Increase in electric rates in effect next month
Socorro Electric Cooperative customers will see an increase in their rates beginning next month.
The New Mexico Public Regulation Commission approved the proposed rate increase filed by the co-op on Feb. 3, following a 20-day protest period.
The proposal called for the charge per kWh to increase by 0.46 cents. The overall rate increase is 6.95 percent, but it’ll be closer to 12 percent for residential customers, who will also see a $6 per month bump to their system charge.
Co-op officials say a customer using 500 kWh per month will see an increase of $8.31 to their bill.
The new rates were approved to go into effect March 5, but Socorro Electric General Manager Joseph Herrera said the increase won’t be reflected on bills until the middle of next month.
“There are two billing cycles each month and they’ll go into effect with the second billing,” Herrera said.
A memo from PRC Economic Bureau Chief Jim Brack to Utility Division Director Roy Stephenson dated Feb. 28 recommended the rates not be suspended. It indicates that Socorro Electric is currently in technical default on loans from the USDA Rural Utility Service and the National Rural Utilities Cooperative Finance Corp. and the increase would allow the co-op to recover.
“The increase will provide SEC with a target Operating TIER of 1.48. This ratio will allow SEC to meet its financial obligations in the immediate future,” Brack wrote.
Socorro Electric had a Times Interest Earned Ratio (TIER) of .88 during the test year, which ran from July 1, 2009 to June 30, 2010. The minimum requirement is 1.1.
The memo lists 10 co-op members who filed protests with the PRC, but only three were filed with the PRC’s Records Department within the 20-day protest period. Twenty-five valid protests were required to warrant a hearing.
Mail-in Ballots
Socorro Electric is notifying its customers, who are also member-owners of the public, non-profit corporation, that requests for mail-in ballots for the annual meeting need to be made no later than Friday, April 1. Ballots must be returned no later than 5 p.m. on Friday, April 8.
The only item up for approval at the April 9 annual meeting is the realignment of districts, something member-owners voted for at last year’s annual meeting. The legal description of the redrawn boundaries is posted on the co-op’s website, www.socorroelectric.com.
Those wishing to vote by mail can request ballots in one of three ways:
• By calling 505-891-0525, extension 6534, or 1-800-834-8683, extension 6534
• By fax to 505-994-4144
• By e-mail to emarquez@electionpeople.com
While members don’t have to be present at the meeting to cast their vote by mail, a note at the bottom of the letter emphasizes that a quorum must be present in order to conduct business.
Approximately 295 members must register and be present at Finley Gym in order for a quorum to be attained.
More Meetings
A special meeting for District 2 members in the Lemitar and Polvedera areas will be held Wednesday, March 16, at Midway Elementary School. The purpose of the meeting is to consider the recall of co-op President Paul Bustamante.
The special meeting was called by member-owners who signed a petition claiming breach of fiduciary duty and no confidence. Registration will be held from 5:30 to 7 p.m. The meeting gets under way at 7 p.m.
The next regular meeting of the co-op’s board of trustees is scheduled for 5:30 p.m. on Wednesday, March 23, at the co-op’s boardroom, 310 Abeyta Ave.
Contact T.S. Last