HOUSE BILL 473

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Brian F. Egolf

AN ACT

RELATING TO PUBLIC UTILITIES; REQUIRING THE PUBLIC REGULATION COMMISSION TO ADOPT SERVICE QUALITY AND RELIABILITY STANDARDS FOR THE DELIVERY OF GAS AND ELECTRICITY TO RETAIL CUSTOMERS; REQUIRING ANNUAL COMPLIANCE REPORTS; AUTHORIZING CIVIL PENALTIES FOR NONCOMPLIANCE; DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Public Utility Act is enacted to read:

     "[NEW MATERIAL] SERVICE QUALITY AND RELIABILITY STANDARDS--ANNUAL REPORTS--CIVIL PENALTIES FOR NONCOMPLIANCE.--

          A. Unless exempted pursuant to Subsection E of this section, no later than January 1, 2012, the commission shall adopt rules that establish service quality and reliability standards for the delivery of natural gas, liquified petroleum gas and electricity to retail customers by public utilities. The rules shall:

                (1) incorporate existing national standards to the extent feasible;

                (2) include procedures for addressing and normalizing:

                     (a) major outage events;

                     (b) major shortages of natural gas, liquified petroleum gas or electricity;

                     (c) anomalous events that do not achieve major outage or shortage status;

                     (d) year-to-year weather impacts; and

                     (e) other factors identified by the commission that may impact service reliability;

                (3) include benchmarks for:

                     (a) service outages;

                     (b) customer satisfaction;

                     (c) distribution and transmission facility upgrades;

                     (d) repairs and maintenance;

                     (e) staffing levels;

                     (f) billing service; and

                     (g) public safety; and

                (4) provide for separate reliability standards for each electric or gas utility in order to account for system reliability differentiating factors, including system design, existing infrastructure, customer density and geography.

          B. No later than April 1, 2013 and April 1 of each year thereafter, each public utility subject to the requirements of this section shall submit a performance report to the commission that includes:

                (1) a summary of the actual service reliability results for the preceding calendar year;

                (2) an assessment of the results and the effectiveness of the reliability standards;

                (3) planned actions, projects, programs and load studies for the current calendar year that will achieve an acceptable reliability level; and

                (4) any other information that the commission determines necessary to assess the utility's efforts to achieve and maintain reliable service to all of its retail customers.

          C. Upon receipt of a report pursuant to Subsection B of this section, the commission shall publish the report on its web site and provide notice to the public of the report and how interested parties may review and comment on the report. Also, if public interest warrants, the commission shall hold a public hearing on the report. After reviewing the report and considering comments submitted by interested parties, no later than July 1, 2013 and July 1 of each year thereafter, the commission shall determine whether each public utility has met the service quality and reliability standards established for that utility pursuant to Subsection A of this section. The commission shall take appropriate corrective action against a utility that has failed to meet the standards, including appropriate civil penalties for noncompliance.

          D. The commission shall establish a structure for civil penalties that it shall levy against public utilities that fail to comply with service quality and reliability standards or that violate any other requirement of this section or any rule adopted pursuant to this section. Notwithstanding the provisions of Section 62-6-19 NMSA 1978, penalties collected shall be returned to the retail customers of the offending utilities in a manner determined by rule of the commission.

          E. The provisions of this section do not apply to rural electric cooperatives or to utilities owned and operated by municipalities or counties."

     SECTION 2. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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