4/30/19

“PNM has behaved badly,” said Santa Fe PNM customer, Mrs. Leah Berg, on a variety of public platforms.

Mistakes are bound to happen, and it is the responsibility of PNM to take ownership and work towards making it right when they do. When Mrs. Berg brought her concerns to PNM and to the media, she provided information to PNM explaining that she 1) she simply enjoys baking in her detached studio and should not be charged a small power commercial rate because she was not a business, rather she should be charged a residential rate and 2) she didn’t understand why PNM installed two meters on her property.

From the information the customer had provided and the information that PNM had at the time when this came to our attention, it appeared that an oversight had occurred by PNM. We took ownership of it based on the customer’s representation, PNM recognized the problem, tried working towards a resolution with Mrs. Berg, and even went above and beyond with our offer to correct an apparent mistake. With the information we had at the time, PNM switched her from the 2A Small Power business rate to the 1A Residential rate and we offered Mrs. Berg a significant refund for what appeared to be a miscategorized billing. PNM is regulated by the New Mexico Regulation Commission (NMPRC) and per NMPRC rules, there are requirements regarding the period for backbilling. PNM ultimately offered Mrs. Berg a refund beyond rule requirements to correct the issue far surpassing what PNM is required to do. None of that was good enough for Mrs. Berg. She asked for more and more money, citing time and frustration as her reason for PNM to cut her a five-figure check.

Mrs. Berg conveniently left out important information that later surfaced. Secretary of State public records indicate that this customer has had a registered LLC at this address for years. Through email correspondence, Mrs. Berg admitted her business dealings at this address and provided photos of her products. She has made a mockery of media by misrepresenting the facts and has wasted valuable resources by leaving out important information. Mrs. Berg cites lack of informed consent took place, which is simply not true. PNM takes understanding customer bills very seriously and has maintained transparency of information by making it available to all customers on PNM.com or through 888-DIAL-PNM reviewing it with a live person. PNM has always demonstrated professionalism and the desire to work towards a resolution alongside the customer.

Additionally, PNM is not in the business of haphazardly showing up to customers’ homes and installing meters on private property. Meter locations must meet our requirements to ensure easy access and readability and the equipment provided by a customer must meet our specifications to ensure our workers’ safety when making connections or installing meters. However, a customer, in consideration of appropriate codes and regulations, determines the size of the electric service and number of electric service or metering points. If a residential customer requests a second metering point on their property, we often recommend they consider serving that additional electrical load from their existing electrical panel. Many times, that may not be possible if the panel is already fully utilized. Rather than upgrading its panel and service entrance equipment, a customer or customer’s electrician will find it more economical to install a new metering point. We do not make the decision of whether a second metering point is needed.

Based on public records information and the customer’s recent self-admittance, Mrs. Berg’s account has been placed back on the correct rate of 2A Small Power, effective May 2019. While we have determined that her account has been billed using the correct rate since the start of service and there was not an error on our part, we are honoring our original significant refund offer amount to Mrs. Berg. Are we required to honor this? No. But since the facts just came out, we will part ways on the misrepresented information the customer provided PNM and the media and will handle this unfortunate situation by looking forward – and on the rate that’s been correct all along, 2A Small Power. PNM considers this matter resolved and no longer in dispute. We have provided details of this final resolution in a detailed letter to Mrs. Berg. Any customers wishing to verify their electric rate can look at page 2 of their bill and can find definitions of each rate class at pnm.com/rates. PNM is happy to review customer bills, line by line, for accuracy or answer any questions by contacting us at 888-DIAL-PNM or through PNM.com.

Someone has behaved badly in this situation, but it was not PNM.

Becky Teague, Vice President
PNM Customer Service Operations