The examiner has recommended that state regulators approve, with modifications, an agreement that includes a two-phase, $85m rate increase.
If the commission approves the stipulation as recommended, and the other parties to the stipulation agree to the recommended modifications, PNM base revenues would increase 5.7%, or $45m, during Phase 1 that begins in August, the company said.
Phase 2 is expected to increase revenues by 5.1%, or $40m, beginning 1 January 2012.
In the recommended decision, the hearing examiner made changes to the stipulation and eliminated a key element: the recovery of up to $20m through an ‘Additions Rider’ that is designed to capture certain capital costs incurred between 30 June 2010 and 31 December 2012.
PNM and other parties have until 1 July to file responses, or exceptions, to the recommended decision.
