Public Service Co. of New Mexico (PNM) said it embarked on a$17.3 million stock repurchase plan last week after announcing theNew Mexico Supreme Court rejected a $112 million rate cut imposedby the state’s outgoing Public Utility Commission (PUC) late lastyear.

PNM, which serves 1.3 million gas and electric customers in NewMexico, said it will buy back about one million of its shares atTuesday’s closing price of $17.31 per share. The utility is toresume discussions with the New Mexico attorney general and otherparties in an attempt to reach a negotiated settlement of its ratecase. PNM stock closed up 7/16 Wednesday following theannouncements at 17 3/4. Volume was nearly four times average with705,700 shares traded. The stock’s 52-week range is 14 13/16 to 243/4.

The Supreme Court found the PUC decision “so ambiguous that itfalls short of that standard of clarity that administrative ordersmust exhibit.” The court directed the newly elected New MexicoPublic Regulation Commission (PRC), which has replaced the PUC, toreconsider the rate case.

The rate case order was the second PUC ruling the state SupremeCourt has overturned in recent weeks. March 1 the court vacated aPUC order giving a new company, Residential Electric Inc.,permission to compete for retail customers in PNM’s serviceterritory. In that case the court found that the PUC exceeded itsauthority in an attempt “to carry out broad changes in publicpolicy by replacing regulation under the ‘just and reasonable’standard with competition in an open marketplace.”

PNM also said the Federal Energy Regulatory Commission (FERC)dismissed two of four complaints against PNM filed by San Diego Gasand Electric (SDG&ampE) regarding a 100 MW wholesale power contractbetween the two utilities. The remaining two SDG&ampE complaintshave been consolidated and remain pending before the Commission.

Joe Fisher, Houston

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