A. PNM is proposing Rider 46 under First Revised Rate 22 to recover excess costs associated with the underground installation of a new distribution project within the City of Rio Rancho (“CRR”), NM, an approximately 6,580 ft. three-phase distribution line (“Project”) that will interconnect the existing Veranda Unit II transformer (“VII”) and the existing Black Ranch Feeder 14 (“BR14”). PNM Exhibit VHC-2 shows the location of this project. They are also requesting two variances, the first is a variance from 17.9.530 NMAC (minimum standard data requirements) based on the limited and specialized character of Rider 46 as well as this being a new, non-existing …show more content…
Yes. Staff is convinced that this Project is needed.
Q. Before you continue, what is Staff’s recommendation in this case?
A. Staff recommends that the Commission approve PNM’s application that will give PNM approval to charge its customers in the CRR the proposed rate rider to recover the excess cost of undergrounding this Project, the VRII to BR14 feeder tie project. Staff believes that PNM’s allocation of excess cost and carrying cost is reasonable and fair. The two variances should be granted as well. Finally, Staff recommends that a bill stuffer similar to the form provided in PNM Exhibit VHC-6 be provided for notice of rate rider implementation if Rider No. 46 is approved.
Q. What is the purpose of Rate 22?
A. PNM’s Rate 22 provides a means for PNM to collect the excess cost of placing distribution lines underground over and above the base cost of the equivalent overhead line in response to a governmental ordinance requiring that distribution lines be placed underground. PNM Rate 22 places the burden of the cost of complying with the governmental ordinance on the ratepayers living within the boundaries of that governmental entity rather than spreading the excess cost of undergrounding to all of PNM’s ratepayers. Rate 22 also allows the excess cost to be paid by the governmental entity directly rather than opting to let the utility bill the ratepayers inside its