An advocacy group that is a frequent and vocal critic of the state’s largest electric utility is challenging a proposal by the utility to increase rates by 23 percent.
New Energy Economy filed a motion this week with the New Mexico Public Regulation Commission to dismiss a request by the Public Service Company of New Mexico to raise rates.
NEE highlights the fact that this proposed 23 percent increase in rates would be the largest in the utility’s history and comes just months after the PRC ruled on another PNM rate case.
NEE alleges that PNM’s rate increase request includes misleading or inaccurate information regarding how its debt to equity ratio may be calculated by credit rating agencies.
“Because PNM’s Application is not fully justified, contains erroneous information amounting to more than $34 [million] of its claimed revenue deficiency, it does not comply with the requirements of Commission rules and precedent,” the motion to dismiss states.
The advocacy group has also requested that PRC Chairman Pat O’Connell recuse himself from hearing the case because it deals with whether past investments into the Four Corners Power Plant were reasonable and economic. O’Connell previously served as a chief witness for PNM in arguing that such investments were needed.
This is not the first time O’Connell has been asked to recuse himself from cases based on his past work prior to being appointed to the PRC. O’Connell has also recused himself from some cases involving PNM.
“The facts or questions of law raised do not warrant dismissal of the case as the motion makes claims that are inaccurate,” PNM said in a statement to NM Political Report. “The allegations are the views of a party, and these type of positions or claims should be determined through the course of the administrative litigation.”