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Monday, July 21, 2008

NM Investigate Utility's Renewable Energy Tariff


Associated Press
       SANTA FE — New Mexico regulators have ordered an investigation into whether a tariff charged by the state's largest utility for a voluntary renewable energy program is just and reasonable.
    The state Public Regulation Commission announced Monday that it will review the tariff charged by Public Service Company of New Mexico for its Sky Blue program, in which customers elect to pay extra for wind-generated electricity.
    PRC Chairman Jason Marks questions whether the combined effects of the Sky Blue charge with a recently approved fuel adjustment surcharge and a tariff approved in an earlier rate case adds up to an overcharge for Sky Blue subscribers.
    PNM spokeswoman Susan Sponar said the utility agrees that the tariff needs to be reviewed in light of the new fuel clause.
    The PRC granted the utility the fuel adjustment in May to allow the company to recover the high cost of fuel needed to serve its customers. The adjustment was in addition to a rate increase granted by the PRC in April.
    Under the PRC order, PNM must answer questions about whether Sky Blue participants should be charged for fossil fuel cost increases and whether refunds would be in order if the tariff is determined to be too high.
    Sponar said Sky Blue's 19,000 subscribers pay $1.69 per month for a block of 100 kilowatt hours of electricity. "They're helping to make renewable energy available, but they also depend on traditional power when the wind doesn't blow," she said.
    The commission also wants to know about the costs and benefits of wind energy to the system and how wind energy corresponds to peak demand.

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