New Mexico § 62-6-4.2 - Transition cost recovery

§ 62-6-4.2. Transition cost recovery

A. Notwithstanding repeal of the Electric Utility Industry Restructuring Act of 1999,

unless otherwise waived, a public utility shall be entitled to an opportunity to recover

its transition costs. Utilities may retain these transition costs as a regulatory asset on their books

pending recovery, which shall be completed by January 1, 2010. B. For purposes of this section, “ transition costs ” means the prudent, reasonable and unmitigable costs other than stranded costs, not

recoverable elsewhere under either federally approved rates or rates approved by the

commission, that a public utility would not have incurred but for its compliance with

the requirements of the Electric Utility Industry Restructuring Act of 1999 and rules

promulgated pursuant to that act relating to the transition to open access, and the

prudent cost of severance, early and enhanced retirement benefits, retraining, placement

services, unemployment benefits and health care coverage to public utility nonmanagerial

employees who are laid off on or before January 1, 2003, that are not otherwise recovered

as a stranded salary and benefits cost. Transition costs shall not include costs that the public utility would have incurred

notwithstanding the Electric Utility Industry Restructuring Act of 1999.