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Texas-New Mexico Power secures regulatory approval for rate settlement

Texas-New Mexico Power Co. on Dec. 20 received unanimous approval from the Public Utility Commission of Texas for its unopposed rate settlement, reflecting a $10 million net increase to base rates for retail and wholesale customers.

The settlement, filed in November, reflects a $73 million increase to rate base, incremental to previous transmission cost of service filings and advanced metering system investments. It also calls for an return on equity of 9.65% and a capital structure of 55% debt and 45% equity.

The utility originally filed for a base rate increase of $25.9 million premised upon an ROE of 10.5%.

Starting Jan. 1, 2019, the new rates will be implemented. The utility, a subsidiary of PNM Resources Inc., also expects to make a transmission cost of service filing in January.