New Mexico Administrative Code
Title 17 - PUBLIC UTILITIES AND UTILITY SERVICES
Chapter 9 - ELECTRIC SERVICES
Part 590 - ECONOMIC DEVELOPMENT RATES
Section 17.9.590.13 - PROTECTION OF NONPARTICIPATING CUSTOMERS

The regulatory rate treatment of sales made under economic development rates established by this Rule is designed to protect nonparticipating customers because power sold by utilities to participating customers under an economic development rate schedule is from excess capacity and applies only to the incremental load of the participating customer. Excess capacity is typically sold on the economy energy market. Revenues derived from economy energy sales are used to offset or reduce the revenue requirement in rate cases. Since the economic development rate will almost always be higher than the economy energy rate, sales made under economic development rates will result in a larger reduction in revenue requirements for utilities than would otherwise be the case and thus will benefit all classes of ratepayers.