While directing PNM Gas Services ( a division of Public Service Company of New Mexico) to reduce rates for gas service, the New Mexico Public Utility Commission has redesigned residential rates to reinstate the once-discredited notion of recovering fixed costs in the commodity charge.
In the same case, the commission also rejected recovery of discount costs and other fees the utility paid and a proposal by the utility to "rebundle" sales and transportation rates by end-use class.
The PUC ordered PNM to reduce gas service rates $6.958 million. The commission also denied recovery of transportation rate discounts granted by the LDC to avoid loss of customers; certain costs associated with reformation of take-or-pay liabilities contained in gas supply agreements; "reservation fees" paid to suppliers during the prior two heating seasons; and losses on reacquired debt financing. It adopted a weather normalization adjustment based on 30 years of data rather than a 10-year adjustment proposed by the utility.