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SB 352: UTILITY ECONOMIC DEVELOPMENT RATES

An Act Relating To Utilities; Amending A Section Of The Public Utility Act To Provide For Economic Development Rates Without A Condition Of Excess Capacity.

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MILD SB 352
UTILITY ECONOMIC DEVELOPMENT RATES

Legislative URL:
SB 352 on nmlegis.gov
Emergency Clause:
No
Germane:
N/A
Location:
Signed
Action:
[3] SCORC/SJC-SCORC [15] DP/a-SJC [30] DNP-CS/DP [39] fl/a- PASSED/S (35-3)- HBEC [40] DP [41] PASSED/H (63-3) SGND BY GOV (Apr. 7) Ch. 72.
Issue(s):

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
SCORC Committee Report
SJC Committee Report
SJC Committee Substitute
Senate Floor Amendment
Final Senate Vote
HBEC Committee Report
Final House Vote
Fiscal Impact Report
Final Version
Summary

This bill amends a section of the Public Utility Act to remove the current requirement that special lower “economic development rates” are only allowed when a gas or electric utility or its supplier has excess capacity.

 

Economic development rates are special rates designed to prevent the loss of customers, to encourage

customers to expand present facilities and operations in New Mexico and to attract new customers to promote economic development in New Mexico.

 

The deleted requirement that the utility must have excess capacity is replaced by a new provision that economic development rates, and rates designed to retain load, must not be lower than the incremental cost of providing service to the customer.

 

The Senate Judiciary Committee Substitute for Senate Bill 352 amends a section of the Public Utility Act to modify the current requirement that special lower “economic development rates” are only allowed when a gas or electric utility or its supplier has excess capacity. It provides that economic development rates may be approved without meeting excess capacity requirement, provided that:

  • economic development rates must not be lower than the incremental cost of providing service to the customer; and
  • an economic development rate may not last longer than four years, except that the commission may approve the rate for an additional year if it finds that the additional period is necessary to attract a particular economic development rate customer to New Mexico.

 

A possible concern regarding this bill might be that it makes it easier for a utility to use higher rates paid by ordinary customers to subsidize special low rates to attract new business for the utility.