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PUBLIC SERVICE CO. OF NEW MEXICO SETTLES TO DECERTIFY 130 MW OF SAN JUAN UNIT 4

 PUBLIC SERVICE CO. OF NEW MEXICO SETTLES
 TO DECERTIFY 130 MW OF SAN JUAN UNIT 4
 ALBUQUERQUE, N.M., Feb. 4 /PRNewswire/ -- Public Service Co. of New Mexico (NYSE: PNM) has agreed to a stipulated settlement which, if approved by the New Mexico Public Service Commission, will pave the way for the completion of a 50 MW asset sale of San Juan Generating Station Unit 4 (Unit 4) to the city of Anaheim, Calif., and provides for the decertification of the remaining 80 MW portion of Unit 4 previously excluded from retail rates.
 The stipulation was negotiated with the Commission staff, the office of the New Mexico Attorney General, and NMIEC (New Mexico Industrial Energy Consumers) in connection with the company's request for decertification of the 50 MW portion of Unit 4, contracted for sale to the city of Anaheim.
 The stipulation requires the company to flow back $1 million of the estimated $8.6 million after-tax gain on the 50 MW sale to New Mexico jurisdictional customers but allows any gain on future sales of the remaining 80 MW to be retained for the benefit of the company's shareholders. The benefit to earnings from the 50 MW sale is estimated to be approximately 6 cents to 8 cents/share per year. As a result of the reduction in excluded capacity, customers will receive benefits of approximately $7 million (net present value) through a higher allocation of off-system sales. The company further agreed that the cost/kW of the next 130 MW of supply-side resource added before Dec. 31, 2002, would be capped at the depreciated book value of Unit 4 at the time of the proposed in-service date plus $175/kW.
 Hearings on the stipulation are scheduled to begin in late February or early March and a ruling by the Commission is expected by May 1992.
 -0- 2/4/92
 /CONTACT: Michael Temple, 505-848-2210, Pam Lett, 505-848-4673, or Ernie C'deBaca 505-848-2806, all of Public Service Co. of N.M./
 (PNM) CO: Public Service Co. of New Mexico ST: New Mexico IN: UTI SU:


MC -- DV008 -- 6896 02/04/92 17:04 EST
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Publication:PR Newswire
Date:Feb 4, 1992
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