August 17, 2022

PNM ordered to show that it is following through with rate credits

Hannah Grover

The San Juan Generating Station is pictured Monday, April 19, 2021, in Waterflow.

After telling the Public Service Company of New Mexico to issue rate credits so that customers are not paying for a coal plant that is being retired, state regulators are now requesting proof that the utility has done so.

The New Mexico Public Regulation Commission unanimously approved an order asking PNM to show that it has complied with its order. 

The rate credits should have started this month and will appear on customers’ electricity bills. They should be retroactive to July 1.

For now, the average residential customer should see a $1.76 rate credit to reflect that unit one of the San Juan Generating Station is no longer in use.

Starting in October, the rate credit will increase to $8.19 for residential customers after unit four, the last operating unit at the power plant, is retired.

The PRC is also asking PNM to show that, within 30 days of closing unit one, it transferred funds to the state Indian Affairs Department, Department of Workforce Solutions and Economic Development Department as required by the Energy Transition Act and by prior commission orders.

These actions come as the PRC has expressed increasing frustration with PNM.

PNM has appealed the commission’s order requiring rate credits to the state Supreme Court.

PNM has until Aug. 24 to file a compliance report with the PRC.