SENATE MEMORIAL 127

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Gay G. Kernan

A MEMORIAL

REQUESTING THE APPROPRIATE INTERIM COMMITTEE DEALING WITH WATER AND NATURAL RESOURCES TO STUDY THE IMPACTS OF ELECTRICAL RATES ON ENERGY PRODUCTION AND REPORT ITS FINDINGS AND RECOMMENDATIONS.

     WHEREAS, oil and gas production is a leading generator of tax revenue supporting the general fund and also is the primary financial support to the state permanent funds; and

     WHEREAS, oil and gas production is an economic anchor for rural areas of New Mexico, supporting the local tax base and thousands of rural jobs; and

     WHEREAS, the New Mexico energy policy and implementation plan, finalized in 2015, recommends an all-of-the-above energy approach for New Mexico as a means to build from the state's energy assets and to grow the state's economy; and

     WHEREAS, in December 2016, the energy, minerals and natural resources department received a grant from the United States department of energy to develop a statewide energy road map over the next two years; and

     WHEREAS, the development of a statewide energy road map will assist the state in determining how to develop, by the most effective means possible, a more viable energy future for New Mexico; and

     WHEREAS, the energy road map will provide policy insight and guidance to New Mexico businesses and industries and future goals for economic development related to the energy sector in the state; and

     WHEREAS, the oil and gas production industry requires large amounts of electric energy to support operations, including production of carbon dioxide to promote tertiary production of oil and gas from aging fields; and

     WHEREAS, the cost of electric energy to support oil and gas production has a substantial bearing on the level of production of oil and gas; and

     WHEREAS, some of these businesses receive pass-through wholesale electric power from generation and transmission cooperatives with an industry load equal to or greater than thirty-five megawatts; and

     WHEREAS, to maintain the competitiveness of oil and gas production in New Mexico and other economic development opportunities in the state and as part of the development of an energy road map for New Mexico, it is important to evaluate the impact of electric power rates on the energy sector and economic development opportunities in the state;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the interim committee dealing with water and natural resources be requested to receive testimony regarding the impact of electric power rates on the energy sector and economic development opportunities in the state; and

     BE IT FURTHER RESOLVED that the committee be requested to report on the testimony received and any recommendations of the committee based on that testimony prior to December 1, 2017; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the public regulation commission, the secretary of economic development, the secretary of energy, minerals and natural resources, the New Mexico rural electric cooperative association, the New Mexico oil and gas association and members of the New Mexico legislative council.

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