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