0001|                    HOUSE JOINT MEMORIAL 75
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                          GARY K. KING
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0006|     
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0007|     
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0008|     
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0009|                                
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0010|     
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0011|                        A JOINT MEMORIAL
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0012|     DIRECTING THE NEW MEXICO PUBLIC UTILITY COMMISSION TO MONITOR
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0013|     AND EVALUATE THE ELECTRIC POWER INDUSTRY AND REPORT TO THE
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0014|     LEGISLATURE BEFORE ANY RESTRUCTURING OF THE INDUSTRY IS
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0015|     IMPLEMENTED.
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0016|     
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0017|       WHEREAS, the integrated water and resource planning
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0018|     committee of the state legislature investigated, studied and
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0019|     evaluated the advantages and disadvantages of retail wheeling
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0020|     and alternative restructuring schemes applicable to the electric
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0021|     power industry; and
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0022|       WHEREAS, it has been determined that these issues affect
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0023|     all New Mexicans and many varied interests, including individual
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0024|     residents, small and large commercial interests, environmental
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0025|     concerns, renewable energy technologies, in-state utilities,
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0001|     which include the rural electric cooperatives, existing and
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0002|     potential other power suppliers, utility shareholders and other
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0003|     investors in New Mexico and its future; and
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0004|       WHEREAS, the infusion of competitive influences into the
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0005|     electric power industry may eventually prove valuable and
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0006|     beneficial to all New Mexicans; and 
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0007|       WHEREAS, wholesale wheeling negates the need for actual
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0008|     long-distance transfer of electricity to provide service to a
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0009|     local customer; and
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0010|       WHEREAS, it is in the purview of the New Mexico public
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0011|     utility commission to monitor and evaluate the electric power
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0012|     industry and applicable market influences and factors, subject
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0013|     to legislative oversight;
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0014|       NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE
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0015|     STATE OF NEW MEXICO that the New Mexico public utility
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0016|     commission be directed to monitor and evaluate the potential
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0017|     restructuring of the electric power industry and consider the
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0018|     following equivalent factors: 
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0019|            A.  all ratepayers in the state should benefit
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0020|     directly with lower rates from any proposed restructuring; 
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0021|            B.  any proposed restructuring must maintain and
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0022|     possibly encourage the financial health and economic viability
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0023|     of each of the state's utilities; 
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0024|            C.  any proposed restructuring must provide for
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0025|     appropriate protection of the state's interests, including in-state utilities, from unfair or advantaged competition from
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0001|     utilities or others from outside the state; and
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0002|            D.  the costs, including transition costs, of any
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0003|     proposed restructuring must be shared and apportioned equitably
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0004|     among the varied interests benefitted by the proposed
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0005|     restructuring; and
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0006|       BE IT FURTHER RESOLVED that the New Mexico public utility
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0007|     commission consider the following additional factors in its
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0008|     monitoring and evaluation:
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0009|            A.  the avoidance, if possible, of litigation over
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0010|     any proposed restructuring; 
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0011|            B.  the merits of transitional, phased-in,
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0012|     experimental or pilot projects to further determine the
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0013|     potential advisability of the restructuring of the electric
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0014|     power industry;
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0015|            C.  the experience of other states whose market
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0016|     influences may be suited for either retail wheeling or industry
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0017|     restructuring;
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0018|            D.  the benefit of wholesale competition, in the long
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0019|     run, in lieu of or in conjunction with retail competition; 
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0020|            E.  potential benefits for residential consumers of
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0021|     retail wheeling; and
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0022|            F.  the measures by which an evaluation of any
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0023|     proposed industry restructuring can be made; and
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0024|       BE IT FURTHER RESOLVED that the New Mexico public utility
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0025|     commission report its findings, conclusions and recommendations
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0001|     to the state legislature; and
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0002|       BE IT FURTHER RESOLVED that a copy of this memorial be
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0003|     transmitted to the New Mexico public utility commission.
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0004|                                - 4 -                     State of New Mexico
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0005|                    House of Representatives
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0006|   
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0007|                    FORTY-SECOND LEGISLATURE
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0008|                      SECOND SESSION, 1996
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0009|   
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0010|   
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0011|                                             February 11, 1996
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0012|   
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0013|   
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0014|   Mr. Speaker:
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0015|   
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0016|       Your CONSUMER AND PUBLIC AFFAIRS COMMITTEE, to
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0017|   whom has been referred
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0018|   
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0019|                    HOUSE JOINT MEMORIAL 75
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0020|                                 
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0021|   has had it under consideration and reports same WITHOUT
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0022|   RECOMMENDATION, and thence referred to the ENERGY
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0023|   AND NATURAL RESOURCES COMMITTEE.
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0024|   
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0025|                                Respectfully submitted,
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0001|   
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0002|   
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0003|   
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0004|                                <u>                                 
</u>    |
<u></u>0005| <u>  </u>                            Gary K. King, Chairman
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0006|   
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0007|   
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0008|   Adopted <u>                    </u>    Not Adopted <u>                     
</u>    |
<u></u>0009| <u>  </u>
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0010|            (Chief Clerk)                       (Chief Clerk)
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0011|   
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0012|                      Date <u>            </u>
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0013|   
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0014|   The roll call vote was<u> 8 </u> For<u> 0 </u> Against
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0015|   Yes:          8         
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0016|   Excused: Baca, Charley, Vigil
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0017|   Absent:  None
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0018|   
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0019|   
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0020|                                                              
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0021|   HJ075CP1
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0022|   
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