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BOARD OF PUBLIC UTILITY COMMISSION
The regular meeting of the CITY OF FARMINGTON BOARD OF PUBLIC UTILITY
COMMISSIONERS was held Wednesday. December I 0. 2025 at 3:00 p.m .. in the Executive
Conference Room. City Hall. 800 Municipal Dr.. Farmington. New Mexico in full conformity
with the laws and ordinances of the Municipality.
Upon roll call. the frillowing were found to be present. constituting a quorum:
Commission members present: Tory N. Larsen
Linda Corwin
Stewart Logan
Patricio Sanchez
Cliflon Horace
Drew Degner
John Buffington (arrived at 4:05pm)
Steve Grey
Diane Schmidt
George Sharpe
Jesse Whitaker
Commission members absent: Nathan Thompson
Council Liaison Janis Jakino
constituting all members of said Advisory Commission.
Also present were:
Electric Utility Director Hank Adair
Electric Field Operations Luke Lugenbeel
Electric Engineering Shawn Weiss
Electric Generation Britt Chesnut
Customer Service Nicki Parks
Electric Business Operations Sheree Wilson
Community Works Mark Hathcock
Water/Wastewater O & M Manager Benedikte Webb
Administrative Services Nalinee Jose
Administrative Services Lynda Hayes
The meeting was convened by the Chair.
BUSINESS
Election of Officers
The Chair opened the floor for nominations for the election of the position of Chair.
Commissioner Degner was nominated and declined; Commissioner Schmidt was nominated and
accepted: Chair Larsen was nominated and accepted. Votes were offered and by a vote of7-4.
Chair Larsen will continue serving in the position of Chair.
Chair Larsen opened the floor for nominations for the election of the position of Vice-Chair.
Commissioner Sanchez nominated and Commissioner Buffington seconded the nomination or
Linda Corwin. Commissioner Sharpe nominated and Commissioner Logan seconded the
nomination or Diane Schmidt to serve as Vice-Chair. By a show of hands. Commissioner
Schmidt received the majority of votes to serve as Vice-Chair.

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The Chair called for a motion to approve the Minutes ofihc November 12. 2025 Regular
meeting. Commissioner Degner offered a motion and Commissioner Sanchez provided a
second. By voice \'Otc t.he motioned passed.
Business from the Floor
Mr. David FosdeL 209 N. Locke Ave. Farmington. NM addressed the commission and noted he
has been attending PUC meetings off and on for ten years. He stated the electric utility is in
phase 4 ofthe latest cost or service and expressed interest in being involved with future cost or
service activities.
Mr. Jody Moore. owner ofprope1iy located at 4206 Skyline Drive. Farmington. NM addressed
the commission and stated he would have liked more than three minutes to speak regarding his
concerns about easements. He mentioned how personnel from the Community Development
dcpa11mcnt have not been forthcoming with documents. Mr. Moore also noted criticisms he has
with the electric utility about its Skyline Drive UG project.
Financial Report Discussion
Following up on discussion from the November meeting. it was decided staff will continue to
provide monthly reports except during the meetings when quarterly reports are presented.
Electric Utility Report -Electric Business Operations
Ms. Sheree Wilson offered information regarding the utility's financial status for November
2025.
Utilizing a PowerPoint presentation. Ms. Sheree Wilson noted the actual consumer consumption
for November was 65.568 MWH: 3% under budgeted. Revenue for FY26 YTD was $45.1
million. Expenses for FY26 YTD were $53.9 million. Through October 2025. FEUS had $657
thousand recouped via PCA. which remains at $0.012/kWh. Generation Cost per mWh was
$43.45 per mWh for October 2025.
Director's Report-Electric Utility Director, Hank Adair
Mr. Hank Adair offered an update of utility activities. 55% of customers used the autopay web
system process last month. This remains the most commonly used payment source. The
Customer Service team had eight thousand customer contacts in November. The utility received
$24.430 in LiHEAP assistance equaling 96 payments and the FEUS Utility Assistance program
provided $11.320 in assistance to 62 families.
