
ELECTRICITY GENERATION AND WATER CONSIDERATIONS
Cynthia S. Murray
PNM Resources
Albuquerque, New Mexico

Public Service Company of New Mexico

Presented by: Cindy Murray, Executive Director Generation Assets Management

[Page 8B-2]

Good Relationships & Creative Solutions Protect San Juan Generating Station from Drought Impacts

Rocky Mountain Mineral Law Foundation

September 14, 2012

The Water-Energy Nexus

Agenda

• Quick Facts on SJGS

• Quick Facts on San Juan River Basin (SJRB)

• Key Stakeholders in SJRB

• Fish Story

• Water Supply Emergency

• Shortage Sharing Agreement

[Page 8B-3]

San Juan Generating Station

• 1,800 MW Coal-Fired Power Plant Built 1973 thru 1982

• 7th Largest in the West

• PNM owns 46 percent and operates the plant on behalf of eight other owners

•Around 50% of PNM customers' energy

San Juan Generating Station

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San Juan River Basin

[Page 8B-5]

San Juan River Basin Stakeholders

[Page 8B-6]

San Juan Endangered Fish

• Started in 1992

• Provides ESA Compliance for 319 projects' diversions

— (over 880,000 afy)

• No lawsuits - no water taken

[Page 8B-7]

• PNM at the table from the beginning

— Fish Ladder at PNM Weir

— Steering Committee Leadership

— Regional & D.C. Lobbying

— Capital & Maintenance Contributions

Bottom Line: Great Relationships

Water Supply Emergency

• 2007 - 2008 Environmental Upgrades

• Reliability Improvements

• 2009: Most Energy Produced - Ever

• Supplemental Supply Obtained

• Emergency Permit Acquired

• No Curtailment Required!

[Page 8B-8]

Shortage Sharing Agreement

• Game Plan for Orderly Action

• Recommendations to State Engineer & BOR

• Proportional Sharing of Shortages

• Supplemental Supply for PIMM, APS & BHP

• Mitigation Fund for Irrigators

• Provides for Realistic Planning vs. Chaos

[Page 8B-9]

San Juan River Basin Stakeholders

Humankind has not woven the web of life.

We are but one thread within it.

Whatever we do to the web, we do to ourselves.

All things are bound together.

All things Connect.

Chief Seattle, 1854

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