TNMP Seeks Authorization for Smart Meter Remediation Plan to Replace 2G Technology; Maximum Cost of $3 Million Anticipated in AMS Surcharge Reconciliation

Texas-New Mexico Power has petitioned the Public Utility Commission of Texas for an amendment to its advanced metering system deployment plan to remediate its second generation ("2G") wireless telecom network and upgrade to a third generation ("3G") or later equivalent technology wireless network.

TNMP said that, in August 2012, TNMP was informed by AT&T that it planned to sunset its 2G network in 2016.

Currently, TNMP has 55,000 2G devices either installed or in stock. TNMP seeks to remediate the existing 2G AMS meters to 3G or later equivalent technology status ensuring consistent long-term functionality, and to ensure the meters are installed consistently with TNMP's AMS deployment plan.

TNMP said that its maximum contribution to complete the remediation would be $3 million

TNMP said that it will seek to recover the reasonable and necessary costs associated with deploying the new 3G or later equivalent technology meters through its AMS surcharge after those costs have been reviewed in a future reconciliation proceeding conducted pursuant to P.U.C. SUBST. R. 25.130(k)(6).

The estimated costs for the purchase and deployment of the new 3G or later equivalent technology meters were not included in TNMP's original AMS Deployment Plan, and TNMP is not seeking to reconcile estimated costs in its AMS surcharge at this time.

"Instead, if the Commission approves the requested amendment to TNMP's previously approved AMS Deployment Plan, TNMP proposes that the actual costs spent in the purchase and deployment of the new 3G or later equivalent technology meters be evaluated by the Commission in a future reconciliation proceeding before being recovered through TNMP's AMS surcharge," TNMP said.

"If the Commission approves this proposed amendment, then in that future reconciliation proceeding, consistent with P.U.C. SUBST. R. 25.130(k)(6), there would be a presumption that the costs spent in accordance with the approved amended AMS Deployment Plan are reasonable and necessary," TNMP said.

If the Commission approves TNMP's request, TNMP's plan would be to deploy the 3G or later equivalent technology meters by the end of the third quarter in 2016.

Docket 43239