N.M. Admin. Code tit. 17 | N.M. Admin. Code Title 17 — Public Utilities and Utility Services

Chapter 1 Utilities General Provisions

Part 2 Utility Applications

N.M. Admin. Code § 17.1.2.1 Issuing Agency

Public Regulation Commission.

History

17.1.2.1 NMAC - Rp, 17 NMAC 1.2.1, 9/1/2008

N.M. Admin. Code § 17.1.2.2 Scope

This rule applies to applications for approval of certificates of public convenience and necessity, securities, and new rates filed by utilities pursuant to the Public Utility Act, Chapter 62, Articles 1 to 6 and 8 to 13 NMSA 1978.

History

17.1.2.2 NMAC - Rp, 17 NMAC 1.2.2, 9/1/2008

N.M. Admin. Code § 17.1.2.3 Statutory Authority

Section 8-8-4 NMSA 1978 and Section 62-8-3 NMSA 1978.

History

17.1.2.3 NMAC - Rp, 17 NMAC 1.2.3, 9/1/2008; A, 12/27/2022

N.M. Admin. Code § 17.1.2.4 Duration

Permanent.

History

17.1.2.4 NMAC - Rp, 17 NMAC 1.2.4, 9/1/2008

N.M. Admin. Code § 17.1.2.5 Effective Date

September 1, 2008, unless a later date is cited at the end of a section.

History

17.1.2.5 NMAC - Rp, 17 NMAC 1.2.5, 9/1/2008

N.M. Admin. Code § 17.1.2.6 Objective

To establish procedures for filing applications for certificates of public convenience and necessity, new rates, and securities pursuant to the Public Utility Act.

History

17.1.2.6 NMAC - Rp, 17 NMAC 1.2.6, 9/1/2008

N.M. Admin. Code § 17.1.2.7 Definitions

As used in this rule:

A. advice notice means a listing by a utility of proposed changes in tariff schedules and proposed effective dates issued to the public and filed with the commission; and

B. new rates means either a change in an existing rate or rates or the institution of a rate or rates where none had existed previously.

History

17.1.2.7 NMAC - Rp, 17 NMAC 1.2.7, 9/1/2008

N.M. Admin. Code § 17.1.2.8 Applications Relating to Securities

A. Annual informational financing filing:

(1) For purposes of this section, the term “utility” shall include each person subject to Subsection B of Section 62-6-4 NMSA 1978 and each electric, gas, or combination utility subject to the jurisdiction of the commission.

(2) Each rural electric cooperative other than a generation and transmission cooperative shall not be required to file, correct, or update an annual information filing, but shall file contemporaneously with the commission copies of all documentation submitted to the rural electrification administration supporting any loan application to that agency. The documents shall include, but are not limited to, a power requirements study, a financial forecast, and an engineering work plan.

(3) To assist the commission in reviewing applications relating to securities within the 30 days required by statute, each utility shall file with the commission on an annual basis the information required by this rule.

(a) Such information shall be filed by the utility in the form of a written statement plus any pertinent exhibits. Such written statements and exhibits shall be filed by the utility with its annual report and cover the 12 month period between the filing of its current annual report and the date its next annual report is due to be filed.

(b) The commission or presiding officer may, subsequent to the filing of the statement, require that the utility attend a conference with staff and other parties to review the filing and discuss the utility’s financing plan. The filing and any conference held are for informational purposes and no actions taken or statements made by staff shall be deemed approval of an issuance of securities or in any way bind the commission or staff.

(4) A utility, for good cause, shall have a reasonable opportunity to cure its failure to file its annual informational financing filing in a timely manner and to cure any deficiencies contained in an annual informational financing filing. A utility has the duty to discover and cure any such deficiencies at the earliest possible time. A utility may also request, for good cause, an extension of time in which to make the annual filing.

(5) A utility which fails to make its annual informational financing filing may be subject to the imposition of sanctions as provided in Sections 62-12-1 NMSA 1978 et seq. and such other sanctions as are authorized by law. An application relating to securities may be dismissed if the utility’s annual informational financing filings are not current and if the utility has not demonstrated good cause for its failure to make its annual filing when due.

(6) The following information must be provided in the annual informational financing filing:

(a) a general description of the anticipated annual capital requirements with an explanation of the amount which will be provided internally and the amount to be provided externally;

(b) a general description of all known and projected securities to be issued, assumed, or guaranteed during the 12 month period between the filing of the utility’s current annual report and the date its next annual report is due to be filed;

(c) the capital structure in dollar and percentage amounts expected to be achieved by the utility upon issuance of each of the known and projected securities, if approved by the commission;

(d) in the case of investor-owned utilities with common stock outstanding, a list of all stock plans available to employees, investors, or consumers; the number of shares issued by the utility under each plan; and the proceeds to the utility therefrom and any discounts available; and

(e) the status of the securities described in the applications of the utility filed or approved during the reporting period preceding the period covered by the current report.

B. Applications to issue, assume, or guarantee securities:

(1) Except as otherwise provided in Subsection E of 62-6-6 NMSA 1978, before issuing, assuming or guarantying any securities, or creating a lien on its property situated within New Mexico, each utility or person subject to Subsection B of Section 62-6-4 NMSA 1978 shall file an application, and receive the commission’s approval, regarding such transactions. Applications relating to securities shall conform to the requirements of this rule regarding pleadings and shall include in written form direct testimony and supporting exhibits.

(2) Testimony shall explain the proposed transactions and specifically address in detail any features which may have significant impact on ratepayers or the commission’s ability to regulate the utility.

(3) Drafts of all available transaction documents shall be filed with the application. Investment memoranda, prospectuses, information or registration statements or other documents produced to describe the transactions to potential funding sources shall also be included, if available.

(4) The proposed contents of transaction documents shall be summarized and included in testimony.

(a) Summaries shall specify those terms and conditions of the transaction that are firm.

(b) If any terms are not firm, ranges for interest rates and dollar amounts involved in the transactions and alternative terms and conditions of the transactions being negotiated shall be summarized in the application.

(c) Such terms shall include, but not be limited to, interest rates, maturities, terms of call and restrictions, necessity for security, manner of sale, and proposed purchasers.

(d) The commission or presiding officer may require more information.

(e) The utility shall serve notice of the filing of the application relating to securities on the attorney general at the time it files the application with the commission.

(5) The utility shall, to the extent that the annual informational financing filing is no longer accurate or that new information has been obtained which would have been included in the filing if known at the time of filing, include in its direct testimony and supporting exhibits a corrected or updated version of the annual informational financing filing, which document shall also be submitted in duplicate and separately as a compliance filing.

(6) The application shall show whether the financing for which approval is sought was reported in the annual informational financing filing and, if it was not reported, include a statement of the utility’s reasons for not having reported it. Failure to report in the annual filing the financing for which approval is sought may be grounds for dismissing the application, except where the utility has demonstrated good cause for the omission.

(7) Final documents shall be submitted when available following the close of the transaction. Every change from the documents presented before the commission in the application to issue securities shall be identified.

C. Procedure upon receipt of application relating to securities:

(1) Upon receipt of an application relating to securities, the application will automatically be assigned on a rotating basis to a hearing examiner employed by the commission who shall preside over the proceedings and take all actions necessary and convenient thereto within the limits of his or her authority and 17.1.2.8 NMAC, unless otherwise ordered by the commission.

(2) The commission or presiding officer shall then determine whether or not a hearing should be required pursuant to Section 62-6-7 NMSA 1978 or should be held for good cause shown pursuant to Subsection B of Section 62-6-8 NMSA 1978.

(3) In the event the commission or presiding officer determines that a public hearing is not required, the commission will take public comment and dispose of the application at an open meeting.

(4) The commission will in all cases involving applications to issue securities dispose of such applications within 30 days from the date of filing unless for good cause the commission or presiding officer determines and orders that a longer period is required.

D. Notice of filing:

(1) A utility filing an application relating to securities shall, at its expense, publish notice of the filing in a newspaper of general circulation available in the county where the principal New Mexico office of the utility is located, as directed by the presiding officer. The notice must appear at least once. The applicant shall ensure that an affidavit of publication is filed promptly with the commission upon publication of the notice.

(2) The notice required by Paragraph (1) of Subsection D of 17.1.2.8 NMAC shall include the following information:

(a) a statement of the nature, amount, and purpose of the filing of the application and the date of its filing;

(b) a statement that the commission is required by law to act promptly on the application;

(c) a statement of the date, time, and place of the hearing on the application or the open meeting at which comments will be taken and a further statement that any persons desiring to comment on the application or to intervene in the proceeding should contact the commission for confirmation of the hearing or meeting date, time, and place, since hearings and open meetings are on occasion rescheduled;

(d) a statement that those persons desiring to intervene in a proceeding must file a motion to intervene under Subsections A and B of 1.2.2.23 NMAC before the commencement of the hearing, or by the date established by the commission or presiding officer;

(e) a statement that any interested person may appear at the time and place of hearing and make a written or oral comment at the hearing pursuant to this rule without becoming an intervenor, but that the comment will not be considered as evidence in the proceeding;

(f) a statement that the utility’s application together with any exhibits and related papers may be examined at the main New Mexico office of the utility or at the offices of the commission in Santa Fe and indicating the addresses and telephone numbers of both the utility and the commission;

(g) a statement that this rule will apply to the proceeding except as modified by order of the commission or presiding officer in the proceeding; and

(h) a statement that further information can be obtained by contacting either the utility or the commission.

(3) At the time of the filing of the application the applicant shall submit a copy of the notice to the commission in the form prescribed by the commission. At the time of submission, the notice shall be complete except as to the date, time, and place of the hearing or open meeting on the application, which information will be provided to the utility before it sends the notice to the newspaper for publication. The commission or presiding officer shall issue the form of notice to be published.

(4) The commission or presiding officer may by order require such other notice as is deemed proper under the circumstances.

(5) Failure to comply with the provisions of this Subsection D of 17.1.2.8 NMAC may result in a dismissal of the application.

E. Securities subject to Section 62-6-8.1 NMSA 1978:

(1) A utility proposing to issue, assume, or guarantee securities which are payable at periods of not more than 18 months after the date thereof and over which the commission has jurisdiction by virtue of Section 62-6-8.1 NMSA 1978 shall file with the commission a written statement setting forth:

(a) the anticipated total amount of such securities to be issued, assumed, or guaranteed during the 12 month period between the filing of the utility’s current annual report and the date its next annual report is due to be filed;

(b) the general purposes for which such securities will be issued, assumed, or guaranteed;

(d) the status of the securities described in the written statement of the utility filed the prior fiscal year.

(2) Such statement shall be filed by the utility with its annual report and cover the twelve (12) month period between the filing of its current annual report and the date its next annual report is due to be filed.

(3) Not later than 10 days after such statement is filed with the commission, the commission may, upon a finding of good cause, set a hearing, but otherwise no hearing concerning such filing shall be required. The filing shall be deemed approved by the commission in the absence of an order setting such a hearing, which approval shall, at the request of the utility, be evidenced by confirming letter of the chief of staff.

(4) Notwithstanding the setting of a hearing, the utility shall be authorized to proceed with the proposed financing program until otherwise directed by the commission. The provisions of Subsection A of 17.1.2.8 NMAC, but not those of Subsections B, C and D of 17.1.2.8 NMAC, shall apply to the securities described in Subsection E of 17.1.2.8 NMAC.

History

17.1.2.8 NMAC - Rp, 17 NMAC 1.2.51, 9/1/2008

N.M. Admin. Code § 17.1.2.9 Applications for Certificates of Public Convenience and Necessity

A. Applications for certificates: Applications for certificates of public convenience and necessity shall conform to the requirements of this rule regarding pleadings and shall include in written form all direct testimony and supporting exhibits intended to be introduced into evidence.

B. Notice to other utilities: The utility making the application for a certificate of public convenience and necessity shall determine whether Extensions, Improvements, Additions, and Cooperative Agreements Between or Among Utilities, 17.5.440 NMAC, requires notification to any other public utility and, if so, the applicant shall serve a copy of such application on such other public utility. Failure to so notify such other utility may be grounds for dismissal of the application.

C. Procedure upon receipt of application for certificate of public convenience and necessity: The commission, upon receipt of an application for a certificate of public convenience and necessity, shall fix a time for a public hearing.

D. Notice of hearing: Prior to the initial hearing on any application for a certificate of public convenience and necessity, the notice of such initial hearing shall be published in a newspaper of general circulation in the counties in which the applicant seeks to construct or operate the proposed facilities. Such publication must appear once, at least 20 days prior to the date of initial hearing. The applicant shall bear the cost of such publication.

History

17.1.2.9 NMAC - Rp, 17 NMAC 1.2.52, 9/1/2008

N.M. Admin. Code § 17.1.2.10 Applications for New Rates

A. General: This section applies to all filings seeking new rates, except as otherwise provided by statute or by commission rule or order.

B. Filings seeking new rates:

(1) Proceedings involving new rates shall be initiated by advice notice notifying the commission of the utility’s intent to implement new rates by a certain date which may not be less than 30 days after the filing of such notice.

(a) The utility shall file with the advice notice direct testimony and supporting exhibits in written form, including any rate filing package required by commission rule or order.

(b) In a general rate case the utility shall also file a petition setting forth the concise statement, supported by direct testimony and exhibits, required by Subparagraph (c) of Paragraph (2) of Subsection B of 17.1.2.10 NMAC.

(d) The utility shall serve a copy of the advice notice on the attorney general and all counsel of record and pro se parties in the utility’s last rate case at the time it files the advice notice with the commission but need not accompany the copy with testimony and exhibits.

(2) The utility shall submit the following with its filing.

(a) A copy of the notice to be sent to ratepayers and published pursuant to Subsection C of 17.1.2.10 NMAC. At the time of submission the notice shall be complete except as to the date, time, and place of the hearing and the deadline for intervention, which information will be provided to the utility before it sends the notice to newspapers and ratepayers. The notice shall be in the form prescribed by the commission and shall be subject to approval by the commission or presiding officer as to form. The commission or presiding officer shall provide the date, time, and place of the hearing and the deadline for intervention and issue its approval of or corrections to the form of notice within 20 days after the commission issues its order suspending the proposed rates and assigning the matter to a hearing examiner, if such assignment is made.

(b) A statement comparing the new rate or rates with the present rate or rates, which statement shall contain the information required in Subparagraphs (a) through (e) of Paragraph (2) of Subsection C of 17.1.2.10 NMAC.

(i) whenever the utility proposes to change the ratemaking treatment upon which the present rates are based, each proposed change, the reasons for the proposed change, and the impact in dollars of the proposed change on the rates being requested; and

(ii) any extraordinary event or circumstance, known or projected, which materially alters the utility’s operating or financial condition from the condition existing during the utility’s test period in its last rate case.

(3) Failure to abide by the requirements set forth in this subsection may be deemed grounds for rejection of the filing.

C. Notice of hearing:

(1) Notice to general public: A utility filing for new rates shall cause notice of the hearing on the proposed rates to be published in a newspaper of general circulation available in every county where the utility provides service and in such other counties as the commission or presiding officer by order may determine.

(a) Such notice shall be published within 40 days of the date of the order of the commission or presiding officer setting the date, time, and place of the hearing and approving the form of notice.

(b) The notice shall appear at least once and shall contain the information set forth in Paragraph (2) of Subsection C of 17.1.2.10 NMAC.

(d) The utility shall ensure that an affidavit of publication is filed promptly upon publication of the notice.

(2) Notice to ratepayers: Every utility seeking a change in rates shall notify affected customers of the pendency of the application for new rates. Such notice shall be given no later than 40 days after the date of the order of the commission or presiding officer setting the date, time, and place of the hearing and approving the form of notice and shall include the following information:

(a) the amount of the change requested, in both dollar amounts and percentage change;

(b) the customer classifications to which the rate change will apply;

(d) for residential customers without demand meters, the present bill and the anticipated bill for each of the following levels of consumption or closest reasonable equivalent units:

(i) for electric service: 0 kwh, 250 kwh, 500 kwh, 750 kwh, 1,000 kwh, and 2,000 kwh;

(ii) for gas service: 0 therms, 50 therms, 100 therms, 200 therms, and 300 therms;

(iii) for water service: 0 gallons, 5,000 gallons, 10,000 gallons, 15,000 gallons, and 25,000 gallons; and

(iv) for sewer service: 0 gallons, 5,000 gallons, 10,000 gallons, 15,000 gallons, and 25,000 gallons, or fixed charge if applicable;

(e) a statement that the rate changes stated by class and, for residential customers, by consumption levels are for informational purposes only and that the final rate design may vary the rates ultimately charged to each class and for each consumption level;

(f) the commission case number assigned to the proceeding and the schedule ordered by the commission or presiding officer for the proceeding including the date, time, and place of hearing as well as other procedural dates established by the commission or presiding officer together with the further statement that interested persons should contact the commission for confirmation of the hearing date, time, and place since hearings are on occasion rescheduled;

(g) the statement that any interested person may examine the rate filings together with any exhibits and related papers that may be filed at the main office of the utility or at the offices of the commission in Santa Fe, and indicating the addresses and telephone numbers of both the utility and the commission;

(h) a statement that a person may intervene by filing a motion for leave to intervene pursuant to this rule on or before a date to be stated in the notice, such date to correspond to the deadline established by this rule or ordered by the commission or presiding officer pursuant to this rule;

(i) a statement that any interested person may appear at the time and place of hearing and make a written or oral comment at the hearing pursuant to this rule without becoming an intervenor, but that the comment will not be considered as evidence in the proceeding;

(j) a statement that this rule will apply to the proceeding except as modified by order of the commission or presiding officer in the proceeding; and

(k) a statement that further information may be obtained by contacting either the utility or the commission.

(3) The commission or presiding officer may by order require such other notice of the proceeding as is deemed proper under the circumstances.

(4) Failure to comply with this section may result in a dismissal of the application.

HISTORY OF 17.1.2 NMAC:

Pre NMAC History: This rule was previously filed with the state records center as:

PSC-GO 1 (Case No. 1373), In the Matter of the Adoption of Proposed General Order 30 & Proposed 2nd Revised General Order 1; Order Adopting 2nd Revised General Order No. 1; 2nd Revised General Order Number 1, Rules of Practice and Procedure of NMPSC, filed 8/14/1978

G.O. 1, Third Revised General Order Number 1 - Rules of Practice and Procedure, filed 12/17/1986;

NMPSC Rule 110, Rules of Practice and Procedure, filed 6/20/1988;

NMPUC Rule 110, Rules of Practice and Procedure, filed 10/4/1993

SCC 78-2, Order (no number), Docket No. 857, In the Matter of the Adoption of Rules of Practice and Procedure for all Cases Before the N.M. SCC, filed 10/24/1978;

SCC 85-11, Rules of Procedure of New Mexico State Corporation Commission, filed 10/15/1985.

History of Repealed Material: 17 NMAC 1.2, Public Utilities and Utility Services, Utilities General Provisions, Utility Division Procedures (filed 12/14/1998) repealed 9/1/2008.

Other History:

NMPUC Rule 110, Rules of Practice and Procedure (filed 10/4/1993) and SCC 85-11, Rules of Procedure of New Mexico State Corporation Commission (filed 10/15/1985) were renumbered, reformatted, amended and replaced by 17 NMAC 1.2, Public Utilities and Utility Services, Utilities General Provisions, Utility Division Procedures, effective 12/31/1998.

That applicable portion of 17 NMAC 1.2, Public Utilities and Utility Services, Utilities General Provisions, Utility Division Procedures (filed 12/14/1998) was renumbered, reformatted, amended and replaced by 17.1.2 NMAC, Public Utilities and Utility Services, Utilities General Provisions, Utility Applications, effective 9/1/2008.

History

17.1.2.10 NMAC - Rp, 17 NMAC 1.2.53, 9/1/2008; A, 12/27/2022

Part 3 Future Test Year Period Filing Requirements in Support of Rate Schedules for Investor-Owned Utilities

N.M. Admin. Code § 17.1.3.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.1.3.1 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.2 Scope

The data requirements specified in this rule shall apply to the investor-owned utilities doing business in New Mexico that tender a new rate schedule or rate schedule based on a future test year period where the future test year period is not the 12 consecutive months following the last day of the base period.

A. Where the commission has promulgated a rule for filing requirements in support of rate schedules for investor-owned electric, gas, water or sewer utilities in New Mexico, and a provision of the rule is inconsistent with a provision in this rule, the provision in this rule shall apply.

B. Where the commission has promulgated a rule for filing requirements in support of rate schedules for investor-owned electric, gas, water or sewer utilities in New Mexico, and a provision of the rule is silent with respect to the subject matter of a provision of this rule, the provision of this rule shall apply.

History

17.1.3.2 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.3 Statutory Authority

Sections 8-8-4, 8-8-15, 62-3-1 through 62-3-3, 62-6-4A, 62-6-4.3, 62-6-14, 62-6-16, 62-6-17, 62-6-26, 62-6-26.1, 62-6-28, 62-8-1, 62-8-6, 62-8-7, 62-9-1B, 62-9-2B, 62-13-13.2, 62-16-6, and 62-17-6 NMSA 1978.

History

17.1.3.3 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.4 Duration

Permanent.

History

17.1.3.4 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.5 Effective Date

February 14, 2013, unless a later date is cited at the end of a section.

History

17.1.3.5 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.6 Objective

The purpose of 17.1.3 NMAC is to define and specify the different or additional minimum data requirements to be filed in support for a tendered new rate schedule or rate schedule based on a future test year period which will supersede, supplement, or otherwise change the provision of a rate schedule required to be on file with this commission. This rule is intended to provide for a complete and comprehensive rate case filing that, by including full explanations and justifications of changes in items between the adjusted base period, linkage data and future test year period as required by this rule should minimize the amount of discovery needed by commission staff (hereafter “staff”) and intervenors to analyze a filing. This rule shall in no way, however, be construed to place any limits on discovery by staff and intervenors, nor to limit the utility’s burden of proof under Section 62-8-7A NMSA 1978.

History

17.1.3.6 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.7 Definitions

In addition to the definitions in 17.1.2 NMAC, 17.9.530 NMAC, 17.10.630 NMAC, 17.12.1 NMAC, 17.12.730 NMAC, 17.12.780 NMAC, 17.13.1 NMAC, 17.13.930 NMAC and 17.13.980 NMAC, as used in this rule:

A. “adjusted base period” means a utility’s base period data that includes fully explained annualizations, normalizations and adjustments for known and measureable changes and regulatory requirements that occur within the base period; the primary purpose of including the adjusted base period year with these changes in the filing is to provide staff and intervenors the ability to test the validity of the information in the future test year period;

B. “base period” means a historical 12-month period terminating (1) at the end of a quarter and (2) no earlier than 150 days prior to the date of filing;

C. “cost center” means a department, division, or organizational grouping of departments or divisions at which operating expense planning and evaluation takes place;

D. “cost driver” means a factor that influences or contributes to the expense of a business activity or operation; a business activity or operation may have more than one cost driver attached to it;

E. “data rules” means rules 17.1.2 NMAC, 17.9.530 NMAC, 17.10.630 NMAC, 17.12.1 NMAC, 17.12.730 NMAC, 17.12.780 NMAC, 17.13.1 NMAC, 17.13.930 NMAC, and 17.13.980 NMAC;

F. “elements of cost” means types of cost such as labor, materials, outside services, contract costs, important clearings, and all other types of cost combined as one category;

G. “future test year period” means a 12-month period beginning no later than the date the proposed rate change is expected to take effect;

H. “linkage data” means a specific and detailed description of all line items for the period of time between the end of the base period and the beginning of the future test year period required by this rule to create a verifiable link between future test year period data and base period data; linkage data does not constitute a test period and is provided for the purpose of validating the information contained in the future test year period;

I. “major plant additions” means plant for which the utility is required to file:

(1) an application for a certificate or public convenience and necessity; or

(2) prior notice with the commission pursuant to 17.5.440 NMAC;

J. “material change” or “material variance” means a change or variance in cost between the adjusted base period and the future test year period for a cost center if budget estimates are being used and for a uniform system of accounts (USOA) account otherwise that:

(1) exceeds 6% and $100,000 total company for investor-owned electric utilities;

(2) exceeds 6% and $100,000 total company for investor-owned gas utilities with 250,000 or more customers;

(3) exceeds 6% and $1,000 total company for investor-owned gas utilities with fewer than 250,000 customers;

(4) exceeds 6% and $1,000 total company for investor-owned water utilities; and

(5) exceeds 6% and $1,000 total company for investor-owned sewer utilities;

K. “this rule” means 17.1.3 NMAC;

L. “total company” means the costs of the utility’s total operation without regard to jurisdiction.

History

17.1.3.7 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.8 Incorporation Into Required Data Request Schedules

The minimum data standard requirements contained in the schedules in 17.9.530 NMAC, 17.10.630 NMAC, 17.12.730 NMAC and 17.13.930 NMAC shall be incorporated into any rate case application made under this rule, except:

A. for 17.9.530 NMAC schedules P-2(f), P-3(f), P-4(f), P-5(c)(iii), P-5(d)(ii), P-7(b)(ii), and P-10(e), the utility shall file the data for five years beyond the base period; and

B. for 17.10.630 NMAC schedules Q-2(f), Q-3(f), Q-4(h), Q-5(f) and Q-7(e), the utility shall file the data for five years beyond the base period.

