SB 40
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A MEMORIAL
REQUESTING THE NEW MEXICO LEGISLATIVE COUNCIL TO DIRECT THE
APPROPRIATE LEGISLATIVE INTERIM COMMITTEE TO CONDUCT A STUDY
OF THE ADEQUACY OF THE PROTECTION OF NEW MEXICO CONSUMER
INTERESTS WITH RESPECT TO CURRENT REGULATION OF GENERATION
AND TRANSMISSION COOPERATIVES.
WHEREAS, pursuant to Section 62-6-4 NMSA 1978, a
generation and transmission cooperative may propose rates to
the public regulation commission in the form of an advice
notice to be filed with the commission and served on the
generation and transmission company's member utilities; and
WHEREAS, the advice notice is not required to contain
any report by the generation and transmission cooperative of
the specific costs that justify the proposed rates; and
WHEREAS, the generation and transmission cooperative is
not required to provide any other cost of service information
to its member utilities or to the commission with respect to
the proposed rates; and
WHEREAS, the public regulation commission is not
permitted to conduct a hearing to review the rates proposed
by a generation and transmission cooperative unless three
utilities that are members of that cooperative file protests
of the proposed rates with the commission within twenty days
of filing the advice notice; and
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WHEREAS, because hearings and reports with respect to
proposed rates are not often required of a generation and
transmission cooperative, member utilities cannot obtain any
cost of service information in a timely manner regarding the
reasons for the proposed rates; and
WHEREAS, the provision of reports by generation and
transmission cooperatives to the commission and to their
member utilities that contain cost information with respect
to rates proposed by the generation and transmission
cooperatives might promote an increased understanding among
the commission members and the member utilities of the
reasoning for proposed rates; and
WHEREAS, increased communication among generation and
transmission cooperatives and their member utilities might
reduce protests of rates that those cooperatives file with
the commission;
NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE
STATE OF NEW MEXICO that the New Mexico legislative council
be requested to direct the appropriate legislative interim
committee to conduct a study of the adequacy of protection of
New Mexico consumer interests with respect to the current
regulation of generation and transmission cooperatives, which
may include the exploration of options to promote the
provision of additional information to the public regulation
commission and to utilities that are members of generation
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and transmission cooperatives regarding the basis and
justification for rates that those cooperatives propose and
the associated costs that they are intended to offset; and
BE IT FURTHER RESOLVED that copies of this memorial be
transmitted to the chair of the public regulation commission
and to the co-chairs of the New Mexico legislative council.