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

SPONSOR Cisneros

DATE TYPED 2/07/05

HB

SHORT TITLE Customer Utility Deposit Interest Rates

SB 178

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

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Bill

Senate Bill 178 amends language in Section 62-13-13 NMSA to clarify the interest rate to be

used in the calculation of interest on customer security deposits required and held by utilities.

The current language, “at a minimum rate a year….equal to the federal five-year treasury note

rate” raised confusion because it would allow the PRC to set a higher rate.

The amended language removes the “at a minimum rate a year” and clearly specifies the use of

the federal five-year treasury note rate.

Significant Issues

The PRC believes this bill will clarify a confusing issue.

DWA/sb