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

REQUESTING THE PUBLIC REGULATION COMMISSION TO APPOINT A TASK FORCE AND, IN CONJUNCTION WITH THE TASK FORCE, TO STUDY NEEDS OF RURAL RESIDENTIAL CUSTOMERS FOR MORE EXTENSIONS OF SERVICE FACILITIES IN ORDER TO MAKE AVAILABLE ADEQUATE AND RELIABLE SERVICE IN RURAL AREAS.

WHEREAS, electric service is a necessity that is not fully available throughout the state; and

WHEREAS, electric industry restructuring may be accompanied by system benefit charges and may otherwise impact the ability of investor-owned, consumer-owned and tribal-owned electric utilities to extend service to any remaining unserved and to underserved residential consumers; and

WHEREAS, the public regulation commission is charged with the administration of the Public Utility Act and investor-owned utilities and rural electric cooperatives have expressed willingness to collaborate to study the needs of rural New Mexico residential customers for more extensions of service facilities to provide affordable, adequate and reliable electric service to rural customers; and

WHEREAS, the study should include potential increased federal guarantees, loans and grants, the use of a portion of system benefit charges, which may be imposed on all retail providers, enactment of an electric service extension charge and other means;

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the public regulation commission be requested to appoint a task force composed of representatives of retail providers of electric service and other knowledgeable persons and, in collaboration with that task force, identify:

A. strengths and weaknesses of the existing sources of funds for extension of residential electric service into areas of the state that are currently not served or are underserved;

B. alternative or supplemental models for providing resources to support current retail electric service providers with an infrastructure to provide such extensions;

C. how electric industry restructuring legislation may impact service to unserved or underserved rural residential customers; and

D. federal and state-level policies and usages of existing and new funding mechanisms to support existing retail providers of rural residential service in providing service as available, reliable and adequate as that in the more urban areas of the state; and

BE IT FURTHER RESOLVED that the public regulation commission present a final report by December 1, 1999 to the legislative finance committee and other appropriate legislative committees; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the public regulation commission, to utilities regulated by the public regulation commission and to the Navajo tribal utility authority.