Updated: 04/17/2015 3:44 PM | Created: 04/17/2015 2:53 PM
By: KOB.com Web Staff
A New Mexico Public Regulation Commission hearing examiner has rejected PNM's $100 million rate hike case, stating that the utility's application was "incomplete."
The Albuquerque-Bernalillo Water Authority and New Energy Economy both challenged PNM's filing as non-compliant with the law.
According to the decision, the hearing examiner said PNM's rate modeling cannot be a "black box."
"PNM has not explained, supported and justified the [cost] estimates as required by the [Future Test Year] Rule. Under these circumstances, it is reasonable to dismiss PNM's Application for failure to comply with the FTY Rule," the decision reads.
The "Future Test Rule" requires a utility to file data to support the rate application and explain estimates for expenses.
The PRC recommends PNM review its filing and ensure that all estimates comply with the FTY Rule's requirements.
"PNM is required under the law to provide a transparent basis for its figures to legitimate its rate hikes. Unfortunately, PNM has a habit of burying its malfeasance in hidden, absent or fabricated data. PNM's $100 million rate increase as filed skirts the law and the public deserves full disclosure and that’s what the Hearing Examiner has ruled," said Mariel Nanasi, executive director of New Energy Economy, in a statement.
The ruling leaves the option open for PNM to refile its application in the future.