I feel compelled to respond to some of the inaccurate statements made by Suedeen Kelly, a former PRC commissioner, regarding PNM’s pending rate case in her letter published on Sept. 11.
Kelly, whom I thoroughly respect, is wrong when she asserts that Carolyn Glick, the commission’s hearing examiner, didn’t consider the import of orders that Kelly approved along with other commissioners.
Kelly authorized PNM in 1985 and 1986 to sell its Palo Verde capacity and to then lease that capacity back from the new owners. Glick recognized that Kelly’s orders authorized PNM to reacquire its capacity in Palo Verde at fair market value or extend those initial leases when those initial leases expired. Pursuant to that authority, PNM recently acquired capacity and extended some leases in Palo Verde at a requested annual cost of about $103 million.
According to the Albuquerque Bernalillo County Water Utility Authority, ratepayers have already paid $2.083 billion under the initial leases for a plant that cost $644.3 million.