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| SPONSOR: | Taylor, J.G. | DATE TYPED: | 2/24/99 | HB | 394/aHJC | ||
| SHORT TITLE: | Telecommunications Earnings Investigation | SB | |||||
| ANALYST: | Esquibel | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY99 | FY2000 | FY99 | FY2000 | ||
| $300.0* | Non-Recurring | GF | |||
| $100.0* | Non-Recurring | GF | |||
*These funds would be available in FY99 and FY2000.
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to SB372
SOURCES OF INFORMATION
Public Regulation Commission (PRC)
Attorney General's Office (AG)
SUMMARY
Synopsis of HJC Amendments
The House Judiciary Committee amendments to HB394 remove the stipulation that if the PRC, excluding the AG, should determine that US West has exceeded its allowable earnings since its last rate case in 1992, then the PRC would have proceeded to deposit funds into the New Mexico universal service fund and determined criteria to provide refunds or rate reductions to consumers.
Following the HJC amendments, both the AG and PRC shall utilize the appropriations contained in the bill to conduct an investigation of the earnings and fairness of the rates charged by US West. The investigation should be finished by December 1, 1999.
Synopsis of Bill
The bill appropriates $300.0 to PRC and $100.0 to the AG in general fund in FY99 and FY2000 to pay salaries, expenses and consultants to engage in the investigation of the earnings of telecommunications corporations.
The investigations would be to determine the fairness of rates charged customers by telecommunications corporations having more than 100,000 local exchange access lines in New Mexico (i.e., US West). The bill specifies that if the PRC finds that a corporation has exceeded its allowable earnings for the years following its last rate case (i.e., 1992), the PRC shall provide for deposit of the over-earnings into the New Mexico universal service fund and then determine criteria for rate reductions or refunds to the ratepayers.
Significant Issues
The bill would require completion of the rate case by 12/1/99. The PRC and AG indicate this deadline would be a difficult to meet.
FISCAL IMPLICATIONS
The bill appropriates $300.0 in general fund to the PRC and $100.0 in general fund to the AG in FY99 and FY2000 to conduct an investigation.
ADMINISTRATIVE IMPLICATIONS
The bill would have a significant administrative impact on both the AG and PRC.
CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP
HB394 relates to SB372 which would provide $400.0 to PRC and $100.0 to the AG to conduct a US West rate case.
OTHER SUBSTANTIVE ISSUES
In 1997, the State Corporation Commission acted to affirm over-earnings by US West. The SCC decision is currently pending before the New Mexico Supreme Court.
RAE/gm