History

17.1.3.8 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.9 Failure to Comply

The failure of the utility to fulfill the data requirements specified in this rule shall constitute sufficient cause for the commission to reject the utility’s filing pursuant to 17.1.210 NMAC.

History

17.1.3.9 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.10 Variances

A. Pursuant to 17.1.2 NMAC and 17.1.210 NMAC, a utility unable to comply fully with any data request contained in this rule due to good and sufficient cause shall give notice in writing to the commission of the utility’s inability to comply with the provisions of such data request at least 30 days prior to the actual filing of the minimum data requirements filing package.

B. Upon receipt of such notification and after consideration by the commission of the utility’s stated reasons for failure to comply fully with the provisions of the data request, the commission shall within 15 days notify the utility in writing of its decision concerning the utility’s notice of its inability to comply with the commission’s data filing requirements.

History

17.1.3.10 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.11 Electronic Filing Required

Base period, linkage data and future test year period data filed to support the rate application must be provided in fully functional electronic format so that amounts in schedules and supporting work papers required by this rule and the commission’s data rules can be traced with relative ease to supporting, detailed data.

A. Fully functional electronic format allows staff and intervenors to make adjustments that would carry through to the jurisdictional revenue requirement.

B. If the inputs to the fully functioning electronic support for the future test year period are fed by systematic calculations within other programs that are not downloadable to fully functioning and executable spreadsheets, the utility will rerun such supporting programs for input changes reasonably required by the staff or intervenors so as to be able to capture the impact of such proposed input changes on the future test year period jurisdictional cost of service model.

C. The utility shall identify any data that is not provided in fully functional electronic format and provide the reason why the data is not provided in fully functional electronic format.

History

17.1.3.11 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.12 Contents of Rate Application Based on Future Test Year Period

The rate application shall include:

A. a base period;

B. an adjusted base period;

C. a future test year period and;

D. verifiable information for the linkage data to allow commission staff and intervenors to assess the validity of the information contained in the future test year period described in Sections 15, 16, 17 and 18 of this rule;

E. all filed data and all data provided in response to discovery shall specify whether the amounts provided are total, jurisdictional, or based on some other identified and described method.

History

17.1.3.12 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.13 Historic Data Required

The rate application shall present operating results and financial data that are prepared in the normal course of business for the three years preceding the base period.

History

17.1.3.13 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.14 Supporting Testimony and Exhibits Required

The required data shall be accompanied by testimony and exhibits explaining and justifying quantities, assumptions, expectations, activity changes, etc. and verifying that the amounts used to support the future test year period are the utility’s most recently available data.

History

17.1.3.14 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.15 Conformity with Uniform System of Accounts Required

The base period, adjusted base period and future test year period, including rate base, shall be presented in conformity with the applicable USOA accounts prescribed by commission rule.

History

17.1.3.15 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.16 Base Period, Adjusted Base Period, Linkage Data and Future Test Year Period Required Data

In addition to the requirements of Section 15 of this rule, base period, adjusted base period, linkage data and future test year period results and expectations shall be presented as set forth in this section. If budget estimates are used, the results and expectations shall be presented by cost center and elements of cost. In addition, the base period, the adjusted base period, the linkage data and the future test year period shall be presented by cost categories in at least the following detail set forth in this section.

A. Revenues. Revenues shall be detailed by the accounts prescribed in the applicable commission rate classes by month. The utility shall also provide a breakdown of sales revenue by service classification and related volumes. For electric, water and sewer utilities, as has been the history in New Mexico, base period revenue shall not be weather normalized.

B. Operating expenses. Operation and maintenance expenses shall be broken down at least by USOA accounts and elements of cost, on both a total company and jurisdictional basis. In providing linkage data, the utility shall provide summary information using the future test year period jurisdictional allocators to provide a reasonable approximation of jurisdictional amounts for appropriate comparison purposes.

(1) The USOA accounts shall be further subdivided to the level necessary to identify the appropriate cost drivers and adequately demonstrate where the variations between base period and future test year period occur.

(2) Each subdivision-level estimate shall then be detailed into elements of cost.

(3) Any expenses for which the utility is not seeking recovery or which are excluded from recovery by the commission’s data rules or commission order shall be clearly identified.

(4) Depreciation, operating taxes and income taxes shall be detailed in schedules breaking these items down into sufficient detail to be useful for making projections.

C. Rate base. Rate base shall be presented on both a total company and jurisdictional basis.

(1) For a future test year period that begins at least 12 months after the end of the base period, the average rate base shall be used, utilizing the projected 13-month average of the future test year period. In providing linkage data, the utility shall provide summary information using the future test year period jurisdictional allocators to provide a reasonable approximation of jurisdictional amounts for appropriate comparison purposes.

(2) Rate base shall be shown in the detail required by the commission’s data rules for base period presentations.

(3) Major plant additions and retirements from the end of the base period shall be separately identified, indicating actual or estimated in-service dates.

D. Cost of capital.

(1) The required information shall be supplied at least for the base period, the linkage data, the future test year period and the adjusted base period.

(2) There shall also be comparable data for two subsequent calendar years; for example, if the future test year period ended December 31, 2010, projections shall be made for calendar years 2011 and 2012 (“forward-looking data”).

(a) If the utility determines the forward-looking data needs to be protected to comply with SEC requirements, the filing shall clearly state the utility has made this determination.

(b) The forward-looking data shall be provided by the utility in discovery if requested to persons who have signed a confidentiality agreement in accordance with the protective order.

(3) To ensure that a complete and useful record is compiled, the following information shall be submitted at the time of the filing:

(a) estimated short-term debt balances and available lines of credit;

(b) external financing requirements, including:

(i) projected issues of debt; and

(ii) preferred and common equity, including sources such as dividend reinvestment and employee stock purchase plans as well as public offerings; and

(4) The equity and debt amounts for the future test year period shall be based upon an average calculated in the same manner as the rate base.

(5) Estimates of interest and preferred dividend coverages shall be computed in accordance with the applicable bond indenture or certificate of incorporation.

(6) The computations of ratios of earnings to fixed charges (or earnings to fixed charges and preferred dividends) normally found in SEC registration statements for public security issues shall be included.

History

17.1.3.16 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.17 Future Test Year Period Estimates Shall Be Fully Explained

The future test year period estimates shall be fully explained and linked to the historic base period and any linkage data.

A. For any material changes between base period and future test year period, cost drivers shall be separately identified, explained and justified as well as linked to the historical base period and any linkage data.

(1) For example, for operation and maintenance expenses, changes in prices and in activity levels (e.g. number of employees, etc.) shall be fully explained and separately detailed by USOA account and elements of cost (segregated between labor and non-labor) and, if budget estimates are used, referenced to budget documentation by cost center.

(2) For revenues, taxes and rate base, an analysis of the change between the historical and forecast period shall be made that distinguishes between volume and cost/price changes to the extent practicable.

(3) For non-plant items, any material change shall be separately identified, explained and justified.

B. All assumptions of changes in cost/price inputs because of inflation or other factors or changes in activity levels due to modified work practices or other reasons shall be separately developed.

C. Staff and other parties in rate cases should be able to retrace projections back to their historical source, or the new basis for the estimate should be fully understandable.

D. All assumptions, escalation factors, contingency provisions and changes in activity levels shall be quantified and properly supported.

History

17.1.3.17 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.18 Future Test Year Period Estimates Shall Be Supported and Justified

The future test year period may be established by utilizing adjustments, forecasts, budgets or other reasonable methods; provided, however, that all future test year values, whether at the USOA account or sub-account level or at the cost center level, shall be fully described, justified, and supported through linkage data.

A. If budget estimates are used, the estimates shall still be fully supported, explained and justified in the context of this rule, with full budget process documentation. If a company uses a budget it shall:

(1) substantiate how it derived its estimates, starting with the base period; and

(2) the support provided shall allow staff and intervenors to evaluate the company’s budget numbers in the future test period.

B. In addition, for each cost center if budget estimates are used or for each USOA account otherwise, future test year period expenditure estimates shall include side-by-side comparisons, with:

(1) a column showing actual expenditures during the base period;

(2) a column showing the estimated expenditures during the future test year period;

(3) a column showing the variance between the two; and

(4) a column providing an explanation (or a reference to the written testimony requirement under Subsection D of this section) for the differences between the base period data and the future test period estimates, including occurrences which took place in the linkage data.

C. Underlying the requirements contained in Subsection B of this section of this rule is the premise that estimated amounts frequently have origins in actual past amounts or in past experience.

D. In addition to the information required under Paragraph (4) of Subsection B of this section, material changes from base period to linkage data and future test year period amounts shall be fully explained in written testimony.

History

17.1.3.18 NMAC – N, 2-14-13

N.M. Admin. Code § 17.1.3.19 Changes to Initial Rate Application

A. During the rate proceeding, the commission shall consider the utility’s proposed revisions, if any, to the originally filed future test year period. The utility shall timely notify the commission, staff and intervenors of any proposed revisions due to errors, changes in law or other changed circumstances that decrease or increase its requested revenue requirements by an amount that materially affects its original filing and shall provide detailed sufficient explanations for the proposed revisions. For purposes of this section, “materially affects” means proposed revisions that decrease or increase the utility’s originally filed jurisdictional revenue deficiency or surplus by five percent (5%) or more.

B. If the utility’s proposed revisions materially affect its original filing, it shall file a modification of its original filing with the commission. Modifications shall be approved only by order of the commission. If the commission approves the modification, the original filing shall be rendered incomplete, and the suspension period of the proposed rates shall start anew. Any approved modification that results in an increase to rates above the amount that was originally filed shall require the utility to issue a new notice to customers consistent with the law.

C. Revisions provided by the utility through errata or in response to discovery requests that do not require the filing of a modification by the utility shall be incorporated into a comprehensive list (with detailed sufficient explanations for the revisions) filed and served on a date that: 1. is established by the presiding officer in the procedural schedule; 2. provides reasonable notice to all parties; and 3. is before the date staff and intervenor direct testimony is due to be filed under the procedural schedule. Such revisions shall be presented as adjustments to the utility’s original presentation (rather than as a revised presentation) so that the adjustments are verifiable between the original presentation and the revised figures.

D. Nothing contained in this section shall be construed to prevent a utility from presenting revisions to its original filing through rebuttal testimony in response to staff or intervenor testimony or to correct errors discovered after the filing of the comprehensive list of revisions provided for in this section. The utility shall promptly notify the commission, staff and intervenors of any such errors.

HISTORY OF 17.1.3 NMAC: [RESERVED]

History

17.1.3.19 NMAC – N, 2-14-13

Part 120 Rulemaking Procedures

N.M. Admin. Code § 17.1.120.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission.

History

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N.M. Admin. Code § 17.1.120.2 Scope

NMPSC Rule 120 [17.1.120 NMAC] shall apply to all rulemaking proceedings pursuant to the Public Utility Act.

History

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N.M. Admin. Code § 17.1.120.3 Statutory Authority

History

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N.M. Admin. Code § 17.1.120.4 Duration

History

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N.M. Admin. Code § 17.1.120.5 Effective Date

History

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N.M. Admin. Code § 17.1.120.6 Objective

The purpose of NMPSC Rule 120 [17.1.120 NMAC] is to establish a rulemaking procedure which will enable the New Mexico Public Service Commission [New Mexico Public Regulation Commission] to secure the views and statements of all interested persons concerning rules and regulations adopted pursuant to the Public Utility Act, NMSA 1978, Section 62-6-1.

History

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N.M. Admin. Code § 17.1.120.7 Definitions

When used in NMPSC Rule 120 [17.1.120 NMAC] unless otherwise specified the following definitions shall apply.

A. "Commission" means the New Mexico Public Service Commission [New Mexico Public Regulation Commission].

B. "Rule" or "Regulation" means the whole or any part of every Commission rule concerning utilities under this Commission's jurisdiction, pursuant to the Public Utility Act, but shall not include statements of policy or interpretive rulings issued to clarify the policy of the Commission with respect to the Act.

17.1.120.8 [TABLE OF CONTENTS]

A. Preamble [17.1.120.6 NMAC]

B. Applicability [17.1.120.2 NMAC]

C. Definitions [17.1.120.7 NMAC]

D. Rulemaking Prerequisites [17.1.120.9 NMAC]

E. Rulemaking Hearings [17.1.120.10 NMAC]

F. Hearing Examiner [17.1.120.11 NMAC]

G. Record of the Rulemaking Hearing [17.1.120.12 NMAC]

H. Additional Comments [17.1.120.13 NMAC]

I. Order of Advance Notice of Rulemaking [17.1.120.14 NMAC]

J. Filing of Rules [17.1.120.15 NMAC]

History

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Recompiled 12/30/01

N.M. Admin. Code § 17.1.120.9 Rulemaking Prerequisites

A. Prior to the adoption, amendment, or repeal of any rule the Commission shall publish notice of its proposed action in the New Mexico Register and at least forty-five (45) days prior to its proposed action:

(1) Publish notice of its proposed action in newspapers of general circulation in the State of New Mexico so as to achieve statewide circulation;

(2) Notify utilities under its jurisdiction by mail and any person or group filing a written request for such notification to the Public Service Commission [New Mexico Public Regulation Commission], notification being by mail to the last address specified by the person or group. Requests from such persons or groups shall be renewed in December of each year. Notification under this rule shall include a copy of the proposed rulemaking.

B. The notice described in (a) [Subsection A of 17.1.120.9 NMAC] above shall:

(1) Give the date, time, and place of any public hearing and state the manner in which comments may be submitted to the Commission by interested persons;

(2) Describe the substance of the proposed action;

(3) State a location where the proposed rule may be obtained or a written address from which the proposed rule may be procured by mail; and

(4) Include reference to the statutory authority under which the rule is proposed.

C. The Commission shall afford all interested persons reasonable opportunity to submit written data, views, or arguments in support of or opposition to a proposed rule. Any interested person seeking to modify a proposed rule in any way must submit a proposed modification in writing to the Commission within thirty (30) calendar days after notice is mailed along with views or arguments in support of the modification. If after review of the written data, views, or arguments in support of the proposed modification the Commission finds that further comments are necessary, it may take such statements at a public rulemaking hearing. The Commission shall consider fully all comments respecting the proposed rule prior to a final decision.

D. Written data, views, or arguments shall be legible (not less than elite typeface), not to exceed a width of 8 - 1/2 inches and a length of 13 inches. If a visual aid is used during an oral presentation, an exact reproduction of the visual aid must be submitted as stated above. If slide photographs are used during an oral presentation, photographic copies must be submitted.

E. Adoption of any rule will be through the issuance of an order of the Commission adopting the rule. The Commission shall include in its order a statement of reasons for adopting the rule. All persons heard or represented at any hearing or who submit any comments to be considered in connection with the proposed rule shall be delivered copies of the order and the rule adopted thereby.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.120.10 Rulemaking Hearings

In the event the Commission decides to take additional comments at a hearing, rulemaking hearings shall be conducted as follows:

A. The rules of civil procedure and the rules of evidence shall not apply.

B. Unless the circumstances otherwise justify the order of appearance will be as follows:

(1) Comments of Commission staff,

(2) Comments of each proponent,

(3) Comments of each opponent, and

(4) Comments of other interested persons.

History

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N.M. Admin. Code § 17.1.120.11 Hearing Examiner

The Commission may appoint a Hearing Examiner to conduct the hearing and receive evidence. The Hearing Examiner will be authorized to make all rulings in the conduct of the proceedings and in the receipt of statements and supporting data. All utilities affected by the action of the Commission and other interested persons who have submitted data to the Hearing Examiner or who have otherwise participated in the proceedings shall be furnished a copy of the recommendations of the Hearing Examiner. Written comments regarding the Hearing Examiner's recommendations must be submitted directly to the Commission no later than fifteen (15) calendar days after the filing of said recommendations.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.120.12 Record of the Rulemaking Hearing

A. A record shall be made at each proceeding, the cost of which shall be borne by the Commission. Transcript costs shall be paid by those persons requesting transcripts. The cost of providing transcripts to the Commission shall be borne by the Commission.

B. The record shall be closed at the conclusion of the proceeding unless the Commission or Hearing Examiner holds it open for no longer than thirty (30) days for the purpose of receiving additional written supporting data. Additional written supporting data shall be limited to those matters for which permission was expressly granted, and the Commission or Hearing Examiner may make provisions for response to the written supporting data by those persons who participated in the proceeding. Persons submitting additional written supporting data or responses to the written supporting data shall provide to the Commission seven (7) copies of each supporting data or response.

C. The court reporter shall provide an index in the front of each transcript which states:

(1) The name of each individual;

(2) The pages at which an individual's statements appear;

(3) Identification of supporting data; and

(4) The pages at which supporting data was introduced, was entered, and appears in the transcript.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.120.13 Additional Comments

At the conclusion of the hearing the Commission or Hearing Examiner may request participants to submit prepared findings of fact, conclusions of law, briefs, or other pertinent supporting information.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.120.14 Order of Advance Notice of Rulemaking

For purposes of developing proposed rules and regulations under NMPSC Rule 120 [17.1.120 NMAC], the Commission may order utilities under its jurisdiction to submit specific information reasonably required and pertinent to the rulemaking, may request attendance at informal meetings or workshops, and may invite participation in generic hearings. At least thirty (30) days' notice of the time, place, and date of such meetings, workshops, or generic hearings shall be given to each affected utility and other interested parties requesting such information.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.120.15 Filing Rules

Each rule, amendment, or repeal thereof adopted by the Commission shall be filed with the State Records Center in accordance with NMSA 1978, Section 14-4-3 and with the New Mexico Register in accordance with NMSA 1978, Section 14-4-7.1.

17.1.120.16 [HISTORY: Codified by NMPSC Case No. 2086, order dated June 30, 1988, unless otherwise noted. Formerly NMPSC General Order No. 29, superseded for purposes of rule reorganization and codification; Amended by NMPSC Case No. 2311, order dated April 16, 1990.]

HISTORY OF 17.1.120 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives:

PSC-GO 29, (Case No. 1350) In The Matter Of The Adoption Of Proposed Rulemaking Rules And Regulations under the Public Utility Act. Section 68-5-1 N.M.S.A. Volume 10, Part 1; (PSC/G.O. 29) Rulemaking Regulations Under The New Mexico Public Utility Act, 6/9/77.

NMPSC Rule 120, Rulemaking Procedures, 6/30/88.

History of Repealed Material: [RESERVED]

History

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Compiler's Note: The final section of General Order No. 29 provided that "[t]his Order shall be effective upon filing with the State Record's Center." This provision is omitted from NMPSC Rule 120 [17.1.120 NMAC] because it refers specifically to the status of General Order No. 29, which is now superseded for purposes of codification.

Part 210 Schedule of Rates Rules and Forms

N.M. Admin. Code § 17.1.210.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.210.2 Scope

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.210.3 Statutory Authority

NMPSC Rule 210 [17.1.210 NMAC] is designed to provide for:

A. The general form and arrangement of Rates, Rules, and Forms showing in a uniform and convenient manner all rates, classifications of service, service rules, privileges, or conditions relating to rates and service, forms, the public inspection thereof, and adherence thereto, as provided by NMSA 1978, Sections 62-8-3, 62-8-4, and 62-8-5;

B. The procedure to be followed in the filing of rate sheets or changes thereto, as provided by NMSA 1978, Section 62-8-7;

C. The form and character of other information relative to public utility rates and service required by the Commission to be filed under the general authority contained in NMSA 1978, Section 62-6-4, consistent with effective exercise of the Commission's supervisory powers.

History

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N.M. Admin. Code § 17.1.210.4 Duration

History

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N.M. Admin. Code § 17.1.210.5 Effective Date

History

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N.M. Admin. Code § 17.1.210.6 Objective

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.210.7 Definitions

17.1.210.8 [TABLES OF CONTENTS]

A. Permanent Schedule of Rates, Rules and Forms [17.1.210.9 NMAC]

(1) General Application and Purpose [17.1.210.6 NMAC]

(2) Time of Filing

(3) Schedule of Rates, Rules, and Forms

(4) Separate Schedule of Rates, Rules, and Forms for Separate Utility Services

(5) Uniform Size Pages

(6) Original and Four Copies Filed, One Conformed Copy Returned

(7) Arrangement of Schedules

B. Content and Form of Current Schedule of Rates, Rules, and Forms [17.1.210.10 NMAC]

(1) Table of Contents--Rates

(2) Rate Pages

(3) Rules--Tables of Contents by Page Number

(4) Forms in General Use--Filing

C. Succeeding Changes and Additions to Rates, Rules, and Forms--Manner and Effect of Filing [17.1.210.11 NMAC]

(1) New and Cancelled Rates, Rules, and Forms--How Shown

(2) Advice Notice and Filing Testimony

(3) Additional Information As to Effect of Proposed Rates

(4) Corrections to Filings

(5) Withdrawal of Filings

(6) Incomplete Filings

(7) Completed Filings

(8) Rejection of Filings

(9) Pre-filing Review

D. Special Provisions [17.1.210.12 NMAC]

(1) Public Inspection of Rates, Rules, or Forms--Posting Notice

(2) Effect of Rates, Rules, or Forms on Contracts

(3) Contracts--Filing

(4) Filing Fee

(5) Effect of NMPSC Rule 210 [17.1.210 NMAC]

E. Attachment A - Electric Company Revised Rate Form

F. Attachment B - Example of “Advice Notice”

History

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Forms
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N.M. Admin. Code § 17.1.210.9 Permanent Schedule of Rates, Rules and Forms

A. Time of Filing: Before engaging in utility operations each utility shall file with the Commission a "Schedule of Rates, Rules, and Forms," as that term is hereinafter defined, in the manner and form provided by NMPSC Rule 210 [17.1.210 NMAC] and thereafter shall comply with all conditions and other requirements relating to such filed schedules.

B. Schedule of Rates, Rules, and Forms: The term "Schedule of Rates, Rules, and Forms" when employed in NMPSC Rule 210 [17.1.210 NMAC] shall mean the entire compilation of Rates, Rules, and Forms as collectively filed by a public utility and in effect at a given time. When such terms as "Rate," "Rule," or "Form" are employed they shall be taken to refer only to those particular parts of the compilation.

C. Separate Schedule of Rates, Rules, and Forms for Separate Utility Services: Any public utility engaged in rendering two or more of the kinds of utility service described in the Public Utility Act, such as both electric and water service, shall file with the Commission and keep open to public inspection a separate schedule of Rates, Rules, and Forms covering each kind of utility service rendered.

D. Uniform Size Pages:

(1) All pages included in the schedule of Rates, Rules, and Forms shall measure 8 1/2 inches in width, 11 inches in length, and shall be prepared on durable paper stock not less than 16 pound bond or its equivalent. The content of the page shall be contained with a minimum margin of 1 1/8 inches all around excluding the lower left hand corner, which shall contain a blank space for Commission use measuring at least 2 inches in height and 4 inches in width. Any holes for binding or filing shall be on the left-hand margin. All pages shall be typewritten or machine printed.

