N.M. Admin. Code § 17.9.551.9

Current through Register Vol. 35, No. 23, December 10, 2024

Section 17.9.551.9 - RATEMAKING TREATMENT FOR ALL PURCHASED POWER AGREEMENTS

A. The following ratemaking treatment shall apply to all purchased power agreements unless otherwise expressly authorized by order of the commission:

(1) energy costs incurred under a purchased power agreement are recoverable through a fuel and purchased power cost adjustment clause ("FPPCAC") according to the provisions of the FPPCAC approved for the electric utility; and

(2) capacity costs and fixed costs incurred under a purchased power agreement, as well as energy costs incurred by an electric utility without an approved FPPCAC, may be recoverable through base rates when the commission issues an order authorizing a change in base rates that includes recovery of the capacity costs and fixed costs, and energy costs in the case of an electric utility without an approved FPPCAC.

B. An electric utility may include in an application for approval of an LTPPA a request that the commission determine other ratemaking principles and treatment that will apply to the LTPPA.

C. If a request for a determination of other ratemaking principles and treatment is made, the commission shall determine the appropriate ratemaking treatment and principles that will apply to the LTPPA during its term and include that determination in the order granting approval of the LTPPA.

N.M. Admin. Code § 17.9.551.9

17.9.551.9 NMAC - N, 7-31-12