The Bergin 69kV Substation project is complete and in operation. This project was completed
10% under budget. Seventeen transformer upgrades and two new line extensions were
completed. The Hogback to West loop l I 5kV Transmission Line pole to pole maintenance
project was completed with the replacement or one so· H2 structure and tightening hardware on
192 structures.
The Navajo 1-lydro Plant Valve Outage will take place January to February 2026. The Butterfly
valve has been received and staged at the plant.
The Bluffview Spring Major outage is scheduled f<.x April 17 -June 3. 2026.
FOM December Gas was $4.46/MMBtu. The utility hedged at $4.275/MMBtu.
Regarding the Riverview Solar/Battery project. 30% Electric Design for interconnect was
received December 2.
The Commercial Operation Date (COD) for the RICE unit remains December 5. 2025.
The utility experienced three Circuit Outages in November. two were vehicle related and one
was bird related.
Three solar customers connected for 23.43 kW.
O&M Water/Wastewater Operations Report
Ms. 11cncdiktc Wcbh. Oparntions. Mnintenance & Environment Administrator provided
information regarding water/wastewater operations activities for November 2025.
Farmington Lake levels were 86.87% to perform sedimentation pond cleaning. Water
production was 271.54 million gallons. Eight new meters. seven residential and one
commercial. were installed in November. There were eight service line breaks and one main
line break in November.

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Regarding Wastewater treatment. ertluent flow for November was I 31.65 MG. Ertluent BOD
(Biochemical Oxygen Demand) was 4. I 8 mg/L: emuent TSS (Total Suspended Solids) was
5.60 mg/L: Enlucnt TDS Net Increase was 324.17 mg/L: Effluent E.coli was 1.47 MPN/1001111.
Bulk Meter Usage was 1 million gallons for October-November.
CIP Water/Wastewater
Water/Wastewater CIP Administrator Mark Hathcock provided an update regarding capital
projects planned and underway throughout the city.
A review or Grant Funded Projects noted the Water Treatment Plant# l is approximately 70%
complete. The Feasibility Study 1t1r Varmington Lake Dam Rai:;e is approximately 89'rii
complete.
Regarding new and current Renewal and Replacement projects, the 2019 Polyline Replacement
project continues and as of 11/26/2025. 1.868 poly lines have been replaced. As part of the
Valve Rehabilitation/Replacement project 189 of 210 valves have been completed. 30 of the 46
manholes have been completed as paii ofthe Manhole Raising Project.T his project is 65%
complete. Regarding the Sewer Point Repairs. Breaks and Cracks in Sewer Lines Between
Manholes project. 138 out of 155 identified have been completed or arc currently in progress.
ADJOURNMENT
There being no further business to come before the Commission the meeting was adjourned at
4:30 p.m.
Approved this 14th day of.January. 2026.
Tory N. Larsen. Chair

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CITY OF FARMINGTON (FARMINGTON)
AND FARMINGTON ELECTRIC UTILITY SYSTEM (FEUS)
Third Fourth Revised Rate No. 11
Cancelling Seeend Third Revised Rate No. 11
WHOLESALE TRANSMISSION SERVICE
APPLICABILITY:
Applicable at Farmington's and its FEUS"s discretion. If Farmington and FEUS determine
Rate I I is applicable and offer this Rate, then it will be applicable to the wholesale
transportation of electrical power and energy over one or both of the 69,000 and 115,000
voltage transmission networks of Farmington/FEUS; for deliveries between interconnection
points with other electric utility transmission systems. A separate wholesale transmission
service agreement will be required as a condition of service for each electric utility
transmission system with terms, provisions, and conditions acceptable to Farmington and
FEUS in their discretion considering, among others, the separate facilities, costs, expenses,
characteristics, and circumstances of the electric utility transmission system and its effect and
burden on the Farmington/FEUS transmission networks. Not applicable to any retail entity
rece1vmg service.