(2) Rate, Rule, and Form pages shall be filed in loose-leaf so that each complete schedule may be changed from time to time to reflect succeeding Rates, Rules, or Forms by removing a superseded page and substituting a new page. All pages shall be printed or typewritten.

(3) Each page in a schedule of Rates, Rules, and Forms shall indicate the Rate, Rule, or Form number and the applicable class of customer. If the Rate, Rule, or Form applies to all customers it shall so indicate. Approved revisions to original Rates, Rules, or Forms shall be denoted as lst Revised (Rate, Rule, or Form) No. ____ Cancelling Original (Rate, Rule, or Form) No. ____; 2nd Revised (Rate, Rule, or Form) No. ____ Cancelling lst Revised (Rate, Rule, or Form) No. ____ etc. Additional Rates, Rules, or Forms which create an entirely new Rate, Rule, or Form by customer classification or subject matter shall bear the next succeeding unused Rate, Rule, or Form number. Rates, Rules, or Forms shall bear a notation listing the page number and total number of pages. For example, the first page of Rate No. 1, which contains five (5) pages, shall be labeled "page 1 of 5" (see Attachment A).

E. Original and Four Copies Submitted and Filed, One Conformed Copy Returned: New schedules of Rates, Rules, and Forms and additions to or changes in existing schedules shall be filed as an original with four (4) copies and the Commission shall promptly acknowledge receipt of the submitted filing. After new or revised Rates, Rules, or Forms have been determined complete, one (1) copy of such Rates, Rules, or Forms and of the accompanying Advice Notice will be returned to the utility showing the date the Rates, Rules, or Forms have been accepted and the statutory date the Rates, Rules, or Forms would otherwise become effective unless earlier suspended by the Commission for investigation and public hearing.

F. Arrangement of Schedules:

(1) The various subdivisions of the schedule shall be arranged and filed in the following order:

(i) Rates,

(ii) Rules,

(iii) Forms.

(2) Each subdivision of a schedule shall contain a Table of Contents showing the sections included in the subdivision.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.210.10 Content and Form of Current Schedule of Rates, Rules, and Forms

A. Table of Contents--Rates: A complete list shall be maintained of all rates, charges, and NMPSC Rule 570 [17.9.570 NMAC] buy-back rates filed in the rate subsection of the schedule of Rates, Rules, and Forms. This list shall be tabulated by rate number.

B. Rate Pages: Rate pages shall be substantially in the form provided in Attachment A, and each rate page shall include the following information as nearly as possible in the order shown:

(1) Rate number;

(2) Class of service, such as residential, commercial, industrial, etc., with each class of service in a separate rate on separate pages;

(3) End-use such as heating, lighting, or power service;

(4) Territory to which the rate is applicable;

(5) Where more than one rate block is to be charged, the blocks listed in tabular form with the lowest block listed first;

(6) Minimum or customer charge and whether any usage is included in the minimum or customer charge; and

(7) Any general or special conditions, exceptions, or limitations regarding the rate and service provided by the rate, such as demand or ratchet provisions, etc., applicable to the rate.

C. Rules--Table of Contents by Rule Number:

(1) Each rule shall be numbered consecutively and shall have a title line briefly indicative of the section's contents. A separate rule number shall be used for each rule. Rules shall be on pages identical to those previously described in NMPSC Rule 210.5 [Subsection D of 17.1.210.9 NMAC] for schedules of rates. A Table of Contents for all rules shall appear at the front of the rules subsection of the schedule.

(2) The following subject categories and other subject categories, where necessary, shall be covered by rules included in the schedule for all services:

(i) Definitions--Clear and concise definitions of the principal terms used.

(ii) Character of Service--Full description of character of service rendered and standards of service maintained, including metering.

(iii) Application for Service--Procedure necessary to obtain service.

(iv) Deposits and Establishment of Credit--Procedure necessary to establish and reestablish credit, basis for requiring deposits, conditions precedent for return of deposits, and interest paid thereon.

(v) Rendering and Payment of Bills--Methods of rendering bills, billing periods, due dates, methods of payment, Budget Payment Plans.

(vi) Disputed Bills and Settlement Agreements--Methods of adjustment and time limitations, internal utility compliance procedures, meter testing procedures, notice of customer rights, and availability of schedules.

(vii) Discontinuance and Restoration of Service--Reasons for discontinuance, notification, time limitations, procedure necessary for restoration of service, and charges.

(viii) Temporary Service--Conditions precedent for rendering temporary service or service to construction projects.

(ix) Shortage of Supply--Interruption of delivery of service, notice to customers, apportionment of available service.

(x) Line Extensions and Service Hook-ups--Free extensions, advances, contributions and refunds, ownership, and maintenance.

(xi) Service Connection Made by Utility Employees--No other connections authorized.

(xii) Right of Ingress to and Egress from Customers' Premises--At all reasonable hours.

(3) Rules which have been filed and which by operation of NMSA 1978, Section 62-8-7B, have become effective without hearing at the expiration of thirty (30) days from the date of their filing shall not be construed to bear the approval of the Commission, but like any approved rule shall be subject to inquiry by the Commission at any time.

D. Forms in General Use--Filing:

(1) Sample copies of printed forms that are normally used in connection with customer services or which are required by the Commission, such as applications for service, regular bills for service, contract forms, delinquency notices, disconnect notices, deposit receipts, and similar forms, shall be included in a utility's schedule of forms. Each form shall be mounted on a separate page identical to that previously described in NMPSC Rule 210.5 [Subsection D of 17.1.210.9 NMAC] showing the name or title of the form. Such forms shall be numbered consecutively in the same manner as rates and rules. A Table of Contents shall appear at the front of the sample forms subsection of the schedule.

(2) Forms which have been filed and which by operation of NMSA 1978, Section 62-8-7B, have become effective without hearing at the expiration of thirty (30) days from the date of their filing shall not be construed to bear the approval of the Commission, but like any approved rule shall be subject to inquiry by the Commission at any time.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.210.11 Succeeding Changes and Additions to Rates, Rules, and Forms--Manner and Effect of Filing

A. New and Cancelled Rates, Rules, and Forms--How Shown:

(1) When any change is made in a Rate, Rule, or Form, or any part thereof, a new Rate, Rule, or Form shall be filed and attention shall be directed to the changes on the revised Rate, Rule, or Form by placing an “X” at the right-hand border on the line which contains the change (See Attachment A). When all or most of the Rates, Rules, or Forms are to be changed, the “X” may be placed near the top of the page below the schedule name with a notation to that effect.

(2) The new page shall bear the same Rate, Rule, or Form number and pertain to the same character of service as the page being replaced and shall take the place of and cancel the old one.

(3) Cancelled Rates, Rules, or Forms will not be destroyed but will be removed at the time they become obsolete and maintained as a separate subsection of the Schedule of Rates, Rules, and Forms.

B. Advice Notice and Filing of Testimony:

(1) Every new Rate, Rule, or Form submitted to the Commission for filing shall be accompanied by an original and four (4) copies of an "Advice Notice" listing the new Rates, Rules, or Form numbers and titles proposed thereby together with the numbers of all Rates, Rules, or Forms to be replaced in substantially the form set out in Attachment B. Advice Notices shall be numbered consecutively beginning with No. 1. Except for filings made in accordance with and pursuant to NMPSC Rule 540 [17.9.540 NMAC], the utility shall serve a copy of the Advice Notice on the Attorney General and all counsel of record and pro se parties in the utility’s last rate case at the time it files the Advice Notice with the Commission but need not accompany the copy with testimony and exhibits. Every new Rate, Rule or Form submitted the Commission for filing shall also be accompanied by a certificate of service listing the recipients of the new Rate, Rule or Form and accompanying Advice Notice.

(2) In every case of a proposed change in rates the utility shall file together with the Advice Notice direct testimony from every witness it intends to present in support of the proposed rate change along with supporting exhibits in written form intended to be introduced into evidence. Failure to abide by the requirements set forth herein shall be deemed grounds for rejection of the filing.

C. Additional Information as to Effect of Proposed Rates: For the information of the Commission and the public, but not to be or become part of the permanent schedule on file, a concise statement shall accompany each Advice Notice of a new or changed rate showing the anticipated reduction or increase in annual revenue resulting therefrom, the number of customers in each rate class affected or likely to be affected thereby, and the impact on customers at a class average of consumption within each class as nearly as may be calculated.

D. Corrections to Filings: When typographical errors or incorrect Rate, Rule, Form, or Advice Notice numbers or other anomalies inconsistent with the Commission's rules or policy have been made in a filing, before such filing may be deemed complete corrected pages shall be submitted to the Commission with a letter of explanation.

E. Withdrawal of Filings: Except as provided in NMPSC Rule 210.15 [Subsection D of 17.1.210.11 NMAC], a filing which has been made with the Commission may not be withdrawn or changed in any manner without the Commission's approval. Such approval may be granted by the Commission in its discretion. Upon withdrawal all copies of the Advice Notice and related Rates, Rules, or Forms shall be returned to the utility, and the Advice Notice numbers and Rate, Rule, or Form numbers shall be considered as never having been filed. The numbers withdrawn will therefore be available for use by the utility in its subsequent submissions. If a utility withdraws its filing after a hearing has been held on it, the Commission may recover costs against the party withdrawing the filing. The withdrawal of a filing after hearing shall be accompanied by an affidavit setting forth the reasons the filing should be withdrawn. This section shall not apply to filings ordered withdrawn after hearing or for any other reason ordered by the Commission.

F. Incomplete Filings: Filed Rates, Rules, or Forms which do not conform to the requirements specified in NMPSC Rule 210 [17.1.210 NMAC] shall not be determined complete until all requirements are met. In the event such filings are found to be incomplete, the Commission shall advise the filing utility of the deficiency of the filing within thirty (30) days of receipt and will hold the Rates, Rules, or Forms for a reasonable time until the additional information required or necessary corrections have been provided. All applications for a change in rates will be considered incomplete unless accompanied by an Advice Notice, direct testimony, exhibits, and appropriate filing fee as required by NMPSC Rules 210.17 and 210.13 [Subsections F and B of 17.1.210.11 NMAC]. No statutory deadline shall begin to be computed until the filing has been determined complete after notification to the utility of any deficiencies.

G. Completed Filings: Submitted incomplete Rates, Rules, or Forms shall be deemed to have been completed and acceptable when all required information and necessary corrections have been received by the Commission.

H. Rejection of Filings: Rates, Rules, or Forms which are not in substantial compliance with Commission rules, orders, or applicable statutes may be rejected. If rejected they will be returned with an indication of the deficiencies therein. Filed Rates, Rules, or Forms which have been rejected shall not be entered on the Commission's docket. Acceptance of a document for filing is not a determination that the document complies with all requirements of the Commission and is not a waiver of such requirements.

I. Pre-filing Review: As a means of facilitating the filing procedure for both the public utility and the Commission and to avoid misunderstanding and delay due to rejection, a draft copy of new or revised Rates, Rules, or Forms may be submitted to the Commission informally as a " Proposed Filing" for preliminary review by Commission staff. The staff's comments will be given to the utility prior to formal filing but shall in no way constitute approval by the Commission as to the reasonableness or lawfulness of any proposed Rates, Rules, or Forms.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.210.12 Special Provisions

A. Public Inspection of Rates, Rules, or Forms--Posting Notice: Each public utility shall maintain a notice posted in a conspicuous location at each of its New Mexico business offices stating that its complete schedules are open to public inspection at its main and outlying business offices, at the office serving the particular territory in which the customer receives service, and at the offices of the New Mexico Public Service Commission [New Mexico Public Regulation Commission]. The notice shall give the location of such offices.

B. Effect of Rates, Rules, or Forms on Contracts: All contracts and agreements made between a public utility and its customers covering service rendered or to be rendered shall contain substantially the following provision: "This contract, including the attached rate schedule, shall at all times be subject to change or modification by order of the New Mexico Public Service Commission [New Mexico Public Regulation Commission]. You will receive notice in accordance with the Commission's requirements when we are requesting the Commission to take action which could cause a change in the terms of this contract."

C. Contracts--Filing: All special contracts dealing with Rates, Rules, or Forms shall be maintained by the utility and made available to Commission staff upon request. However, this provision shall not relieve a utility from the duty of filing rates concisely setting forth the terms and conditions applicable to any service rendered under such special contract.

D. Filing Fee: Every new or changed Rate, Rule, or Form submitted for filing shall be accompanied by a filing fee of one dollar ($1.00) for each proposed Rate, Rule, or Form. Tables of Contents may be submitted for filing without fee. No filing governed by NMPSC Rule 210 [17.1.210 NMAC] is complete unless accompanied by its filing fee.

E. Effect of NMPSC Rule 210 [17.1.210 NMAC]: NMPSC Rule 210 [17.1.10 NMAC] and NMPSC Rule 110.40 [17.1.2.53 NMAC] shall be construed as consistent with each other to the extent possible. In the event of any inconsistencies NMPSC Rule 110.40 [17.1.2.53 NMAC] shall govern.

17.1.210.13 [History: NMPSC Case No. 2086, order dated June 30, 1988, unless otherwise noted. Formerly NMPSC Second Revised General Order No. 2, superseded for purposes of rule reorganization and codification.]

HISTORY OF 17.1.210 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives:

General Order No. 2 (Second Revised), Schedule of Rates, Rules and Forms, 6-14-84.

NMPSC Rule 210, Schedule of Rates, Rules and Forms, 6-30-88.

History of Repealed Material: [Reserved]

History

Recompiled 12/30/01
Recompiled 12/30/01

Part 330 Uniform Tax Adjustment Clause in Rate Schedules

N.M. Admin. Code § 17.1.330.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

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N.M. Admin. Code § 17.1.330.2 Scope

History

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N.M. Admin. Code § 17.1.330.3 Statutory Authority

History

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N.M. Admin. Code § 17.1.330.4 Duration

History

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N.M. Admin. Code § 17.1.330.5 Effective Date

History

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N.M. Admin. Code § 17.1.330.6 Objective

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.330.7 Definitions

17.1.330.8 [TABLE OF CONTENTS:]

A. Tax Adjustment Clause [17.1.330.9 NMAC]

B. Surcharge or Inclusion in Billings [17.1.330.10 NMAC]

C. Other Tax Adjustment Clause Not Permitted [17.1.330.11 NMAC]

D. Special Contract Rate Schedules Exception [17.1.330.12 NMAC]

E. Tariff Schedules on File [17.1.330.13 NMAC]

History

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Recompiled 12/30/01

N.M. Admin. Code § 17.1.330.9 Tax Adjustment Clause

Any public utility electing to incorporate a tax adjustment clause in any rate schedule shall use the following language. Billings under this schedule may be increased by an amount equal to the sum of the taxes payable under the Gross Receipts and Compensating Tax Act and of all other taxes, fees, or charges (exclusive of ad valorem, state, and federal income taxes) payable by the utility and levied or assessed by any governmental authority on the public utility service rendered, or on the right or privilege of rendering the service, or on any object or event incidental to the rendition of the service.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.330.10 Surcharge or Inclusion in Billings

Except for the Gross Receipts and Compensating Tax and local sales taxes, the filed rates and, consequently, the billings of public utilities operating in the State of New Mexico as of April 10, 1968 [the date of General Order No. 25, codified by NMPSC Rule 330] [17.1.330 NMAC] already included all federal, state, and local taxes, fees, and charges as of that date. Such school tax and local sales taxes, if any, together with includable taxes, fees, or charges subsequent to that date and elected to be included by any utility in its billings under any filed rate may either be added to its billings by surcharge or may be included in the billings with a reference on the face of the bill that the amount billed includes such taxes, fees, or charges.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.330.11 Other Tax Adjustment Clause Not Permitted

No tax adjustment clause inconsistent with that allowed by NMPSC Rule 330 [17.1.330 NMAC] may be used by any public utility in any rate schedule.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.330.12 Special Contract Rate Schedules Exception

NMPSC Rule 330 [17.1.330 NMAC] shall have no application to special contract rate schedules, filed or to be filed.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.1.330.13 Tariff Schedules on File

Any tariff schedules on file and effective with the Commission on April 10, 1968 [the date of General Order No. 25, codified by NMPSC Rule 330] [17.1.330 NMAC], which referred to the New Mexico Emergency School Tax Act, shall be construed to refer to the Gross Receipts and Compensating Tax Act mentioned in NMPSC Rules 330.1 and 330.3 [17.1.330.9 NMAC and 17.1.330.11 NMAC.

17.1.330.14 [HISTORY: NMPSC Case No. 2086, order dated June 30, 1988, unless otherwise noted. Formerly First Revised General Order No. 25, superseded for purposes of rule reorganization and codification. Readopted without revision in NMPSC Case No. 2360, Order dated August 17, 1992.

HISTORY OF 17.1.330 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

NMPSC Rule 330, Uniform Tax Adjustment Clause In Rate Schedules, 6/30/88.

NMPSC Rule 330, Uniform Tax Adjustment Clause In Rate Schedules, 9/2/92.

History of Repealed Material: [RESERVED]

History

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Recompiled 12/30/01

Chapter 3 Utilities Financial Accounting and Reporting – General Provisions

Part 110 Inspection and Supervision Fee

N.M. Admin. Code § 17.3.110.1 Issuing Agency

The New Mexico Public Regulation Commission.

History

17.3.110.1 NMAC - N, 3/10/2026

N.M. Admin. Code § 17.3.110.2 Scope

This rule applies to all utilities subject to the commission’s control and jurisdiction with respect to their rates or service regulations.

History

17.3.110.2 NMAC - N, 3/10/2026

N.M. Admin. Code § 17.3.110.3 Statutory Authority

Section 62-8-8 NMSA 1978.

History

17.3.110.3 NMAC - N, 3/10/2026

N.M. Admin. Code § 17.3.110.4 Duration

Permanent.

History

17.3.110.4 NMAC - N, 3/10/2026

N.M. Admin. Code § 17.3.110.5 Effective Date

March 10, 2026, unless a later date is cited at the end of a section.

History

17.3.110.5 NMAC - N, 3/10/2026

N.M. Admin. Code § 17.3.110.6 Objective

The objective of this rule is to implement a transparent process for adjusting the inspection and supervision fee and notifying utilities of adjustments.

History

17.3.110.6 NMAC - N, 3/10/2026

N.M. Admin. Code § 17.3.110.7 Definitions

In addition to the definitions provided in the Public Utility Act, the following definitions shall apply.

A. Definitions beginning with “A”: [RESERVED]

B. Definitions beginning with “B”: [RESERVED]

C. Definitions beginning with “C”: [RESERVED]

D. Definitions beginning with “D”: [RESERVED]

E. Definitions beginning with “E”: [RESERVED]

F. Definitions beginning with “F”: [RESERVED]

G. Definitions beginning with “G”: [RESERVED]

H. Definitions beginning with “H”: [RESERVED]

I. Definitions beginning with “I”: “inspection and supervision fee” means the fee required by Section 62-8-8 NMSA 1978 of the Public Utility Act to be paid annually by a utility and that is equal to a percentage of the utility’s gross receipts from business transacted in New Mexico during the preceding calendar year.

J. Definitions beginning with “J”: [RESERVED]

K. Definitions beginning with “K”: [RESERVED]

L. Definitions beginning with “L”: [RESERVED]

M. Definitions beginning with “M”: [RESERVED]

N. Definitions beginning with “N”: [RESERVED]

O. Definitions beginning with “O”: [RESERVED]

P. Definitions beginning with “P”: [RESERVED]

Q. Definitions beginning with “Q.”: [RESERVED]

R. Definitions beginning with “R”: [RESERVED]

S. Definitions beginning with “S”: [RESERVED]

T. Definitions beginning with “T”: [RESERVED]

U. Definitions beginning with “U”: [RESERVED]

V. Definitions beginning with “V”: [RESERVED]

W. Definitions beginning with “W”: [RESERVED]

X. Definitions beginning with “X”: [RESERVED]

Y. Definitions beginning with “Y”: [RESERVED]

Z. Definitions beginning with “Z”: [RESERVED]

History

17.3.110.7 NMAC - N, 3/10/2026

N.M. Admin. Code § 17.3.110.8 Inspection and Supervision Fee Review

A. The commission may in its discretion, or upon request by utility division staff or a utility, annually increase, decrease, or maintain the inspection and supervision fee subject to the limitations provided in Subsection C of 17.3.110.8 NMAC and Subsection A of 17.3.110.9 NMAC.

B. Fee adjustment procedure:

(1) The commission may require utility division staff to submit a review of the inspection and supervision fees collected during the previous calendar year and to propose, no later than May 1, an adjusted inspection and supervision fee to be collected during the current calendar year.

(2) In the event the commission adjusts the inspection and supervision fee to be collected during the current calendar year, then the utility division staff shall prepare a form for utilities to use to calculate the fee due.

(a) Utility division staff shall post the form on the commission’s website and shall email the form to each utility no later than June 30.

(b) A utility is responsible for paying the inspection and supervision fee due regardless of whether the utility receives the form from staff.

(3) If the inspection and supervision fee is adjusted, the newly adjusted fee supersedes the baseline fee as provided in Section 62-8-8 NMSA 1978 and any previously adjusted fee.

C. A utility shall pay the inspection and supervision fee due during the current calendar year no earlier than July 1 and no later than July 31.

D. Cap: Percentage increases to the inspection and supervision fee shall not be greater than the prior year’s increase in the employment cost index for state and local government as published by the federal bureau of labor statistics.

History

17.3.110.8 NMAC - N, 3/10/2026

N.M. Admin. Code § 17.3.110.9 Sunset

A. The commission’s authority to adjust the inspection and supervision fee shall cease on July 1, 2031, pursuant to Subsection B of Section 62-8-8 NMSA 1978.

B. The cessation of the commission’s adjustment authority shall not discharge a utility’s duty to pay the inspection and supervision fee at the percentage it is set for calendar year 2031 and thereafter.

C. The inspection and supervision fee as set by the commission for calendar year 2031 shall carry over to subsequent years.

HISTORY OF 17.3.110 NMAC - [RESERVED]

History

17.3.110.9 NMAC - N, 3/10/2026

Part 220 Enforcement of Reporting Requirements

N.M. Admin. Code § 17.3.220.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.220.2 Scope

A. NMPSC Rule 220 [17.3.220 NMAC] shall govern the reports required under Commission rules from electric, gas, water, and sewer utilities subject to the jurisdiction of the Commission.

B. NMPSC Rule 220 [17.3.220 NMAC] shall not govern reporting requirements required in compliance with Commission cases or other matters before the Commission other than those reporting requirements specifically required by Commission rules. NMPSC Rule 220 [17.3.220 NMAC] also shall not govern requirements of the Commission concerning the filing of applications for or approval of rates, securities, Certificates of Public Convenience and Necessity, changes of ownership, or other matters of Commission jurisdiction other than reports required by the Commission's rules.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.220.3 Statutory Authority

NMPSC Rule 220 [17.3.220 NMAC] is adopted under the authority vested in the Commission pursuant to NMSA 1978, Sections 62-6-1, 62-6-18, and 62-12-4 to 62-12-6.

History

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N.M. Admin. Code § 17.3.220.4 Duration

History

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N.M. Admin. Code § 17.3.220.5 Effective Date

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.220.6 Objective

NMPSC Rule 220 [17.3.220 NMAC] is intended to improve the New Mexico Public Service Commission's [New Mexico Public Regulation Commission’s] ability to monitor and enforce compliance with the reporting requirements set forth in the Commission's Code of Rules and Regulations.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.220.7 Definitions

When used in NMPSC Rule 220 [17.3.220 NMAC] unless otherwise specified the following definitions will apply:

A. "Commission" means the New Mexico Public Service Commission [New Mexico Public Regulation Commission].

B. "Executive Director" means the Executive Director of the New Mexico Public Service Commission [New Mexico Public Regulation Commission].

C. "Report" means a written document or oral notification as required by Commission rule containing certain information which a utility provides to the Commission on a regular basis or in response to a certain event or action as prescribed by a Commission rule. This does not include rate or security filings, applications, motions, or interrogatories nor does it include reports or information required by Order in an individual Commission case. "Annual Reports" means the reports required by NMPSC Rules 510, 610, and 720 [17.3.510 NMAC, 17.3.610 NMAC and 17.12.720 NMAC]. All reports will be typed or machine printed on 8 1/2 x 11 inch pages.

