A New Mexico utility regulator has declared that climate change is caused by human activity, in a decision that some say may be the first of its kind by a state utility commission.

Hearing Examiner Ashley Schannauer with the New Mexico Public Regulation Commission (PRC) issued the decision on Monday, as part of the proceedings in Avangrid’s proposed $8.3 billion acquisition of PNM Resources.

With the decision, the PRC takes administrative notice in the proceeding that climate change is caused by human activity resulting in an accumulation of greenhouse gases in the atmosphere.

The combustion of fossil fuels — by power plants, vehicles and industry, as well as in buildings — is a predominant source of GHG emissions, the decision states, and the direct consequences of climate change include wildfires, droughts, floods, extreme weather events and rising sea levels.

Schannauer’s decision grants a motion filed this month in the Avangrid proceeding by New Mexico Attorney General Hector Balderas, Western Resource Advocates (WRA) and other organizations.

The motion asked the PRC to take administrative notice of climate change, its human causes and its severe consequences. By taking administrative notice, an administrative body finds that a scientific fact is so well-established that it is beyond debate and does not need proof, WRA said.

In granting the motion, Schannauer found that the motion was “reasonable and satisfies the standard for taking administrative notice under [New Mexico Administrative Code] for this proceeding.”

WRA said the action is either the first or among the first such action taken by a state utility commission. Some courts have taken judicial notice of climate change, the group said.

The motion was appropriate in the Avangrid case because of proposed agreements that address various aspects of climate change, according to Steve Michel, deputy director of WRA’s Clean Energy Program.

Michel said he wasn’t aware of anyone planning to argue against the existence of climate change during the proceeding. But it’s still possible such an argument could arise, he said.

“There’s always that concern,” Michel told NetZero Insider. “This puts the issue to rest.”

The hearing examiner’s decision could be appealed to the full commission, but an appeal is not expected, since no parties opposed the motion, Michel said.

Agreement Proposed

On June 3, a second amended stipulation was filed in the Avangrid proceeding. The stipulation reflects a negotiated settlement among Avangrid, PNM and several parties with a stated interest in the case, including WRA.

The parties state that the agreement “represents a fair, just, and reasonable resolution of the issues presented in this proceeding.”

Under terms of the proposed agreement regarding the Avangrid-PNM merger, the companies would commit to providing $73 million in rate benefits, which would include $15 million for low-income energy efficiency programs.

The companies agreed to form a carbon reduction task force to ensure that PNM will reach net zero emissions by 2040, and by 2035 if feasible.

The agreement includes incentive compensation for PNM executives based on the company’s progress in meeting its carbon reduction targets. PNM would triple its budget for a transportation electrification plan, under terms of the agreement, and name a chief environmental officer by Dec. 1, 2022.

The companies agreed to “use all reasonable efforts to find or participate in the development of a viable RTO that it can join by Jan. 1, 2030, or as soon thereafter as possible.”

In addition, PNM agreed to allow local governments to install wi-fi equipment on its streetlight poles to improve internet access for students and low-income residents.

One More Approval Needed

Avangrid has six of the seven government approvals it needs to complete its acquisition of PMN. The seventh and final approval must come from the PRC.

On May 26, Avangrid announced it had received approval from the Nuclear Regulatory Commission (NRC) for the acquisition.

In addition to the NRC approval, previous approvals for the deal this year include:

• Hart-Scott-Rodino Antitrust Clearance (Jan. 20)
• Committee on Foreign Investment (Feb. 1)
• Federal Communications Commission (March 10)
• Federal Energy Regulatory Commission (April 20)
• Public Utility Commission of Texas (May 13)

Avangrid CEO Dennis Arriola said during an earnings call last month that he expects the company’s acquisition of PNM to close by the end of the year. (See Renewables Boost Avangrid Q1 Earnings.)

Avangrid, a subsidiary of Spanish energy giant Iberdrola, is based in Orange, Conn., and has two main lines of business. Avangrid Networks owns and operates eight electric and natural gas utilities, with more than 3.3 million customers in New York and New England.

Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the U.S.

PNM Resources provides electricity to about 800,000 homes and businesses in New Mexico and Texas through its regulated utilities, Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Co. (TNMP).