PNM Resources’ (PNM) New Mexico utility, PNM, today filed a request with the Federal Energy Regulatory Commission (FERC) for a $3.2 million transmission rate increase and permission to adjust transmission rates annually based on an approved formula.
The request will not impact retail rates for New Mexico customers, only wholesale customers who use PNM transmission lines to deliver power. PNM has asked for FERC approval by March 2013.
The filing proposes a return on equity of 10.81 percent, based on a rate base of $317.5 million and a revenue requirement of $82.1 million. Once approved, an annual adjustment will be made each June to update for the prior year’s costs reflected in the latest FERC Form 1 filing.
“This filing represents another step we are taking to more closely align rate recovery with expenditures, allowing us to continue to provide safe, reliable service for our transmission customers,” said Pat Collawn, PNM Resources chairman, president and CEO.
PNM currently has a transmission rate settlement pending before FERC. That case was filed in 2010 with new rates implemented subject to refund on June 1, 2011. The $3.2 million increase associated with the formula rate filing is in addition to that settled $2.9 million increase.
PNM is an energy holding company based in Albuquerque, N.M., with 2011 consolidated operating revenues of $1.3 billion, excluding First Choice Power. Through its regulated utilities, PNM and TNMP, PNM Resources has about 2,550 MW of generation capacity and serves electricity to more than 735,000 homes and businesses in New Mexico and Texas.