SENATE CONSERVATION COMMITTEE SUBSTITUTE FOR

SENATE BILL 175

51st legislature - STATE OF NEW MEXICO - first session, 2013

AN ACT

RELATING TO UTILITIES; ENACTING A NEW SECTION OF THE PUBLIC UTILITY ACT TO PROVIDE FOR A PUBLIC UTILITY OR A GENERATION AND TRANSMISSION COOPERATIVE TO HAVE FIRST RIGHT TO CONSTRUCT, OWN AND MAINTAIN CERTAIN TRANSMISSION FACILITIES IN A REGIONAL TRANSMISSION PLAN.

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

     SECTION 1. A new section of the Public Utility Act is enacted to read:

     "[NEW MATERIAL] TRANSMISSION RIGHT OF FIRST REFUSAL BY PUBLIC UTILITY AND GENERATION AND TRANSMISSION COOPERATIVE.--

          A. An electric transmission facility designated by a regional transmission planning authority as needed for purposes such as, but not limited to, individually or in the aggregate, maintaining reliability and sharing reserves, production cost savings and congestion relief, and meeting public policy requirements and that has been identified as being eligible for regional cost allocation through an approved regional transmission organization or has been approved for construction by a regional transmission organization shall be built by the public utility or generation and transmission cooperative with which the transmission facility is interconnecting if that public utility or generation and transmission cooperative elects to construct, own and maintain the approved transmission facility. If a segment of such electric transmission facility is to interconnect with two or more public utilities or generation and transmission cooperatives, the interconnecting public utilities or generation and transmission cooperatives shall determine who shall build, own and maintain such segment of the transmission facility or portions of the segment, and if no such determination can be made, then each public utility or generation and transmission cooperative shall build, own and maintain its respective interconnection facilities and its equal share of the segment. The public utility or generation and transmission cooperative shall give notice to the commission in writing within sixty days of informing the regional transmission planning authority that it exercises its right under this section to construct, own and maintain the approved transmission facility. Within eighteen months after giving the written notice to the commission, or such longer time approved by the commission, the public utility shall file an application with the commission for a certificate of public convenience and necessity for the approved transmission facility if such a certificate is required under Section 62-9-1 NMSA 1978. If the public utility does not file the application for a certificate of public convenience and necessity within the eighteen-month period, or within the longer period approved by the commission, then the public utility waives its first right to construct, own and maintain the approved transmission facility.

          B. As used in this section:

                (1) "electric transmission facility" and "transmission facility" mean an electric transmission line and associated facilities designed for or capable of operations at a nominal voltage of sixty-nine kilovolts or more that will interconnect with transmission facilities owned or operated by a public utility or a generation and transmission cooperative, but does not include a transmission facility that is funded solely by the participant or participants in the transmission facility and for which there has been no request for regional cost allocation;

                (2) "generation and transmission cooperative" has the meaning defined in Subsection E of Section 62-6-4 NMSA 1978;

                (3) "public utility" has the meaning defined in Subsection G of Section 62-3-3 NMSA 1978; and

                (4) "regional transmission planning authority" means a regional transmission organization."

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