PNM given nod to raise rates - Charlotte Business Journal:

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The New Mexico Public Regulationb Commission on Thursday approveda $77.1 million increase of non-fuel base electric revenuews for PNM. The increase will be implemented in two phasex startingJuly 1. For the average residentialp PNM customer, the 9.7 percent increase equals $4.71, said PNM spokeswoman Susanh Sponar. The first part of the hike in rates, averaging $2.1 1 per month, goes into effect July 1. The secone raise, averaging $2.60 per residentialo customer, will show up on the April 2010PNM bills. The Commission’d approval was the result of an agreement, or reached earlier this year.
The Commission’s order also allows PNM’s continued use of a fuel and purchaserd power costadjustment clause, or with certain revisions. The approved stipulated rates resulgt in an implied return on equityof 10.5 percent on a rate base of $1.5 according to a news release. The prepared statementt from PNM’s parent, (NYSE: PNM), reported that the new ratex are expected to improve 2009consolidated after-taxs earnings by approximately $11.3 million, or $0.12 per dilute share.
“Reaching an agreement and obtaining Commission approval regardinbg this rate increase is the latest step in our ongoing effortw to ensure adequate recoveryof PNM’s costxs and restoring shareholder said Jeff Sterba, PNM Resources chairman and CEO. “Moving PNM must continually ensure its ratez are aligned withservice costs. We have launched numerous initiatives to help customers save money and manage our expensezs while preparing for a futures that will have additional renewableenergy resources, risinhg fuel costs and limits on green-houswe gas emissions.
” On Tuesday, the PRC gave the nod to anothef stipulation that allows PNM to designate the Luna Energg Facility and the Lordsburg Generating Station as jurisdictional plants to servwe retail customers. Moving those plants from PNM’s merchanf fleet to the retailk portfolio, rather than building new PNM says will save its customers morethan $140 million during the next 20