New Mexico Administrative Code
Title 17 - PUBLIC UTILITIES AND UTILITY SERVICES
Chapter 9 - ELECTRIC SERVICES
Part 550 - FUEL AND PURCHASED POWER COST ADJUSTMENT CLAUSES FOR ELECTRIC UTILITIES
Section 17.9.550.19 - PRUDENCE REVIEW

The commission in its discretion may order that a prudence review be conducted to assure that fuel and purchased power costs collected by a utility through its FPPCAC are prudently incurred. Any prudence review shall be conducted under such procedures as the commission may direct. Unless otherwise ordered by the commission for good cause shown, the costs of the prudence review shall be paid by the utility and the costs treated as a regulatory asset, which shall accrue carrying costs at a rate to be set by the commission in its order authorizing the prudence review, until included in base rates and recovered in the utility's next general rate proceeding.