Will New Mexico Utility Customers Be First in Country to Benefit from the Recently Passed Corporate Tax Bill?

On Wednesday, January 10, 2018, the New Mexico Public Regulation Commission (PRC), in a 3-2 vote, accepted a modified stipulation in an electric rate case for Public Service Company of New Mexico (PNM). The approval by the Commission, if accepted by the stipulation signatories, would result in a 2% increase, spread over two years, for the residents of New Mexico served by PNM. PNM and the dozen intervening parties, including the New Mexico Attorney General, PRC Staff, and a number of environmental groups who supported the revised stipulation, have until close of business on Tuesday, January 16 to accept the Commission’s decision.

The 2% rate increase is a reduction from the 14.3% requested in PNM’s original application. The 2% increase over two years also includes the corporate federal tax reduction recently signed into law. As such, and if accepted by the stipulating parties, New Mexico will become the first state in the country to have those federal tax savings passed onto its consumers by its major electric utility. New Energy Economy, the lone party to oppose the stipulation, opposes the Commission’s actions, which also directed that any finding of imprudence with respect to PNM’s investments at Four Corners Generating Station would be reserved for a future proceeding.