PRC Commissioner Marks Orders PNM to Address Rate Equalization for TNMP Customers in Southern New Mexico as Part of Acquisition Plan

On February 1, 2005, PRC Commissioner Jason Marks issued a bench request to PNM Resources in the case opened to consider PNM’s acquisition of Texas-New Mexico Power Company. Under PNM’s plan, PNM would continuing to operate TNMP as a separate company and TNMP retail electric operations in New Mexico would stay separate. This means the continuation of the current arrangement by which PNM sells wholesale electricity to TNMP, which then resells it to its N.M. retail customers, at higher rates than PNM retail customers pay.

In his bench request, Commissioner Marks ordered PNM to address whether it was proper and possible to equalize the rates paid by New Mexico TNMP retail customers and PNM customers, upon the completion of the acquisition of TNMP. Commissioner Marks also ordered PNM to address the regulatory problems that he foresees arising if PNM is allowed to continue to engage in unregulated wholesale transactions with TNMP.

The complete text of his bench request to PNM is attached.