AG’s office, Los Alamos County scale back involvement in proposed New Mexico Gas Co. sale

The New Mexico Department of Justice and Los Alamos County have scaled back their involvement in the proposed sale of New Mexico Gas Co. as parties entered the third day of evidentiary hearings.

On Monday, the start of what could be nearly two weeks of hearings before the state Public Regulation Commission for the $1.25 billion sale of the utility to Louisiana-based Bernhard Capital Partners, the NMDOJ moved to withdraw its prefiled direct testimony from Mark Garrett and stated it would not cross-examine witnesses.

Garrett, president of Garrett Group Consulting Inc., was appearing on behalf of the NMDOJ, according to the testimony filing. Attorney General Raúl Torrez stated in the document that the motion to withdraw was filed due to Bernhard submitting a revised application this summer, to which the NMDOJ did not file follow-up testimony.

The request noted that NMDOJ still intends to observe the hearings and could file “post-hearing writings of legal analysis.”

With no objections, Elizabeth Hurst, the hearing examiner, granted the motion “with sadness.”

Spokesperson Lauren Rodriguez wrote in an email that the NMDOJ “has been and will continue to be actively engaged” in the case. She added that the NMDOJ does not support the current proposal, as it “fails to provide sufficient rate credits for low-income customers and inadequate investments in our blue-collar workforce.”

“We intend to participate in the pending action along with other intervenors in the case and will file supplemental briefing with the PRC once additional testimony has been taken,” Rodriguez said. “Our focus is, and will continue to be, protecting New Mexico consumers and advocating for a fair, forward-looking outcome that benefits all communities across the state.”

The NMDOJ, along with energy advocacy groups, filed a motion to dismiss the acquisition case in May, arguing that Bernhard lacks the experience needed to run a utility like NMGC. Garrett’s prefiled testimony stated that he had also testified in the recently dissolved plan to merge the Public Service Company of New Mexico and Avangrid.

In the testimony, Garrett claimed that Bernhard’s application was not in the public interest, saying that it put “unacceptable risks on NMGC’s captive customers and provides undue benefits to the divesting owners.”

Similarly, Hurst granted the excusal of Los Alamos County from the case. She noted that the entity’s absence from the hearings waived the allowance of any “post-hearing writings.” Dan Najjar, who was representing the county, accepted the terms. The county did not respond to comment on the motion.

Emera, NMGC’s Canadian parent company, revealed last August its plans for Bernhard to take control of the utility. In a public hearing on Oct. 28, state regulators listened to mixed opinions on the case, reflecting a divide between how residents and industry view the proposed transaction.

Multiple entities have already cross-examined Jeff Baudier, Bernhard’s senior managing director, since evidentiary hearings began Monday. This includes representatives from New Energy Economy, Western Resource Advocates, Coalition for Clean Affordable Energy and the PRC.

Evidentiary hearings will continue through Nov. 14, as needed.

Hannah García covers tech and energy for the Journal. You can reach García at hgarcia@abqjournal.com.