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ATTORNEY GENERAL v. PUBLIC SERVICE COM'N.

No. 19046.

808 P.2d 606 (1991)

111 N.M. 636

In the Matter of the Prudence of Costs Incurred by Public Service Company of New Mexico in Construction of Palo Verde Nuclear Generating Station. ATTORNEY GENERAL OF the STATE OF NEW MEXICO, Appellant, v. NEW MEXICO PUBLIC SERVICE COMMISSION and Public Service Company of New Mexico, Appellees.

Supreme Court of New Mexico.

Rehearing Denied April 11, 1991.

Attorney(s) appearing for the Case

Tom Udall, Atty. Gen., Randall Childress, Deputy Atty. Gen. and Nann Houliston, Asst. Atty. Gen., Santa Fe, for appellant.

Lee W. Huffman and James C. Martin, Com'n Counsel, Santa Fe, for appellee New Mexico Public Service Com'n.

Keleher & McLeod, Richard B. Cole, Robert H. Clark, Albuquerque, O'Melveny & Myers, Carl R. Schenker, Jr., Phillip R. Kaplan, Robert M. Schwartz, Brian C. Anderson, and Kathleen D. Strong, Washington, D.C., for appellee Public Service Co. of New Mexico.

OPINION

SOSA, Chief Justice.

In this "prudence case" we consider the second phase of a unified three-part process by which the New Mexico Public Service Commission (PSC or the Commission) considered the rate treatment of Public Service Company of New Mexico's (PNM's) 10.2% ownership interest in the Palo Verde Nuclear Generating Station (Palo Verde).

In the preceding excess capacity case,1 we held that:

(1) PSC...

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