44th legislature - STATE OF NEW MEXICO - first session, 1999

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; ESTABLISHING A SYSTEM BENEFITS CHARGE ON RETAIL ELECTRIC SALES; CREATING A FUND; MAKING AN APPROPRIATION; ENACTING A SECTION OF THE NMSA 1978.

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] SYSTEM BENEFITS CHARGE--RECOVERY--COLLECTION--ELECTRIC INDUSTRY SYSTEM BENEFITS FUND CREATED--SUPPORT FOR ADMINISTRATION, CUSTOMER INFORMATION, LOW-INCOME CUSTOMERS AND RENEWABLE TECHNOLOGY.--

A. Beginning January 1, 2001, a "system benefits charge" in the amount of three-hundredths of one cent ($.0003) per kilowatt-hour is created and imposed on all retail electric kilowatt-hour sales in the state billed by public utilities, municipal utilities and distribution cooperative utilities. The public regulation commission shall eliminate any portion of the system benefits charge that is not being used for the purposes specified in Subsection F of this section. The system benefits charge shall be separately identified on electric bills rendered to customers.

B. Wires charges assessed on a per kilowatt-hour basis for the system benefits charge shall be paid by each customer to the public utility, the distribution cooperative utility or the municipal utility providing the service. Revenues collected as the system benefits charge shall be paid to the electric industry system benefits fund and distributed in accordance with the provisions of Subsections E and F of this section.

C. The "electric industry system benefits fund" is created and consists of money collected as a wires charge assessed on a three-hundredths-of-one-cent ($.0003) per kilowatt-hour basis as the system benefits charge collected monthly and paid quarterly to the department of environment. No other money shall be deposited or paid in the electric industry system benefits fund. Interest or other earnings from investment or deposit of the fund shall be credited to the fund. Any unexpended or unencumbered balance remaining in the fund at the end of any fiscal year shall be transferred to the general fund.

D. Money in the electric industry system benefits fund is appropriated to the department of environment solely for the purpose of disbursing money to authorized recipients for authorized purposes as described in Subsection F of this section. Disbursements from the fund shall be made upon certification by the secretary of environment that the disbursement is for a payment authorized by Subsection F of this section.

E. The department of environment shall promulgate rules establishing the application procedure and required qualifications of projects, including a person or business that may attempt to participate, contract or join with an authorized recipient in applying for a disbursement from the fund. The department may periodically accept applications for disbursement from the fund and shall prioritize the acceptable applications considering:

(1) the contribution the project offers to the knowledge of and potential commercialization of the renewable energy;

(2) the geographic area of the state in which the project is to be conducted in relation to other projects;

(3) the cost of the project and the relative contribution of the disbursement sought from the fund to the total cost of the project; and

(4) in the case of a project of a school district, the number and involvement of students in the project.

F. The department of environment shall manage, administer and maintain the fund in the following manner and for the following purposes:

(1) no more than one hundred thousand dollars ($100,000) annually to the department for administration of the fund;

(2) five hundred thousand dollars ($500,000) annually to the public regulation commission for consumer education and information relating to any competitive choices available to consumers of electric service;

(3) no less than five hundred thousand dollars ($500,000) annually for low-income energy assistance through the federal low-income housing energy assistance project to be expended for that project's weatherization program administered by the New Mexico mortgage finance authority or for other low-income energy assistance authorized and administered by the state; and

(4) no more than four million dollars ($4,000,000) annually to encourage the use of renewable energy through the initiation, development and evaluation of renewable or emerging technology projects authorized and directed by public post-secondary educational institutions or a school district in conjunction with the education of its students or by the governing body of an incorporated city, town or village or a county, each in conjunction with the respective governing body's interest in protecting the environment and reducing the city's or county's utility costs.

G. The department of environment shall submit to the legislative finance committee prior to each regular legislative session a list of recipients receiving money pursuant to Paragraph (4) of Subsection F of this section. The list shall describe the project for which the disbursement was made and the project's contribution to the state's knowledge of renewable energy and developing technologies."

Section 2. DELAYED REPEAL.--Section 1 of this act is repealed effective June 30, 2004.