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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 6, 1994
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(November 28, 1994)
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PUBLIC SERVICE COMPANY OF NEW MEXICO
(Exact Name of Registrant as Specified in its Charter)
Commission
New Mexico File Number 1-6986 85-0019030
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(State or Other Jurisdiction (I.R.S. Employer
of Incorporation) Identification Number)
Alvarado Square, Albuquerque, New Mexico 87158
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(Address of Principal Executive Offices) (Zip Code)
(505) 848-2700
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(Registrant's Telephone Number, Including Area Code)
(Former Name or Former Address if Changed, Since Last Report)
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ITEM 5. Other Events
January 12, 1994 Stipulation
As previously reported, on January 12, 1994, the Company and the New Mexico
Public Utility Commission ("NMPUC") staff and primary intervenor groups (the
New Mexico Attorney General, the New Mexico Industrial Energy Consumers, the
City of Albuquerque, the United States Executive Agencies and the New Mexico
Retail Association) ("interested parties") entered into a stipulation
("stipulation") which addresses retail electric prices, generation assets and
certain financial concerns of the Company. The Company filed the stipulation
with the NMPUC, recommending that electric retail rates be reduced by $30
million. (See PART II, ITEM 7,--"MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS--January 12, 1994 Stipulation"
in the Company's 1993 annual report on Form 10-K and PART I, ITEM 2--
"MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--January 12, 1994 Stipulation" in the Company's quarterly report
on Form 10-Q for the quarter ended September 30, 1994.)
On November 28, 1994, the NMPUC issued a final order, effective immediately,
approving the stipulation as interpreted and provided by the order. The
rates set forth in the stipulation are effective for bills rendered starting
November 29, 1994.
As recommended in the stipulation, the Company's interests in Palo Verde
Nuclear Generating Station ("PVNGS") Units 1 and 2 are now confirmed in this
NMPUC order as "used and useful" for the ratemaking purposes of the
stipulation and the finding remains in force until the stipulation is
superseded or otherwise terminated. The order confirms that the status of
PVNGS Units 1 and 2 is no different from that of other used and useful
assets. Any costs incurred for these units as of January 12, 1994, will be
fully recoverable in the Company's jurisdictional rates consistent with the
terms and conditions of the NMPUC order and the stipulation, and subject to
assurance that all such costs have been accounted for accurately.
In approving the stipulation, the NMPUC reconfirmed its authority over the
Company and its authority to issue orders in the public interest, finding
nothing in the stipulation to supersede that authority.
Pursuant to the stipulation, the interested parties (signatories) do not
intend to file or cause the filing of a general rate case before January 1,
1998, in the absence of a significant restructuring of rate base or
unforeseen circumstances occasioning a significant change in the Company's
costs.
As a result of the order, the Company believes that the rates agreed upon in
the stipulation will be adequate to recover the cost of its New Mexico
jurisdictional services going forward and further believes that the Company
will be in a better position to compete in a competitive electric market
environment.
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In conjunction with this order, the NMPUC also approved a stipulation
recommending the elimination of the Company's fuel and purchased power cost
adjustment clause from retail rates, the establishment of base fuel costs and
the incorporation of such base fuel costs into the Company's base rates. (See
PART II, ITEM 5.--"OTHER INFORMATION--Fuel and Purchased Power Cost
Adjustment Clause ("FPPCAC")" in the Company's quarterly report on Form 10-Q
for the quarter ended September 30, 1994.)
Natural Gas Supply Matters
As previously reported, on September 13, 1994, Gas Company of New Mexico, a
division of the Company ("GCNM"), entered into a negotiated agreement with
its intervenors to settle all outstanding issues regarding recovery of
payments GCNM made to settle gas take-or-pay contracts and pricing disputes.
Under the agreement, GCNM is authorized to recover a total of $43.4 million
from its customers. (See PART II, ITEM 5,--"OTHER INFORMATION--Natural Gas
Supply Matters" in the Company's quarterly report on Form 10-Q for the
quarter ended September 30, 1994.) On December 5, 1994, the NMPUC issued a
final order approving the stipulation.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Public Service Company of New Mexico
(Registrant)
Date: December 6, 1994 /s/ Donna M. Burnett
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Donna M. Burnett
Corporate Controller and
Chief Accounting Officer
