N.M. Admin. Code § 17.7.2.13

Current through Register Vol. 35, No. 21, November 5, 2024

Section 17.7.2.13 - FILING REQUIREMENTS FOR COST RECOVERY

A. Electric utility recovery of program costs shall only be from customer classes with an opportunity to participate in approved measures and programs, and shall be three percent to five percent of customers' bills or seventy-five thousand dollars ($75,000) per customer per plan year, whichever is less. For gas utilities, recovery of program costs shall be no more than five percent of total annual revenues adjusted to maximize the impact on any single customer to $75,000.00 per plan year.

B. The public utility, at its option, may recover its prudent and reasonable program costs and approved incentives, either through an approved tariff rider, in base rates or by combining recovery through a tariff rider and base rates.

C. If a public utility seeks recovery of costs through a tariff rider, a utility shall present the proposed ratemaking treatment to the commission for approval. The proposal shall reconcile recovery of any costs currently being recovered through a tariff rider or in base rates, or by a combination of the two, as well as any new costs proposed to be recovered through a tariff rider or in base rates, or by a combination of the two.

(1) The tariff rider shall be applied on a monthly basis, unless otherwise allowed by the commission.

(2) Unless otherwise ordered by the commission, a tariff rider approved by the commission shall require language on customer bills explaining program benefits.

(3) A public utility seeking approval of a tariff rider shall file an advice notice containing the information required by 17.1.2.210.11 NMAC and served upon the individuals and entities set forth in that rule. The proposed tariff rider shall go into effect 30 days after filing, unless suspended by the commission for a period not to exceed 180 days. If the commission has not acted to approve or disapprove the tariff rider by the end of an ordered suspension period, or within 30 days of filing, it shall be deemed approved as a matter of law.

D. If base rate recovery of costs is sought, a utility shall present the proposed ratemaking treatment to the commission for approval. The proposal shall reconcile recovery of any costs currently being recovered through a tariff rider or in base rates, or by a combination of the two, as well as any new costs proposed to be recovered through a tariff rider or in base rates, or by a combination of the two.

E. Program costs and incentives may be deferred for future recovery through creation of a regulatory asset. Prior commission approval is required for the public utility to create a regulatory asset and to establish any associated carrying charge.

N.M. Admin. Code § 17.7.2.13

17.7.2.13 NMAC - Rp, 17.7.2.13 NMAC, 5-3-10, Adopted by New Mexico Register, Volume XXV, Issue 24, December 30, 2014, eff. 1/1/2015, Adopted by New Mexico Register, Volume XXVIII, Issue 18, September 26, 2017, eff. 9/26/2017, Amended by New Mexico Register, Volume XXXII, Issue 20, October 26, 2021, eff. 10/26/2021