New Mexico Public Regulation Commission - Office of Commissioner Jason Marks

Albuquerque Public Comment Hearing on PNM Electric Rate Increase

March 25, 2009, 3:00 pm and 6:00 pm. African America Performing Arts Center, 310 San Pedro NE (Fairgrounds)

Background

In September, PNM filed for a new electric rate increase. No, your memory is not playing tricks on you, this is only four months after the conclusion of its last general rate case and three months after it obtained Commission approval (on a split vote) of an emergency fuel and purchased power adjustment clause. In the new application, PNM is asking for $123 million, which translates to an average 18% rate increase. Adding to concern, PNM is proposing changes in the allocation of costs between customer classes that would result in residential rates increasing by about 22% if their entire request was granted.

The company says that the cost increases are being driven by load growth and the resulting need to bring on new generation plants. In another significant aspect of the case, PNM is seeking to recover costs incurred to clean up emissions at its San Juan coal plant. An evidentiary hearing is set for March 30, 2009 in Santa Fe. At my request, the PRC will hold public comment hearings in Albuquerque on March 25th in the afternoon and evening. Each session will begin with a short presentation from PNM explaining their position, followed by a presentation from parties opposing the rate increase, in whole or in part. We will then take comment from members of the public. The hearings will be "on the record" with a court reporter. The public is also welcome to attend the Santa Fe hearings.

Contact Commissioner Marks' Office with any questions at 505 827-8015 or 1-888-4-ASK-PRC.