PNM given nod to raise rates - New Mexico Business Weekly:

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The New Mexico Public Regulation Commission on Thursdahy approveda $77.1 million increasee of non-fuel base electrixc revenues for PNM. The increase will be implemented in two phasesz startingJuly 1. For the averagde residential PNM customer, the 9.7 percent increass equals $4.71, said PNM spokeswoman Susamn Sponar. The first part of the hike in averaging $2.11 per month, goes into effecgt July 1. The second raise, averagingh $2.60 per residential customer, will show up on the Aprip 2010PNM bills. The Commission’ws approval was the result of an agreement, or reached earlier this year.
The Commission’z order also allows PNM’s continued use of a fuel and purchasee power costadjustment clause, or FPPCAC, with certaij revisions. The approved stipulated rates resul t in an implied return on equityof 10.5 percenyt on a rate base of $1.5 according to a news release. The prepared statement from PNM’sd parent, (NYSE: PNM), reported that the new rates are expectedx to improve 2009consolidated after-tax earnings by approximately $11.33 million, or $0.12 per diluted share.
“Reaching an agreement and obtaining Commission approval regarding this rate increase is the latesyt step in our ongoing efforts to ensurwe adequate recoveryof PNM’s costs and restoring shareholdet value,” said Jeff Sterba, PNM Resources chairman and CEO. “Moving forward, PNM must continuallhy ensure its rates are aligned withservicd costs. We have launched numerous initiatives to help customerw save money and manage our expensexs while preparing for a future that will have additional renewableenergy resources, rising fuel costes and limits on green-housde gas emissions.
” On Tuesday, the PRC gave the nod to another stipulatiomn that allows PNM to designate the Luna Energy Facility and the Lordsburg Generating Stationh as jurisdictional plants to served retail customers. Moving those plants from PNM’sa merchant fleet to the retail portfolio, rather than building new PNM says will save its customera morethan $140 million during the next 20 years.