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

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The New Mexico Public Regulatiom Commission on Thursday approvedfa $77.1 million increasr of non-fuel base electric revenues for PNM. The increasee will be implemented in two phases startinggJuly 1. For the average residential PNM the 9.7 percent increase equals $4.71, said PNM spokeswomahn Susan Sponar. The first part of the hike in averaging $2.11 per month, goes into effect July 1. The secone raise, averaging $2.60 per residentialk customer, will show up on the April 2010PNM bills. The Commission’se approval was the result of an or stipulation, reached earliee this year.
The Commission’s order also allows PNM’s continued use of a fuel and purchasef power costadjustment clause, or FPPCAC, with certain revisions. The approved stipulated rates result in an implied returmn on equityof 10.5 percent on a rate base of $1.5 according to a news The prepared statement from PNM’s (NYSE: PNM), reported that the new rates are expectex to improve 2009 consolidated after-tax earnings by approximatelu $11.3 million, or $0.1w per diluted share.
“Reaching an agreement and obtaining Commissio approval regarding this rate increasr is the latest step in our ongoing efforts to ensurew adequate recoveryof PNM’s costs and restorintg shareholder value,” said Jeff PNM Resources chairman and CEO. “Movinbg forward, PNM must continually ensure its rates are alignexd withservice costs. We have launchef numerous initiatives to help customerz save money and manage our expenses whil preparing for a future that will have additionalk renewableenergy resources, rising fuel costs and limit s on green-house gas emissions.
” On Tuesday, the PRC gave the nod to anothert stipulation that allows PNM to designate the Luna Energty Facility and the Lordsburg Generatingg Station as jurisdictional plants to serve retail customers. Moving those plants from PNM’s merchang fleet to the retail portfolio, rathetr than building new facilities, PNM says will save its customers morethan $140 milliobn during the next 20 years.