0001|                    SENATE JOINT MEMORIAL 42
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                       MICHAEL S. SANCHEZ
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0006|     
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0007|     
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0008|     
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0009|     FOR THE INTEGRATED WATER AND RESOURCE PLANNING COMMITTEE
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0010|     
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0011|                        A JOINT MEMORIAL
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0012|     DIRECTING THE NEW MEXICO PUBLIC UTILITY COMMISSION TO MONITOR
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0013|     AND EVALUATE THE ELECTRIC POWER INDUSTRY AND REPORT TO THE
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0014|     LEGISLATURE BEFORE ANY RESTRUCTURING OF THE INDUSTRY IS
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0015|     IMPLEMENTED.
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0016|     
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0017|       WHEREAS, the integrated water and resource planning
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0018|     committee of the state legislature investigated, studied and
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0019|     evaluated the advantages and disadvantages of retail wheeling
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0020|     and alternative restructuring schemes applicable to the electric
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0021|     power industry; and
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0022|       WHEREAS, the committee determined that these issues affect
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0023|     all New Mexicans and many varied interests, including, among
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0024|     others, individual residents, small and large commercial
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0025|     interests, environmental concerns, renewable energy
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0001|     technologies, in-state utilities, which include the rural
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0002|     electric cooperatives, existing and potential other power
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0003|     suppliers, utility shareholders and other investors in New
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0004|     Mexico and its future; and
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0005|       WHEREAS, the integrated water and resource planning
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0006|     committee determined that, although at this time neither retail
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0007|     wheeling nor any restructuring of the electric power industry is
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0008|     in the best interests of New Mexico or its residents, the
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0009|     infusion of competitive influences into the electric power
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0010|     industry may eventually prove valuable and beneficial to all New
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0011|     Mexicans; and 
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0012|       WHEREAS, the integrated water and resource planning
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0013|     committee believes that the New Mexico public utility commission
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0014|     should monitor and evaluate the electric power industry and
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0015|     applicable market influences and factors, subject to legislative
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0016|     oversight; and
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0017|       WHEREAS, any restructuring of the electric power industry
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0018|     is so affected with the public interest as to require
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0019|     legislative review and approval;
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0020|       NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE
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0021|     STATE OF NEW MEXICO that, although neither the implementation of
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0022|     retail wheeling nor the restructuring of the electric power
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0023|     industry is justified or in the best interests of the state and
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0024|     its residents at this time, monitoring and evaluation of the
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0025|     electric power industry and the applicable market influences on
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0001|     the industry may change in the future sufficiently to justify
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0002|     further consideration of these alternatives; and
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0003|       BE IT FURTHER RESOLVED that the New Mexico public utility
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0004|     commission be directed to conduct the monitoring and evaluation
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0005|     of the potential restructuring of the electric power industry,
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0006|     subject to legislative direction and guidance; and 
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0007|       BE IT FURTHER RESOLVED that the New Mexico public utility
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0008|     commission in its monitoring and evaluation consider the
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0009|     following equivalent factors: 
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0010|            A.  all ratepayers in the state should benefit
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0011|     directly with lower rates from any proposed restructuring; 
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0012|            B.  any proposed restructuring must maintain and
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0013|     possibly encourage the financial health and economic viability
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0014|     of each of the state's utilities; 
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0015|            C.  any proposed restructuring must provide for
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0016|     appropriate protection of the state's interests, including in-state utilities, from unfair or advantaged competition from
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0017|     utilities or others from outside the state; and
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0018|            D.  the costs, including stranded asset costs, of any
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0019|     proposed restructuring must be shared and apportioned equitably
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0020|     among the varied interests benefitted by the proposed
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0021|     restructuring; and
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0022|       BE IT FURTHER RESOLVED that the New Mexico public utility
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0023|     commission consider the following additional factors in its
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0024|     monitoring and evaluation:
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0025|            A.  the avoidance, if possible, of initiating or
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0001|     instigating litigation over any proposed restructuring; 
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0002|            B.  the merits of transitional, phased-in,
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0003|     experimental or pilot projects to further determine the
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0004|     potential advisability of the restructuring of the electric
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0005|     power industry;
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0006|            C.  the experience of other states whose market
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0007|     influences may be better suited at this time for either retail
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0008|     wheeling or industry restructuring;
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0009|            D.  the benefit of wholesale competition, in the long
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0010|     run, in lieu of retail competition; and 
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0011|            E.  the measures by which an evaluation of any
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0012|     proposed industry restructuring can be made; and
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0013|       BE IT FURTHER RESOLVED that the New Mexico public utility
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0014|     commission report its findings, conclusions and recommendations
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0015|     to the state legislature for legislative approval and action as
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0016|     necessary before any proposed restructuring may be implemented;
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0017|     and
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0018|       BE IT FURTHER RESOLVED that a copy of this memorial be
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0019|     transmitted to the New Mexico public utility commission.
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0020|                                - 4 -  
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0021|   
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0022|                    FORTY-SECOND LEGISLATURE
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0023|                      SECOND SESSION, 1996
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0024|   
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0025|   
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0001|                                              February 3, 1996
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0002|   
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0003|   Mr. President:
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0004|   
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0005|     Your RULES COMMITTEE, to whom has been referred
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0006|   
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0007|                    SENATE JOINT MEMORIAL 42
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0008|   
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0009|   has had it under consideration and reports same with
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0010|   recommendation that it DO PASS.
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0011|   
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0012|                              Respectfully submitted,
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0013|   
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0014|   
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0015|   
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0016|                              __________________________________
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0017|                              Gloria Howes, Chairman 
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0018|   
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0019|   
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0020|   
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0021|   Adopted_______________________ Not Adopted_______________________
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0022|             (Chief Clerk)                          (Chief Clerk)
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0023|   
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0024|   
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0025|   
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0001|                     Date ________________________
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0002|   
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0003|   
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0004|   The roll call vote was  6  For  0  Against
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0005|   Yes:  6
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0006|   No:        0
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0007|   Excused:   EJennings, Wray, Donisthorpe
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0008|   Absent:    0
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0009|   
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0010|   
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0011|   SJ042RU1
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0012|                          State of New Mexico
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0013|                    House of Representatives
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0014|   
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0015|                    FORTY-SECOND LEGISLATURE
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0016|                      SECOND SESSION, 1996
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0017|   
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0018|   
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0019|                                             February 12, 1996
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0020|   
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0021|   
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0022|   Mr. Speaker:
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0023|   
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0024|    Your ENERGY AND NATURAL RESOURCES COMMITTEE, to
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0025|   whom has been referred
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0001|   
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0002|                   SENATE JOINT MEMORIAL 42
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0003|                                
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0004|                                 has had it under consideration and reports same with
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0005|   recommendation that it DO PASS.
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0006|   
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0007|                             Respectfully submitted,
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0008|   
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0009|   
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0010|   
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0011|                                                              
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0012|                                 James Roger Madalena, Chairman
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0013|   
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0014|   
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0015|   Adopted                      Not Adopted                      
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0016|   
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0017|         (Chief Clerk)                       (Chief Clerk)
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0018|   
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0019|                      Date             
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0020|   
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0021|   The roll call vote was 8  For 0  Against
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0022|   Yes:       8
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0023|   Excused:   None
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0024|   Absent:    McSorley, Stewart, Salazar
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0025|   
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0001|   
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0002|                                                              
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0003|   SJ042EN1
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