NTUA reviews its rates

By Pamela G. Dempsey
Diné Bureau

WINDOW ROCK — A growing customer base has prompted the Navajo Tribal Utility Authority to study its utility rates.

R.W. Beck, an outside consulting firm, will study NTUA's electric, natural gas, water, and water waste rates over the next two months to see where its rates will be adjusted.

"Our costs have increased about 45 percent," said Kenneth L. Craig, acting general manager of NTUA. "We've held off a long time."

It's been more than 12 years since NTUA adjusted its base rates, which are different than purchase cost adjustments. The base rate does not include increased costs for electricity and gas from wholesale suppliers. Base rates are limited to the company's labor, equipment, materials and maintenance.

To improve efficiency during the past six years, NTUA increased the number of customers per employee, from 120 customers per employee to 140 customers per employee. NTUA has 553 positions available and currently employees 520 people.

"We're growing at a rate of 2,500 accounts each year," Craig said.

While base rate increases aren't uncommon for utility companies, most are regulated by a state agency.

Customers of PNM Gas in New Mexico saw a rate increase last April for transmission and delivery of their gas. The average increase for residential gas customers was $3.56, said Don Brown, spokesman for the company.

Because PNM is regulated by New Mexico's Public Regulatory Commission, their rates are regulated as well. Electricity rates, for example, declined by 4 percent recently and will decline again in September by another 2.4 percent. After that, Brown said, electricity rates are frozen until 2007.

Electricity rates, Brown said, are comparable to the year 1982.

Arizona Public Service serves 950,000 customers in 11 of Arizona's counties. The company employees 6,000 people.

Like PNM, Arizona Public Service is regulated and its rates are overseen by the Arizona Corporation Commission.

"Our last (base rate) increase was in 1991, at 5.18 percent," said Damon Gross, spokesperson for Arizona Public Service. "Sine then, we've decreased rates."

NTUA, on the other hand, is regulated by its board of directors that has authority to increase the base rates.

Before it increases its base rates, NTUA will hold a series of public hearings, one of which will be before its board.

— To contact reporter Pam Dempsey, call (505) 879-1707 or email pamelagdempsey@msn.com