Regulators’ recommendation would mean 3% lower electric rates for New Mexico residential customers

ALBUQUERQUE, N.M. (AP) — Staff for New Mexico’s utility regulators have recommended new rates for the state’s largest electric provider that would result in about a 3% decrease for residential customers instead of the 9.7% increase Public Service Co. of New Mexico was seeking.

The Public Regulation Commission is expected to vote within a month on the rate case after its hearing examiners issued their recommendation on Friday.

Consumer advocates said they were pleased that New Mexican ratepayers would benefit from the recommendation, but argued even a larger reduction is warranted.

PNM filed a request for its first rate hike in years in December, saying the nearly $64 million in additional revenue was needed as part of a long-term plan to recoup $2.6 billion in investments necessary to modernize the grid and meet state mandates for transitioning away from coal and natural gas.

It also cited the upcoming expiration of lease agreements for electricity from the Palo Verde nuclear generating station in Arizona and desire to refinance utility debt to take advantage of lower interest rates.

The hearing examiners recommended disallowing costs associated with the sale of leases at Palo Verde to a third party. They also said PNM’s 2016 decision to invest in extending the life of the Four Corners Coal Plant was “imprudent.”

Overall, they concluded PNM’s projected revenue deficiency is only $6.1 million, not $63.8 million.

Related News

From Archive

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}