PNM SPURNED: PRC Denies Hearing on Request for Interim Rate Boost

The Public Regulation Commission voted 4-0 to deny a hearing where PNM could have tried to show it met threshold requirements to implement the rates sooner — a show of extraordinary circumstances or irreparable harm — or argued the standard should be waived to allow the rates to take effect as “bargained” for in the stipulation.

“The commission determined they didn’t meet the standard and the grounds for waiving the standard really weren’t there,” PRC member Jason Marks said, adding there was concern about bad precedent by “setting the bar very low.”

“We’d have every utility asking for and expecting to receive interim rates while their rate cases were pend ing,” he said.

A hearing on the stipulation, negotiated by PNM, the Attorney General’s Office and PRC utility staff, is set to begin May 9 before a hearing examiner. Marks said a final decision could be made by early to mid-July.

The stipulation, which is also supported by four other user groups, proposes a two-phase, $85 million rate increase, although PNM would be allowed to recover up to $20 million in infrastructure investment costs incurred between June 30 and Dec. 31, 2012, without initiating a rate case.

It could not increase base rates again until 2014.

“We are disappointed by (Thursday’s) decision,” PNM spokeswoman Susan Sponar said. “We believe that interim rate relief is appropriate in this case.”

PNM said the stipulating parties agreed the first phase — a 5.7 percent, $45 million increase — should go into effect by May 15 and supported the granting of a variance to allow the rates on a interim basis if the stipulation was not approved by May 8.