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N.M. Hearing Examiner Issues Recommended Decision in PNM Electric Rate Case

^{Published on 2011-06-21 19:00:37 - Market Wire}
 

ALBUQUERQUE, N.M.--([ BUSINESS WIRE ])--A New Mexico Public Regulation Commission hearing examiner issued a recommended decision today regarding the ongoing electric rate case proposal for PNM, PNM Resourcesa™ (NYSE: PNM) New Mexico utility. The hearing examiner has recommended that state regulators approve a" with modifications a" an agreement that includes a two phase, $85 million rate increase.

"We wish we did not have to ask for a rate increase, but we have an obligation to make improvements to our system to serve our customers."

aThe evidence shows that the $85 million revenue increase is just and reasonableaa the hearing examiner wrote in her evaluation of the agreement, or stipulation, which was reached in February between PNM and a group of key parties that includes Commission staff and the state Attorney Generala™s Office.

If the Commission approves the stipulation as recommended, and the other parties to the stipulation agree to the recommended modifications, PNM base revenues would increase 5.7 percent, or $45 million, during Phase 1 that begins in August. Phase 2 would increase revenues 5.1 percent, or $40 million, beginning Jan. 1, 2012.

In the recommended decision, the hearing examiner made changes to the stipulation and eliminated a key element: the recovery of up to $20 million through an aAdditions Ridera that is designed to capture certain capital costs incurred between June 30, 2010, and Dec. 31, 2012.

aWe are disappointed that the recommended decision does not accept the stipulation in its entirety,a said Pat Vincent-Collawn, PNM Resources president and CEO. aThe agreement we reached in February effectively balances the need to keep PNM bills affordable while still providing adequate funding for improvements needed for reliability.

aThe additions rider was a key element in the stipulation that supported PNMa™s agreement to a certain rate path extending through 2013,a Vincent-Collawn said. aWe wish we did not have to ask for a rate increase, but we have an obligation to make improvements to our system to serve our customers.a

PNM and other parties have until July 1 to file responses, or exceptions, to the recommended decision. The recommended decision will be presented to the Commission for consideration. No date has been set for Commission review.

The recommended decision is available at: [ http://www.pnmresources.com/investors/regulatory.cfm ].

Background:

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2010 consolidated operating revenues of $1.7 billion. Through its utility and energy subsidiaries, PNM Resources has approximately 2,630 megawatts of generation resources and serves electricity to more than 875,300 homes and businesses in New Mexico and Texas. The company also has a 50-percent ownership of Optim Energy, which owns nearly 1,200 megawatts of generation resources in Texas. For more information, visit the companya™s Web site at [ www.PNMResources.com ].