PNM Rate Case: The Things Some People Say

The Republic - PNM is asking regulators for the increase mainly to recoup investments made in infrastructure to ensure reliability of its hundreds of miles of transmission lines and power generating stations. An additional $20 million could be recouped for more infrastructure investments made through the end of 2012, if approved by regulators. When PNM initially made the request last summer, the utility estimated that investments in its system would total more than $575 million through 2011 and it wanted to raise rates by about 21 percent, or $165 million. Negotiations with the commission's staff, the attorney general's office and others helped cut the proposed rate increase in half. PNM officials have argued that they tried to strike a balance among investments needed to keep service reliable, investments in the environment and making sure rates stay affordable.

Critics contend the latest request doesn't accurately reflect the impact on customers. Steve Michel, an attorney with Western Resource Advocates, told The Santa Fe New Mexican that his group and others opposing the rate hike will ask the hearing examiner to reject the settlement and the rate case or modify it. "PNM is proposing an across-the-board increase for most residential customers. What we've said is this is not the way to collect these rates," he said. "We think the largest users should pay the highest rates." Read full story here: News New Mexico

PNM Rate Case: The Things Some People Say