Audit Evaluates Compliance With Accounting And Reporting Regulations

On February 7, the Division of Audits of the Office of Enforcement of the Federal Energy Regulatory Commission (FERC) issued a report presenting the areas of noncompliance it identified during an audit of PNM Resources (PNMR), an energy holding company, and Public Service Company of New Mexico (PNM), a wholly owned public utility operating company subsidiary of PNMR.¹ Audit Staff evaluated PNMR and PNM's compliance with cross-subsidization restrictions on affiliate transactions; accounting, recordkeeping, and reporting requirements; the Uniform System of Accounts (USofA) for centralized service companies; preservation of records requirements for holding companies and service companies, and FERC Form No. 60 requirements. The audit covered a two-year period spanning from January 1, 2009 to December 31, 2010.