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F I S C A L I M P A C T R E P O R T

SPONSOR Ingle

DATE TYPED 2/18/05

HB

SHORT TITLE PRC Abandonment of Service Impact Study

SB 688

ANALYST Wilson

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

SOURCES OF INFORMATION

LFC Files

Responses Received From

Attorney General’s Office (AGO)

Energy, Minerals & Natural Resources (EMNRD)

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Bill

Senate Bill 688 amends section 62-9-5 NMSA of the Public Utility Act to require the PRC, when

reviewing a utility request to abandon service or facilities, to consider the effect of the abandon-

ment on all customers in New Mexico, whether served directly or indirectly.

Significant Issues

This bill expands the ability of the PRC to protect consumers when a utility is seeking to aban-

don service by requiring that the commission consider the interests of retail consumers in New

Mexico who are served indirectly by facilities. This section could particularly benefit retail con-

sumers who are served indirectly by facilities—even those facilities located out of state—if the

utility owning them also provides direct retail service in New Mexico. The new provision will

require the PRC to consider their interests if the plants that serve them are proposed to be sold.

ADMINISTRATIVE IMPLICATIONS

The PRC can Administer the provisions in this bill with existing staff.

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