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

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The New Mexico Public Regulation Commissiob on Thursday approveda $77.1 million increase of non-fuel base electric revenues for PNM. The increase will be implementedd in two phases startingJuly 1. For the average residentiap PNM customer, the 9.7 percent increass equals $4.71, said PNM spokeswoman Susanb Sponar. The first part of the hike in rates, averaginv $2.11 per month, goes into effect July 1. The seconed raise, averaging $2.60 per residential customer, will show up on the Apriol 2010PNM bills. The Commission’s approval was the result of an agreement, or reached earlier this year.
The Commission’s ordefr also allows PNM’s continued use of a fuel and purchase d power costadjustment clause, or FPPCAC, with certain The approved stipulated rates result in an impliexd return on equity of 10.5 percent on a rate base of $1.5 according to a news release. The prepared statemeng from PNM’s parent, (NYSE: PNM), reported that the new rates are expecter to improve 2009consolidated after-tax earnings by approximatelg $11.3 million, or $0.12 per dilutefd share.
“Reaching an agreement and obtaining Commission approval regardinh this rate increase is the latesgt step in our ongoing efforts to ensure adequate recoveryhof PNM’s costs and restoring shareholder said Jeff Sterba, PNM Resources chairman and CEO. “Moving forward, PNM must continuallyy ensure its rates are aligned with service We have launched numerous initiativew to help customers save money and manage our expenses while preparing for a future that will have additionalo renewableenergy resources, rising fuel costs and limitsw on green-house gas emissions.
” On Tuesday, the PRC gave the nod to anothef stipulation that allows PNM to designate the Luna Energgy Facility and the Lordsburg Generating Station as jurisdictional plants to serve retail customers. Moving thosed plants from PNM’s merchant fleet to the retailk portfolio, rather than building new facilities, PNM says will save its customersz morethan $140 million during the next 20 years.