The New Mexico Supreme Court struck down a surcharge designed to compensate utilities for electricity conservation, saying that the Public Regulation Commission did not apply a cost-benefit analysis to the rule.
The PRC allowed utilities to collect a one cent surcharge per kilowatt-hour for energy use saved through efficiency measures – -adding up to about 17 cents for the average consumer per month and approximately $10 million a year for utilities, according to regulators. Consumers will not receive rebates for the surcharge.
PRC Commissioner Jason Marks, who opposed the rule, said, “We need a rule that is legal and is fair to the customers and to the utilities. The rule that we had before wasn’t fair to customers.”