17.3.220.8 [TABLE OF CONTENTS:]

A. Purpose [17.3.220.6 NMAC]

B. Applicability [17.3.220.2 NMAC]

C. Authority [17.3.220.3 NMAC]

D. Definitions: [17.3.220.7 NMAC]

E. Utility Application for Extension of Due Date for Reports [17.3.220.9 NMAC]

F. Enforcement of Reporting Requirements [17.3.220.10 NMAC]

History

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Recompiled 12/30/01

N.M. Admin. Code § 17.3.220.9 Utility Application for Extension of Due Date for Reports

For good cause shown a utility may request an extension of the due date of a given report provided that the request for extension is submitted in writing to the Executive Director at least ten (10) days prior to the due date of the report. The request for extension should include a specific date by which the utility proposes to file the report. For good cause shown the Executive Director may in his discretion grant the extension.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.220.10 Enforcement of Reporting Requirements

Strict compliance with the due dates of reports including Annual Reports is required of all utilities. Failure to file reports including Annual Reports required under the Commission's rules by the appropriate due date may subject a utility to penalties as prescribed in NMSA 1978, Sections 62-12-4, 62-12-5, and 62-12-6, including fines of no less than one hundred dollars ($100) and no greater than ten thousand dollars ($10,000) for each offense unless the utility has received an exemption, variance, or extension as outlined in NMPSC Rule 220 [17.3.220 NMAC] or other applicable rule of the Commission, and said exemption, variance, or extension would relieve the utility of the obligation of filing said report by the appropriate due date. Failure of a utility to fulfill the terms of an exemption, variance, or extension shall also subject a utility to the penalties described herein.

17.3.220.11 [HISTORY: Codified by NMPSC Case No. 2086, order dated June 30, 1988; Amended by NMPSC Case No. 2232, order dated December 19, 1988; Amended by NMPSC Case No. 2277, order dated December 29, 1989.]

HISTORY OF 17.3.220 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

NMPSC Rule 220, Enforcement Of Reporting Requirements. 6/30/88.

History of Repealed Material: [RESERVED]

History

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Recompiled 12/30/01

Part 310 Preservation of Records

N.M. Admin. Code § 17.3.310.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.310.2 Scope

History

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N.M. Admin. Code § 17.3.310.3 Statutory Authority

History

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N.M. Admin. Code § 17.3.310.4 Duration

History

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N.M. Admin. Code § 17.3.310.5 Effective Date

History

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N.M. Admin. Code § 17.3.310.6 Objective

History

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N.M. Admin. Code § 17.3.310.7 Definitions

17.3.310.8 [TABLE OF CONTENTS:]

A. Preservation of Records by Rural Electric Cooperatives [17.3.310.9 NMAC]

B. Preservation of Records by Utilities Other Than Rural Electric Cooperatives [17.3.310.10 NMAC]

History

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Recompiled 12/30/01

N.M. Admin. Code § 17.3.310.9 Preservation of Records by Rural Electric Cooperatives

The Rural Electrification Administration's MANUAL FOR PRESERVATION OF BORROWERS’ RECORDS (ELECTRIC), March, 1957, REA Bulletin No. 180-2 with any subsequent revisions, is prescribed for all corporations organized under the New Mexico Rural Electric Cooperative Act subject to the Commission's jurisdiction. The said utilities shall preserve their records in compliance with the requirements of the said REA Bulletin No. 180-2.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.310.10 Preservation of Records by Utilities Other Than Rural Electric Cooperatives

The National Association of Railroad and Utilities Commissioners' REGULATIONS TO GOVERN THE PRESERVATION OF RECORDS OF ELECTRIC, GAS AND WATER UTILITIES, Revised 1963, with any subsequent revisions by the National Association of Regulatory Utility Commissioners (NARUC), is prescribed for all gas, water, sewer, and electric utilities subject to the Commission's jurisdiction except for corporations organized under the New Mexico Rural Electric Cooperative Act. The said utilities shall preserve their records in compliance with the said Regulations.

17.3.310.11 [HISTORY: NMPSC Case No. 2086, order dated June 30, 1988, Amended by NMPSC Case No. 2277, order dated December 29, 1989. Formerly NMPSC General Order No. 3, superseded for purposes of rule reorganization and codification.]

HISTORY OF 17.3.310 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

NMPSC Rule 310, Preservation Of Records, 6/30/88.

History of Repealed Material: [RESERVED]

History

Recompiled 12/30/01
Recompiled 12/30/01

Part 320 Uniform Accounting Procedures for Accelerated Amortization, Liberalized Depreciation, and Tax Credits

N.M. Admin. Code § 17.3.320.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.320.2 Scope

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.320.3 Statutory Authority

History

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N.M. Admin. Code § 17.3.320.4 Duration

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.320.5 Effctive Date

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.320.6 Objective

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.320.7 Definitions

17.3.320.8 [TABLE OF CONTENTS:]

A. Preamble [17.3.320.9 NMAC]

B. Accounting Procedures for Accelerated Amortization and Liberalized Depreciation [17.3.320.10 NMAC]

C. Accounting Procedures for Federal Investment Tax Credit [17.3.320.11 NMAC]

D. Relief [17.3.320.12 NMAC]

History

Recompiled 12/30/01
Recompiled 12/30/01

N.M. Admin. Code § 17.3.320.9 Preamble

A. Uniform accounting procedures shall be used by all public utilities for amounts certified by the federal government for accelerated amortization pursuant to Section 168 of the Internal Revenue Code and applicable regulations and for liberalized depreciation allowances pursuant to Section 167 of the Internal Revenue Code. Uniform accounting procedures shall be used by all public utilities for amounts certified by the federal government for federal investment tax credits pursuant to Section 46 of the Internal Revenue Code.

B. Pursuant to IRC Section 168 certificates of necessity were issued by the federal government only after evidence had been presented that the facilities were essential to the national effort and that there was probably future economic usefulness of the facilities. It is recognized that the amortization privilege assures only one thing, namely that the tax reduction will be realized during the period of amortization, which is usually five (5) years, instead of being spread over the life of the property.

C. Subsequently Congress and the Internal Revenue Service in IRC Section 167 and Treas. Reg. Section 1.167 have made provisions for liberalized depreciation allowances wherein the tax reduction benefits are similar in character to those of the accelerated amortization privilege. The tax reduction will be realized during the early years after the purchase and installation of the asset, and the taxes will increase in the later years of the asset's life.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.320.10 Accounting Procedures for Accelerated Amortization and Liberalized Depreciation

In order to insure proper accounting for accelerated amortization and liberalized depreciation a utility may take these allowances for tax purposes but shall continue to charge customary depreciation on the books. The utility shall make a further charge on the books equivalent to the tax reduction arising by reason of the allowances (instead of customary depreciation) and credit this to an accumulated deferred income tax account. After the allowance period, when the property has been fully amortized or depreciated through the application of accelerated amortization or liberalized depreciation, the reserve in the Accumulated Deferred Income Tax Account shall be used to pay taxes on that income in excess of the income which would have been derived had customary depreciation been utilized.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.320.11 Accounting Procedures for Federal Investment Tax Credit

A. For gas utilities, accounting for the federal investment tax credit permitted by IRC Section 46 and applicable regulations shall be in accordance with the Federal Power Commission's Accounting Procedure for Investment Tax Credit, Order No. 289, as amended by Order No. 289-A issued November 2, 1964.

B. For electric and other utilities, accounting for the federal investment tax credit permitted by IRC Section 46 and applicable regulations shall be in accordance with the Federal Power Commission's Accounting Procedure for Investment Tax Credit, Order No. 290, issued December 17, 1964, all such orders having been issued under Federal Power Commission Docket Nos. R-231 and R-232.

C. Where the orders allow alternative accounting procedures, each utility shall advise the Commission which of the procedures it intends to use in accounting for tax benefits received because of the investment tax credit.

D. To the extent that NMPSC Rules 510, 610, and 710 [17.3.510 NMAC, 17.3.610 NMAC, and 17.12.1 NMAC] do not provide account numbers and titles for the accounting for the federal investment tax credit, the utility shall employ the account numbers and titles prescribed from time to time by the Federal Power Commission or its successor, the Federal Energy Regulatory Commission.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.320.12 Relief

Relief from the requirements of NMPSC Rule 320 [17.3.320 NMAC] on an appropriate showing may be obtained on written application to the Commission.

17.3.320.13 [History: MPSC Case No. 2086, order dated June 30, 1988, unless otherwise noted. Formerly First Revised General Order No. 18, superseded for purposes of rule reorganization and codification.]

HISTORY OF 17.3.320 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

NMPSC Rule 320, Uniform Accounting Procedures For Accelerated Amortization, Liberalized Depreciation, And Tax Credits, 6/30/88.

History of Repealed Material: [RESERVED]

History

Recompiled 12/30/01
Recompiled 12/30/01

Part 340 Authorization of Depreciation Practices to Be Observed by Public Utilities

N.M. Admin. Code § 17.3.340.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission]

History

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N.M. Admin. Code § 17.3.340.2 Scope

NMPSC Rule 340 [17.3.340 NMAC] shall apply to all electric, gas, steam, and water utilities under the jurisdiction of the Commission including municipally-owned utilities as provided by law.

History

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N.M. Admin. Code § 17.3.340.3 Statutory Authority

History

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N.M. Admin. Code § 17.3.340.4 Duration

History

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N.M. Admin. Code § 17.3.340.5 Effective Date

History

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N.M. Admin. Code § 17.3.340.6 Objective

The purpose of NMPSC Rule 340 [17.3.340 NMAC] is to formulate for the State of New Mexico adequate requirements for determining depreciation accruals and reserves for public utilities.

History

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N.M. Admin. Code § 17.3.340.7 Definitions

When used in NMPSC Rule 340 [17.3.340 NMAC] unless otherwise specified the following definitions will apply:

A. "Accounts" means the accounts described or recognized by the New Mexico Public Service Commission [New Mexico Public Regulation Commission].

B. "Depreciation Accounting" means a system of accounting which aims to distribute the cost or other basic value of tangible capital assets less salvage (if any) over the estimated useful life of the unit (which may be a group of assets) in a systematic and rational manner. It is a process of allocation not of valuation.

C. "Amortization" means the gradual extinguishment of an amount in an account by distributing such amount over a fixed period of time, over the life of the asset or liability to which it applies, or over the period during which it is anticipated the benefit will be realized.

D. "Commission" means the New Mexico Public Service Commission [New Mexico Public Regulation Commission].

E. "Cost of Removal" means the cost of demolishing, dismantling, removing, tearing down, or abandoning physical assets including the cost of transportation and handling incidental thereto.

F. "Accumulated Provision for Depreciation" means the summation of the annual provision for depreciation accruals recorded by the utility under a predetermined plan of accounting including charges for retirements and net salvage to recover the cost of the asset between the time it is first devoted to public use and retired from service.

G. "Annual Provision for Depreciation Accrual" means the annual amount charged to expense and/or clearing accounts.

H. "Group Plan" means the plan under which depreciation charges are accrued upon the basis of the original cost of the asset included in each depreciable plant account using the average service life thereof properly weighed, and upon retirement of any depreciable asset its original cost less net salvage is charged to the depreciation reserve whether or not the particular asset has attained or exceeded the average service life.

I. "Net Salvage" means salvage of property retired less the cost of removal.

J. "Original Cost" means the cost of property at the time it was first devoted to public service.

K. "Property Retired" means assets which have been removed, sold, abandoned, destroyed, or which for any cause have been withdrawn from service and the books of account.

L. "Salvage" means the amount received from assets retired less any expenses incurred in connection with the sale or in preparing the assets for sale; or if retained the amount at which the material recoverable is chargeable to materials and supplies or other appropriate accounts.

M. "Service Life" means the period between the date an asset is first devoted to public use and the date of its retirement from service.

N. "Straight-line Method" as applied to depreciation accounting means the plan under which the original cost adjusted for net salvage of the asset is charged to operating expenses and/or to clearing accounts and credited to the depreciation reserve through equal annual charges as nearly as may be during its service life.

O. "Utilities" means Classes A, B, C, and D as defined by the following table of annual operating revenues:

Class A Class B Class C Class D

Electric

and Gas Exceeding $1,000,000 to $150,000 to $25,000 to

$2,500,000 $2,500,000 $1,000,000 $50,000.

Water (annual revenues for 3 consecutive year periods)

Exceeding Exceeding $50,000 to Less than

$500,000 $500,000 $500,000 $50,000.

Sewer (average annual revenues for 3 consecutive year periods)

Class A Class B Class C

$750,000 $150,000 but Less than $150,000

or more less than $750,000

Annual operating revenues are those revenues recorded in the accounts of the utility resulting from all sales of commodities or services or from other uses of utility properties. For combination utilities departmental operating revenues shall be used for classification purposes. "Department" as used in NMPSC Rule 340 [17.3.340 NMAC] shall mean a responsibility center within a combination utility where revenues and costs are accumulated by commodity or service rendered.

P. "Detailed Study" means a determination of depreciation accruals, depreciation rates, and depreciation reserve requirements.

Q. "Annual Review" means a cursory examination to insure that no major changes have taken place which would call for a new detailed study.

R. "Survivor Curve" means a curve that shows the number of units or cost of a given group which is surviving in service at given ages.

S. "Probable Life Curve" means a curve that shows the probable average life of the survivors at any age from zero to maximum life.

T. "Frequency Curve" means a curve that shows in what manner retirements are distributed over the period from zero age to maximum life.

U. "Units of Production Method" means the process whereby an equal portion of an asset's depreciable cost is allocated to operating expense or clearing accounts based on each unit of production from the asset.

17.3.340.8 [TABLE OF CONTENTS]

A. Purpose and Definitions

(1) Purpose [17.3.340.6 NMAC]

(2) Applicability [17.3.340.2 NMAC]

(3) Concept of Depreciation [17.3.340.9 NMAC]

(4) Definitions [17.3.340.7 NMAC]

B. Requirements for Records, Studies, Reviews, and Reports [17.3.340.10 NMAC]

(1) General

(2) Depreciation Rates

(3) Periodic Studies and Annual Reviews

(4) Report to Commission

(5) Commission Action

C. Acceptable Methods of Estimating Service Lives [17.3.340.11 NMAC]

(1) General

(2) Actuarial Methods

(3) Simulated Methods

(4) Life Span Method

(5) Salvage Estimate

(6) Alternative Methods

D. Reserve Requirement Study [17.3.340.12 NMAC]

E. Hardship Provisions [17.3.340.13 NMAC]

F. [TABLE OF CONTENTS - APPENDICES] [17.3.340.15 NMAC]

(1) APPENDIX A: Elements of a Survivor Curve

(2) APPENDIX B: Summary of Annual Depreciation Accrual and Rate Determination Straight-Line Remaining Life Method

(3) APPENDIX C: Summary of Annual Depreciation Accrual and Rate Determination Straight-Line Average Life Method

(4) APPENDIX D: Life Span Calculation

(5) APPENDIX E: Computation of Estimated Straight-Line Remaining Life Depreciation Accrual from a Survivor Curve-Group Basis

(6) APPENDIX F: Computation of Estimated Depreciation Reserve Requirement and Annual Depreciation Accrual From a Survivor Curve Straight-Line Average

(7) APPENDIX G: Salvage Estimate

History

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N.M. Admin. Code § 17.3.340.9 Concept of Depreciation

Depreciation as conceived by NMPSC Rule 340 [17.3.340 NMAC] is the process by which an equitable method of accounting will permit the recovery of the original cost less net salvage over the service life of a depreciable asset.

History

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N.M. Admin. Code § 17.3.340.10 Requirements for Records, Studies, Reviews, and Reports

A. General: All Class A, B, C, and D electric, gas and water utilities and Class A, B and C sewer utilities in New Mexico shall maintain adequate accounts and records related to depreciation practices. Annual depreciation accruals by account shall be reported for each account. A separate reserve for each plant account shall be maintained. The cost of depreciable plant adjusted for net salvage will thus be distributed over the estimated useful life of such plant in a systematic manner. The accounting entries must be made in a manner consistent with applicable Uniform Systems of Accounts.

B. Depreciation Rates: Each public utility company has the primary responsibility for determining the depreciation rates that may be used for each account. Any public utility may make application to the Commission and present justification for a depreciation method to be approved by the Commission for the accounts as contained in the utility's application as evidenced by order of the Commission. If no such application is made, a straight-line method or unit of production method shall be used. Class A and Class B utilities will determine service lives in accordance with NMPSC Rule 340.10 through 340.15 [17.3.340.11 NMAC].

C. Periodic Studies and Annual Reviews:

(1) Class A and Class B utilities shall annually make an internal review of all depreciation rates and other pertinent depreciation factors by accounts to determine whether the current depreciation rates are appropriate for the ensuing accounting year. As a result of each utility's annual review and subject to Commission approval, depreciation rates may be adjusted to reflect known factors which may affect depreciation rates.

(2) Subject to the Commission requiring or a utility requesting a different analysis period, each Class A and Class B utility shall, not less often than every five (5) years, conduct a detailed study of all accounts as to the property of service lives, survivor curves, recorded net salvage, and other pertinent factors affecting depreciation.

(3) Class C and Class D water, gas and electric utilities and Class C sewer utilities shall maintain depreciation records for each plant account but may determine average service lives either in accordance with NMPSC Rules 340.10 through 340.15 [17.3.340.11 NMAC] or by estimates based upon knowledge of local conditions, company policy with regard to retirement, other factors influencing service life, and the experience of other New Mexico utilities. When in the judgment of the Commission and after hearings, Class C and Class D water, gas and electric utilities and Class C sewer utilities may be required to use actuarial or simulated plant record methods for specified depreciation accounts.

(4) Class C and Class D gas, water and electric utilities and Class C sewer utilities shall annually review all depreciation rates by accounts. When required after hearings, studies shall be made so that within a five-year period or such other period as the Commission shall require all accounts shall have been analyzed. As a result of the annual review depreciation rates may be adjusted to reflect known factors which may tend to lengthen or shorten average service lives.

(5) Nothing in NMPSC Rule 340 [17.3.340 NMAC] shall prohibit the use of subaccounts for plant in separate geographic areas or where an account is large to separate and distinguish between certain classes of property. Where such subaccounts have been established, they shall be carried separately on the books of the utility and may be treated as separate accounts for depreciation purposes.

(6) The Commission may, after hearing, require Class A utilities to maintain certain subdivision of primary accounts for depreciation purposes.

D. Report to Commission: In all rate case filings all utilities shall provide reports to the Commission setting forth the depreciation rates. Class A and B utilities shall also file the results of the detailed depreciation study required by NMPSC Rule 340.7(b) [Paragraph 2 of Subsection C of 17.3.340.10 NMAC] with their next rate case following the completion of this study. In addition the utilities shall indicate on which accounts detailed studies have been undertaken during the previous year, summarized on a form containing all of the data which is contained on the sample enclosed in Appendix B and any other applicable sample appendices. The utility shall show proposed changes to depreciation rates it intends to use in the future and shall provide a justification for each change.

E. Commission Action: In the event the Commission should fail to issue an order approving or disapproving such proposed rates within sixty (60) days after the filing of the report, the utility may use the depreciation rates set forth in its report for the ensuing year.

History

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N.M. Admin. Code § 17.3.340.11 Acceptable Methods of Estimating Service Lives

A. General:

(1) Utilities may use any reasonable acceptable method for estimating service lives which includes the analysis of plant mortality by group accounts. It is recognized that over the years many such methods have been developed and used successfully. However, it is suggested that utilities restrict themselves to the use of the recognized methods outlined in the following section. The purpose of such voluntary restriction is to minimize the number of methods to be reviewed and to promote economy among the utilities and the regulatory agency in the review of procedures.

(2) Determination of average service lives involves the basic study of historical patterns by use of actuarial and/or simulated plant record methods for group accounts together with engineering estimates of the future effect of physical factors of wear and tear, decay, depletion of supply, action of the elements, and functional factors of inadequacy, obsolescence, and public requirement. In those cases where factors such as anticipated changes to plant, additions of new or improved kinds of plant, previously unanticipated requirements, specific changes in plans of management, or other developments occur, they are to be given consideration in adjusting the average future service life of utility plant in service. The weight to be given past experience shall depend upon the extent to which conditions affecting service life in the future are expected to be similar to or different from those for the historical study period.

B. Actuarial Methods:

(1) Actuarial methods are generally similar to those developed by life insurance companies for the study of human mortality. The end result of the modification and application of these methods to utility plant is to determine estimates of average service life based upon the analysis of past plant retirements. These methods require that plant records be kept in sufficient detail so that the age of plant installed in any one year can be determined at all times.

(2) Utilities are urged to confine their use of actuarial methods to those which are discussed favorably in Public Utility Depreciation Practices, published December 1968 by the National Association of Regulatory Utility Commissioners, and any subsequent revisions. These methods include the "Gompertz-Makeham" as well as the survivor curves developed by the Engineering Research Institute of Iowa State University. These curves are frequently referred to as "Iowa Curves."

(3) Included in Appendix A to NMPSC Rule 340 [17.3.340 NMAC] is a chart entitled "Elements of a Survivor Curve," which contains the various elements related to service life of utility plant in service. The "Frequency Curve" at the bottom of the chart indicates the frequency of retirements related to annual additions. It is the curve which is used in the "Brennan Method" described in the text that follows.

(4) The second curve is the "Survivor Curve" which indicates the percent of the original plant surviving at any age throughout the life of the group account. It is usually smoothed and extended by mathematical means from a stub-survivor curve developed from actual observed experience.

(5) As early retirements take place the overall service life of the survivors becomes longer than the total of the group at the time of first installation. Therefore the third curve illustrated on the chart is the "Probable Life Curve" which always lies to the right of the "Survivor Curve."

(6) The "Average Service Life" is indicated by the vertical line which starts at the top of the "Probable Life Curve" intersecting the "Survivor Curve" at a point where the "age" of plant in service equals the average service life of the plant.

C. Simulated Methods:

(1) Where utilities lack sufficient records to develop actuarial data, the use of simulated methods such as those developed by Mr. Alex E. Bauhan or by Mr. Joseph F. Brennan are recommended.

(2) The Simulated Plant-Record Method developed by Mr. Bauhan analyzes an account to determine average service life and dispersion by using annual gross additions and yearly plant balances. Through a process of iteration utilizing survivor tables, such as those developed by the Engineering Research Institute of Iowa State University, an attempt is made to duplicate the year-by-year plant balances in the account by a series of simulated balances arrived at by the assumption that each year's actual additions were subsequently retired in accordance with the pattern demonstrated by a particular Iowa Curve being used in the analysis. The use of electronic computing equipment expedites this procedure.

(3) The method developed by Mr. Joseph F. Brennan which was initially described in February 1957 in an article entitled "Plant Mortality" in Electrical Engineering avoids iterations and gives satisfactory results. The calculations required are laborious if performed by hand; however, the method lends itself to electronic computer operation. It involves the parabolic relationships of retirements and relates them to annual additions.

(4) For either of the actuarial or simulated methods it is important that the plant balances, annual additions, and recorded retirements accurately reflect the situation for the year in which the accounting data was prepared. Consequently any accounting adjustments or erroneous entries should all be corrected in the appropriate year before the methods are employed.

D. Life Span Method: In classes of property consisting of large units which are expected to be retired at one time as a single unit, a method employing direct estimates adjusted for interim retirements of portions of the large units is useful. This method is referred to herein as the "Life Span Method". A form entitled "Life Span Calculation" is attached as Appendix D. The method assumes that interim retirements will take place at a relatively constant rate throughout the life of the major unit. The tendency of these interim retirements of small subunits of the major unit is to produce a shortening of the overall life of the major unit for depreciation purposes.

E. Salvage Estimate: A form has been included in Appendix G to aid in the preparation of estimated net salvage. This form takes advantage of historical experience and provides for the analysis by account of the dollars of plant retired in a series of years, the amount of gross salvage received, the cost of removal of the plant, and the resulting net salvage. Because salvage is a condition to be realized in the future, the bottom of the form provides for preparing estimates of future net salvage. It initially uses historical data together with an estimate of gross salvage or scrap value of the surviving plant. By use of these data together with consideration of cost of removal an estimate of future net salvage is determined. With the ever increasing cost of labor and subsequent increase in cost of removal it is recognized that negative salvage may be a factor to consider in estimating the net salvage of any account.

