Public Serv. Co. of N.M. v. N.M. Pub. Regulation Comm'n (Published Opinion)Annotate this Case
This appeal arose from the final order of the New Mexico Public Regulation Commission (Commission) granting part, but not all, of the increase in retail electric rates sought by the Public Service Company of New Mexico (PNM). The Commission’s final order was appealed by PNM and cross-appealed by the Albuquerque Bernalillo County Water Utility Authority (ABCWUA), New Energy Economy (NEE), and the New Mexico Industrial Energy Consumers (NMIEC). On appeal, PNM, NEE, ABCWUA, and NMIEC all raised numerous issues with the Commission’s final order. In this opinion the New Mexico Supreme Court addressed challenges made to the Commission’s decisions regarding Palo Verde Nuclear Generating Station, the installation of balanced draft technology at San Juan Generating Station, the new coal supply agreement at Four Corners Power Plant, the inclusion of Rate 11B in rate banding, PNM’s prepaid pension asset, and the adoption of Method A. The Supreme Court rejected each of the arguments on appeal except one: the Court concluded that, by denying PNM any future recovery for its nuclear decommissioning costs related to the Palo Verde capacity at issue in this case, the Commission denied PNM due process of law. Therefore, the Court declared all other aspects of the Commission’s final order to be lawful and reasonable, yet annulled and vacated the final order in its entirety pursuant to NMSA 1978, Section 62-11-5 (1982). The matter was remanded to the Commission for further proceedings as required and the entry of an order consistent with the Court’s opinion.