New Mexico News
| Electric Bills to Increase By 15.4% |
| Posted by () on May 23 2008 at 1:57 PM |
SANTA FE— The Public Regulation Commission on a split vote Thursday granted PNM's request for an emergency fuel adjustment clause that will add an estimated $63 million to utility bills during the next year.
When coupled with the 6.4 percent rate increase approved last month, the PRC said that means an increase of about 15.4 percent in electric rates and surcharges for the utility's 487,000 customers.
"Most everybody agreed there needed to be some relief for PNM. The question was, what was the best mechanism," said Commissioner Sandy Jones, who voted for approval.
Countered Commissioner Jason Marks, who voted against: "Public interest would have been better served to have had something with a better balance between risk to ratepayers and risk to the company."
No immediate breakdown was available on how the increase would affect customers in different business and residential rate classes.
The new rates are expected to go into effect by June 2, according to PNM.
The decision came on a 3-2 vote, with Commissioners Jones, David King and Carol Sloan voting in favor of the fuel adjustment clause, and Commissioners Marks and Ben Ray Luján voting against.
The emergency clause will allow the utility to pass along fuel costs without going through the process of including them in basic rates.
The extra charge will be capped at 1 cent per kilowatt hour, according to the PRC. The utility disputes that there is a cap.
The clause expires in two years or at the end of PNM's next electric rate case, whichever comes first.
PNM officials have said the cash-strapped utility desperately needed help and have said they plan to file a new rate case as soon as this summer.
Commissioners approved several amendments that reduced the amount of the fuel adjustment clause by about $9 million.
Luján of Santa Fe said he opposed any fuel clause without protection for consumers against rate shock or assurances that company executives wouldn't get bonuses after the PRC action.
Sloan of Gallup was the swing vote on the key issue.
Marks had moved to limit PNM's recovery of fuel expenses to 80 percent of total costs.
Sloan originally seconded Mark's motion on that and several other amendments.
In a later vote, she switched her support to a motion by Jones that excluded the 80 percent limit.
Asked after the meeting about her reasons for the switch, Sloan said she changed her mind after Jones carefully explained his motion to her.
"It's a woman's prerogative," she said.
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