Seeking to reach a compromise between what it is seeking and what the New Mexico Public Regulation Commission rejected Nov. 3, PNM Resources’ utility subsidiary, PNM, has submitted a revised plan to the commission for increasing delivery rates for the company’s 441,000 natural gas customers in the state.

The proposal leaves intact the $22 million revenue increase and the 10.25% return on equity in the original agreement, but agrees to forego revenues it would have collected from residential customers in the final two months of 2003 and the first quarter of 2004 under the terms of the original agreement. New rates for other customer classes will take effect in November. In addition, PNM said residential and small business customers would see the same percentage increase in delivery charges.

In effect, the revised agreement accepts equal commercial and residential rate increases, but delays the residential increase to April 2004.

“We believe this new proposal fully addresses concerns expressed by the commissioners about previous rate increase proposals,” said Bill Real, PNM senior vice president. “With a delayed implementation date and equalization between customer classes, we believe the proposal is fair, just and reasonable in every respect.”

PNM noted that its revised settlement agreement already has the support of commission staff and an industrial users group.

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