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A MEMORIAL

REQUESTING THE NEW MEXICO LEGISLATIVE COUNCIL TO DIRECT THE

APPROPRIATE INTERIM LEGISLATIVE COMMITTEE TO STUDY POSSIBLE

REGULATION OF THE PROPANE GAS INDUSTRY BY THE PUBLIC

REGULATION COMMISSION.

WHEREAS, rising fuel costs across the country are of

increasing concern to the public, especially low-income

persons in rural areas of New Mexico; and

WHEREAS, many low-income persons in the rural areas

depend on propane gas as an energy source to heat their homes

in the winter; and

WHEREAS, it is necessary that those New Mexicans who are

most vulnerable to the high costs of fuel be protected; and

WHEREAS, the propane gas industry and the rates charged

for propane gas services are not currently regulated by the

public regulation commission; and

WHEREAS, including the propane gas industry under the

Public Utility Act would provide the public regulation

commission with authority over entities manufacturing,

storing, selling, or distributing propane gas in enclosed

containers or tank trucks for use by consumers, except

consumers who receive their supply through any pipeline

system operating under municipal authority; and

WHEREAS, oversight of the propane gas industry by the

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public regulation commission would ensure that New Mexicans,

particularly low-income New Mexicans, are paying fair prices

for propane gas;

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 interim legislative

committee to study the propane gas industry; and

BE IT FURTHER RESOLVED that the study include a review

of the following:

A. the relationship between the low income home

energy assistance program and the price of propane;

B. current regulation of propane installations by

the construction industries division of the regulation and

licensing department; and

C. liability issues associated with the propane

industry; and

BE IT FURTHER RESOLVED that the appropriate interim

legislative committee be directed to hold a hearing on the

issue by November 1, 2008; and

BE IT FURTHER RESOLVED that copies of this memorial be

transmitted to the New Mexico legislative council and the

chair of the public regulation commission.