PNM Resources Seeks Rate Hike

New Mexico regulators will consider the request.
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Energy holding company

PNM Resources

(PNM) - Get Report

said Tuesday it asked state utility regulators to approve a rise in the natural gas rate structure.

The Albuquerque, N.M.-based company said that the proposed new rates would increase annual revenue by $20.7 million and affect only delivery fees, which are separate from the cost of natural gas supplies. PNM said it wants to recover operating costs for its gas transmission and distribution system by increasing delivery charges

The proposed rate increase needs approval by the New Mexico Public Regulation Commission and would be effective April 2007.

''A growing natural gas system and rising costs for steel and fuel are the catalysts for the proposed rates,'' the company said.

If the new rates are approved the average PNM residential gas bill would increase about 4.7%, while most business bills would increase 2.7%. PNM total residential gas bills will remain below the average when compared to residential bills of customers living in the Southwest and West.

PNM last asked for higher delivery rates in 2003.

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