F. Alternative Methods: In each instance where a method other than that covered by the foregoing discussion is to be advanced by a utility, the utility shall first present its proposal together with a justification for its use to the Commission for review. In submitting its request for authorization to use alternative methods the utility shall include specific reasons why it is unable to employ any of the methods previously discussed in NMPSC Rule 340 [17.3.340 NMAC] and the reason why the utility believes the proposed alternative method is superior for the specific application.

History

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N.M. Admin. Code § 17.3.340.12 Reserve Requirements Study

Adjustments to Depreciation Reserve: With the procedures outlined in NMPSC Rule 340 [17.3.340 NMAC] which require frequent reviews of depreciation rates and accruals there should not develop any serious over-or under-accruals of depreciation reserves. When a utility believes that at any time an over-or under-accrual in the depreciation reserve exists, the utility shall submit by formal application to the Commission a detailed reserve requirement study and request for adjustment. This reserve requirement study shall be reviewed by the Commission and the Commission will subsequently issue its final order approving, disapproving, or modifying the adjustment.

History

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N.M. Admin. Code § 17.3.340.13 Hardship Provisions

Application for Modification of Rule or Exemption: If unreasonable hardship to a Class C and Class D water utility or a Class C sewer utility would result from the application of NMPSC Rule 340 [17.3.340 NMAC] herein prescribed, an application may be made to the Commission for the modification of NMPSC Rule 340 [17.3.340 NMAC] for temporary or permanent exemption from its requirements.

17.3.340.14 [History: odified by NMPSC Case No. 2086, order dated June 30, 1988; Amended by NMPSC Case No. 2232, order dated December 19, 1988; Amended by NMPSC Case No. 2277, order dated December 29, 1989. Formerly NMPSC General Order No. 27, superseded for purposes of rule reorganization and codification.]

17.3.340.15 [APPENDICES] Appendix A, Appendix B, Appendix C, Appendix D, Appendix E, Appendix F, Appendix G.

HISTORY OF 17.3.340 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

PSC-GO 27, (Case No. 1082) General Order No. 27 Rules Applicable To The Authorization Of Depreciation Practices To Be Observed By Public Utilities In The State Of New Mexico Under The Jurisdiction Of The New Mexico Service Commission, 4-17-74.

NMPSC Rule 340, Authorization Of Depreciation Practices To Be Observed By Public Utilities, 6-30-88.

History of Repealed Material: [RESERVED]

History

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appendices

Part 350 Treatment of Public Utility Advertising Expenses, Contributions, Donations, Dues, Subscriptions and Membership Fees, and Lobbying Expenses in Rate Cases

N.M. Admin. Code § 17.3.350.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission]

History

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N.M. Admin. Code § 17.3.350.2 Scope

NMPSC Rule 350 [17.3.350 NMAC] shall apply to all rate case proceedings including any pertinent applications for periodic rate adjustment filed in the Commission's offices.

History

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N.M. Admin. Code § 17.3.350.3 Statutory Authority

History

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N.M. Admin. Code § 17.3.350.4 Duration

History

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N.M. Admin. Code § 17.3.350.5 Effective Date

History

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N.M. Admin. Code § 17.3.350.6 Objective

The purpose of NMPSC Rule 350 [17.3.350 NMAC] is to establish rules and regulations governing the treatment of certain operating expense items in setting rates as well as to address the federal standard on utility and advertising as set out in Section 113(b)(5) of the Public Utility Regulatory Policy Act of 1978, P.L. 95-617, 16 USC Section 2623.

History

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N.M. Admin. Code § 17.3.350.7 Definitions

17.3.350.8 [TABLE OF CONTENTS]

A. Preamble [17.3.350.6 NMAC]

B. Applicability [17.3.350.2 NMAC]

C. Advertising Expenses [17.3.350.9 NMAC]

D. Contributions, Donations, Dues, Subscriptions, and Membership Fees [17.3.350.10 NMAC]

E. Lobbying Expenses [17.3.350.11 NMAC]

F. Variances [17.3.350.12 NMAC]

History

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N.M. Admin. Code § 17.3.350.9 Advertising Expenses

A. Definition: "Advertising Expenses" shall mean all expenses made for the development, publication, and/or dissemination of information to a utility's ratepayers, the public at large, or to utility stockholders including, but not limited to, publications in newspapers, magazines, information for use by the electronic media, bill enclosures, or other mailings to ratepayers, stockholders, or the public at large; salaries for in-house personnel engaged in advertising activities; live presentations other than before regulatory or legislative bodies.

B. Allowable Expenditures: Except as provided in (c) [C] below, advertising expenses which may be properly included in the cost of service shall be that advertising which is reasonable in amount and which:

(1) Advises the ratepayers of matters of public safety, health or emergency situations;

(2) Advocates to rate payers through factual data and advice their conservation of energy resources and reduction of peak demand;

(3) Explains utility billing practices, services, and rates to ratepayers;

(4) Must be filed with governmental agencies or financial institutions (including Annual Reports and stock prospectuses) other than advertisements filed pursuant to (6) below;

(5) Advises customers of employment opportunities with the utility company;

(6) Provides information required to be made available to customers or stockholders under state or federal law and regulation; or

(7) Otherwise results in a measurable reduction of operating costs and more efficient utility service to ratepayers except as excluded by (c) [C] below.

C. Unallowable Expenditures: Advertising expenses which shall be properly excluded from cost of service are those which in whole or in any part:

(1) Promote increases in the usage of energy or utility services;

(2) Except as required by state or federal law or regulations promote the sale of any goods or services from any specific company including, but not limited to, the utility company or any subsidiary or affiliated company;

(3) Seek to establish a favorable public image of the company other than by identifying it as the source of an allowable advertising expenditure as defined in subsection (b) [B];

(4) Advocate a position rather than providing factual information in any advertisement allowable under subsection (b) [B];

(5) Justify a request for higher rates, or the need for plant expansion, or for any particular addition to plant or service costs.

D. Burden of Proof: A utility seeking to include any advertising expenditures in determining its cost of service must affirmatively show through the presentation of clear and convincing evidence that each expenditure is allowable under the criteria established in (b) [B] below and that it is not excluded by any provision of (c) [C] above.

E. Advertisement Records: Every utility seeking to include advertising expenditures in its cost of service shall maintain a record of each advertisement including the complete text and an exact copy and the costs associated with its production and dissemination to the public. Such records shall be open to inspection by the Commission staff and shall be submitted as part of the company's rate case filing.

History

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N.M. Admin. Code § 17.3.350.10 Contributions, Donations, Dues, Subscriptions, and Membership Fees

A. Contributions or donations to any political candidate, any political party, any religious cause, or any social, recreational, or fraternal organization shall not be allowed as a cost of service.

B. Dues in professional or trade associations and subscriptions to publications shall be allowed as a cost of service by a utility provided these dues contribute to the professional education and standing of the company's employees for whom the dues shall be paid.

C. Contributions, donations, dues, subscriptions, and membership fees other than those included in (a) [A] and (b) [B] above will not be included in the determination of cost of service unless a utility affirmatively demonstrates that such expenditures are reasonable. Maintenance of full and adequate accounting for each expense shall be a prerequisite to allowance of any expenditure in rates under this part. Maintenance of corporate good will or good corporate citizenship is an insufficient reason for inclusion of these expenditures in determining a utility's cost of service.

History

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N.M. Admin. Code § 17.3.350.11 Lobbying Expenses

Expenses which directly or indirectly support utility or utility-related lobbying efforts on a local, state, regional, or national level shall not be allowable in determining a utility's cost of service. The utility company shall maintain complete records of all expenditures, including portions of payments made for dues or other expenses, in support of utility or other lobbying efforts.

History

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N.M. Admin. Code § 17.3.350.12 Variances

Any rural electric cooperative, municipal utility or association may file a variance under NMPSC Rule 350 [17.3.350 NMAC]. Upon a showing of good cause, the Commission may grant said variance.

17.3.350.13 [HISTORY: NMPSC Case No.2086, order dated June 30, 1988, unless otherwise noted. Formerly NMPSC General Order No 31, superseded for purposes of rule reorganization and codification.]

HISTORY OF 17.3.350 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

PSC-GO 31, (General Order No. 31), New Mexico Public Service Commission General Order No. 31, 9/6/79.

NMPSC Rule 350, Treatment Of Public Utility Advertising Expenses, Contributions, Donations, Dues, Subscriptions And Membership Fees, And Lobbying Expenses In Rates Case, 6/30/88.

History of Repealed Material: [RESERVED]

History

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Part 360 Procedures for the Audit and Examination of Utility Books and Records of Accounts

N.M. Admin. Code § 17.3.360.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

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N.M. Admin. Code § 17.3.360.2 Scope

History

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N.M. Admin. Code § 17.3.360.3 Statutory Authority

A. NMPSC Rule 360 [17.3.360 NMAC] is adopted under the authority vested in the Commission pursuant to NMSA 1978, Sections 62‑6‑1, 62‑6‑4A, 62‑6‑14, 62‑6‑16 and 62‑6‑17.

B. NMPSC Rule 360 [17.3.360 NMAC] shall apply to all electric, gas, water and sewer utilities subject to the jurisdiction of the Commission, including municipally‑owned utilities which have elected to come within the jurisdiction of the Commission pursuant to NMSA 1978, Section 62‑6‑5.

History

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N.M. Admin. Code § 17.3.360.4 Duration

History

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N.M. Admin. Code § 17.3.360.5 Effective Date

History

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N.M. Admin. Code § 17.3.360.6 Objective

A. NMPSC Rule 360 [17.3.360 NMAC] is intended to formalize the procedures to be followed by the Commission for the audit and examination of the books and records of a utility in order to insure that all utilities subject to the jurisdiction of the Commission are uniformly and correctly maintaining their accounting records in conformance with the Uniform System of Accounts as established and prescribed by the NMPSC Code of Rules and Regulations or as otherwise directed by the Commission.

B. An audit or examination undertaken by the Commission pursuant to Rule 360 [17.3.360 NMAC] is for the purpose of accumulating and evaluating evidence regarding quantifiable accounting information related to a specific utility in order to determine and report on the degree of correspondence between the quantifiable accounting information and the established criteria for the maintenance of that utility's records under the uniform system of accounts as prescribed for such utility.

C. The audit and examination procedures established by this rule are designed to review state utility regulatory information necessary for the Commission to carry out its duties as authorized by the Public Utility Act, NMSA 1978 Sections 62‑3‑2, et. seq., and are not intended to supersede or duplicate financial audits by any federal or other state regulatory agency which any utility is required to undergo by law.

History

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N.M. Admin. Code § 17.3.360.7 Definitions

Unless otherwise defined the following terms shall have the following meanings for the purposes of these rules of examination and auditing procedures.

A. "Accounts" means the uniform system of accounts for each utility as prescribed by the Code of Rules and Regulations of the New Mexico Public Service Commission [New Mexico Public Regulation Commission] or any other system of accounts maintained by the utility as ordered by the Commission [New Mexico Public Regulation Commission].

B. "Audit" or "Examination" means the process by which evidence is accumulated and evaluated.

C. "Audit report" means the final written report of the auditor's findings concerning the utility's compliance or non‑compliance with the uniform system of accounts, and may, but is not required to, include any opinions and conclusions of the auditor in addition to the factual information contained therein.

D. "Auditor" means a member or members of the Staff of the New Mexico Public Service Commission [New Mexico Public Regulation Commission] as defined in the Code of Rules and Regulations of the NMPSC qualified and authorized to perform or assist in the performance of an audit undertaken pursuant to Rule 360 [17.3.360 NMAC].

E. "Evidence" means any information relied upon by the auditor to determine the degree of correspondence between quantifiable information and established criteria for the maintenance of the utility's records under the uniform system of accounts as prescribed for such utility.

F. "Routine audit" means any audit or examination undertaken pursuant to Rule 360 [17.3.360 NMAC], with the exception of Rule 360.7 [17.3.360.12 NMAC] which pertains only to special audits.

G. "Special audit" means any audit or examination undertaken pursuant to Rule 360.7 [17.3.360.12 NMAC], and the provisions of Rule 360.5 and 360.6 [17.3.360.10 NMAC and 17.3.360.11 NMAC] shall not apply to a special audit. All other provisions of Rule 360 [17.3.360 NMAC] are applicable to a special audit.

17.3.360.8 [TABLE OF CONTENTS:]

A. Purpose [17.3.360.6 NMAC]

B. Authority [17.3.360.3 NMAC]

C. Definitions [17.3.360.7 NMAC]

D. Access to Records [17.3.360.9 NMAC]

E. Scope of Audit or Examination [17.3.360.10 NMAC]

F. Notice of Routine Audit [17.3.360.11 NMAC]

G. Special Audit [17.3.360.12 NMAC]

H. Exit Conference [17.3.360.13 NMAC]

I. Audit Report [17.3.360.14 NMAC]

J. Variances [17.3.360.15 NMAC]

History

Recompiled 12/30/01
Recompiled 12/30/01

N.M. Admin. Code § 17.3.360.9 Access to Records

A. In addition to the preservation of records as required by NMPSC Rule 310 [17.3.310 NMAC], each utility shall also maintain and make available to the Commission all records and documentation supporting the entries in the records of accounts, including but not limited to, minute books, stock books, reports, correspondence, memoranda and any other documentation which is relevant to the development of history of, or facts regarding, any transaction or entry in the records of accounts.

B. Consistent with applicable law governing the maintenance of the uniform system of accounts for each utility, no utility shall destroy or dispose of any books and records required to be maintained unless the destruction or disposition thereof is permitted by such applicable law.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.360.10 Scope of Audit or Examination

The scope of any routine audit or examination of the records of a utility shall be determined consistent with Commission authority on a case‑by‑case basis, provided that the scope of the audit or examination shall be clearly identified and submitted to the utility at the time of notice of the audit or examination. The scope of a special audit shall be determined according to the provisions of Rule 360.7 [17.3.360.12 NMAC].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.360.11 Notice of Routine Audit

A utility which is to be the subject of a routine audit or examination by the Commission shall be provided with no less than ten (10) working days notice prior to the date of performance of the audit or examination. All routine audits or examinations shall be conducted in a manner such as not to unreasonably disrupt the normal business of the utility.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.360.12 Special Audit

A special audit or examination may be conducted at the Commission's discretion pursuant to NMSA 1978 Section 62-6-17, on a case-by-case basis. A special audit or examination shall not be subject to the notice provisions of 360.6 [17.3.360.11 NMAC]. The scope of the special audit shall be identified and provided to the utility at the beginning of the audit.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.360.13 Exit Conference

At the conclusion of any audit or examination undertaken pursuant to Rule 360 [17.3.360 NMAC], the auditor shall conduct an oral exit conference with the utility management in order to enter into preliminary discussions of the auditor's findings.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.360.14 Audit Report

After any audit or examination undertaken pursuant to Rule 360 [17.3.360 NMAC] is concluded, a copy of the final audit report will be provided to the utility within five (5) days of the completion of the report. The utility will be given thirty (30) days to respond to the report in writing. After expiration of the thirty (30) day period, the audit report will be placed in the audit files at the Commission with the response, if any, from the utility. For good cause in accordance with NMPSC Rule 110.2 [17.1.2 NMAC], the utility may file a written request for a protective order protecting the report and response and all supporting documentation, if any.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.360.15 Variances

A. A utility may file a written request with the Commission seeking a variance from the provisions of Rule 360 [17.3.360 NMAC] for good cause shown. Each variance request shall identify the specific provision of Rule 360 [17.3.360 NMAC] from which a variance is requested, provide an explanation for the conditions requiring the variance, and an alternate proposal designed to achieve the purposes of the provisions of the rule to be waived and to be implemented for application to the condition(s) requiring the variance.

B. If the Commission determines that the variance requested is consistent with the purposes of NMPSC Rule 360 [17.3.360 NMAC] as defined herein, the variance may be granted.

17.3.360.16 [HISTORY: Codified by NMPSC Case No. 2276, order dated September 18, 1989, unless otherwise noted.]

HISTORY OF 17.3.360 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

NMPSC Rule 360, Procedures For The Audit And Examination Of Utility Books And Records Of Accounts, 9/18/89.

History of Repealed Material: [RESERVED]

History

Recompiled 12/30/01
Recompiled 12/30/01

Part 510 Uniform Systems of Accounts and Annual Report Forms for Electric Utilities

N.M. Admin. Code § 17.3.510.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.3.510.1 NMAC - Rp, 17 NMAC 3.510.1, 12/27/2022

N.M. Admin. Code § 17.3.510.2 Scope

[RESERVED]

History

17.3.510.2 NMAC - Rp, 17 NMAC 3.510.2, 12/27/2022

N.M. Admin. Code § 17.3.510.3 Statutory Authority

Sections 8-8-4 and 8-8-15 NMSA1978 of the Public Regulation Commission Act; and Sections 61-8-1 to 62-8-13 NMSA 1978, Duties and Restrictions Imposed Upon Public Utilities.

History

17.3.510.3 NMAC - Rp, 17 NMAC 3.510.3, 12/27/2022

N.M. Admin. Code § 17.3.510.4 Duration

Permanent.

History

17.3.510.4 NMAC - Rp, 17 NMAC 3.510.4, 12/27/2022

N.M. Admin. Code § 17.3.510.5 Effective Date

December 27, 2022 unless a later date is cited at the end of a section.

History

17.3.510.5 NMAC - Rp, 17 NMAC 3.510.5, 12/27/2022

N.M. Admin. Code § 17.3.510.6 Objective

[RESERVED]

History

17.3.510.6 NMAC - Rp, 17 NMAC 3.510.6, 12/27/2022

N.M. Admin. Code § 17.3.510.7 Definitions

[RESERVED]

History

17.3.510.7 NMAC - Rp, 17 NMAC 3.510.7, 12/27/2022

N.M. Admin. Code § 17.3.510.8 Table of Contents

A. Classification of electric utilities [17.3.510.9 NMAC]

B. Uniform systems of accounts and annual report forms [17.3.510.10 NMAC]

C. Effect of adoption of uniform systems of accounts [17.3.510.11 NMAC]

D. Annual reporting [17.3.510.12 NMAC]

E. Quarterly reporting [17.3.510.13 NMAC]

History

17.3.510.8 NMAC - Rp, 17 NMAC 3.510.8, 12/27/2022

N.M. Admin. Code § 17.3.510.9 Classification of Electric Utilities

Investor-owned electric public utilities shall be and are hereby classified in accordance with their annual operating revenues as follows:

CLASS ANNUAL OPERATING REVENUES OF A $2,500,000 or more. B $1,000,000 or more, but less than $2,500,000. C $150,000 or more, but less than $1,000,000. D $25,000 or more, but less than $150,000. E less than $25,000.

CLASS

ANNUAL OPERATING REVENUES OF

$2,500,000 or more.

$1,000,000 or more, but less than $2,500,000.

$150,000 or more, but less than $1,000,000.

$25,000 or more, but less than $150,000.

less than $25,000.

History

17.3.510.9 NMAC - Rp, 17 NMAC 3.510.9, 12/27/2022

N.M. Admin. Code § 17.3.510.10 Uniform Systems of Accounts and Annual Report Forms

A. Class A and class B electric utilities as defined in 17.3.510.9 NMAC shall keep their books and records in compliance with the uniform system of accounts for public utilities and licensees (class A and class B), effective April 1, 1973, prescribed by the FPC with subsequent revisions prescribed by FERC, and shall use the current form of annual report for electric utilities and licensees (class A and class B) prescribed by FERC.

B. Class C electric utilities as defined in 17.3.510.9 NMAC shall keep their books and records in compliance with the uniform system of accounts for public utilities and licensees (class C), effective April 1, 1973, prescribed by the FPC with subsequent revisions prescribed by FERC, and shall use the current form of annual report for public utilities and licensees (class C and class D), prescribed by FERC.

C. Class D and class E electric utilities as defined in 17.3.510.9 NMAC shall keep their books and records in compliance with the uniform system of accounts for public utilities and licensees (class D) effective April 1, 1973, prescribed by the FPC with subsequent revisions prescribed by FERC, and shall use the current form of annual report for public utilities and licensees (class C and class D) prescribed by the FERC.

D. Rural electric cooperatives shall keep their books and records in compliance with the uniform system of accounts prescribed for electric borrowers of the rural electrification administration, REA bulletin 181-1. The form of rural electric cooperatives’ annual report to the New Mexico public regulation commission shall be in the form provided by the commission. Rural electric cooperatives having an annual electric operating revenues and patrons' capital of $150,000 or less for business transacted in the state of New Mexico shall have the option of filing FERC form No. 1 for electric utilities and licensees (class A and class B) as prescribed above, or they may file one copy each of REA form no. 7 and REA form no. 40 covering their New Mexico operations, and one copy each of REA form no. 7 and REA form no. 40 covering their total operations. A rural electric cooperative's reports shall reflect the operations for the year ending December 31.

History

17.3.510.10 NMAC - Rp, 17 NMAC 3.510.10, 12/27/2022

N.M. Admin. Code § 17.3.510.11 Effect of Adoption of Uniform Systems of Accounts

The adoption of the respective uniform systems of accounts by 17.3.510.10 NMAC shall not be construed as approval or acceptance of any item recorded pursuant to the said system of accounts on the books of any utility for the purpose of fixing rates or determining other matters before the commission. The uniform system of accounts is designed to record the facts of the operations of all electric utilities in a uniform manner, and when engaged in fixing rates or passing upon other matters before it the commission will determine what consideration shall be given to various items so recorded in the several accounts.

History

17.3.510.11 NMAC - Rp, 17 NMAC 3.510.11, 12/27/2022

N.M. Admin. Code § 17.3.510.12 Annual Reporting

A. Each utility affected by 17.3.510 NMAC shall report to the commission annually for each calendar year not later than April 30 of the following year upon forms provided by the commission. Attached to this report shall be the company's most recently filed SEC form 10K, if applicable, 17.3.510 NMAC Form 1 regarding jurisdictional customer numbers, and the company's most recent load growth forecast, if such is prepared routinely by the company. Each utility shall retain one copy of the report in its files. If additional time beyond April 30 is required by any utility it shall request in writing such additional time as may be needed, and the commission in the exercise of its discretion may grant such additional time as it believes is reasonable and necessary.

B. Each utility affected by 17.3.510 NMAC which has not had a general rate case decided by a final order of the commission after a hearing on the merits of an unstipulated general rate case during the previous four year period prior to the filing of its annual report shall:

(1) for the company's total electric utility operations, and the company's New Mexico jurisdictional electric utility operations file, using actual unadjusted numbers, for both the current year and the figures approved by the commission in the company's last general rate case the following information:

(a) revenues;

(b) earnings;

(d) amount of debt and average cost of debt;

(e) capital structure;

(f) generation plant-in-service, including for each plant;

(i) installed cost (including capital additions);

(ii) in-service date;

(iii) plant type (steam, combustion turbine, nuclear, etc.); and

(iv) fuel source(s);

(g) transmission and sub-transmission plant-in-service;

(h) distribution plant-in-service;

(i) operation and maintenance expense (with fuel and purchased power, and nuclear and non-nuclear O&M shown separately);

(j) deferred tax reserves;

(k) peak demand; and

(l) net energy sales (kWh);

(2) provide in detail the derivation of each number set forth above from actual measured numbers, including an explanation of the jurisdictional allocations used; and

(3) identify and explain any adjustment, factor or extraordinary item which the company believes would materially affect its return on equity as reflected above or prospectively.

C. Each utility affected by 17.3.510 NMAC shall provide a detailed report annually for each calendar year not later than April 30 of the following year setting forth and listing its compliance or failure to comply with each part of the commission’s final order in each of the cases decided that the utility has a requirement of compliance ordered during the preceding five years or since the utility’s last general rate case order, whichever period is longer.

D. The staff of the utility division will review the annual reports for compliance and will, in writing, request additional information from the utility if required. Staff will summarize the annual reports and the division director of the utility division will provide a written report to the commission on or before July 1 of the report year.

