New Mexico Advanced Metering Infrastructure Case

SPS seeks the Commission’s authorization to acquire and implement grid modernization components that include Advanced Metering Infrastructure (“AMI”), Fault Location Isolation System Restoration (“FLISR”), and the Field Area Network (“FAN”) that allows AMI and FLISR to operate.  As part of that authorization, SPS seeks approval of its proposed ratemaking treatment, which includes recovery of the costs associated with AMI, FAN, and FLISR through SPS’s proposed Grid Modernization Rider (“GMR”) and recovery of SPS’s remaining investment in its legacy meters.  SPS plans to implement over $30 million in capital investment to implement AMI, FAN, and FLISR between 2022 and 2025.

• AMI:  AMI meters are able to measure and transmit voltage, current, and power quality data and can act as a “meter as a sensor,” allowing for near real-time monitoring of the distribution system.  These meters provide information about customer usage and will enhance SPS’s ability to send price signals to customers, allow for new rate structures that will enable customers to manage their energy usage with near real-time energy usage data available through a customer web portal, identify outages without customer reporting, respond efficiently to metering and usage issues, and allow remote service disconnects and reconnects.  AMI meters will replace existing meters to improve service and reliability.
• FLISR:  FLISR allows for the use of software and automated switching devices to decrease the duration and number of customers affected by any individual outage.
• FAN:  FAN is the communications network that will enable communications between the infrastructure that already exists at the SPS substations, the new AMI software systems, the new AMI meters, and the new intelligent field devices associated with advanced applications such as FLISR.

SPS will provide Residential and Small Commercial customers the opportunity to opt-out of receiving an AMI meter.  For customers who opt-out prior to receiving an AMI meter, the proposed one-time fee is approximately $200.  For customers who opt-out after receiving an AMI meter, an additional trip charge will be included and the total one-time fee will be approximately $250.  In addition, the opt-out costs include a recurring monthly fee for manual reading services that will be needed to support billing for opt-out meters.  The proposed recurring monthly fee for customers that opt-out is $12.

SPS only seeks to recover costs through the GMR from customers who take service at a level below 69 kV, as at this time, SPS expects that AMI, FAN, and FLISR will primarily benefit those customers.  However,  the final terms of the GMR that may be approved by the Commission may differ from SPS’s proposal.  In particular, costs recovered through the GMR may be charged to customer classes other than those included in SPS’s proposal.

Application

2021 Application (PDF)

Notice to Customers

2021 Notice to SPS Customers (PDF)

Direct Testimony

Ruth M. Sakya (PDF)
Chad S. Nickell (PDF)
Michael O. Remington (PDF)
Steven D. Rohlwing (PDF)
Mark P. Moeller (PDF)
Stephanie N. Niemi (PDF)
Richard M. Luth (PDF)