A
MEMORIAL
REQUESTING THAT THE FEDERAL ENERGY
REGULATORY COMMISSION REFRAIN FROM ADOPTING ITS PROPOSED RULE ON STANDARD
MARKET DESIGN FOR ELECTRICITY MARKETS.
WHEREAS, the federal energy
regulatory commission issued a notice of proposed rulemaking on July 31, 2000
regarding a standard market design for the nation's wholesale electricity
markets; and
WHEREAS, the provisioning of
electricity is an essential service that is critically important to the
citizens and businesses of New Mexico and of all states; and
WHEREAS, the delivery of
electric service that is reliable, safe and consistent with environmental
values and that is stably and reasonably priced is also of critical importance
to the citizens and businesses of New Mexico and of all states; and
WHEREAS, in the best traditions
of federalism, the nation's electric power supply has historically been
regulated through the cooperation and complementary activity of state, federal
and other agencies; and
WHEREAS, through that
cooperative and complementary system of regulation, the nation's electric power
supply is, on the whole, safe, affordable, efficient and dependable; and
WHEREAS, it is evident from the
standard market design for the nation's wholesale electricity markets that the
federal energy regulatory commission is proposing to make fundamental changes
in the way electric transmission is controlled, operated and priced; and
WHEREAS, the changes inherent
in the standard market design for the nation's wholesale electricity markets appear
to necessitate alterations in the jurisdiction of the various state
commissions; and
WHEREAS, in recognition of the
failure of the California energy market, with its direct effects on the economy
of that state and its indirect effects on other states through disruption of a
previously beneficial and stable wholesale market, the New Mexico legislature,
in 2001, postponed any opening of retail markets in New Mexico until 2007; and
WHEREAS, the standard market
design for the nation's wholesale electricity markets implies vast changes in
control over the disposition of transmission assets, operations, pricing and
siting and makes them subject to a form of control that escapes state
oversight; and
WHEREAS, the changes
necessitated by the standard market design for the nation's wholesale
electricity markets would effectively remove the business of electric
transmission from any meaningful public scrutiny or accountability; and
WHEREAS, federal policy should
both protect consumers and preserve the full ability of states and
municipalities to oversee reliable and reasonably priced electricity service to
retail customers; and
WHEREAS, wholesale markets have
been in existence within the western interconnection for some time and have
played an integral role in the successful operation of western electric
systems; and
WHEREAS, a credible
cost-benefit analysis, of either regional transmission organizations or
standard market design, that accurately forecasts the effect of standard market
design on New Mexico ratepayers has not
yet been performed; and
WHEREAS, New Mexico and its
citizens must balance significant air-quality and land-use issues related to
energy production and transport with the economic benefit of those activities,
and should not be deprived of that economic benefit through premature
implementation of standard market design; and
WHEREAS, a clear demonstration
of benefit must be performed prior to the implementation of any new system for
wholesale electric power delivery that has economic and jurisdictional
implications as profound as those inherent in the federal energy regulatory
commission's current standard market design proposal;
NOW, THEREFORE, BE IT RESOLVED
BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the federal
energy regulatory commission be requested to withdraw its current standard
market design for the nation's wholesale electricity markets; and
BE IT FURTHER RESOLVED that
copies of this memorial be transmitted to the speaker of the United States
house of representatives, the president of the United States senate, the
members of the New Mexico congressional delegation and the commissioners of the
federal energy regulatory commission.