PNM Resources' (NYSE: PNM) New Mexico utility, PNM, yesterday received approval from the Federal Energy Regulatory Commission (FERC) for an unopposed transmission rate case settlement that was filed July 3, 2012. The $2.9 million rate increase does not impact retail rates for New Mexico residential or business customers.
PNM originally filed for a transmission rate increase in October 2010. As permitted by FERC rules, in June 2011 PNM began billing at the higher rates associated with the original filing subject to refund.
The agreement is a "black-box settlement," meaning the parties agreed to a specific revenue number but no specific return on equity. The settlement parties also agreed not to oppose the concept of a formula-based transmission rate filing. The company made that formula-based transmission rate filing on Monday, Dec. 31, 2012.
"We are pleased that our settlement agreement was approved. This approval, together with our current efforts to move ahead with a formula-based transmission rate filing, are important steps in improving the alignment of wholesale transmission costs and revenues,” said Pat Collawn, PNM Resources chairman, president and CEO.Background: PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2011 consolidated operating revenues of $1.3 billion, excluding First Choice Power. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,550 megawatts of generation capacity and serves electricity to more than 735,000 homes and businesses in New Mexico and Texas. For more information, visit the company’s Web site at www.PNMResources.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements made in this news release that relate to PNM's expectations, projections and estimates are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates, and PNM assumes no obligation to update this information.