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) June 8, 1999
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(May 21, 1999)
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PUBLIC SERVICE COMPANY OF NEW MEXICO
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(Exact Name of Registrant as Specified in its Charter)
New Mexico 85-0019030
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(State or Other Jurisdiction Commission (I.R.S. Employer
of Incorporation) File Number 1-6986 Identification Number)
Alvarado Square, Albuquerque, New Mexico 87158
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(Address of Principal Executive Offices) (Zip Code)
(505) 241-2700
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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 Event
Electric Rate Case
As previously reported, in March 1999, the New Mexico Supreme Court ("Court")
overturned the electric rate reduction order issued by the New Mexico Public
Utility Commission ("NMPUC") in November 1998, and remanded the case to the
Public Regulation Commission ("PRC"), a successor of the NMPUC, for further
proceedings consistent with the Court's opinion. In April 1999, the PRC issued a
procedural order on the remanded electric rate case, allowing the parties to the
case to file a negotiated settlement with the PRC. (See PART I, ITEM 2. -
"MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS - OPENING ELECTRIC COMPETITION AND THE SUPREME COURT'S DECISION ON
THE ELECTRIC RATE CASE" in the Company's quarterly report on Form 10-Q for the
quarter ended March 31, 1999 ("the March 10-Q").)
On May 21, 1999, the major parties to the rate case, with the exception of the
United States Executive Agencies ("USEA") representing Kirtland Air Force Base
("KAFB"), reached a settlement of the rate case and filed a stipulation with the
PRC. The stipulation, if approved by the PRC, would reduce the Company's 1996
annualized revenues by $34.0 million. The rate reduction would be effective for
all customer bills rendered on and after July 30, 1999. Also, as part of the
settlement, the stipulated rates would remain in effect for each customer class
until customer choice is implemented for that customer class in accordance with
the Electric Utility Industry Restructuring Act of 1999 (see Item 5. - "Other
Events" in the Company's Current Report on Form 8-K dated April 14, 1999), or
January 1, 2003, whichever occurs first.
The USEA had filed its statement of opposition to the stipulation on May 26,
1999. However, on May 27, 1999, USEA agreed to withdraw its opposition and
joined in the stipulation. As part of the agreement for USEA to withdraw its
opposition, the parties agreed that certain language changes proposed by the
Company to the tariff under which KAFB currently takes service be set for a
separate hearing before the PRC. USEA took the position that the proposed
language changes would affect KAFB's current contractual provisions for power
service provided by the Company. Hearings on this issue have not yet been
scheduled. As previously reported, KAFB had announced that it will not renew its
power service contract with the Company after the expiration of the contract in
December 1999 (see PART I, ITEM 2. - "MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - OTHER ISSUES FACING THE COMPANY-
Kirtland Air Force Base ("KAFB") Contract" in the March 10-Q).
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On May 28, 1999, the County of Bernalillo, New Mexico ("Bernalillo County")
filed limited objections to the stipulation with the PRC. Bernalillo County
objects to certain provisions of the stipulation which address franchise fees
and cost responsibility for undergrounding distribution and transmission
facilities. Bernalillo County's objections were filed after the deadline
established by the PRC. A decision on Bernalillo County's objections has not
been made by the PRC.
A hearing on the stipulation has been scheduled for June 28, 1999. The Company
is currently unable to predict whether or not the PRC will approve the
stipulation in its entirety, or approve it with modifications, or reject it in
its entirety.
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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: June 7, 1999 /s/ Max H. Maerki
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Max H. Maerki
Senior Vice President and
Chief Financial Officer
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