45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO ELECTRIC UTILITY CHARGES; AMENDING PROVISIONS REGARDING THE SYSTEM BENEFITS CHARGE.

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

Section 1. Section 62-3A-13 NMSA 1978 (being Laws 1999, Chapter 294, Section 13) is amended to read:

"62-3A-13. SYSTEM BENEFITS CHARGE--RECOVERY.--A "system benefits charge" in the amount of three hundredths of one cent ($.0003) per kilowatt-hour is created and imposed on all retail kilowatt-hour sales in the state billed by public utilities, municipal utilities and distribution cooperative utilities beginning January 1, 2002. On January 1, 2007, the system benefits charge shall increase to six hundredths of one cent ($.0006) per kilowatt-hour. [The commission shall eliminate any portion of the system benefits charge that is not being used for the purposes specified in Section 15 of the Electric Utility Industry Restructuring Act of 1999.] The system benefits charge shall be separately identified on bills rendered to customers beginning on January 1, 2002."

Section 2. Section 62-3A-15 NMSA 1978 (being Laws 1999, Chapter 294, Section 15) is amended to read:

"62-3A-15. ELECTRIC INDUSTRY SYSTEM BENEFITS FUND CREATED--SUPPORT FOR ADMINISTRATION AND CUSTOMER INFORMATION, LOW-INCOME CUSTOMERS AND RENEWABLE TECHNOLOGY.--

A. The "electric industry system benefits fund" is created in the state treasury and consists of money collected as a wires charge [assessed on a] of three hundredths of one cent ($.0003) per kilowatt-hour [basis] from January 1, 2002 until December 31, 2006 and six hundredths of one cent ($.0006) per kilowatt-hour beginning January 1, 2007 as the system benefits charge collected monthly and paid quarterly to the department of environment for deposit in the fund. No other money shall be deposited or paid in the electric industry system benefits fund. Interest or other earnings from investment or deposit of the fund shall not be credited to the fund. Any unexpended or unencumbered balance remaining in the fund at the end of any fiscal year shall not be transferred to the general fund but shall remain in the fund for distribution.

B. Money in the electric industry system benefits fund is appropriated to the department [of environment] solely for the purpose of disbursing money to authorized recipients for authorized purposes as described in Subsection D of this section. Disbursements from the fund shall be made upon certification by the secretary of environment that the disbursement is for a payment authorized by this section [15 of the Electric Utility Industry Restructuring Act of 1999].

C. The department shall promulgate rules establishing the application procedure and required qualifications of projects, including a person or business that may attempt to participate, contract or join with an authorized recipient in applying for a disbursement from the fund. The department may periodically accept applications for disbursement from the fund and shall prioritize the acceptable applications considering:

(1) the contribution the project offers to the knowledge of and potential commercialization of the renewable energy;

(2) the geographic area of the state in which the project is to be conducted in relation to other projects;

(3) the cost of the project and the relative contribution of the disbursement sought from the fund to the total cost of the project; and

(4) in the case of a project of a school district, the number and involvement of students in the project.

D. The department shall manage, administer and maintain the fund in the following manner and for the following purposes:

(1) no more than one hundred thousand dollars ($100,000) annually to the department for administration of the fund;

(2) five hundred thousand dollars ($500,000) annually to the commission for consumer education and information and for administration of the Electric Utility Industry Restructuring Act of 1999;

(3) no less than five hundred thousand dollars ($500,000) annually for low-income energy assistance through the federal low-income housing energy assistance project to be expended for that project's weatherization program administered by the New Mexico mortgage finance authority or for other low-income energy assistance authorized and administered by the state;

(4) no more than four million dollars ($4,000,000) annually to encourage the use of renewable energy through the initiation, development and evaluation of renewable technology projects authorized and directed by public post-secondary educational institutions or a school district in conjunction with the education of its students or by the governing body of [an incorporated city, town or village] a municipality or a county, each in conjunction with the respective governing body's interest in protecting the environment and reducing the city's or county's utility costs; and

(5) no more than four million dollars ($4,000,000) to the governing body of a community or Indian nation, tribe or pueblo, where limited or no electric service is available, to develop electric service through the initiation and implementation of new projects, including those using renewable energy, to provide or extend electric service in low-income communities.

E. The department shall submit to the legislative finance committee prior to each regular legislative session a report on disbursements made from the fund to include, at a minimum:

(1) a list of recipients receiving disbursements;

(2) the amount of each disbursement;

(3) the date of each disbursement;

(4) a description of each project or expansion funded with a disbursement;

(5) a description of each project's contribution to the state's knowledge and use of renewable energy and developing technologies; and

(6) a description of the expansion of electric service in the state."

Section 3. Section 62-3A-22 NMSA 1978 (being Laws 1999, Chapter 294, Section 22) is amended to read:

"62-3A-22. COMMISSION REVIEW AND RECOMMENDATIONS.--The commission shall docket a proceeding to review the system benefits charge and the electric industry system benefits fund, their operation and effectiveness and [then to] shall make recommendations to the legislature by January 10, 2004 for [any repeal of or] changes to these provisions."