History

17.3.510.12 NMAC - Rp, 17 NMAC 3.510.12, 12/27/2022

N.M. Admin. Code § 17.3.510.13 Quarterly Reporting

Any utility required to file SEC form 10Q and which is affected by 17.3.510 NMAC, shall file one copy of its completed SEC form 10Q with the commission at the same time the utility files this form with the SEC. Each utility shall retain one copy of the form 10Q in its files.

HISTORY OF 17.3.510 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

Second Amended General Order No. 21, Regulations Governing Annual Report Filings for Electric Utilities, filed 5/4/1983 NMPSC Rule 510, Uniform Systems of Accounts and Annual Report Forms for Electric Utilities, filed 6/30/1988.

History of Repealed Material: 17 NMAC 3 510, Uniform Systems Of Accounts And Annual Report Forms For Electric Utilities filed (6/30/1988) effective 12/27/2022.

Other: 17 NMAC 3 510, Uniform Systems Of Accounts And Annual Report Forms For Electric Utilities filed (6/30/1988) replaced by 17.3.510 NMAC, Uniform Systems Of Accounts And Annual Report Forms For Electric Utilities effective 12/27/2022.

History

17.3.510.13 NMAC - Rp, 17 NMAC 3.510.13, 12/27/2022

Part 580 Cost Overrun

N.M. Admin. Code § 17.3.580.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.2 Scope

A. The provisions of NMPSC Rule 580 [17.3.580 NMAC] shall apply as indicated below to all electric public utilities other than rural electric cooperatives within the jurisdiction of the Commission and shall not apply to generation and transmission cooperatives whose rates are subject to the Commission's regulation under NMSA 1978, Section 62-6-4.

B. NMPSC Rule 580 [17.3.580 NMAC] shall be applicable whenever a utility has obtained or acquires a certificate of public convenience and necessity ("CCN") from the Commission to construct or operate an electric generating plant and has sought, is seeking, or anticipates seeking at any time to include the costs of construction as defined in NMPSC Rule 580.5 [17.3.580.7 NMAC] in its New Mexico jurisdictional rates. NMPSC Rule 580 [17.3.580 NMAC] applies in those instances where:

(1) The construction costs had not been included in rates as of the date the Commission proposed General Order No. 49 (codified by this NMPSC Rule 580 ) [17.3.580 NMAC] and where the utility subsequently filed a rate application seeking to include these costs in rates and;

(2) The costs of construction had been included in rates as of the date General Order No. 49 was proposed but where the prudence of those costs had been explicitly identified as an unresolved issue in the order including those costs in rates or in any document, such as a stipulation or recommended decision, incorporated therein.

C. NMPSC Rule 580 [17.3.580 NMAC] applies whether the utility retains an ownership interest in the plant or has sold that interest and retained a leasehold interest in or is otherwise subject to the Commission's jurisdiction with respect to the management or operation of the plant or the power generated or made available thereby.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.3 Statutory Authority

NMPSC Rule 580 [17.3.580 NMAC] is adopted under the authority vested in the New Mexico Public Service Commission [New Mexico Public Regulation Commission] pursuant to the New Mexico Public Utility Act, NMSA 1978, Sections 62-3-1 et. seq., and in particular NMSA 1978, Sections 62-3-1, 62-3-2, 62-6-1, 62-6-4, 62-6-14, 62-6-17, 62-6-18, 62-8-1, 62-8-2, 62-8-7, 62-9-1 through 62-9-6, 62-10-1, and 62-10-2.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.4 Duration

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.5 Effective Date

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.6 Objective

A. The purpose of NMPSC Rule 580 [17.3.580 NMAC] is:

(1) To clarify and implement the Public Utility Act and applicable law by providing that no cost overruns incurred in construction of new electric generating plant will be included in rates unless the Commission determines whether they were prudently incurred;

(2) To give all electric utilities notice of this requirement; and

(3) To ensure that all data that may be material to adjudication of the prudence of construction costs is available and maintained by a utility.

B. The intent of the Commission in promulgating NMPSC Rule 580 [17.3.580 NMAC] is to assure that New Mexico ratepayers receive adequate, efficient, and reasonable service at just and reasonable rates and to avoid unnecessary duplication and economic waste in plant construction and planning.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.7 Definitions

When used in NMPSC Rule 580 [17.3.580 NMAC] unless otherwise specified the following definitions will apply:

A. "Certificated Estimated Cost" means the total cost of construction of electric generating plant for the utility, including Allowances for Funds Used During Construction ("AFUDC"), as estimated by the utility at the time of issuance by the Commission of the CCN for the plant and reflected in the order issuing the CCN.

B. "Commission" means the New Mexico Public Service Commission [New Mexico Public Regulation Commission].

C. "Construction Costs" or "Costs of Construction" means those costs to the utility, including AFUDC, incurred in the planning, management, design, design procurement, engineering, construction, start-up, and other activities required to complete an electric generating plant including costs reflected in lease payments or other financing arrangement.

D. "Construction Cost Overrun" or "Cost Overrun" in instances where an allowance for contingencies was included by the utility in the certificated estimated cost means that portion of the costs of construction which exceeds the certificated estimated cost by any amount, and in instances where no allowance for contingencies was included in the certificated estimated cost, means that portion of the costs of construction which exceeds the certificated estimated cost by ten percent (10%) or more.

E. "Plant" or "Electric Generating Plant" means an electric generating plant for which a certificate of public convenience and necessity has been obtained or is acquired from the Commission under NMSA 1978, Sections 62-9-1 through 62-9-6 or their predecessors, NMSA 1953, Sections 68-7-1 through 68-7-4. For multi-unit generating stations the term "Plant" refers either to fewer than all of the station's units or to the entire station depending on whether the utility seeks rate recovery for the entire station or fewer than all of the station's units.

F. "Utility" or "Utilities" means an electric public utility or utilities under the jurisdiction of the Commission other than rural electric cooperatives or generation and transmission cooperatives subject to Commission regulation under NMSA 1978, Section 62-6-4.

17.3.580.8 [TABLE OF CONTENTS:]

A. Title [17.3.580.9 NMAC]

B. Purpose [17.3.580.6 NMAC]

C. Applicability [17.3.580.2 NMAC]

D. Authority [17.3.580.3 NMAC]

E. General Definitions [17.3.580.7 NMAC]

F. Preservation of Records [17.3.580.10 NMAC]

G. Prudence Determination [17.3.580.11 NMAC]

H. Waiver [17.3.580.12 NMAC]

I. Powers of Commission Not Limited [17.3.580.13 NMAC]

J. Duties of Utility Not Affected [17.3.580.14 NMAC]

K. Relationship to Other Commission Rules [17.3.580.15 NMAC]

L. Severability [17.3.580.16 NMAC]

History

Recompiled 12/30/01
Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.9 Title

NMPSC Rule 580 [17.3.580 NMAC] shall be known as the "Cost Overrun Rule."

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.10 Preservation of Records

Any utility to whom NMPSC Rule 580 [17.3.580 NMAC] is applicable shall preserve all data, books, records, memoranda, correspondence, notes of oral communications, other documents, and computer records under the utility's possession, custody, or control and pertaining to the planning, management, design, procurement, engineering, construction, start-up, and other activities required to complete a plant for which a CCN will be or has been obtained. The utility shall also keep records identifying by name, business address, and position all contractors, subcontractors, and persons functioning in a managerial capacity in the construction project and describing the nature of their involvement. Such records and information shall be preserved until such time as the Commission has issued a final order concerning prudence of construction costs which is nonappealable or from which all appeals have been exhausted and which is enforceable, unless NMPSC Rule 310 [17.3.310 NMAC] and the regulations incorporated therein prescribe a longer period, in which case that longer period shall govern, or unless otherwise ordered by the Commission.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.11 Prudence Determination

No utility shall obtain rate recovery of any cost overrun in the construction of electric generating plant until the Commission determines, upon notice and hearing, whether those costs have been incurred prudently.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.12 Waiver

In any proceeding in which prudence of any cost overrun may be determined by the Commission, the parties and Commission Staff may stipulate that the provisions of NMPSC Rule 580 [17.3.580 NMAC] should be waived. NMPSC Rule 580 [17.3.580 NMAC] will be waived upon such stipulation if the Commission determines, upon notice and hearing, that waiver is in the public interest and is otherwise in accordance with the Public Utility Act.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.13 Powers of Commission Not Limited

Nothing contained herein shall be construed to limit the Commission in its powers, duties, or authority under the Public Utility Act other than requiring specific determinations regarding the prudence of cost overruns pursuant to NMPSC Rules 580.7 and 580.8 [17.3.580.11 and 12 NMAC] as a condition precedent to rate recovery of such cost overruns. In particular nothing contained herein shall be construed to bind the Commission to any particular ratemaking methodology or to diminish the Commission's authority to review the prudence of all costs incurred by a utility, including the certificated estimated cost of plant. All material provisions of the Public Utility Act shall apply to implementation of NMPSC Rule 580 [17.3.580 NMAC].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.14 Other Duties of Utility Not Affected

Nothing contained herein shall be construed to relieve a utility of any of its duties under the laws of the state.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.15 Relationship to Other Commission Rules

NMPSC Rule 580 [17.3.580 NMAC] does not supersede any other rule of the Commission but is to be construed as a supplement to such rules, including, but not limited to, NMPSC Rules 110, 210, 310, and 530 [17.1.2 NMAC, 17.1.210 NMAC, 17.3.310 NMAC and 17.9.530 NMAC].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.3.580.16 Severability

If any part or application of NMPSC Rule 580 [17.3.580 NMAC] is held invalid, the remainder of its application shall not be affected.

17.3.580.17 [HISTORY: NMPSC Case No. 2086, order dated June 30, 1988, unless otherwise noted. Formerly NMPSC General Order No. 49, superseded for purposes of rule reorganization and codification.]

HISTORY OF 17.3.580 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

G.O. 49, General Order No. 49, Cost Overrun Rule, 1/2/87.

NMPSC Rule 580, Cost Overrun Rule, 6/30/88.

History of Repealed Material: [RESERVED]

History

Recompiled 12/30/01
Recompiled 12/30/01

Part 610 Uniform Systems of Accounts and Annual Report Forms

N.M. Admin. Code § 17.3.610.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.3.610.1 NMAC - Rp, 17 NMAC 3.610.1 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.2 Scope

[RESERVED]

History

17.3.610.2 NMAC - Rp, 17 NMAC 3.610.2 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.3 Statutory Authority

Sections 8-8-4 and 8-8-15 NMSA1978 of the Public Regulation Commission Act; and Sections 61-8-1 to 62-8-13 NMSA 1978, Duties and Restrictions Imposed Upon Public Utilities.

History

17.3.610.3 NMAC - Rp, 17.3.610.3 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.4 Duration

Permanent.

History

17.3.610.4 NMAC - Rp, 17 NMAC 3.610.4 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.5 Effective Date

December 27, 2022 unless a later date is cited at the end of a section.

History

17.3.610.5 NMAC - Rp, 17 NMAC 3.610.5 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.6 Objective

[RESERVED]

History

17.3.610.6 NMAC - Rp, 17 NMAC 3.610.6 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.7 Definitions

[RESERVED]

History

17.3.610.7 NMAC - Rp, 17 NMAC 3.610.7 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.8 Table of Contents

A. Classification of gas utilities - 17.3.610.9 NMAC.

B. Uniform system of accounts and annual report forms for class A and class B utilities - 17.3.610.10 NMAC.

C. Uniform system of accounts and annual report forms for class C utilities - 17.3.610.11 NMAC.

D. Uniform system of accounts and annual report forms for class D and class E utilities - 17.3.610.12 NMAC.

E. Effect of adoption of uniform systems of accounts - 17.3.610.13 NMAC.

F. Annual reporting - 17.3.610.14 NMAC.

History

17.3.610.8 NMAC - Rp, 17 NMAC 3.610.8 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.9 Classification of Gas Utilities

Gas public utilities are classified in accordance with their annual operating revenues as follows:

CLASS

ANNUAL OPERATING REVENUES OF

$2,500,000 or more.

$1,000,000 or more, but less than $2,500,000.

$150,000 or more, but less than $1,000,000.

$25,000 or more, but less than $150,000.

less than $25,000.

History

17.3.610.9 NMAC - Rp, 17 NMAC 3.610.9 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.10 Uniform System of Accounts and Annual Report Forms for Class a and Class B Utilities

Class A and class B gas public utilities as defined in 17.3.610.9 NMAC shall keep their books and records in compliance with the uniform system of accounts for natural gas companies (class A and class B), effective January 1, 1961, prescribed by the FPC with subsequent revisions by FERC, and shall use the current form of annual report for natural gas companies (class A and class B) prescribed by FERC; provided that any class A or class B gas public utility may at its option keep its books and records in compliance with the uniform system of accounts for class A and class B gas utilities, 1958, adopted by NARUC at its annual convention in 1958.

History

17.3.610.10 NMAC - Rp, 17 NMAC 3.610.10 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.11 Uniform System of Accounts and Annual Report Forms for Class C Utilities

Class C and class D gas public utilities as defined in 17.3.610.9 NMAC shall keep their books and records in compliance with the uniform system of accounts for natural gas companies (class C), effective January 1, 1961, prescribed by the FPC with subsequent revisions by FERC, and shall use the current form of annual report for natural gas companies (classes C and D) prescribed by FERC; provided that any class C gas public utility may at its option keep its books and records in compliance with the uniform system of accounts for class C gas utilities, 1958, adopted by NARUC at its annual convention in 1958.

History

17.3.610.11 NMAC - Rp, 17 NMAC 3.610.11 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.12 Uniform System of Accounts and Annual Report Forms for Class D and Class E Utilities

Class D and class E gas public utilities as defined in 17.3.610.9 NMAC shall keep their books and records in compliance with the uniform system of accounts for natural gas companies (class D), effective January 1, 1961, prescribed by the FPC with subsequent revisions by FERC, and shall use the form of annual report provided by the commission; provided that any class D or class E gas public utility may at its option keep its books and records in compliance with the uniform system of accounts for class D gas utilities, 1958, adopted by NARUC at its annual convention in 1958.

History

17.3.610.12 NMAC - Rp, 17 NMAC 3.610.12 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.13 Effect of Adoption of Uniform Systems of Accounts

The adoption of the respective uniform systems of accounts by 17.3.610 NMAC shall not be construed as approval or acceptance of any item recorded pursuant to the system of accounts on the books of any utility for the purpose of fixing rates or determining other matters before the commission. The systems of accounts are designed to record the facts of the operations of all gas utilities in a uniform manner. When engaged in fixing rates or passing upon other matters before it the commission will determine what consideration shall be given to various items recorded in the several accounts.

History

17.3.610.13 NMAC - Rp, 17 NMAC 3.610.13 NMAC, 12/27/2022

N.M. Admin. Code § 17.3.610.14 Annual Reporting

A. Each utility affected by 17.3.610 NMAC shall report to the commission annually for each calendar year not later than April 30 of the following year upon forms provided by the commission. Attached to this report shall be SEC form 10K, if applicable, and 17.3.610 NMAC form 1 regarding jurisdictional customer numbers. Each utility shall retain one copy of the report in its files.

B. Each utility affected by 17.3.610 NMAC shall provide a detailed report annually for each calendar year not later than April 30 of the following year setting forth and listing its compliance or failure to comply with each part of the commission’s final order in each of the cases decided that the utility has a requirement of compliance ordered in the preceding five years or since the utility’s last general rate case order, whichever period is longer.

C. The staff of the utility division will review the annual reports for compliance and will, in writing, request additional information from the utility if required. Staff will summarize the annual reports and the division director of the utility division will provide a written report to the commission on or before July 1 of the report year.

HISTORY OF 17.3.610 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

PSC 68-1, Statutes, General Orders, filed 1/16/1968.

PSC 70-1, Statutes and General Orders, filed 7/9/1970.

NMPSC Rule 610, Uniform Systems Of Accounts And Annual Report Forms, filed 6/30/1988.

History of Repealed Material: 17 NMAC 3. 610, Uniform Systems Of Accounts And Annual Report Forms filed (6/30/1988) effective 12/27/2022.

Other: 17 NMAC 3. 610, Uniform Systems Of Accounts And Annual Report Forms filed (6/30/1988) replaced by 17.3.610 NMAC, Uniform Systems Of Accounts And Annual Report Forms effective. (12/27/2022).

History

17.3.610.14 NMAC - Rp, 17 NMAC 3.610.14 NMAC, 12/27/2022

Chapter 4 Utility Rights of Way and Easements

Part 2 Requirements for Occupancy of State Highway System Right-of-Way by Utility Facilities

N.M. Admin. Code § 17.4.2.1 Issuing Agency

New Mexico State Highway and Transportation Department, P.O. Box 1149, Santa Fe, New Mexico 87504-1149, (505) 827-5357,

History

11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.2 Scope

This utility accommodation policy shall apply to all publicly, privately, cooperatively, municipally or governmentally owned facilities used for the carriage, transmission or distribution of electric power, telephone, telecommunications, telegraph, water, gas, oil, petroleum products, steam, chemicals, sewage, drainage, irrigation and similar lines, that are to be accommodated, adjusted or relocated within the right-of-way of highways, roads or streets under the jurisdiction of the New Mexico State Highway and Transportation Department.

A. This utility accommodation policy is provided for the regulation of the location, design and methods for installing, adjusting or relocating, accommodating and maintaining physical utility facilities on highway rights-of-way.

B. Where laws or orders of public authority or industry codes prescribE a higher degree of protection or construction than provided by this utility accommodation policy, such laws, orders or codes shall prevail.

History

3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.3 Statutory Authority

NMSA 1978, Sections 62-1-2, 67-3-12, 67-8-15, 67-8-1, 67-8-17, 67-8-18, 67-8-19, 67-8-20, 67-8-21, 67-8-22.

History

3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.4 Duration

Permanent.

History

3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.5 Effective Date

November 15, 1996, unless a later date is cited at the end of a Section or Paragraph.

History

11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.6 Objective

To prescribe conditions under which utility facilities may be accommodated on all public highway right-of-way under the jurisdiction of the New Mexico State Highway and Transportation Department improved by State or Federal funds and to set forth the regulations covering the relocation of utility facilities in conflict with the construction of highways. The principle objectives of these regulations are to achieve maximum public use of such right-of-way, consistent with the laws of New Mexico and to insure that utility relocations on highway construction projects are accomplished in accordance with New Mexico Statutes, Regulations and Federal Codes. These regulations shall also provide for maximum public safety, maintenance of the roadways, and should minimize future conflicts between the public highway systems of New Mexico and utilities serving the general public in this State.

17.4.2.7 DEFINITIONS

A. AASHTO -- American Association of State Highway and Transportation Officials.

B. Access control -- The condition where access rights of owners or occupants of abutting land adjacent to highways are fully or partially controlled or limited by public authority, with no right to obtain a driveway permit.

C. Aerial facilities -- Pole mounted utility lines or other above ground structures for the transmission or distribution of electric power, communications, traffic control lights and street lighting.

D. Agreement -- Pertains to the New Mexico State Highway and Transportation Department standard form Utility Relocation Agreement or other specifically written agreements pertaining to the relocation of utilities in conflict with highway construction, but not limited only for these purposes.

E. Archaeological clearance -- Legally required documented finding and/or field investigation procedure to insure the protection of known and unknown cultural/historic sites. It must be performed prior to any construction excavation, subsurface clearing or ground surface disturbance in connection with highway construction projects, or the accommodation of utilities or other facilities within public highway right-of-way.

F. Average daily traffic -- The average 24 hour vehicular traffic volume, derived from the total volume divided by the number of days in a one year (usually) period. Commonly abbreviated as ADT.

G. Backfill -- Placement and compaction of material around and/or over a structure such as a pipe, conduit, casing or gallery.

H. Barrier -- A device which provides a physical limitation through which a vehicle could not normally pass. It is intended to contain or redirect the movement of an errant vehicle away from roadside or median obstacles, ravines, ditches, etc.

I. Bored or boring -- A construction procedure for pushing or jacking a pipe or conduit under the highway, without disturbance to the highway structure or prism.

J. Breakaway -- A design feature which allows a device such as a utility pole, sign post, luminaire, or traffic signal support to yield or separate upon impact. The release mechanism may be slip plains, planes hinges, fracture elements, or a combination thereof.

K. Cap -- Rigid structural element surmounting a pipe, conduit, casing or gallery.

L. Carrier -- Pipe that directly contains a transmitted fluid (liquid or gas).

M. Casing -- A larger pipe enclosing a smaller pipe.

N. Catch point -- The point on the undisturbed ground surface where highway backslopes and foreslopes terminate after being cut or filled by construction equipment; usually established by a slope stake.

O. CBC -- Concrete Box Culvert.

P. Clear roadside area or clear zone -- That roadside border area, starting at the edge of the traveled way , available for use by errant vehicles, wherein no fixed obstruction or above ground utility facility may be placed unless protected by a barrier, or by incorporating a Department approved breakaway feature.

Q. CMC -- Corrugated Metal Culvert.

R. CME -- Construction and Maintenance Easement; document providing for use of non-Department owned land on which to construct and maintain permanent facilities.

S. Coating -- Protective material applied to, or wrapped around a pipe.

T. Communication Facilities -- Includes, but not limited to, telephone, telegraph, TV cable, microwave and fiberoptics.

U. Compaction -- A measure of the density of soil, achieved by mechanical means on highway surfaces and on backfill in trenches to harden the material to a predetermined density. Density is the soil weight maximum, in a measured (Modified Proctor Method "C" T-99) volume, with a pre-determined water content, plus a uniform compaction effort.

V. Condemnation -- The process by which private property is acquired for public purposes through legal proceedings, under the power of eminent domain.

W. Conductor -- Various types of electrical wire used for the transmission and distribution of electricity.

X. Conduit or Duct -- An enclosed tubular runway for protecting wires or cables.

Y. Control number or CN -- Four digit number assigned to specific highway projects and used for identification and tracking purposes.

Z. Cost of relocation -- The entire amount properly attributable to relocation of a utility facility after deducting therefrom the value of any betterment of the new facility and any salvage value derived from the old facility.

AA. Cover -- Depth to the top of a pipe, conduit, casing or gallery below the ground surface.

AB. Cradle -- Supporting structural element below a pipe.

AC. Cultural resource study and clearance -- To determine the impact of construction to any known or unknown cultural/historic sites; see Archaeological Clearance.

AD. Density -- Compaction of soil by mechanical means on highway surfaces and for backfill in trenches to harden the fill material to a predetermined density. Density is the soil weight maximum, in a measured volume, with a pre-determined water content, plus a uniform compaction effort.

AE. Department -- The New Mexico State Highway and Transportation Department, sometimes identified herein as NMSHTD, State Highway Department, State, and Highway Agency.

AF. Direct burial -- Installing a utility facility underground without trenching separately, i.e., plowing. A method usually used for installing flexible cable.

AG. Distribution lines -- Intermediate utility lines or arterials that supply natural gas, steam, electricity, telephone communications, water and TV cable services to local customers. These systems do not include the service connections.

AH. District engineer -- The engineer in charge of one of the Department's six construction and maintenance districts.

AI. Drain -- Appurtenance to discharge liquid contaminants from casings.

AJ. Drop inlet (D.I.) -- An underground storm water collector with surface grating at curbside, in medians or at other locations in and around highways and streets. It connects to storm water trunk lines usually running parallel to the highway.

AK. Easement -- The document that grants the right to use land (usually in corridors or strips) owned by others, and that defines the conditions of such use.

AL. Eminent domain -- The right of government, utilities and other public entities to take land for public use (upon the payment of just compensation) from land owners unwilling to sell the land after a negotiation for purchase has failed.

AM. Encasement -- A structural element surrounding a pipe. See Casing.

AN. Encroachment -- Unauthorized and illegal use of highway right-of-way or other lands owned or administered by the Department, State or other Public Agencies.

AO. Engineer -- Secretary of New Mexico State Highway and Transportation Department. Identified in the past as State Highway Engineer and Chief Highway Administrator, acting directly or through his/her designee.

AP. Entrance ramp -- A one-direction vehicular traffic lane for entering freeways, access controlled highways, and other highways at interchanges and at other authorized locations.

AQ. Environmental impact statement (EIS) -- A study that determines the total impact of any proposed construction on the environmental system, and the proposed action to mitigate the anticipated impacts.

