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(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

LFC files

SUMMARY

Synopsis of Bill

Requests the Revenue Stabilization and Tax Policy Committee to examine alternative methods of taxing sales of electricity that will protect state and local revenues and to report findings and recommendations for consideration at the 2001 legislative session. The bill addresses uncertainty regarding imposition of gross receipts taxes and franchise fees and concern about potential decline in revenues due to declining electricity prices.

Significant Issues

Electric industry competition will begin in New Mexico on January 1, 2001. Other western states have already opened up their electric power markets to competition, and many providers are expected to compete with the current in-state utilities for customers.

AW/gm