0001|                           SENATE BILL 1100
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0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003|                            INTRODUCED BY
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0004|                          RICHARD M. ROMERO
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO PUBLIC UTILITIES; AMENDING THE PUBLIC UTILITY ACT
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0012|     TO IMPLEMENT COMPETITION IN THE ELECTRIC UTILITY INDUSTRY.
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0013|     
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0014|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015|          Section 1.  A new section of the Public Utility Act is
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0016|     enacted to read: 
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0017|          "[<u>NEW MATERIAL</u>]  RETAIL COMPETITION IN THE ELECTRIC
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0018|     UTILITY INDUSTRY--PURPOSE AND FINDINGS--COMMISSION AUTHORITY--
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0019|     NON-UTILITY ELECTRIC SUPPLIERS--PENALTIES.--
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0020|               A.  Finding that lower electricity prices preserve
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0021|     jobs and facilitate expansion of existing businesses as well as
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0022|     provide an incentive for new industry to locate in the state,
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0023|     the purpose of this section is to: 
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0024|                    (1)  assure that open markets and competition
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0025|     in the electric industry will be implemented in a way that
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0001|     brings lower prices and greater benefits to all New Mexicans
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0002|     and the environment; 
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0003|                    (2)  provide competition in electric power
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0004|     markets through open access to electric power supplies through
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0005|     utility facilities by the public; and 
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0006|                    (3)  assure that competition results in
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0007|     customer choice on price, reliability, energy source and
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0008|     environmental improvement.  
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0009|               B.  The commission shall implement competition in a
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0010|     manner that results: 
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0011|                    (1)  in access to lower electricity prices for
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0012|     residential and small commercial customers, as well as other
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0013|     customer classes;
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0014|                    (2)  in all customer classes sharing equitably
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0015|     in economic benefits; and
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0016|                    (3)  in benefits and improvements to the
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0017|     environment. 
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0018|               C.  The commission shall develop and implement
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0019|     rules, regulations and orders to provide open access to utility
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0020|     facilities no later than January 1, 2000, consistent with the
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0021|     following guidelines:
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0022|                    (1)  to the full extent of its jurisdiction and
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0023|     authority, the commission may authorize and require
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0024|     transmission and distribution of electricity and related

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0025|     services provided under this section by any person, which
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0001|     transmission and distribution shall be: 
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0002|                         (a)  nondiscriminatory and
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0003|     nonpreferential;
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0004|                         (b)  subject to necessary terms and
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0005|     conditions to safeguard deliverability and operational
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0006|     efficiency and prevent undue hardship and anticompetitive or
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0007|     unfair marketing practices; and 
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0008|                         (c)  priced at fair, just, reasonable and
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0009|     nondiscriminatory rates; 
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0010|                    (2)  the existence of undue market power or
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0011|     unfair market practices may require further commission rules,
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0012|     regulations or orders to eliminate the market power or
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0013|     practices; and
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0014|                    (3)  rulemaking determinations shall be made
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0015|     regarding: 
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0016|                         (a)  a utility's obligation to connect
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0017|     and deliver; 
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0018|                         (b)  cost shifting; 
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0019|                         (c)  protection of the marketplace
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0020|     against unfair or advantaged competition; 
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0021|                         (d)  the financial health and economic
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0022|     viability of each utility, including an equitable sharing of
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0023|     net, unmitigable transition costs among all stakeholders; 
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0024|                         (e)  low-income customer protection; 
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0025|                         (f)  the right of all customers to access
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0001|     affordable and reliable electricity; 
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0002|                         (g)  consumer protection, information and
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0003|     education, including truth in labeling and advertising,
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0004|     disclosures and protections from unfair marketing practices; 
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0005|                         (h)  market aggregation; 
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0006|                         (i)  health, safety and reliability
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0007|     concerns, with particular regard to nuclear waste and
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0008|     decommissioning; 
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0009|                         (j)  licensing requirements for all power
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0010|     suppliers, including financial assurances and technical
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0011|     capability requirements; 
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0012|                         (k)  environmental improvement, with
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0013|     particular regard to environmentally sensitive renewable
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0014|     resource development and reduction of air emissions from
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0015|     electric generation, customer choice for renewable resources,
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0016|     energy conservation and efficiency;
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0017|                         (l)  impacts on state taxes and revenues;
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0018|                         (m)   funding mechanisms to accomplish
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0019|     the objectives of this section; and
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0020|                         (n)  a phasing-in of competition to
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0021|     provide initial open access to small commercial and residential
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0022|     electricity consumers first, the implementation of which
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0023|     considers the factors in Subparagraphs (a) through (m) of this
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0024|     paragraph.
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0025|               D.  Electric power suppliers, not otherwise public
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0001|     utilities, are subject to the jurisdiction of the commission
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0002|     for the limited purposes of: 
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0003|                    (1)  licensing and license revocation;
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0004|                    (2)  determining minimum financial
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0005|     responsibility requirements;
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0006|                    (3)  ensuring compliance with consumer
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0007|     information, truth in labeling and advertising requirements;
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0008|     and 
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0009|                    (4)  ensuring compliance with other consumer
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0010|     protection, environmental protection, market power and unfair
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0011|     marketing practice rules, regulations and orders as the
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0012|     commission may develop." 
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0013|                               
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