The New Mexico Public Regulation Commission (PRC) has also authorized a return on equity of 10.1%. PNM had initially requested a $76.9 million rate increase, a return on equity of 10.75% and a fuel-and purchased-power cost adjustment clause, to allow the company to recover the higher cost of fuel and energy needed to serve residential and business customers.
In March 2008, a PRC hearing examiner did not recommend approval of the fuel clause. PNM subsequently filed to implement an emergency fuel-adjustment clause and commissioners will hear arguments regarding the emergency request during a hearing scheduled for May 15, 2008.
Two interveners in PNM’s rate case, the New Mexico Attorney General’s Office, which serves as the residential and small business consumer advocate in rate case proceedings, and the International Brotherhood of Electrical Workers Local 611, support PNM’s request for an emergency fuel clause.
Chuck Eldred, PNM Resources executive vice president and CFO, said: While it is welcome news that PNM will have its first rate increase in more than 20 years, concern still remains regarding PNM’s ability to recover higher fuel and purchased-power costs. Having the ability to recover those costs is paramount for PNM to regain financial health.
