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F I S C A L I M P A C T R E P O R T
SPONSOR Begaye
DATE TYPED 02/21/05 HB 767
SHORT TITLE Utility Rate Change Hearings on One Protest
SB
ANALYST Wilson
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
See Narrative
SOURCES OF INFORMATION
LFC Files
Responses Received From
Public Regulation Commission (PRC)
SUMMARY
Synopsis of Bill
House Bill 767 allows the PRC to review and set rates for generation and transmission coopera-
tives if one or more member distribution coop files a protest and the PRC determines there is just
cause regarding the merits of the protest. Currently, 3 such protests are required to initiate a
PRC review of rates.
Significant Issues
Tri-State Electric Generation and Transmission Cooperative is the only generation and transmis-
sion cooperative operating in New Mexico. Tri-State is member-owned by 44 retail distribution
cooperatives operating in 4 states, including 12 coops in New Mexico. The 12 New Mexico
member coops are the parties eligible to protest a Tri-State rate increase.
The 3 protest requirement for PRC review of rates became effective by statute when Tri-State
G&T acquired New Mexico-based Plains Electric Generation and Transmission Coop. Prior to
the acquisition, the PRC set all wholesale rates for Plains following the normal PRC procedures
for public rate hearings, though Plains claimed its submission to PRC rate setting was voluntary.