46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO PUBLIC UTILITIES; ALLOWING CERTAIN PUBLIC UTILITIES TO MAKE RATE ADJUSTMENTS WITHOUT A HEARING.

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

Section 1. Section 62-8-7.1 NMSA 1978 (being Laws 1985, Chapter 221, Section 3, as amended) is amended to read:

"62-8-7.1. HEARING PROCEDURES FOR CHANGE OF RATES OF SMALL WATER AND SEWER UTILITIES.--

A. Whenever there is filed with the commission any schedule proposing any new [rate or] rates pursuant to Section 62-8-7 NMSA 1978 by any public utility as defined in Paragraph (3) or (5) of Subsection G of Section 62-3-3 NMSA 1978 whose annual operating revenues averaged less than five hundred thousand dollars ($500,000) over any consecutive three-year period, the [rate or] rates shall become effective as proposed by the utility without a hearing; provided that the utility shall be required to give written notice of the proposed rates to the ratepayers receiving service from the utility at least sixty days prior to filing the proposed rate change with the commission and provided further that the commission shall enter upon a hearing concerning the reasonableness of any proposed rates filed by such a utility pursuant to Subsections C and D of Section 62-8-7 NMSA 1978 when any rate increase would have the effect of increasing the [rate or] rates fifty percent or more in any twelve-month period or upon the filing with the commission of a protest seeking review of the proposed [rate or] rates signed by ten percent or more of the ratepayers receiving service from such a utility. For purposes of this section, each person who receives a separate bill equals one ratepayer and each person who receives multiple bills equals one ratepayer. The petition shall be signed by the person in whose name service is carried. The petition shall be filed no later than twenty days after the filing with the commission of the schedule proposing the new rates. In all other respects, Section 62-8-7 NMSA 1978 shall apply to such water utilities. If a utility provides both water and sewer service, the annual operating revenues attributable to the provision of water service only shall determine whether the procedures specified in this section shall apply to any schedule proposing any new [rate or] rates for water service, and the annual operating revenues attributable to the provision of sewer service shall determine whether the procedures specified in this section shall apply to any schedule proposing any new [rate or] rates for sewer service.

B. Whenever a schedule is filed with the commission proposing a new rate pursuant to Section 62-8-7 NMSA 1978 by a water or sewer public utility as defined in Paragraph (3) or (5) of Subsection G of Section 62-3-3 NMSA 1978 whose annual customer service connections average less than five thousand over any consecutive three-year period, the rates provided in this subsection shall be effective as proposed by the utility without a hearing; provided that the utility has to give written notice of the proposed rates to the ratepayers receiving the service from the utility prior to filing the rate change with the commission:

(1) ratepayer customer charges, commodity prices and meter installation and miscellaneous approved fees may be increased by the utility in proportion to the increase in the federal department of labor consumer price index, all urban consumers, all items, for the periods since the last company rates were approved by the commission and, in the same manner, annually thereafter; provided that such rate adjustments are reported by the utility to the commission within thirty days after the adjustments have been made by the utility;

(2) increased costs by increases in the approved commodity rate for ratepayers effective on the date the third-party increases were incurred for contractual increases in costs of purchased water from unaffiliated third parties, including water purchased for emergency outages due to infrastructure or aquifer failures; provided that such rate adjustments are reported by the utility to the commission within thirty days after the adjustments have been made by the utility; and

(3) increased costs of electric rates and associated fees by electric cooperatives or utilities for purchased power effective the date such increases are incurred by adjusting rates; provided that such rate adjustments are reported by the utility to the commission within thirty days after the adjustments have been made by the utility."