BEFORE THE NEW MEXICO PUBLIC REGULATION COMMISSION

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BEFORE THE NEW MEXICO PUBLIC REGULATION COMMISSION IN THE MATTER OF SUNZIA ) TRANSMISSION, LLC's APPLICATION FOR ) (1) APPROVAL OF THE LOCATION OF TWO ) 500 KV TRANSMISSION LINES IN LINCOLN, ) SOCORRO, SIERRA, LUNA, GRANT, ) TORRANCE, AND HIDALGO COUNTIES; ) Case No. 18-00049-UT AND (2) DETERMINATION THAT RIGHT ) OF WAY WIDTH GREATER THAN 100 FEET ) IS NECESSARY, ) ) SUNZIA TRANSMISSION, LLC, ) ) APPLICANT ) ) NOTICE OF PROCEEDING AND HEARING NOTICE is hereby given by the New Mexico Public Regulation Commission ( Commission or PRC ) of the following: 1. On March 12, 2018, SunZia Transmission LLC ("SunZia") filed an Application and supporting direct testimony with the New Mexico Public Regulation Commission, pursuant to sections 62-9-3 and 62-9-3.2 of the Public Utility Act and 17.9.592 NMAC. SunZia requests that the Commission enter a Final Order that grants the following relief: (1) approves the location of two 500 kilovolt ("kv") transmission lines and related facilities in specified areas of Lincoln, Socorro, Sierra, Luna, Grant, Torrance, and Hidalgo counties in New Mexico ("SunZia Project" or "Project"); (2) determines that a total right-of-way width of approximately 400 feet (i.e. 200 feet for each transmission line), which may require a width of up to 1000 feet in a few locations, is necessary for the construction, operation, and maintenance of the Project; and (3) determines and approves other matters that are appropriate and necessary for the implementation of the approvals and authorizations granted in this case.

2. Although the total length of the SunZia transmission lines will be approximately 520 miles, the lines located in New Mexico will extend for approximately 320 miles and will cross approximately: (a) 134 miles of federal lands; (b) 96 miles of New Mexico State Land Office lands; and (c) 90 miles of private lands. 3. The right-of-way width for the Project transmission lines and associated facilities in New Mexico will generally be 400 feet (i.e. 200 feet for each 500 kv transmission line), but in a few locations, the right-of-way width may require and extend up to 1,000 feet to accommodate physical constraints (i.e. terrain features, sensitive environmental resources, critical habitat, existing land uses, and important historical and cultural resources). 4. SunZia s two 500 kv transmission lines will have a total transfer capacity of 3,000 megawatts ("MW"), which will include a substantial amount of energy generated by renewable resources, particularly high capacity factor wind energy resources in Lincoln, Torrance and Guadalupe counties. Additionally, SunZia has the option of either initially constructing or later converting one of the 500 kv alternating current transmission lines to direct current ("DC") operation. Implementing a DC electrical configuration would likely increase the Project s total power transfer capacity from 3,000 MW to approximately 4,500 MW. SunZia will decide whether to utilize a DC electrical configuration based on the level of market demand for additional transmission capacity and service. 5. The SunZia Project will be an interstate electric transmission project, and SunZia does not propose to own, develop, operate, or construct any generation plant as a part of the Project. SunZia will not seek to condemn any public utility transmission facilities that serve retail electric customers in New Mexico, and the Project will not materially diminish service and reliability of any retail electric public utility transmission system in New Mexico. 2

6. The Commission has assigned Case No. 18-00049-UT to this Application, and all correspondence, pleadings, comments, and other communications shall refer to that case number. 7. The procedural schedule established in this case is as follows: (A) Any interested person may intervene in this case by filing a motion for leave to intervene pursuant to 1.2.2.23 NMAC on or before May 15, 2018. (B) The Utility Division Staff and any Intervenors shall file direct testimony on or before May 25, 2018. (C) Any uncontested stipulation shall be filed on or before May 25, 2018. (D) Rebuttal testimony or testimony in support of an uncontested stipulation shall be filed on or before June 6, 2018. (E) A public hearing will be held beginning at 9:00 a.m. on June 13 through June 15, 2018, and continuing thereafter on June 18-19, 2018, if necessary, in the Ground Floor Hearing Room of the Commission in the P.E.R.A. Building, 1120 Paseo de Peralta, Santa Fe, New Mexico, to hear and receive evidence, arguments, and any other appropriate matters pertaining to the case. 8. The procedural dates and requirements currently set in this case are subject to further order of the Commission or the Hearing Examiner. Interested persons should contact the Commission at (505) 827-6956 for confirmation of the hearing date, time, and place, since hearings are occasionally rescheduled. 9. In accordance with NMSA 1978, Section 62-9-3(K), the Commission may approve SunZia s request for location approval without formal hearing if no protest is filed within sixty (60) days after SunZia publishes notice of the Application in the case. 3

