1. Annual Shareholder Luncheon
October 17, 2013

2. Sheriff Dan Houston - Matt Rush
Pledge and Invocation
Sheriff Dan Houston - Matt Rush

3. Special Guests

4. Thanks to today’s sponsors:

5. Teen Vernacular

6. Swerve
Example:
"Would you cover my shift at work instead of going to the movies with your friend?"
"Swerve! I'm going to the movies."
If someone is being really rude, you can say "swerve" and walk away.

7. Swerve To dismiss or to say no to a request;
to imply dodging or avoiding a person
or a person's request.

8. NMUSA Update
Bill Hagler
Past President

9. Ash Collins
President

10. Board of Directors 2013 – 2014 Officers: Directors:
Ash Collins, Jr., President
Dr. Lenton Malry, Vice President
Ed Borchardt, Secretary
Dan Lyon, J. D., Treasurer
Bill Hagler, Past President
Directors:
John Florez
Bill Pope
Bob Reed
We have an incredibly diverse and talented Board of Directors.
All members of the board are volunteers who own stock in at least one of the six companies doing business in New Mexico. We try to assure that we have a fair representation of all companies.
Here to introduce the Board members to you, is the current president of NMUSA, Mr. Bill Pope.
Bill has been is retired from Southwestern Public Service and was the first Chairman of the PRC 10

11. Working with: Public Regulation Commission New Mexico Legislature
Governor and other elected officials

12. Lunch

13. Edison Electrical Institute
Brad Viator
Edison Electrical Institute

14. EEI Update NMUSA Annual Meeting Albuquerque, NM Brad Viator

16. 2012 Threat Obama budget proposed taxing dividends as ordinary income
Top rate 39.6%
No parity with capital gains

17. Engaged Strategic Partners

19. The American Taxpayer Relief Act of 2012

20. Dividend Tax Cap a Win for Utilities
January 2, 2013
US ‘Fiscal Cliff‘ Agreement Calms Utilities' Fears on Tax Rates
January 2, 2013
Fiscal Cliff
Dividend Tax Cap a Win for Utilities
January 2, 2013
Energy Sector Counts Its Wins in Cliff Deal

21. Environmental Issue Update

23. NSPS Timeline June 1, 2015 Final State Emissions Guidelines
September 20, 2013
New Source Proposal
Compliance
June 1, 2014
Proposed State Emissions Guidelines
June 30, 2016
State Compliance plans due

24. GHG New Source Performance Standards (NSPS)
New sources: Clean Air Act (CAA) section 111(b)
Command-and-control regulations (no role for states)
Key issues:
Compliance with natural-gas standards during normal operations
Lack of an achievable standards for new coal units
Existing sources: CAA section 111(d)
EPA provides guidelines for state regulation
Level of required reductions
Extent of state compliance flexibility

25. What is the Role of the States in the NSPS Process?
EPA sets emissions guidelines for states
States submit compliance plans to EPA
States have a lot of flexibility in crafting these plans
But, plans ultimately must be approved by EPA
Options for states could include:
Variances for individual units
Averaging
Renewable energy standards
Energy efficiency improvements

26. Smart Grid and DER

27. Traditional Electric Grid
Centralized Generation
Coal
Hydro
Nuclear
End Use (Load)
Industrial
Commercial
Residential
One-Way Power Flow
Substation
Transmission (high voltage)
Distribution (medium voltage)

28. Smart Grid Ecosystem Utility Operations Customer Premise
Adapted from EPRI source image
Distributed
Generation
& Storage
PHEV
Distribution
Operations
Dynamic Systems Control
Outage Management
Remote Monitoring & Control of Distribution Assets
Data Management
Customer
Portal or Meter
Energy
Storage
Advanced Monitoring,
Communications & Control
Utility Operations Customer Premise
Smart End-Use Devices
In-home monitoring
“Smart” Thermostats
Pool Pumps
HVAC Systems
Advanced
Monitoring,
Communications
& Control

29. DER Challenges Net Metering Policies
In many states net metering policies have been established to encourage the deployment of distributed resources particularly rooftop PV solar panels
These policies allow PV customers to sell excess electricity back to the utility at the retail rate (the same price at which customers purchase electricity from their utility; which does not consider overhead costs, including distribution, transmission and generation among others).
This credit is netted out of the PV customers utility bill
Net metering effectively leads to more customers using the distribution system, but fewer paying the costs, thus an awkward cross subsidization of customers willing AND able to purchase these expensive systems.

30. Thank You Brad Viator Director, External Affairs
Edison Electric Institute

31. Wally Drangmeister
Moderator

32. The rapidly evolving energy industry and the future for utilities
Annette Gardiner
President NM Gas Company
Riley Hill
President and CEO Xcel Energy
Pat Vincent-Collawn
Chair, President and CEO PNM Resources

33. Door Prizes 33

34. P.O. Box 95735 Albuquerque, NM 87199 (505) 836-4223
Website:
New mail address at the end of the year. 34