AR. Exit ramp -- A one-direction vehicular traffic lane for exiting a freeway or controlled access highway, and other highways at interchanges and at other authorized locations.

AS. Expressway -- A divided arterial highway for through traffic with full or partial control of access, generally with grade separations (bridges) at major interSections.

AT. Field design inspection -- The Department's initial highway project inspection to insure agreement on design items and to furnish any additional design criteria.

AU. Federal-aid highways -- All roads constructed in whole or in part with federal aid.

AV. FHWA Federal Highway Administration.

AW. Flexible pipe -- A plastic, fiberglass, or metallic pipe having a large ratio of diameter to wall thickness that can be deformed without undue stress.

AX. Frangible -- A structure readily or easily broken upon impact.

AY. Freeway -- An expressway with full control of access.

AZ. Frontage road -- A local street or road auxiliary to, and located on the side of, an arterial highway for service to abutting property, adjacent areas, and to aid in maintaining access control of the adjoining arterial highway.

BA. Force account -- A daily record of expenditures. Records construction labor, materials, equipment usage, transportation costs and other costs such as commercial travel, per diem and other legitimate administrative costs incidental to utility relocation construction work performed by a utility with their own personnel, at actual costs incurred, without profit.

BB. Gallery -- An underpass (Concrete Box Culvert, or the like) for numerous utility lines, cables or pipes crossing beneath or running parallel under a street, highway or road.

BC. Grade & drain inspection -- The Department's highway project inspection to establish the final grade line, drainage design and review of the overall project design.

BD. Grade separation structure -- A highway, railroad or other type bridge, underpass or large culvert.

BE. Grounded -- Connected to earth or to some extended conducting body which serves as a conductor instead of the earth, whether the ground connection is intentional or accidental. Usually pertains to an electrical ground.

BF. Grout -- A cement mortar or a slurry of fine sand or clay.

BG. HA -- Highway Agency or State Highway Agency (SHA) or other named State Highway Organizations.

BH. Highway, street or road -- A general term denoting a public way for the purpose of vehicular and other modes of travel. The names usually apply to the entire area within the right-of-way limits.

BI. Hot work -- Work by field electricians on an electrical system that is energized and dangerous.

BJ. I-Project -- Interstate Highway Project.

BK. Inlet -- The graded and contoured approach to a storm water drainage system or culvert. The entrance through a drop inlet to a buried storm water pipeline drainage system.

BL. Insert -- A steel or cast iron cylinder with a female threaded hole in one end. These cylinders are installed in the concrete deck bottom of a bridge to suspend a threaded rod and suspension saddle to support pipelines and other conduits permitted on the bridge crossing.

BM. Jacket -- Encasement by concrete poured around a pipe.

BN. Joint use agreement -- An Agreement between the Department and a utility owner that provides for one future utility relocation and replacement right-of-way payment when a utility facility that occupies a private easement (corridor or strip of land) is taken for new highway right-of-way but no utility relocation is immediately necessary. The utility remains in place since there is no conflict with the highway features.

BO. Longitudinal barrier -- A barrier primarily to prevent penetration and safely redirect errant vehicles away from a roadside or median hazards, such as above ground utility structures.

BP. Longitudinal installation -- A utility facility or system located within or out of the right-of-way limits of a highway, where the facility runs parallel to the highway.

BQ. MUTCD -- Manual on Uniform Traffic Control Devices. The standard highway, street or road traffic marking and signing directive implemented by the U.S. Department of Transportation, for standard use throughout the United States.

BR. Manhole -- An opening to an underground utility that allows workmen to enter, repair and inspect the system.

BS. Median -- The portion of a divided highway separating the opposing traffic lanes.

BT. Natural ground -- Undisturbed ground not affected by construction or other disturbing factors.

BU. Normal -- Crossing at a right angle (90 degrees).

BV. Oblique -- Crossing at an acute angle.

BW. Outlet -- Downstream channel beyond the end of a drainage pipe or the end of the pipe itself.

BX. P& PSheets -- Construction plan and profile sheets.

BY. PS & E review -- Final plans, specifications and estimate reviews by the Department, just before letting a highway project to contract.

BZ. Partial control of access -- The condition where access rights of owners or occupants of abutting land adjacent to highways are partially controlled or limited by the public authorities.

CA. Pavement structure -- The combination of subbase, base course and surface course placed on a highway, street or road subgrade to support the traffic load.

CB. Permit -- Department document that provides for the occupancy of public right-of-way by utilities, entitled New Mexico Public Highway Utility Accommodation Permit, also called a use and occupancy agreement, in the references.

CC. Pipe -- A tubular steel, cast iron, concrete, plastic or other material product designed for the transmission of liquid or gaseous substances.

CD. Plan in hand inspection -- The Department's final field inspection to review the completed highway project plans.

CE. Plowing -- See, Direct Burial.

CF. Police power -- The right of government to legislate, regulate and limit the rights of individuals, corporations, companies and others when prompt and prudent action is necessary for the public good, health, safety or welfare. Its application to utility/highway relations is that certain New Mexico statutes provide the Department with specifically defined enforcement powers for utility relocation performance so that highway construction work can be completed without delay and with minimum legal conflict.

CG. Private utility -- A system owned by an individual, corporation, company or others not devoted to public service but for private use to deliver, transmit electricity, communications, natural gas, water or sewage disposal in a closed, private or confined area, such as an industrial site, mine, ranch, mobile home park or other remote location. The utility product(s) can be generated by the private owner or purchased from others (for example, a public utility) for delivery within the private entity.

CH. Public highway -- Any federal, state, county or city highway, street, road or other public way devoted to vehicular and other modes of travel including the entire area within the right-of-way.

CI. Questionnaire -- Utility Relocation Questionnaire. A Department standard form a utility owner uses to provide pertinent information concerning their eligibility to be reimbursed, construction method to be used, right-of-way ownership, and other information needed by the Department.

CJ. Reimbursement -- For the purposes of this regulation, shall mean payment by the Department for eligible costs properly attributable to the highway construction, pursuant to State and Federal regulations.

CK. Relocation -- Means and includes any horizontal or vertical movement of utility facilities intact and any protective measures taken or, where found by the Department to be necessary, the construction of new or additional facilities (with or without contemporaneous removal and salvage of old facilities) in this state, including, in any case, adjustment or protection of connecting off-highway utility lines to the extent necessary.

CL. Right-of-way, R/W or R.O.W. -- A general term or abbreviations for right-of-way, denoting land, property or interest therein; usually referring to a strip or corridor acquired for transportation or utility purposes.

CM. Roadside -- A general term denoting the area adjoining the outer edge of the roadway but within the right-of-way. Extensive areas between lanes of a divided highway may also be considered roadside.

CN. Roadway prism -- A road bed Section from toe of slope to toe of slope, or borrow ditch bottom, that includes the compacted subgrade, subbase and the paved surface of the highway.

CO. Scenic overlook -- A roadside area provided for motorists to stop their vehicles beyond the shoulder, usually with parking areas, primarily for viewing spectacular scenes.

CP. Secondary highway -- Minor roads, rural and/or urban, farm to market roads and the like that are designated secondary state highways, and are either paved or unpaved.

CQ. Secretary -- Secretary of the New Mexico State Highway and Transportation Department.

CR. Semi-rigid pipe or rigid pipe -- Pipe designed to tolerate from 1% to 3% (semi-rigid) diametric deflection or less than 1% (rigid).

CS. Service drop or service connection -- A utility service connection from a distribution line to a house, business or other entity.

CT. Skew or skewed -- Usually refers to a highway drainage structure set at oblique angles (not at 90 degrees) to the centerline of a highway. Could also be used to describe utility crossings.

CU. Slab, floating -- A concrete slab set between the ground surface and the top of a pipeline to protect the pipeline segment from static and dynamic load damage.

CV. Sleeve -- See Casing.

CW. Specifications or "Specs" -- Refers to technical design parameters written to define construction methods, materials quality and durability requirements, inspection and certification procedures, test procedures, and other mandatory procedures incidental to construction quality in general.

CX. Special district -- Any single or multipurpose district organized as a local public body of the state for the purpose of constructing and furnishing any urban-oriented service which another political subdivision of the state is authorized to perform, including but not limited to the services of water, sewage, garbage, refuse collection and recreation, but excluding the functions or services of drainage, irrigation, recreation, reclamation, soil and water conservation or flood control.

CY. Storm sewer trunk line -- Usually a large diameter storm water pipeline underground and parallel to the centerline or adjacent to the roadway or street, and fed by curb or median drop inlets.

CZ. Structure -- A bridge, drainage culvert or irrigation facility in highway usage, and a power or telephone pole in utility usage. Many other items are identified as structures in other industries.

DA. Structure profile sheets -- Construction plan sheets showing the size, depth and flow line gradient of proposed highway drainage culverts plus the inlet and outlet profiles.

DB. Subsurface utility engineering or SUE -- An engineering discipline, whereby records research, geophysical techniques and soft digging methods are used to accurately locate subsurface utilities. The process is intended to collect utility data very early in the design (FDI) process so as to mitigate conflicts between highway construction features and utilities.

DC. Temporary construction permit (T.C.P.) -- A land use agreement that terminates when the construction work within the permitted area is completed.

DD. Termini -- The written description of the location of a highway project.

DE. Traffic control plan (T.C.P.) -- A plan designed to guide drivers safely through a construction area; such plan must meet MUTCD minimum requirements.

DF. Transmission system -- Refers to a utility system which transmits a substantial volume of electric current, telephone calls, fluid or gaseous products from a generation location, source point, major storage point, well or the like to a location where actual distribution to the consumer will begin.

DG. Traveled way -- The portion of the roadway for the movement of vehicles, exclusive of the shoulders and auxiliary lanes.

DH. Trenched -- Installed in a narrow and open excavation.

DI. Turn-out -- A delineated roadway exit from a street or highway to allow access to private or other property; usually paved or improved with gravel.

DJ. Use and occupancy agreement -- See Permit.

DK. Utility -- All publicly, privately and cooperatively owned utilities, without distinction, for the rendition of water, electric power, sanitary sewer, storm sewer, steam, fuel gas, telephone or telegraph service through a system of pipes or wires devoted to public utility service. The systems can include natural gas; sanitary sewage collection systems; electricity; communication systems, including telephone, telegraph, TV cable, microwave, fiberoptics and others. The term "utility" does not apply to utility systems devoted solely to private use, or when the product of the private utility system is not for sale or for use by the general public as a whole.

DL. Vent -- Appurtenance to discharge gaseous contaminants from a pipe casing.

DM. Vertical clearance -- The difference in elevation, without obstruction, from the lowest point of the superstructure (bridge or box culvert, usually bottom of roof or deck bottom) or a wire conductor to the highest point of the traveled-way, river or railroad track, or below the bottom of a corrugated metal culvert or concrete box culvert or other utility underground facility to the top of another utility pipeline, conduit or cable built beneath the drainage structure or other utility facility.

DN. Walled -- Partially encased by concrete poured alongside the pipe.

DO. Wet-bore -- Illegal method of boring a hole beneath a highway using a water jet or sluicing method.

DP. Work order system -- A procedure for accumulating and recording all costs related to relocations into separate accounts.

DQ. X-ing -- Abbreviation for crossing. Refers to a railroad and/or utility crossing.

17.4.2.8 ORGANIZATION

A. The Railroads and Utilities Section of the New Mexico State Highway and Transportation Department is managed by the Railroads and Utilities Section Manager who is directly responsible to the Right-of-Way Bureau Chief, and is a part of the Engineering Design Division, headed by the Division Director. The Section Manager is responsible for the direction of all work undertaken by the Railroads and Utilities Section, and for the supervision of the various Railroad and Utility Relocation Agents and other personnel who may be assigned to perform designated functions of the Section.

History

3/10/71, 11/15/96; Recompiled 12/31/01
3/10/71, 11/15/96; Recompiled 12/31/01
3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.9 Function

The Railroads and Utilities Section is responsible for the coordination and functional control pertaining to all aspects of public utility and railroad related construction considerations, accommodations and installations affecting the New Mexico State Highway and Transportation Department. These functions include, but are not limited to:

A. The relocation of utilities and railroad facilities in conflict with the construction of highway projects.

B. The control of utility occupation of public highway right-of-way, including utility permits, coordination, regulation and central administration.

C. General liaison with public and private utilities and railroad companies.

D. Assist other New Mexico State Highway and Transportation Department functionaries concerning matters pertaining to the administration of utility company occupation of public right-of-way, utility and railroad relocations on construction projects, and other matters relative to railroad safety.

E. Coordinate, develop and administer the Railroad Safety Program.

17.4.2.10 GENERAL POLICY It is the general policy of the Department to accord utilities certain legal rights pertaining to the occupation of public right-of-way as outlined below:

A. It is in the public interest for utilities to be accommodated within the public right-of-way of highways and, under limited conditions, within access controlled freeways, including interstates under the jurisdiction of the New Mexico State Highway and Transportation Department when such use does not adversely affect the highway features, aesthetic quality, public use, or safety of the traveling public. NMSA 1978, Section 67-8-15.

B. Public utilities have the power of eminent domain, which gives them a quasi-public status. In addition, a public utility operating in New Mexico has a legal right to install its facilities within highway right-of-way, subject to the regulations of this Department. Public utility facilities are not right-of-way encroachments, nor may they be treated as such. Therefore, the administrative intent of the Railroads and Utilities Section is to provide reasonable, efficient and economic solutions to conflicts between the requirements of highway design, construction operations and safety and the location of public utility facilities. Railroads and Utilities Section Agents, Technicians and other assigned personnel should engage in constant liaison with utilities and railroads, to ensure that the communication and interrelations with them are an on-going function of their work performance.

C. The location or the relocation of public utility facilities within existing New Mexico public highway right-of-way, or right-of-way to be acquired for highway construction purposes, shall be governed by all applicable State laws, rules and regulations, Federal Codes and the Department policy set forth herein.

17.4.2.11 UTILITY ACCOMMODATION POLICY

A. Application: This utility accommodation policy shall apply to all publicly, privately, cooperatively, municipally, or governmentally owned facilities used for the carriage, transmission or distribution of electric power, communication facilities, water, gas, oil, petroleum products, steam, chemicals, sewage, drainage, irrigation and similar items, that are to be accommodated or relocated within the rights of way of highways, roads or streets under the jurisdiction of the New Mexico State Highway and Transportation Department.

(1) This utility accommodation policy is provided to regulate the location, design and methods for installing, accommodating and maintaining physical utility facilities within public highway rights-of-way. This Section provides for the continuation of past regulations, State law and modifies and adds new regulations where necessary to comply with new State Laws and/or Federal Codes pertaining to the accommodation and relocation of utilities on State and Federal Aid Projects. The accommodation policy does not address the financial responsibility for replacing right-of-way or relocating the facilities of utilities in conflict with planned highway construction. The reimbursement policy of this Department is set forth in Section 19 [now 17.4.2.19 NMAC] of this manual.

(2) When laws or orders of public authority or industry codes prescribe a higher degree of protection for utility facility construction than provided for in the accommodation procedures set forth in this regulation, such laws, orders, or codes shall prevail.

B. General utility design requirements: Except when a higher degree of protection is required by industry or governmental codes, laws, or by regulations of this Department, or orders of the public authority having jurisdiction over the utility, all utility facility installations on, over, along or under the surface of the rights-of-way of State highways, including attachments to highway structures shall, as a minimum, meet the following utility industry and governmental requirements:

(1) Electric power and communication facilities installations shall conform with the current applicable National Electric Safety Code.

(2) Water, sewage and other effluent lines shall conform with the requirements of the American Public Works Association or the American Water Works Association.

(3) Pressure pipelines shall conform with the current applicable Sections of the standard code of pressure piping of the American National Standards Institute, 49 CFR 192, 193 and 195, and/or applicable industry codes.

(4) Liquid petroleum pipelines shall conform with the current applicable recommended practice of the American Petroleum Institute for pipeline crossings under railroads and highways.

(5) Any pipeline carrying hazardous commodities shall conform to the rules and regulations of the U.S. Department of Transportation governing the transmission of such materials.

C. Pipelines located in casings, galleries, utility tunnels or highway structures shall be designed to withstand expected internal pressures, and to resist internal and external corrosion; casings or uncased pipelines shall be designed to withstand external pressures as well.

D. Joints in carrier pipe lines operating under pressure shall be of a mechanical or welded leak-proof construction.

E. Ground-mounted utility facilities shall be of a design compatible with the scenic quality of the specific highway segment being traversed.

F. All utility installations, on, over, along or under highway rights-of-way, and attachments to highway structures, shall be of durable materials, designed for a long service-life and relatively free from routine maintenance.

G. On new installations or relocation of existing facilities, provisions shall be made for expansion of the facilities, particularly those underground or attached to highway structures. These provisions shall be planned so as to avoid interference with highway traffic when additional facilities are installed in the future.

H. Utility installations that are required for highway purposes, such as highway lighting, traffic signals, pump stations, telecommunications services for rest areas, etc. shall be handled as highway project construction items on proposed highway projects. As such, coordination by the appropriate Department design unit and the affected utility is required so as to ensure that proper bid items are included in the highway construction plans/documents, and that appropriate agreements are developed for addressing service, maintenance and other costs. Where no highway project is proposed, but utility services for highway purposes are required, coordination between the Department unit requesting the service, the utility and the affected highway district shall be required, and appropriate documentation developed so as to outline the responsibilities of each party. In all cases, the location of such facilities within highway right of way shall be properly established and included in the District's utility data base.

I. The utility owner shall be responsible for compliance with industry code, the conditions and/or special provisions specified in the permit, applicable statutes and regulations of the State of New Mexico, and the U.S. Department of Transportation Code of Federal Regulations.

J. The utility shall be responsible for the design, construction, and maintenance of all facilities to be installed within highway rights-of-way. All elements of these facilities are subject to review and approval by the Department, particularly the materials, location and method of installation. The utility is responsible for, and will provide all measures as required to preserve the safe and free flow of traffic, structural integrity of the roadway or highway structure, ease of highway maintenance and appearance of the highway, resulting from their installation. Traffic Control Plans and signing shall be approved by the Department prior to any utility work within the highway right-of-way.

History

3/10/71, 11/15/96; Recompiled 12/31/01
3/10/71, 11/15/96; Recompiled 12/31/01
3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.12 General Utility Construction Requirements

Disturbance of areas within highway rights of way by utility operations shall be kept to a minimum and restored to the satisfaction of this Department. All utility construction methods used within the highway right-of-way shall be performed in accordance with current Standard Specifications for Highway and Bridge Construction, the provisions of this regulation, and utility accommodation permit requirements. All unsatisfactory installation or construction work performed by the utility on highway right-of-way will be corrected or reconstructed upon written notification by the Department that identifies the deficiencies. The Utility shall promptly initiate the restoration work and shall work continuously until the installation complies with the regulations and specifications. If the restoration is not performed within a reasonable specified time, the Department may perform the restoration work and the utility shall be responsible for all costs incurred.

A. The utility shall avoid disturbing or damaging existing highway drainage facilities and shall be responsible for repairs and restoration of any damage, including restoration of ditch flow lines, as determined by the Department. Wherever necessary, the utility shall provide drainage away from its own facilities to avoid damage to the highway. Construction or compaction by means of jetting, puddling, or water flooding is prohibited within all highway rights-of-way.

B. The utility is prohibited from spraying, cutting or trimming of trees or other landscaping elements, unless specific written permission is given by this Department. The approval of a utility accommodation permit does not include approval of such work, unless the cutting, spraying and trimming is clearly indicated on the permit application. In general, when permission is given, only light trimming will be permitted. When tree removal is approved, the stump shall be removed and the hole properly backfilled to natural ground density, and/or other Department approved landscape elements provided. The work site shall be left in a clean and trash free condition and all debris shall be removed. Reseeding shall be performed as per schedule outlined in Paragraph 12.5 [now Subsection E of 17.4.2.12 NMAC].

C. Traffic Control for utility construction and maintenance operations shall conform with the Manual on Uniform Traffic Control Devices (MUTCD). All utility construction and maintenance operations shall be planned to keep interference with traffic to an absolute minimum. On heavily traveled highways, utility operations interfering with traffic shall not be conducted during periods of peak traffic flow. All such work shall be planned so that closure of intersecting streets, road approaches or other access points is held to a minimum. Traffic Control Plans for each installation are mandatory and must be attached to each utility accommodation permit application. No utility installation work shall commence until the permit and Traffic Control Plans are approved by the District Engineer or his/her representative.

D. All utility facilities located on public rights-of-way shall be kept in an adequate state of repair. Minor maintenance of existing facilities may be performed without notification. However, any physical revisions, relocations, additions, excavations, impedance of traffic or other disturbances within the right-of-way shall require the submittal of a new utility accommodation permit application. No remedial work may commence until the new utility accommodation permit is approved. Repairs of an emergency nature, necessary for the safety of the traveling public, may be immediately performed without prior approval, to be followed by formal written notification to the appropriate District Engineer or his/her representative. When such emergency repairs may constitute a traffic hazard, the proper District Highway Office and the New Mexico State Police shall be officially notified to coordinate any safety measures required.

E. Restoration of the highway right-of-way disturbed by excavations or grading work performed by the utility shall include reseeding. This work shall consist of seeding all areas which are denuded of vegetation during the utility's construction operations. The reseeding work by the utility will be subject to inspection and acceptance by a representative from the Department. All affected areas shall be treated with Class "A" seeding of standard Department specifications. Fertilizer shall be used on all areas at the rate of 200 pounds per acre, Department Specification 16-20-0. The various species, origin and seed required for each Highway District area are shown on the following schedule:

(1) Districts 1 and 2

SANDY SOILS

Pounds Pure

Live Seed

Species Origin Per Acre

Lehman's Lovegrass Any 2.0

Sand Dropseed New Mexico 2.0

Sideoats Grama Vaughn 4.0

Fourwing Saltbrush New Mexico 3.0

HEAVY CLAY SOILS

Blue Grama Lovington 2.0

Sideoats Grama Vaughn 6.0

Fourwing Saltbrush New Mexico 3.0

HIGHER RAINFALL

Blue Grama Lovington 2.0

Sideoats Grama Vaughn 6.0

Western Wheatgrass Arriba 6.0

(2) Districts 3 and 6

SANDY SOILS

Pounds Pure

Live Seed

Species Origin Per Acre

Lehman's Lovegrass Any 3.0

Indian Ricegrass Paloma 4.0

Sand Dropseed New Mexico 2.0

HEAVY CLAY SOILS

Blue Grama Lovington 2.0

Sideoats Grama Vaughn 6.0

Fourwing Saltbrush New Mexico 3.0

HIGHER RAINFALL

Blue Grama Lovington 2.0

Sideoats Grama Vaughn 6.0

Western Wheatgrass Arriba 6.0

(3) Districts 4 and 5

SANDY SOILS

Pounds Pure

Live Seed

Species Origin Per Acre

Indian Ricegrass Paloma 3.0

Sand Dropseed New Mexico 2.0

Sideoats Grama Vaughn 5.0

HEAVY CLAYS

Blue Grama Lovington 2.0

Sideoats Grama Vaughn 5.0

Alkali Sacaton New Mexico 2.0

Fourwing Saltbrush New Mexico 4.0

HIGHER RAINFALL

Western Wheatgrass Arriba 6.0

Blue Grama Pastura 3.0

Sideoats Grama Vaughn 4.0

FERTILIZER REQUIRED: ALL DISTRICTS

200 pounds per acre, Specification 16-20-0.

F. Scenic enhancement: The following provisions for scenic enhancement shall apply for utility facility installation in cited areas:

(1) The type and size of the utility facilities and the manner and extent to which they are permitted within areas of scenic enhancement and natural beauty may materially alter the scenic quality, appearance and view of highway roadsides and adjacent areas. Such areas include scenic strips, overlooks, rest areas, recreation areas and the rights-of-ways and adjacent highways. Also included are Sections of highways which pass through public parks, recreation areas, wildlife and waterfowl refuges and historic sites. Whenever possible, new utility installations within all such strips overlooks and areas shall be avoided.

