New Mexico Regulators Deny Utility's Bid to Recoup Coal and Nuclear Investments

Decision leads to rate decrease for customers, thwarting utility's plan for a 9.7% increase.

New Mexico's Public Regulation Commission has rejected an effort by the state's largest electric utility, Public Service Co. of New Mexico (PNM), to recoup from customers millions of dollars of investments made in a coal-fired power plant and a nuclear power plant.
The decision means PNM customers will not have to bear some costs associated with PNM’s stake in the Four Corners Power Plant near Farmington or in the Palo Verde Generating Station outside of Phoenix.
As a result of the decision, residential customers will see a decrease in rates instead of the 9.7% increase that the utility was seeking.
PNM had filed a request for its first rate hike in years in late 2022, saying the nearly $64 million in additional revenue was needed as part of a long-term plan to recoup $2.6 billion in investments necessary to modernize the grid and meet state mandates for transitioning away from coal and natural gas.
Consumer advocates and environmental groups were pleased the commission opted to reject some of the costs associated with PNM’s investments.