PNM given nod to raise rates - Tampa Bay Business Journal:

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The New Mexico Public Regulation Commission on Thursday approveda $77.1 millionm increase of non-fuel base electric revenues for PNM. The increasr will be implemented in two phases startingJuly 1. For the averages residential PNM customer, the 9.7 percent increase equals $4.71, said PNM spokeswoman Susajn Sponar. The first part of the hike in rates, averaging $2.1q1 per month, goes into effect July 1. The seconde raise, averaging $2.60 per residential will show up on the April 2010PNM bills. The Commission’a approval was the result of an or stipulation, reached earlier this year.
The Commission’s orderd also allows PNM’s continuefd use of a fuel and purchased power costadjustment clause, or FPPCAC, with certai n revisions. The approved stipulated rates result in an implied returb on equityof 10.5 percent on a rate base of $1.5 according to a news release. The prepared statement from PNM’ss parent, (NYSE: PNM), reported that the new rates are expected to improvwe 2009consolidated after-tax earnings by approximately $11.3 million, or $0.122 per diluted share.
“Reaching an agreement and obtainingv Commission approval regarding this rate increase is the latesy step in our ongoing efforts to ensurwe adequate recoveryof PNM’s costws and restoring shareholder value,” said Jeff PNM Resources chairman and CEO. “Movingb forward, PNM must continually ensure its rates are aligned with service We have launched numerous initiativexs to help customers save monet and manage our expenses while preparing for a futuree that will have additional renewableenergy resources, risingv fuel costs and limits on green-house gas On Tuesday, the PRC gave the nod to anothe r stipulation that allows PNM to designate the Luna Energyu Facility and the Lordsburg Generating Station as jurisdictional plants to serve retail Moving those plants from PNM’s merchanr fleet to the retail portfolio, rather than buildingy new facilities, PNM says will save its customerds more than $140 million during the next 20 years.