Nov. 2—Public Service Company of New Mexico can continue to disregard a June order from the Public Regulation Commission to issue rate credits to customers following a Tuesday state Supreme Court decision that grants a stay until a decision on the company's appeal is reached.

The June 29 order from the commission compelled PNM to begin issuing rate credits to customers — to the tune of $94 million per year — after shutting down two units of the San Juan Generating Station in northwestern New Mexico.

The order was approved unanimously by the commission after Commissioner Stephen Fischmann accused the company of "trying to cheat" its customers.

"Upon the abandonment of Units 1 and 4 [of San Juan Generating Station], PNM's rates are not (and will not and shall not be) fair, just, and reasonable if the immediate rate credit is not issued to ratepayers so that the Units' costs are no longer in rates," the order states.

PNM filed for an appeal with the court the day after the PRC's order was passed.

Intervenors in the case, including New Energy Economy and Western Resources Advocates, expressed disappointment in the court's stay. They said the company's shareholders are currently benefiting from ratepayers being overcharged.

Western Resources Advocates attorney Cydney Beadles said she hopes the court will recognize the order as a proper exercise of the regulatory body's authority.

"The Supreme Court Order granting the stay is unfortunate, because the ETA was designed to deliver savings to customers at abandonment," Beadles said. "This is a consequence of PNM deciding to delay issuance of the bonds to promote their own interests and now, customers are in limbo."

New Energy Economy Executive Director Mariel Nanasi said PNM promised customers would realize savings with the abandonment of San Juan but is continuing to charge ratepayers for the station's operating costs.

"PNM failed on its promise and customers are still being charged, which is particularly harmful during these inflationary times," Nanasi wrote in a Tuesday news release.

A PNM spokesman wrote in an email the company was pleased with the decision.

"All parties had the opportunity to fully present their views to the Court, and the Court fully considered those positions in deciding that the stay should remain in place," Ray Sandoval wrote in an email Tuesday.