HOUSE HEALTH AND GOVERNMENT AFFAIRS COMMITTEE SUBSTITUTE FOR

HOUSE BILL 488

50th legislature - STATE OF NEW MEXICO - first session, 2011

AN ACT

RELATING TO PUBLIC UTILITIES; ENACTING A SECTION OF CHAPTER 62, ARTICLE 10 NMSA 1978 TO MANDATE THAT THE PUBLIC REGULATION COMMISSION ORDER PUBLIC UTILITIES TO PAY THE LEGAL COSTS AND FEES OF CERTAIN INTERVENORS IN PUBLIC UTILITY HEARINGS.

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

     SECTION 1. A new section of Chapter 62, Article 10 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] PUBLIC UTILITY HEARINGS--PUBLIC UTILITY TO PAY LEGAL COSTS AND FEES OF CERTAIN INTERVENORS.--

          A. In a matter before the commission that relates to public utilities, the commission shall order a public utility to pay a customer reasonable advocate's fees, reasonable expert witness fees and other reasonable costs of preparation for and participation in a hearing pursuant to Chapter 62, Article 10 NMSA 1978 when:

                (1) the customer intervenes in a public utility matter pursuant to that article;

                (2) the commission finds that the customer has made a substantial contribution to the adoption of the commission's decision in the matter;

                (3) the customer demonstrates to the commission that, without an award of fees or costs, the customer would endure significant financial hardship; and

                (4) the customer complies with commission rules regarding notice of intent to claim compensation, demonstration of substantial contribution to the outcome, demonstration of potential financial hardship and any other procedures that the commission determines by rule necessary to an equitable reimbursement of costs and fees pursuant to this subsection.

          B. The commission shall adopt rules to provide for compensation of customers who intervene in public utility matters pursuant to Chapter 62, Article 10 NMSA 1978, including procedures:

                (1) for providing notice of intent to claim compensation;

                (2) by which the commission or customers may demonstrate that a customer has made a substantial contribution to the outcome of a proceeding filed pursuant to that article;

                (3) for demonstrating potential financial hardship; and

                (4) any other procedures that the commission determines by rule necessary to an equitable reimbursement of costs and fees pursuant to this subsection.

          C. In hearings before the commission that relate to public utilities, where the office of the attorney general has made a substantial contribution to the commission's final determination of the matter, the office of the attorney general shall be entitled to seek compensation for all reasonable expert fees incurred for participation in the hearing. The office of the attorney general's presence in a hearing does not preclude other intervenors from recouping legal costs and fees if they otherwise qualify to recoup these costs and fees.

          D. As used in this section:

                (1) "advocate" means a person who:

                     (a) appears on behalf of a customer in favor of or in opposition to a matter before the commission that relates to public utilities; or

                     (b) is an attorney, a consultant, a proponent, a customer or any person who contributes to or represents an intervenor's actions;

                (2) "customer" means an individual or entity that:

                     (a) is a residential or small business consumer or subscriber of a public utility that is subject to hearings pursuant to Chapter 62, Article 10 NMSA 1978; or

                     (b) represents the interests of an individual described in Subparagraph (a) of this paragraph to represent the interests of that person in a hearing pursuant to Chapter 62, Article 10 NMSA 1978;

                (3) "small business" means a business entity, including any affiliate of that entity, that is independently owned and operated and employs the equivalent of fifty or fewer full-time employees; and

                (4) "substantial contribution" means a contribution to proceedings that the commission deems to have substantially assisted the commission in reaching its decision through contentions or policy or procedural recommendations that are presented in a matter filed pursuant to Chapter 62, Article 10 NMSA 1978."

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