PNM official denies attempt to double-bill customers
- May 25, 2022 3:42 pm GMT
May 25—Public Service Company of
Two hearing examiners for the state
Some organizations contend PNM has gone back on its pledge to issue the bonds when it abandons the
They accuse PNM of aiming to collect payments from customers for the
PNM expects to leave the power plant in two phases this year, in the summer and fall. Among the issues in the case are whether those bonds must be issued at the same time PNM departs from the power plant, and whether customers at the same time would get a rate adjustment for payments they already have made for the
PNM has denied it intends to double-bill.
One of the hearing examiners Monday made it clear he believed PNM had told the
"PNM informed the commission that the issuance of the bonds ... would be shortly after the abandonment" of the plant, Medeiros said.
"That's the information that we based our decision on, right?"
Medeiros continued his point while
PNM was "sitting on information about when it's going to issue the bonds based on changed circumstances," he said.
"Did PNM ever consider whether it was creating a moral hazard?" Medeiros asked Monroy.
Monroy said he wasn't aware of such a conversation.
"Not that I'm aware of," Tarry responded. But he said he didn't think it should be a surprise.
PNM had planned to request a rate increase previously, Tarry and others have said, but the coronavirus pandemic and other factors delayed this.
"We've always considered them together," Tarry said of the bond issuance and the rate increase. "My belief is they were always grouped together."
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