HOUSE BILL 292
47th legislature - STATE OF NEW MEXICO - first session, 2005
INTRODUCED BY
Joseph Cervantes
AN ACT
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] a schedule proposing [any] new [rate or] rates pursuant to Section 62-8-7 NMSA 1978 by [any] a 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] with equal to or fewer than an aggregate of one thousand five hundred service connections in New Mexico averaged over the previous three consecutive years, 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] a rate increase would have the effect of increasing the [rate or] rates fifty percent or more in [any] a 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 or twenty-five ratepayers, whichever is more, receiving service from such a utility, if the commission determines there is just cause for reviewing the proposed rate or rates. For purposes of this section, a "service connection" means a metered hookup to the utility's water system or a sewer tap to the utility's wastewater system, and 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] service connections attributable to the provision of water service only shall determine whether the procedures specified in this section shall apply to [any] a schedule proposing [any] new [rate or] rates for water service, and the [annual operating revenues] service connections attributable to the provision of sewer service shall determine whether the procedures specified in this section shall apply to [any] a schedule proposing [any] new [rate or] rates for sewer service. Nothing in this section shall prevent a utility from filing for a rate change pursuant to any other rule or procedure of the commission.
B. Whenever there is filed with the commission a schedule proposing new rates pursuant to Section 62-8-7 NMSA 1978 by a public utility as defined in Paragraph (3) or (5) of Subsection G of Section 62-3-3 NMSA 1978, with more than an aggregate of one thousand five hundred service connections and fewer than an aggregate of five thousand service connections in New Mexico averaged over the previous three consecutive years, the 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 proposed rates filed by such a utility pursuant to Subsections C and D of Section 62-8-7 NMSA 1978 when a rate increase would have the effect of increasing rates more than eight percent in the previous twelve-month period, or upon the commission staff's motion or upon the filing with the commission of a protest seeking review of the proposed rates signed by ten percent or more of the ratepayers receiving service from the utility, if the commission determines there is just cause for reviewing the proposed rates. 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 service connections attributable to the provision of water service only shall determine whether the procedure specified in this section shall apply to a schedule proposing new rates for water service, and the service connections attributable to the provision of sewer service shall determine whether the procedures specified in this section shall apply to a schedule proposing new rates for sewer service. Nothing in this section shall prevent a utility from filing for a rate change pursuant to any other rule or procedure of the commission.
C. Notwithstanding the provisions of Subsections A and B of this section, a public utility as defined in Paragraph (3) or (5) of Subsection G of Section 62-3-3 NMSA 1978, with fewer than an aggregate of five thousand service connections in New Mexico averaged over the previous three consecutive years, which is currently in good standing with all applicable requirements of the commission, may adjust its charges for commodity and service by up to two percent without a hearing; provided that the utility shall be required to give written notice of the proposed rate adjustments to the ratepayers receiving service from the utility prior to its effective date. Such increased rates shall not become effective until at least thirty days after notice and filing with the commission. For purposes of this section, a service connection is a metered hookup to the utility's water system or a sewer tap to the utility's wastewater system. If a utility provides both water and sewer service, the service connections attributable to the provision of water service only shall determine whether the procedure specified in this section shall apply to any schedule proposing any new rate or rates for water service, and the service connections attributable to the provision of sewer service shall determine whether the procedures specified in the section shall apply to any schedule proposing any new rate or rates for sewer service. Nothing in the section shall prevent a utility from filing for a rate change pursuant to any other rule or procedure of the commission."
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