45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO ELECTRICAL GENERATION; PROVIDING FOR THE CONSTRUCTION AND OPERATION OF A NATURAL GAS FUELED ELECTRIC GENERATION FACILITY; CREATING THE STATE POWER BOARD; PROVIDING FOR POWERS AND DUTIES; PROVIDING FOR CONTRACT REQUIREMENTS; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 9-5A-3 NMSA 1978 (being Laws 1987, Chapter 234, Section 3, as amended by Laws 1997, Chapter 137, Section 1 and also by Laws 1997, Chapter 149, Section 2) is amended to read:

"9-5A-3. DEPARTMENT ESTABLISHED.--

A. There is created in the executive branch the "energy, minerals and natural resources department". The department shall be a cabinet department and shall include [but not be limited to] the following organizational units:

(1) the administrative services division;

(2) the state parks division;

(3) the forestry division [which shall include a soil and water conservation bureau];

(4) the energy conservation and management division;

(5) the mining and minerals division; and

(6) the oil conservation division.

B. The state game commission is administratively attached to the department.

C. The state power board is administratively attached to the department."

Section 2. [NEW MATERIAL] STATE POWER BOARD--ELECTRICAL GENERATION FACILITY--CONSTRUCTION--OPERATION.--

A. The "state power board" is created. The state power board is administratively attached to the energy, minerals and natural resources department. The department shall provide administrative services and staff to the board.

B. The state power board shall consist of six members, as follows:

(1) the governor or his designee;

(2) the commissioner of public lands or his designee;

(3) the secretary of energy, minerals and natural resources or his designee;

(4) the chairman of the public regulation commission or his designee; and

(5) one representative from the electric power industry in New Mexico and one representative of a consumer protection organization, both to be appointed by agreement of the governor, the commissioner of public lands and the chairman of the public regulation commission.

C. The term of appointed members of the board is two years, with the initial terms beginning on July 1, 2002. Appointed members of the board shall receive per diem and mileage pursuant to the Per Diem and Mileage Act.

D. The state power board shall:

(1) conduct a study on state options for financing the construction of a natural gas fueled electric generation plant in Otero county and on the costs and benefits of doing so and report its findings to the first session of the forty-sixth legislature;

(2) upon obtaining financing for the project, contract to design, construct and equip a natural gas fueled electric generation plant on state land in Otero county; and

(3) contract for operation of the plant. The operating contract shall include requirements for the contractor to:

(a) negotiate long-term purchase contracts with local New Mexico natural gas producers at the lowest available price;

(b) negotiate long-term contracts for the provision of low-cost electric power to New Mexico residences, businesses, state agencies and local governments;

(c) deliver electric power to the residences, businesses, state agencies and local governments of New Mexico at a reasonable price; and

(d) sell any excess power not needed by New Mexico residences, businesses, state agencies and local governments on the open market.

Section 3. APPROPRIATION.--Fifty thousand dollars ($50,000) is appropriated from the general fund to the energy, minerals and natural resources department for expenditure in fiscal year 2003 to fund a state power board study on the financing, construction and operation of a natural gas fueled electric generation plant on state land in Otero county. Any unexpended or unencumbered balance remaining at the end of fiscal 2003 shall revert to the general fund.