HOUSE MEMORIAL 61

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Roberto "Bobby" J. Gonzales and Joseph L. Sanchez

and Susan K. Herrera

A MEMORIAL

REQUESTING THE APPROPRIATE INTERIM LEGISLATIVE COMMITTEE TO RECEIVE TESTIMONY ON RURAL ELECTRIC COOPERATIVE REGULATION AND GOVERNANCE.

     WHEREAS, a majority of the electric cooperatives in forty-seven states are self-governed; and

     WHEREAS, New Mexico is one of the few states that regulates its electric cooperatives in a similar manner to public utilities; and

     WHEREAS, each electric cooperative in the state, based on its membership, has different goals that are not met with one regulatory approach; and

     WHEREAS, each New Mexico electric cooperative is locally governed by an elected board of trustees; and

     WHEREAS, the elected board of trustees governance model has proven through time to be the most effective and efficient way to direct the affairs of a rural electric cooperative; and

     WHEREAS, through the cooperative principle of democratic member control, an electric cooperative's members are able to directly and effectively influence the cooperative's policies and rates; and

     WHEREAS, in the current regulatory scheme, electric cooperatives are not able to consistently implement the policies supported by the cooperative's members and that are required to meet the new, emerging utility business model;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the appropriate interim legislative committee be requested to receive testimony on public regulation commission regulation of rural electric cooperatives and how the state may best foster rural electric cooperative self-governance; and

     BE IT FURTHER RESOLVED that the appropriate interim legislative committee be requested to receive testimony on how best to allow a rural electric cooperative to implement, with or without public regulation commission regulation, policies that may be supported by its membership, including:

          A. decoupling rates in order to keep rates stable and potentially lower them;

          B. passing fixed costs, such as property taxes and line management, onto electric cooperative members;

          C. setting policies supporting emerging technologies for power storage, electric vehicles and behind-the-meter applications, thereby encouraging renewable energy deployment and community engagement; and

          D. charging different rates within a customer class; for example, a low-income rate for qualifying residential customers; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the co-chairs of the New Mexico legislative council.

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