New Mexico Administrative Code
Title 17 - PUBLIC UTILITIES AND UTILITY SERVICES
Chapter 9 - ELECTRIC SERVICES
Part 540 - PROCEDURES FOR REVIEW OF RATES PROPOSED BY RURAL ELECTRIC COOPERATIVES
Section 17.9.540.16 - DEBT COST ADJUSTMENT CLAUSE
Current through Register Vol. 35, No. 18, September 24, 2024
A. A coop's schedule of rates proposed pursuant to NMPSC Rule 540 [17.9.540 NMAC] may provide for the flow-through to customers of increases and decreases in the cost of debt capital incurred pursuant to securities, the issuance of which has been approved by the Commission, above or below debt cost utilized to establish the rates.
B. Unless the coop obtains the approval of the Commission or presiding officer for a different methodology, the clause in a rate containing such an adjustment shall provide at a minimum for the following:
C. The coop shall file with the Commission the data and calculations called for by Paragraphs (1), (2), (3) and (4) of Subsection B of this Section above a minimum of ten (10) days before an adjustment factor is to be applied to billings.
D. The coop shall establish a Balancing Account to compensate for under-collections and over-collections of revenue by increasing or decreasing the adjustment factor for the next following calendar quarter and shall file with the Commission one (1) year from the date of the first Debt Cost Adjustment filing and annually thereafter a reconciliation of Debt Cost Adjustment revenues and expenses and the operation of the Balancing Account. The Commission will examine this filing to insure that only the appropriate revenues are being recovered.
E. The adjustment factor expressed in either cents per kilowatt-hour or cents per kilowatt and the resultant billing period charge shall be shown on each bill as Debt Cost Adjustment.
F. Notwithstanding NMPSC Rule 540.11 [17.9.540.16 NMAC], an effective schedule of rates, or the filing of information with the Commission, the Commission reserves the authority to entertain complaints and undertake investigations of Debt Cost Adjustments as provided in the Public Utility Act and NMPSC Rule 110 [17.1.2 NMAC].