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SENATE MEMORIAL 70

TH LEGISLATURE

- STATE OF NEW MEXICO -

FIRST SESSION

, 2007

INTRODUCED BY

James G. Taylor

A MEMORIAL

REQUESTING THE PUBLIC REGULATION COMMISSION TO STUDY THE DESIGN

AND TYPE OF PROGRAMS TO HELP LOW-INCOME NEW MEXICANS AFFORD

RESIDENTIAL HEAT, LIGHT AND COOLING.

WHEREAS, New Mexico continues to rank among the poorest

states in the country; and

WHEREAS, home energy is necessary to maintain human health

and safety; and

WHEREAS, disconnections, arrearages and applications for

heating assistance reflect the gap between household income and

rising energy prices; and

WHEREAS, the legislature has enacted a moratorium on

cutting off utility service to low-income clients during the

winter months in order to prevent severe health emergencies;

and

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WHEREAS, families of every income level have felt the

impact of rising utility costs; and

WHEREAS, as a group, low-income households use the least

amount of energy but pay the highest percentage of their

incomes for service; and

WHEREAS, most New Mexicans pay approximately four percent

of income for utilities, yet approximately twenty percent of

New Mexico families must spend twenty percent or more of the

family income to pay utility bills; and

WHEREAS, fuel funds and other low-income bill payment

assistance and weatherization programs provide a vital safety

net and an important public and private partnership to protect

low-income customers; and

WHEREAS, such programs can help New Mexico's poorest

families defray or lessen their utility costs, but these

programs meet the needs of only a fraction of the families who

need such help and meet only a fraction of the costs of

utilities for these families; and

WHEREAS, the legislature has made it clear through its

actions in a special session and through other appropriations

and other enactments that low-income households should have the

state's help in meeting their heating and cooling needs rather

than doing without utilities; and

WHEREAS, consumers want utility companies to remain viable

and successful; and

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WHEREAS, discount rates provide system benefits that

include lower arrears, reduced bad debt expense, customer

service savings and reduced disconnection and reconnection

expenses; and

WHEREAS, the constitution of New Mexico grants the public

regulation commission the responsibility to regulate public

utilities, including electric, natural gas and water companies

"in such manner as the legislature shall provide"; and

WHEREAS, the legislature clearly wants the rates for

low-income utility customers to be affordable as a matter of

economic development and public health and safety;

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE

OF NEW MEXICO that the public regulation commission be

requested to study the possibility of creating programs that

ensure affordable service and rates available to low-income

customers and may include appropriately designed discount rates

or tiered discounts; and

BE IT FURTHER RESOLVED that the public regulation

commission is urged to review programs in other states that

adjust utility rates for low-income residents so that

responsible low-income residents are able to continue to meet

their obligation to pay for utilities and have a better

prospect of being able to pay the amount owed; and

BE IT FURTHER RESOLVED that the public regulation

commission be requested to study the use of ratepayer-funded

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dollars for usage reduction and energy assistance programs for

low-income residential customers; and

BE IT FURTHER RESOLVED that copies of this memorial be

transmitted to the chair of the public regulation commission,

the governor, the secretary of human services and the heads of

every public utility in the state.

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