Expert Testimony Regarding New Mexico Gas Company's LNG Storage Facility Application
Synapse provided prepared testimony for the New Mexico Office of the Attorney General in Docket 22-00309-UT regarding the New Mexico Gas Company's application for a certificate of public convenience and necessity (CPCN) to construct an LNG facility.
Dr. deLeon reviewed the New Mexico Gas Company's application to build a liquefied natural gas (LNG) storage facility and provided testimony on several important points. First, federal and state climate policies, along with market shifts towards renewable energy, create uncertainty regarding the gas utility's predictions about future customer growth and gas demand. Second, while the exact nature of this energy transition is uncertain, the utility can start preparing for various scenarios by considering the potential impacts of climate policies in their analysis of projects like the LNG facility. Lastly, instead of assessing the LNG project based on a single future scenario, Dr. deLeon recommended that the utility evaluate it and its alternatives across a range of possible energy futures influenced by different climate policy pathways and their effects on gas supply, demand, and customer base.