44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

DIRECTING THE PUBLIC REGULATION COMMISSION TO UNDERTAKE A NOTICE OF PROPOSED RULEMAKING TO CLARIFY THE METHODS OF PAYMENT AND RATE RECOVERY OF EXCESS COSTS DUE TO CONDITIONS IMPOSED ON SITING OF ELECTRIC AND GAS UTILITY FACILITIES BY LOCAL GOVERNMENTS.

WHEREAS, the construction of facilities by electric and gas utilities is a matter of statewide concern; and

WHEREAS, the construction of these facilities may affect the safety, reliability, adequacy, cost and efficiency of service to customers in areas within the jurisdiction of more than a single local government; and

WHEREAS, excess costs imposed by requirements of a local government for the construction of facilities will affect the rates and charges of the utilities to all customers, not just customers within the jurisdiction of the local government, unless methods are developed to have those responsible for the imposition of the costs pay for the costs; and

WHEREAS, it is in the public interest that the public regulation commission take immediate action to resolve issues regarding excess costs imposed by special requirements of a local government for the construction of facilities that affect the rates and charges of the utilities;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the public regulation commission be requested to immediately undertake a rulemaking to clarify the methods for payment and rate recovery of excess costs, imposed by special requirements of a local government for the construction of facilities that affect the rates and charges of the electric and gas utilities, by those responsible for the imposition of the costs; and

BE IT FURTHER RESOLVED that the public regulation commission be requested to adopt a rule that clarifies the methods for payment and rate recovery of excess costs before the end of 1999; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to members of the public regulation commission.