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

SPONSOR Lujan, B.

ORIGINAL DATE

LAST UPDATED

2/05/06

HB 817a/HCPAC/aSPAC

SHORT TITLE Prohibit Discontinuation of Utilities

SB

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

HB 817 relates to House Bills 335 and HB 823.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Regulation Commission (PRC)

Human Services Department (HSD)

SUMMARY

Synopsis of SPAC Amendment

The Senate Public Affairs Committee amendment nullifies the prohibition on utility discontinua-

tion in any year that the State does not provide money for the Low-Income Home Energy Heart-

ing Assistance Program (LIHEAP) “in an amount at least equal to funds received from the fed-

eral” program. New Mexico receives about $10 million per year from the federal government in

LIHEAP funds.

Synopsis of HCPAC Amendment

The House Consumer and Public Affairs Committee amendment to the House Bill 817 removes

the specification that utility companies provide Low-income Home Energy Assistance Program

(LIHEAP) application forms “at billing offices”. By striking this phrase the amendment should

broaden the availability of the application forms.

House Bill 817/aHCPAC/aSPAC– Page 2

Synopsis of Original Bill

House Bill 817 prohibits natural gas and electric utilities from disconnecting low-income resi-

dential consumers for non-payment in the winter heating months if the customer has been ap-

proved to receive assistance from the Low-income Home Energy Assistance Program (LIHEAP).

It also directs utilities to assist customers in applying for LIHEAP assistance. HB 817 amends

Laws 2005, Chapter 2, Section 2, enacted by HB 8 of the 2005 special session, which prohibits

the discontinuance or disconnection of utility service during the winter heating season.

FISCAL IMPLICATIONS

None identified.

SIGNIFICANT ISSUES

According to HSD, HB 871 clarifies current statute by the following:

•

“Utility Company” in the current statute is too vague, and utility cooperatives, municipalities

etc, were unsure if the moratorium applied to them. The proposed term “utility” is more gen-

eral.

•

“Meets the qualifications” is too difficult to determine both for HSD and utility companies.

Although HSD developed a tool to assist utility companies to evaluate Low-Income Home

Energy Assistance Program (LIHEAP) eligibility, companies were reluctant to use it because

they were not staffed to provide eligibility type services. Because of this, disconnection re-

ports were extensive and did not differentiate those that were low income from others. The

new language allows for only those who receive LIHEAP to be subject to the disconnect

moratorium. The new language also allows customers additional time to apply for LIHEAP

without being disconnected.

•

Utility companies reporting of customer need has been problematic since customer informa-

tion without a signed release is protected.

•

The new language allows for customers to make informed choices about their potential eligi-

bility for LIHEAP.

•

Prior language referred to HSD as the sole administrator of LIHEAP; however, 5 tribal enti-

ties administer their own LIHEAP program so it is appropriate to refer to the LIHEAP ad-

ministering entity rather than HSD solely.

ADMINISTRATIVE IMPLICATIONS

HSD reports that HB 817, if enacted, will reduce the necessary staff time for managing utility

provider lists. The staff time saved can be better spent processing LIHEAP applications.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

HB 817 relates to HB 335 and HB 823.

BE/nt:yr