AN ACT

RELATING TO PUBLIC UTILITIES; SETTING THE INTEREST RATE FOR CUSTOMER DEPOSITS.

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

     Section 1. Section 62-13-13 NMSA 1978 (being Laws 1979, Chapter 292, Section 1, as amended) is amended to read:

     "62-13-13. DEPOSITS--INTEREST.--Interest on deposits shall be set annually at a rate equal to the federal five-year treasury note rate as reported on the first day of the calendar year by the federal reserve board of governors and shall be paid on any deposit required of a consumer by any public utility as defined in Section 62-3-3 NMSA 1978 or by any telephone company as defined in Section 63-9-2 NMSA 1978 or by any waterworks organized under Chapter 62, Article 2 NMSA 1978."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2005.