TNMP Advanced Metering Settlement to Lower Certain Discretionary Charges

June 10, 2011
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Parties have filed an unopposed stipulation to approve Texas-New Mexico Power's advanced metering system (AMS) deployment plan (Docket 38306).

Under the stipulation, which provides for territory-wide deployment by 2016, the advanced metering surcharge would be as follows (per ESI ID per month):

Residential: $3.40

Secondary Service Less than or Equal to 5 kW: $8.20

Secondary Service Greater than 5 kW: $13.63

Primary Service: $17.32

Lighting Service (Metered Facilities): $7.22

The residential AMS surcharge would apply from July 18, 2011 to July 17, 2023, while the surcharge for all other customer classes would apply from July 18, 2011 through January 17, 2016.

Under the settlement, TNMP will annually reduce over a period of five years the discretionary service charge for the standard Disconnect for Non-Pay and the Standard Reconnect after Disconnect for Non-Pay, for premises with advanced meters with remote disconnect/reconnect capabilities, to reflect the progressive reduction in costs resulting from AMS deployment. The stipulation provides that TNMP shall reduce the revenue requirement for these changes by at least $1 million by the end of five years.

No later than two years after the end of the five year deployment period, TNMP shall seek to reduce discretionary service charges for (a) move-in connection services (b) disconnecting service for non-payment (DNP); (c) reconnecting service after DNP; (d) meter reread service; and (e) out-of-cycle meter reads for the purpose of a switch; to the lower of $1.50 or the incremental cost of providing the discretionary service.

The stipulation was signed by TNMP, PUCT Staff, the Office of Public Utility Counsel, TXU Energy, Reliant Energy, the Alliance for Retail Markets, and several cities with original jurisdiction.

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