Water company raising rates in Clovis

Freedom Newspapers

New Mexico-American Water Co. has petitioned the New Mexico Public Regulation Commission to raise rates for water utilities in Clovis.

According to the petition, the water company is requesting an increase of 25 percent from its Clovis customers.

New Mexico-American serves more than 14,000 customers in the Clovis area.
The reason cited in the petition are as follows:

• The present rates are inadequate to allow New Mexico-American the opportunity to recover its full costs of providing water utility services.

• Based upon New Mexico-American’s operating experience for the 12-month period ending Dec. 31, 2005, which is referred to as a test year, the water company is entitled to the opportunity to earn additional annual water revenue of $2.12 million.

• The proposed rates are just, reasonable and lawful.

If the PRC approves the petition, Clovis residents could see the increase reflected on bills as early as July.

“One of the biggest driving forces in asking for a rate increase is the amount of money we are spending to improve the infrastructure to supply water to the city of Clovis,” said Kathy Wright, vice president of New Mexico-American Water Co.

Customers can file an intervention with the PRC in protest of the rate increase.

New Mexico-American was granted an 11-percent residential rate increase in late 2004.