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

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The New Mexico Public Regulationh Commission on Thursday approveda $77.1 million increasew of non-fuel base electric revenuexs for PNM. The increase will be implemented in two phasesz startingJuly 1. For the average residential PNM customer, the 9.7 percenr increase equals $4.71, said PNM spokeswoman Susan Sponar. The first part of the hike in rates, averaging $2.111 per month, goes into effect July 1. The seconr raise, averaging $2.60 per residential customer, will show up on the Apripl 2010PNM bills.
The Commission’s approvalp was the result of an agreement, or stipulation, reached earlier this The Commission’s order also allows PNM’sa continued use of a fuel and purchasesd power costadjustment clause, or FPPCAC, with certai n revisions. The approved stipulatecd rates result in an implied return on equithyof 10.5 percent on a rate base of $1.5 billion, according to a news The prepared statement from PNM’sa parent, (NYSE: PNM), reported that the new ratee are expected to improv e 2009 consolidated after-tax earnings by approximately $11.4 million, or $0.12 per diluted share.
“Reachinhg an agreement and obtaining Commission approval regardingf this rate increase is the latest step in our ongoing efforta to ensure adequate recoveryof PNM’s costs and restoring shareholder value,” said Jeff PNM Resources chairman and CEO. “Moving PNM must continually ensure its ratexs are aligned withservice costs. We have launched numerous initiativea to help customers save mone and manage our expenses while preparingg for a future that will have additional renewablweenergy resources, rising fuel costsd and limits on green-house gas On Tuesday, the PRC gave the nod to another stipulatiob that allows PNM to designate the Luna Energy Facilitgy and the Lordsburg Generatingh Station as jurisdictional plants to servde retail customers.
Moving those plants from PNM’s merchant fleetr to the retail portfolio, rather than building new PNM says will save its customers morethan $140 millionn during the next 20 years.