44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO ELECTRIC UTILITIES AND SERVICE; IMPOSING A TEMPORARY SURCHARGE ON ELECTRIC METERS TO FUND THE EXTENSION AND ENHANCEMENT OF ELECTRIC SERVICE IN RURAL AREAS; CREATING A FUND; ENACTING NEW SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.

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

Section 1. SHORT TITLE.--This act may be cited as the "Electric Service Extension Act".

Section 2. FINDINGS AND PURPOSE.--

A. The legislature finds that:

(1) electric service is a necessity that is not fully available throughout the state;

(2) the extension of electric service into sparsely populated rural areas is prohibitively expensive and the contribution of an intended consumer required before an extension may be made often lies beyond the reasonable capability of most consumers to pay;

(3) residents of the state who remain either unserved or underserved with adequate electric service remain unable to fund the line extension and associated costs of acquiring electric service;

(4) electric service is a necessity and a vital component of modern life;

(5) in rural areas, electric service is not as available, reliable and adequate as it is in the more urban areas of the state; and

(6) all residents of this state should have access to basic electric service, particularly children, the elderly or the infirm who need and would benefit from electric service for their safety, health and well-being.

B. The purpose of the Electric Service Extension Act is to provide short-term financial support for use in extending electric service fully and completely throughout the state through low-interest loans made available with funds derived from a temporary and limited surcharge on each electric meter in the state. Section 3. ELECTRIC SERVICE EXTENSION CHARGE--RECOVERY.--An "electric service extension charge" in the amount of ten cents ($.10) per meter is created and imposed on each retail electric consumer in the state beginning on July 1, 1999 and ending on July 1, 2004. The electric service extension charge shall be separately identified on each retail electric bill rendered to customers.

Section 4. ELECTRIC SERVICE EXTENSION CHARGE FUND CREATED--PUBLIC REGULATION COMMISSION--AUTHORITY FOR ADMINISTRATION OF FUND TO PROVIDE LOW-INTEREST LOANS TO COUNTIES TO EXTEND ELECTRIC SERVICE FOR UNSERVED OR UNDERSERVED RESIDENTS--RULES.--

A. The "electric service extension charge fund" is created and consists of money collected as a charge of ten cents ($.10) per month per meter on each electric meter of a retail electric customer of an electric public utility in the state. The electric service extension charge shall be collected monthly by the electric public utility and shall be paid quarterly to the public regulation commission.

B. Money appropriated to the electric service extension charge fund or accruing to it through the electric service extension charge or through grants, gifts, repayments or bequests shall not be transferred to any other fund or be encumbered or disbursed in any manner except as provided in this section. Interest or other earnings from investment, deposit of the fund, or loans made from the fund shall be credited to the fund. Any unexpended or unencumbered balance remaining in the fund at the end of any fiscal year shall not be transferred to the general fund, but shall remain in the electric service extension charge fund pursuant to the Electric Service Extension Act.

C. Money in the electric service extension charge fund is appropriated to the public regulation commission solely for the purpose of making low-interest loans to counties to permit contributions to the infrastructure construction, in conjunction with an electric public utility, of electric facilities in residential areas of the county without electric service or inadequate electric service. Disbursements from the fund shall be made upon certification by the chairperson of the public regulation commission that the disbursement is for a loan authorized by the Electric Service Extension Act.

D. A county in conjunction with an electric public utility subject to the jurisdiction of the public regulation commission may apply for a loan from the electric service extension charge fund.

E. The public regulation commission shall promulgate rules to implement the electric service extension charge fund in accordance with the Electric Service Extension Act to ensure that:

(1) the criteria by which loans are approved includes emphasis on the actual number of individuals benefitted by the extension sought by the county's application in relation to other applications pending at the same time;

(2) the criteria permits loans primarily to benefit residential individual customers or intended residential individual customers and only coincidently and unavoidably benefit other consumers and the quality or extent of their electric service;

(3) the terms of low-interest loans to be made are established and equitably applied, including the amount of the loan, interest and repayment terms and the relative contributions, if any, of the consumers actually benefitted, the public utility involved and any actual contribution from the county in the repayment of the low-interest loan; provided that the commission may permit a range of terms and conditions in its rules to permit flexibility in considering the circumstances of each loan and the county, consumers and utility involved in the implementation of this act; provided further that in no event shall the term of repayment of any loan made pursuant to the Electric Service Extension Act extend after July 1, 2009; and

(4) the implementation and operation of the electric service extension charge fund shall cease on July 1, 2009.

Section 5. TEMPORARY PROVISION.--On July 1, 2009, any money remaining in the electric service extension charge fund shall be transferred to the general fund.

Section 6. DELAYED REPEAL.--Sections 1 through 3 of the Electric Service Extension Act are repealed effective July 1, 2004; Section 4 of the Electric Service Extension Act is repealed effective July 1, 2009.

Section 7. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 1999.