PNM Resources says it has received an order from the New Mexico Public Regulation Commission (NMPRC) that allows the utility to collect renewable energy expenses through a rider. PNM says the renewable energy costs are related to the state's renewable portfolio standard, which is 20% by 2020 for investor-owned utilities and 10% by 2020 for rural electric co-ops.
PNM says the rider is designed to allow the company to recover certain NMPRC-approved renewable energy procurement costs that have been incurred since January 2011. These costs come from five utility-scale solar facilities, a battery-storage project and certain wind resource procurements, as well as from purchases of renewable energy and renewable energy certificates.
PNM expects $6.7 million in revenue during the remainder of the year from the rider, with rates going into effect on Aug. 20. The rider is expected to increase the average customer bill by $1.34 per month.
The rider includes a 10% authorized return and 2013 expected revenues of approximately $22.7 million. The rate rider would be reset as of Jan. 1, 2013, to reflect unrecovered costs from 2012 and projected costs to be incurred in 2013. The renewable energy rider is capped in 2012 and 2013 by $18 million and $24.6 million, respectively, under the stipulation in PNM's 2010 electric rate case. However, any amounts incurred that are in excess of the caps will be deferred for future recovery without carrying costs, PNM explains.