AVAILABILITY:
The amount of wholesale transmission service capacity available is limited to the transfer
capability of the Farmington/FEUS transmission system minus the capacity required for firm
load entity receiving services. Any incremental addition requested as a result of wholesale
transmission service requests will be paid by the entity requesting the capacity.
MONTHLY RATE:
Entity Charge ........................................................ $4,880.00 plus
Reserve Capacity Charge ...................................... $J.d60.25 per kW of annual reserved
capacity
LOSSES:
0.5±%
Transmission losses will be estimated at of kW deliveries. The transmission losses will
be applied to the Reserved Capacity Charge rate and will be billed to the entity receiving
service, in addition to the Reserve Capacity Charge.
INTERCONNECTION AGREEMENT:
An agreement will be required prior to providing service under this rate. The agreement shall
include requirements for annual reserve demand requests, interconnection standards, required
telemetry, inadvertent interchange responsibility, emergency disconnection, and term
provisions. A separate interconnection agreement will be required for each entity receiving
BCrY I��.
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SPECIAL TAX AND ASSESSMENT ADJUSTMENT:
Billings under this tariff may be increased by an amount equal to the sum of the taxes payable
under the Gross Receipts and Compensating Tax Act and of all other taxes, fees, or charges
(exclusive of payments made in lieu of ad valorem taxes) payable by Farmington/FEUS and
levied or assessed by any governmental authority on the service rendered, or on the right or
privilege of rendering the service, or on any event incidental to the rendition of the service.
TERMS OF PAYMENT:
BiI ls are due and payable within fourteen ( 14) days of the bi II ing date, are past due fifteen (IS)
days after bill is rendered, are delinquent twenty-five (25) days after the billing date, and
service may be terminated for non-payment thirty (30) days from the original due date of the
bill subject to a first delinquent notice provided fou1teen (14) days prior to disconnection of
service and a last notice of termination mailed five (5) business days prior to termination of
service. If there is a returned check from the entity receiving service or the entity receiving
service is on a payment plan, the notice of termination will be hand delivered to the entity
receiving service at least two (2) days prior to service termination.
Resolution Number: 2022-1842
Approved: April 12, 2022
Effective Date: July I, 2022
Revised January 27, 2026
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Docusign Envelope ID: CB0F0793-A443-4911-8115-6D36726D8231
225 Union Boulevard,
Suite 450,
NewGen
Lakewood, CO 80228
Strategies & Solutions Phone: (720) 633-9514
December 5, 2025
via email
Mr. Hank Adair
Electric Utility Director
Farmington Electric Utility System
800 Municipal Drive,
Farmington, NM 87401
Subject: Wholesale Transmission Service Rate
Dear Mr. Adair:
As requested by Farmington Electric Utility System (FEUS), NewGen Strategies and Solutions, LLC
(NewGen) updated the Wholesale Transmission Service (WTS) Rate in consideration of FEUS's planned
integration into the Southwest Power Pool (SPP) in April 2026.
The existing WTS Rate includes an allocation of all of FEUS's transmission assets operating at voltages of
69 kilovolts (kV} and above. Upon FEUS's integration into the SPP, all non-radial assets above 69 kV will
be incorporated into the SPP system. Consequently, the WTS Rate must be revised to appropriately
account for the assets and costs that will remain on the FEUS system and are associated with non­
integrated assets.
Based on our analysis, the WTS Rates should decrease significantly. We estimate that the FEUS WTS
customers' bills will decrease by approximately 75%, or $470,000 annually. A summary of the current and
proposed rates is shown in Table 1 below.
Table 1
Current and Proposed Wholesale Transmission Service Rates
Current Proposed Change in
Rate Component Basis Rate Rate Rate
Entity Charge $/month $4,880 $4,880 0%
Reserve Capacity Charge $/kW $3.26 $0.25 (92%)
As always, we greatly appreciate the opportunity to support FEUS. If you have any questions, please
contact me at (720) 924-7134 or jschuepbach@newgenstrategies.net at your convenience.
Sincerely,
NewGen Strategies and Solutions, LLC
Jill S�t,Afk
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Principal
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www.newgenstrategies.net
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