The order from the New Mexico Public Regulation Commission modifies terms of a rate case agreement, or stipulation, PNM reached in February 2011 with several key parties regarding the utility’s request to increase rates.
PNM president and CEO Pat Vincent-Collawn said the company is working collaboratively with the key parties to examine the commission’s order and the amendments to the original stipulation.
PNM and the key parties have until 12 August to formally accept the modifications for the commission’s order to become effective.
The order will also provide PNM with the opportunity to file for recovery of costs to comply with any federal or state environmental law or requirement effective after 30 June 2010.
It will set the utility’s capital structure at 48.19% long-term debt, 0.53% preferred stock and 51.28% common equity, and set PNM’s return on equity at 10% on a rate base of $1.8bn.
PNM said if the key parties agree, the order would allow it to advance the date on which rates under its next rate case could become effective to 1 July 2013.