10. The Application, together with supporting pre-filed direct testimony and any attachments and related papers, may be examined by any interested person at the SunZia website (http://www.sunzia.net), or the Commission s website (See "Case Lookup Edocket" on the Commission's website at www.nmprc.state.nm.us ), or the offices of SunZia and the Commission at the following addresses: SunZia Southwest Transmission Project 3610 North 44th Street, Suite 250 Phoenix, AZ 85018 602-808-2004 New Mexico Public Regulation Commission Records Bureau Fourth Floor, P.E.R.A. Building 1120 Paseo de Peralta Santa Fe, NM 87504 1-888-427-5772 11. Pursuant to l 7.9.592.13 NMAC, the Application, supporting pre-filed direct testimony and attachments may also be examined by any interested person at the following public libraries: Carrizozo Community Public Library (Lincoln County) 406 Central Avenue Carrizozo, NM 88301 Socorro Public Library (Socorro County) 401 Park St. Socorro, NM 87801 (575) 835-1114 Downtown Public Library (Sierra County) 401 N. Foch St. Truth or Consequences, NM 87901 (575) 894-7821 Marshall Memorial Library (Luna County) 110 S. Diamond St. Deming, NM 88030 (575) 546-9202 4

Silver City Public Library (Grant County) 515 West College Avenue Silver City, NM 88061 (575) 538-3672 Estancia Public Library (Torrance County) 601 10th Street South Estancia, NM 87016 (505) 384-9655 Lordsburg Hidalgo Library (Hidalgo County) 208 East 3rd Street Lordsburg, NM 88045 (575) 542-9646 12. Any interested person may appear at the time and place of hearing and make a written or oral comment, pursuant to 1.2.2.23(F) NMAC without becoming an intervenor. Written comments, which shall reference Case No. 18-00049-UT, also may be sent to the Commission at the mailing address provided above. However, pursuant to Commission Rule 1.2.2.23(F) NMAC, comments will not be considered as evidence in the proceeding. 13. Anyone filing pleadings, testimony, and other documents in this case may file either in person with the Commission s Record Bureau on the Fourth Floor, P.E.R.A. Building, Santa Fe, New Mexico 87501, or by mail addressed to: Records Bureau, New Mexico Public Regulation Commission, P.E.R.A. Building, P.O. Box 1269, Santa Fe, New Mexico 87504-1269. The physical address of the Commission shall be used only for special or hand deliveries. Copies of all filings shall be served on all parties of record and Staff as specified in the most recent Certificate of Service issued in this case. Copies of all filings shall also be e-mailed on the date of filing to the Hearing Examiner at ashley.schannauer@state.nm.us by no later than 5:00 pm Mountain Prevailing Time. 5

14. Any person filing prepared testimony under Commission Rule 1.2.2.35(I) NMAC on behalf of a party shall attend the hearing and submit to examination under oath. 15. The Commission s Rules of Procedure (1.2.2 NMAC) shall apply to this case except as modified by Order of the Commission or Hearing Examiner. A copy of such rules may be obtained from the offices of the Commission and are available online at the official NMAC website, http://164.64.110.239/nmac/parts/title01/01.002.0002.htm. 16. Additional details regarding this proceeding and its procedural requirements are set forth in the Hearing Examiner s Procedural Order issued on April 4, 2018. 17. ANY PERSON WITH A DISABILITY REQUIRING SPECIAL ASSISTANCE IN ORDER TO PARTICIPATE IN THIS CASE SHOULD CONTACT THE COMMISSION AT (505) 827-6956 AT LEAST 24 HOURS PRIOR TO THE COMMENCEMENT OF THE HEARING. ISSUED at Santa Fe, New Mexico, this April 4, 2018. NEW MEXICO PUBLIC REGULATION COMMISSION Ashley C. Schannauer Hearing Examiner 6