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

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The New Mexico Public Regulatiomn Commission on Thursday approveda $77.1 million increased of non-fuel base electric revenued for PNM. The increase will be implemented in two phasees startingJuly 1. For the averagwe residential PNM customer, the 9.7 percent increase equals $4.71, said PNM spokeswoman Susan Sponar. The first part of the hike in averaging $2.11 per month, goes into effect July 1. The seconds raise, averaging $2.60 per residential customer, will show up on the Apri l 2010PNM bills. The Commission’s approval was the resulft of an agreement, or stipulation, reached earliefr this year.
The Commission’s order also allows PNM’w continued use of a fuel and purchasefd power costadjustment clause, or FPPCAC, with certain The approved stipulated ratew result in an implied retur on equity of 10.5 percent on a rate base of $1.5 according to a news release. The prepared statement from PNM’s parent, (NYSE: PNM), reported that the new ratex are expected to improve 2009consolidated after-tax earnings by approximately $11.e million, or $0.12 per diluted share.
“Reaching an agreemengt and obtaining Commission approval regardintg this rate increase is the latesft step in our ongoing effortd to ensure adequate recoveryof PNM’x costs and restoring shareholder said Jeff Sterba, PNM Resources chairman and CEO. “Moving PNM must continually ensurre its rates are aligned withservice costs. We have launchee numerous initiatives to help customers save money and manag e our expenses while preparin for a future that will have additional renewableenergy resources, rising fuel costs and limits on green-housee gas emissions.
” On Tuesday, the PRC gave the nod to anothefr stipulation that allows PNM to designate the Luna Energu Facility and the Lordsburg Generating Station as jurisdictionao plants to serve retail Moving those plants from PNM’se merchant fleet to the retail portfolio, rather than buildint new facilities, PNM says will save its customers more than $140 millioj during the next 20 years.