(2) New underground utility installations may be permitted within such strips, overlooks, scenic areas or in the adjacent rights-of-way when they do not require extensive removal or alteration of trees and other shrubbery visible to the highway user, or do not impair the scenic appearance of the area.

(3) New overhead (aerial) installations of communication and electric power lines are to be avoided at such locations unless there is no feasible and reasonable alternative. Any such installation shall be fully justified to the Department by demonstrating that:

(a) Other utility locations are not available or present unusually difficult construction constraints or are unreasonably costly or are less desirable from the standpoint of visual quality.

(b) The placing of underground utility facilities is not technically feasible or economical, or is more detrimental to the scenic appearance of the area.

(c) The proposed installation can be made at a location and in a manner that will not detract from the scenic quality of the area being traversed, utilizes suitable design, and uses materials aesthetically compatible to the scenic area.

(4) It is within the Department's sole discretion as to whether adequate justification has been demonstrated to it by the utility, which decision shall be final and accepted by the utility.

(5) When a utility desires to construct a facility through or within scenic enhancement areas, the request for a utility accommodation permit shall be submitted to the appropriate District Traffic Engineer, providing substantial leadtime, because the permit must be carefully evaluated to determine the impact upon the scenic area involved.

(6) Utility accommodation permit applications for installations in scenic enhancement areas must be accompanied by comprehensive and detailed supporting documentation. The design and materials should be aesthetically pleasing to the eye and the installation should not intrude in such a manner as to detract from the Scenic quality presented for viewing by the traveling public. Permits not adequately supported will be rejected by the Department.

(7) Utility installations through scenic enhancement areas that are required for highway purposes, such as highway lighting, service to weigh stations, rest and recreation areas, and other official sites shall be located and designed to conform with these scenic enhancement provisions. Such installations shall be coordinated with the utility, the appropriate Department design unit, and included as bid items in the highway construction plans if they involve a new highway project.

(8) archaeological or cultural resources clearances: To comply with the New Mexico State Law, The Cultural Properties Act, NMSA 1978, Sections 18-6-1 through 18-6-17 and specific Federal Law Historic Preservation Act of 1966, relating to the protection and preservation of historic and cultural resources, it shall be mandatory for utility facility owners to obtain an archaeological survey prior to any installation within highway right-of-way or property or new right-of-way to be acquired for highway construction. This survey shall be required for utility installations or relocations which include any utility structure, overhead or underground utility systems, either pipeline or ditch and/or any clearing operations, and any or all other ground surface disturbing construction activities across or through any obvious or suspected archaeological site. The survey report shall be submitted to the Department for its review and approval. No utility permit shall be issued without archeological clearance from the Department. No survey will be necessary if the utility has determined by inquiry and written substantiation from the Department that an acceptable archaeological survey was previously done by the Department or others approved by the Department.

(9) environmental clearances: It shall be the utility's responsibility to comply with all Federal, State, and local laws and regulations controlling pollution of the environment. Prior to the start of utility construction, the utility shall contact the Department's Environmental Section to establish if any action is necessary by the utility for adhering to air, noise, and water quality control regulations. It shall also be the responsibility of the utility owner to insure compliance with National Pollutant Discharge Elimination System (NPEDS) Regulations on all utility work within highway right-of-way, where any ground disturbance activities involve areas exceeding five (5) acres. A Notice of Intent (NOI) must be filed with the Environmental Protection Agency (EPA) before the utility work can begin, and approval of the sediment control and reclamation plan from the NMSHTD Landscape Architect must be secured. The Landscape Architect shall also be responsible for final acceptance of permanently established vegetation as required by NPDES and as provided for by the utility owner. Information on these environmental regulations is available from the Roadside Environment Design Unit of the NMSHTD.

G. New Mexico public highway utility accommodation permit:

(1) General requirements: A utility owner who desires to install segments of their utility systems, or needs to relocate an existing facility already installed within the rights-of-way of public highways under the jurisdiction of the NMSHTD, must apply for a New Mexico Public Highway Utility Accommodation Permit. No utility construction shall commence on public highways right-of-way until the utility owner has obtained the approved permits, approval of their insurance, with coverages and face amounts shown in Paragraph 12.11 [now Subsection K of 17.4.2.12 NMAC], and added the NMSHTD as an additional insured. After receiving approval, the utility owner shall notify the Department in writing, five days in advance of the date their installation or relocation construction will commence.

(2) The utility owner seeking a utility permit must provide as-built plans, within thirty (30) days of completion of the installation pertaining to the location of the facility installed. The location must be tied by a survey, performed and certified by a registered New Mexico Land Surveyor, to the Department's monuments and referenced to Department's mileposts and/or to the highway construction project stationing. The Utility shall provide a map to the Department detailing location and elevation of each break point along the facility. Where utility owners fail to establish documentation and provide survey maps to the Department, and Department maintenance crews damage utilities, the utility shall be responsible for all costs associated with repair, but only if Department requested a utility locate prior to beginning maintenance activities.

(3) Information on the horizontal and vertical survey ties may be obtained from the Department's Aerial and Lands Survey Section, Monumentation Unit, located in the Department's General Office (G.O.); mailing address: NMSHTD, Aerial and Lands Survey Section, Monumentation Unit, P.O. Box 1149, Santa Fe, NM 87504-1149.

(4) Survey monumentation and project stationing survey information may also be obtained from the appropriate District Engineer, along with the New Mexico Public Highway Utility Accommodation Permit Forms. The Railroad and Utility Section of the G.O., in Santa Fe also can provide permit forms (see G.O. address in above Paragraph). The addresses and phone numbers of the Department's six District Offices are:

NMSHTD NMSHTD

District One Office District Two Office

P.O. Box 231 P.O. Box 1457

Deming, NM 88031-0231 Roswell, NM 88202-1457

(505) 546-2603 (505) 624-3300

NMSHTD NMSHTD

District Three Office District Four Office

P.O. Box 91750 Box 30

Albuquerque, NM 87119-1750 Las Vegas, NM 87701-0030

(505) 841-2700 (505) 425-7527

NMSHTD NMSHTD

District Five Office District Six Office

Box 4127, Coronado Sta. P.O. Box 2159

Santa Fe, NM 87502-4127 Milan, NM 87021

(505) 827-9500 (505) 285-6623

(5) The utility owner applying to place utilities within the right-of-way of public highways must determine in which Highway District the installation will be constructed. Completed utility accommodation permit forms should be submitted to the appropriate District Engineer, to the attention of the District Permit Agent, at the address previously listed. The boundaries of each District may be obtained from the appropriate District Permit Agent.

(6) The utility seeking a utility accommodation permit from the Department will provide the Department with comprehensive plans that depict the utility installation by plan view and profiles. Details that clarify complicated features of the installation shall be added as appropriate. In addition to the detailed plans, the utility owner shall provide all the information required on the permit form. Utility Permit Instructions are available to assist in preparation of all required documents.

(7) The utility who has received authorization to proceed with their installation/relocation shall strictly adhere to performing the work in accordance to the approved plans. No deviation from the plans, without prior written approval from the Department, shall be allowed.

(8) It shall be the responsibility of the utility owner to renew each permit prior to its expiration. The utility shall submit a renewal permit, along with plans that reflect the current location of the utility relative to existing roadway features. If the plans are as-built and reflect the actual current condition, a certification stating that this is the case shall accompany the as-built plans. Any costs to repair damage to utility facilities by highway maintenance crews due to inconsistencies between the as-built plans and the actual utility location shall be borne by the utility.

(9) All changes in ownership of a utility facility shall require the new owner to submit fully executed and approved assignment documents between the utility owners involved to the Department, along with new State utility permit applications and plans of the assigned facility located within Department's highway right-of-way. If the plans are as-built and reflect the actual current location of the facility, a certification stating that this is the case shall be required; otherwise new plans that reflect the actual location relative to existing roadway features shall be provided. Any requirements stipulated by the underlying fee owner in cases where a change of ownership occurs shall be the sole responsibility of the new facility owner and may require the new owner to obtain appropriate approvals from the fee owner. Any costs to repair damage to utility facilities by highway maintenance crews due to inconsistencies in the as-built plans and the actual utility location shall be borne by the utility.

(10) Utility work shall commence within six (6) months of the date of issuance of the utility permit, otherwise the permit shall become null and void. Any work not started within this six month period shall require new permit applications and associated documentation, as well as Department approval of the new submittal before the utility work can commence.

H. Other required permits: In areas where highways pass through land controlled by the U.S. Forest Service, Bureau of Land Management, U.S. Military Bases, Indian Lands and other designated Federally controlled lands, and certain New Mexico state lands under the jurisdiction of the New Mexico State Land Office, and/or other state agencies, the utility owner must also obtain a permit, written permission, or other documented authorization from these agencies for utility installations. This written authorization is required in addition to the Department's Utility Accommodation Permit, and shall accompany the Department's permit request for new installations, or as determined by the Department.

I. Traffic control plans: Utility owners shall provide Traffic Control Plans in accordance with the Manual on Uniform Traffic Control Devices, and shall comply with the approved Traffic Control Plan during the utility installation, relocation or maintenance work within the highway right-of-way. The Traffic Control Plan must be accompanied by an approved utility accommodation permit and utility construction authorization.

J. Indemnification: The utility owner must indemnify and hold harmless the Department from loss due to any negligent act of the utility, the utility's employees, any agent acting on the utility's behalf, and anyone else engaged by the utility to work on the utility installations, maintenance or relocations of their facilities. Any contractor or subcontractor engaged by the utility to perform utility installations or relocations in conjunction with or prior to highway construction must also indemnify and hold harmless the Department from loss due to any negligent act of the utility's contractor or subcontractor.

K. Insurance requirements: Utility owners shall carry insurance in amounts not less than those below specified and as outlined in Section 107.25 of the Standard Specifications for Highway and Bridge Construction, 1994 Edition, (hereinafter, "Specifications"), as may be updated from time to time. In the event of conflict between the specification, and this regulation, owner shall carry the larger amount of insurance. If a utility is self-insured, the utility shall provide an Owner's Protective Liability Insurance Policy, in favor of the Department, in the amounts below specified.

(1) general liability: Bodily injury liability and property damage liability insurance applicable to the utility installation or relocation work shall be provided as follows, which amounts may be changed, by the Department, from time to time: Insurance coverage in the amount of $1,000,000.00 for each occurrence; $1,000,000.00 aggregate for Bodily Injury Liability and $500,000.00 each occurrence; $1,000,000.00 aggregate for Property Damage Liability, written on a comprehensive General Liability Form or Commercial General Liability Form which must include the following:

(a) Coverage for liability arising out of the operation of independent contractors;

(b) Completed operations Coverage;

(2) In the event that any use of explosives is required during the installation or relocation, the insurance shall include coverage for injury to or destruction of property arising out of: The collapse of, or structural injury to any building or structure due to excavation, including borrowing, filling or backfilling in connection therewith, or to tunneling cofferdam work or caisson work, or to moving or shoring, underpinning, raising or demolition of any building or structural support thereof.

(3) Coverage must be included for injury to or destruction of any property arising from injury to or destruction of wires, conduits, pipes, mains, sewers or other similar property or any other apparatus in connection therewith below the ground. If such injury or destruction is caused by or during the use of mechanical equipment for the purpose of excavating, digging or injury to or destruction of property at any time resulting therefrom.

(4) automobile liability insurance: Coverage for the utility, its contractor or subcontractor (whether included in the policy providing General Liability insurance or in a separate policy) must provide liability for the ownership, operation and maintenance of owned, non-owned, and hired cars. The limits of liability for Automobile Liability insurance shall be provided in the following amounts, which amounts may be changed from time to time:

(a) Bodily Injury Liability $500,000 each person; $1,000,000 each occurrence.

(b) Property Damage Liability $1,000,000 each occurrence.

(5) Department as additional named insured: The utility, its contractor or subcontractor shall have the New Mexico State Highway and Transportation Department added as an additional named insured on the Comprehensive General Liability Form or Commercial General Liability Form furnished by the Utility.

(6) proof of insurance: The utility shall provide to the appropriate Department District Engineer a certified copy of the utility owner's insurance policy and certificate of insurance, or in the event the utility is self-insured, a copy of the Owner's Protective Liability Insurance Policy or a Certificate of Insurance at the time the original utility accommodation permit application is submitted for approval. The utility owner shall also be responsible for and require that any contractor or subcontractor engaged by them shall provide the Department with a certified copy of their insurance policy or certificate of insurance in the amounts and with the provisions as herein provided. If a bond is required, the utility shall provide a proof of that bond to the appropriate Department District Engineer.

(7) worker's compensation insurance: The utility, its contractor or subcontractor shall also carry Worker's Compensation Insurance or otherwise comply with the provisions of the New Mexico Workmen's Compensation Act and Occupational Disease Disablement Law.

(8) liability insurance, automobile liability insurance and worker's compensation Insurance: For the utility, its contractor or subcontractor shall be kept in force for the duration of the utility facility installation, relocation, remedial or clean up work required due to Department authorized utility relocation or utility installation.

(9) insurance required during utility relocations: The insurance listed herein shall be provided by the utility, its contractor or subcontractor on all utility relocation work authorized by the Department. If the utility owner is otherwise eligible for utility relocation reimbursement, the premium cost can be added to the utility's cost estimate; if not eligible for reimbursement, the premium(s) shall be paid by the utility owner. A certified copy of the utility owner's insurance policy(s), or a certificate of insurance for and covering the utility relocation work, shall be provided to the Section Head, Railroad and Utilities Section, NMSHTD, P.O. Box 1149, Santa Fe, NM 87504-1149.

L. Compliance with regulations: Any utility owner that installs its utility facilities within the Department rights-of-way shall comply with the provisions of these regulations. Violation of any regulation pertaining to the installation and maintenance of utility facilities placed within the Department rights-of-way may result, at the discretion of the Department, in:

(1) An order requiring the utility owner to make prompt corrections or take the appropriate remedial action as directed in writing by the Department;

(2) A written order declaring utility's New Mexico Public Highway Utility Accommodation Permit, applicable to the violation, as null and void. In such case, the utility owner may be required to vacate the public highway right-of-way if prompt remedial action is not completed by the utility owner. If the utility fails to correct the problem, all costs as a consequence of a vacation order, including the total cost of removal of the permitted facility, plus all administrative costs, shall be at the expense of the utility owner. Failure of the utility or its agent to comply with such order can result in the utility owner being denied further utility permits until they are able to satisfy the Department District Engineer or appropriate Department representative that they are in compliance or are making a good faith effort to comply;

(3) Violations may also preclude the issuance of additional utility permits until such time as the utility is in compliance.

History

3/10/71, 11/15//96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.13 Physical Location of Facilities

The following requirements apply to the physical location of utility facilities on non access-controlled highways; additional requirements for access-controlled highway facilities are set-out in Paragraph 17 [now 17.4.2.17 NMAC], "The Accommodation of Utility Facilities Within Freeway or Interstate Right-of-Way."

A. Aerial facilities, parallel: The proposed installation of aerial utility facilities parallel to a state highway shall be located no more than .3048 m (1 foot) within the right-of-way line on a uniform alignment, wherever practical. Down guys and anchors shall not project into the cut or fill slopes. Minor variations will be considered on an individual basis upon substantiation submitted by the utility.

B. Aerial facilities crossing: Proposed installations of aerial facilities crossing a highway shall cross the highway at an angle near ninety (900) degrees whenever practical. Poles, anchors and other appurtenances shall be located at, near, or outside the highway rights-of-way. No crossing components shall obtrude upon the roadway prism unless approved by the Department, and all vertical clearances shall conform to the National Electric Safety Code as a minimum, but shall not be less than twenty feet (20'). Minor variations will be considered on an individual basis, or upon substantiation submitted by the utility.

C. Buried facilities, parallel: The proposed installation of buried utility facilities parallel to a highway shall be located no more than 1.52 m (5 feet) within the right-of-way line, whenever practical. Surface components of buried facilities, i.e., valves, manholes, vents, etc., shall be located as close as possible to the right-of-way line. The high point of structural elements such as manholes, vaults and anchor blocks shall be at or below the grade of the right-of-way surface. Minor variations will be considered on an individual basis, on substantiation submitted by the utility. All buried facilities shall be installed at a minimum depth of .91 m (36 inches) from natural ground elevation to the top of the buried facility. All trenches and ditches will be backfilled and compacted to the satisfaction of the Engineer. All excavations outside the roadway foreslopes shall be compacted to a density equal to the surrounding undisturbed soil. All excavations within the toes of the foreslopes shall be compacted to 95% maximum dry density (modified Proctor method "C" T-99 or equivalent) as determined by an approved standard compaction test. Parallel trenches shall be backfilled and compacted during the some work period in which they are excavated. Excavations on or near the traveled way shall not remain open overnight.

D. Buried facilities, crossing: The proposed installation of buried utility facilitiescrossing a highway shall cross the highway at an angle of ninety (900 ) degrees, wherever practical. All Surface components or proposed buried facility crossings shall be located within 1.52 m (5 feet) of the right-of-way line. All buried facility crossings shall be installed at a minimum depth of .91 m (36 inches) or more from the lowest point of the right-of-way surface to the top of the facility. Minor variations will be considered on an individual basis, on substantiation submitted by the utility.

(1) Unless otherwise permitted, installation of buried facilities crossing a state highway shall be performed by boring or jacking under the roadway. Installations by open cut of the pavement structure may be permitted only where boring or jacking is not feasible due to soil conditions, or where the pavement structure is aged, deteriorated or in generally poor condition. Open cut installations will be considered on an individual basis, on substantiation submitted by the utility.

(2) In cases where the utility owner is allowed an open cut installation, the utility shall be responsible for the restoration and maintenance of the pavement structure, until such time that the Section of roadway is improved by resurfacing, as approved by the Department.

(3) All proposed buried carrier pipes crossing a state highway shall be constructed of steel, cast iron, or reinforced concrete and/or shall be cased (or encased), and shall be of such materials and design as may be approved by the Engineer. Each question of carrier pipe material and/or casement pipe requirements shall be considered on an individual basis, on design data submitted by the utility. As a minimum, the casement shall extend at least from just outside the toe of foreslope to just outside the toe of the opposite foreslope.

(4) The utility shall be responsible for the backfill, compaction and surface restoration of utility trenches outside the roadway prism, and for the restoration and protection of the pavement structure if open cut trenching across the existing roadway is approved by the Engineer, District Engineer or his/her representative. The utility is also responsible for the safety and progress of the traveling public. All backfill, compaction, materials, and pavement structure restoration shall be performed to the satisfaction of Engineer. Backfill in trenches excavated outside the roadway prism shall be compacted to a density equal to the surrounding undisturbed soil. All excavations within the roadway prism shall be compacted to 95% of maximum dry density (Modified Proctor, method "C", T-99 or equivalent) as determined by a standard compaction test. Any portion of the pavement structure which is broken, disturbed, cut or otherwise damaged in any way, shall be removed and replaced to a design equal to or better than the condition that existed prior to the damage to the pavement structure, as determined by the Department.

(5) Where the party making the installation either is not equipped or fails to properly repair any damage to the pavement structure, the Department will repair the damage and shall bill the utility the actual cost of restorations, plus administrative costs incurred.

(6) All buried utility facilities crossing Department maintained highways shall be identified by the installation of weather proof signs that provide the type of facility, the facility owner and a phone number where maintenance personnel may be contacted. The signs shall be set over the facility at both right-of-way lines.

17.4.2.14 DEFINITIVE DESIGN REQUIREMENTS

A. Pipeline installations; location and alignment: From the highway viewpoint, there are sound reasons for requiring pipeline crossings at right angles to the roadway alignment. Oblique angle highway crossing pipeline installations have many detrimental characteristics as they increase the interference with traffic during construction, are more liable to conflict with highway drainage and structures, upset distribution of live loads to the subgrade and across pavement joints, are considerably harder to control as to line and grade when boring or jacking the pipeline beneath the highway, and they usually create more damage to the pavement structure and subgrade on open cut installations. Diagonal crossings usually require more maintenance and repairs; therefore, all pipeline crossings shall be at or near ninety (900) degrees. Minor variations will only be considered on a case by case basis, upon justification submitted to the Department by the utility. Conditions which are generally unsuitable for pipeline crossings should be avoided, such as locations in deep cuts, across cuts and fills on steep slopes, near the footings of bridge piers, abutments, retaining walls and other structures, across interSections at grade or entrance and exit ramp terminals, at cross drains (transverse drop inlets) where flow may be obstructed, or in locations requiring extensive rock excavations to provide the minimum bury.

B. Pipeline casings; encasement: A carrier pipe is said to be cased (or encased) if it is installed freely inside in a larger diameter pipe. Encasement may also be complete or partial, designed to protect the carrier pipe, lighten its burden, facilitate its insertion and withdrawal and guarantee the integrity of the roadway structure or prism. Common types of casements are those carriers cased or sleeved inside a larger pipe, cradled by a continuous concrete seat fitting the pipe (cradling), walled by a continuous concrete sidefill (walling), boxed or jacketed by concrete completely surrounding the pipe (boxing), capped by a continuous concrete topping or slab (capping)), coated or wrapped by a substantial girdling cover (wrapping), grouted by mortar filling borehole annulus and overbreak (grouting), or tunneled by installation in a utility subway.

(1) Of these methods, only the casing, tunnel, utility subway or gallery provide the complete independence of the carrier pipe from the surrounding roadway structure, and adequate protection to the roadway from leakage of the pipeline. These methods also provide means for insertion and replacement of carriers without access or disturbance to through-traffic roadways.

(2) The following encasement methods do not provide all of the above benefits, but may be utilized subject to individual approvals, on substantiation submitted by the utility: Concrete cradling enhances the load supporting capability of rigid pipes, but accomplishes little else. Walling does the same for semi-rigid and flexible pipes. Capping strengthens both rigid and flexible pipes, and somewhat protects from highway operations penetrating the overfill. When applied to weak or brittle pipes, concrete boxing or jacketing provides protection to the pipe from earth loads, leakage, corrosion or abrasion to some degree. Adequate coating or wrapping prevents contact with corrosive water, soil or vapors. Grouting aids in restoring the continuity and integrity of the earth supporting the pavement structure.

C. Uncased carriers: An uncased carrier crossing a highway becomes an integral part of the embankment supporting the pavement structure. Just as for a culvert, the Department must be assured of adequate structural design. All uncased carriers shall be designed to withstand all combinations of earth and live load, internal pressure, earth and live load plus internal pressure, and earth and live load plus alterations to full and zero internal pressure. Rigid carriers will generally be satisfactory, if they meet culvert design criteria and withstand the internal pressure. Semi-rigid and flexible carrier pipes shall be cased within a rigid pipe encasement.

D. Hazardous transmittants: Transmittants which are flammable, corrosive, expansive, unstable, at high pressure, and/or possibly hazardous to the traveling public or the roadway itself, shall be encased on all highway crossings of carrier pipes over 2 inches in diameter. Uncased crossings of welded steel pipelines may be permitted, provided additional protective measures are taken in lieu of encasement. Such measures may include higher safety factors in design, materials and construction, coating, and wrapping of carriers in accordance with industry standards, and cathodic protection, subject to the approval of the Engineer, District Engineer or his/her representative. Requirements for uncased carriers: Uncased hazardous or corrosive product pipeline crossings on state highways will be allowed provided they are:

(1) welded steel pipelines;

(2) cathodically protected;

(3) coated in accordance with industry standards;

(4) meet requirements of the pipeline safety regulations -- 49 Code of Federal Regulations, Parts 191 and 192, or Parts 191 and 195 with respect to wall thickness;

(5) designed for operating stress levels in accordance with federal pipeline safety regulations;

(6) appropriately marked with permanent signs at each right-of-way line indicating ownership, type of facility, and an emergency telephone number; and

(7) owner provides an official signed written statement certifying that the facility complies with the conditions and provisions required in this Section, Paragraph 14.4.1 [now Subsection D of 17.4.2.14 NMAC].

(8) It should be noted that each request for waiver of casing will be considered on an individual bases. The ultimate decision to approve or reject a waiver will not be subject to pipeline owner criteria, but will be based on the following casing considerations:

(a) as an expediency in the insertion, removal, replacement, or maintenance of carrier pipe crossings of freeways, expressways, and other controlled access highways and at other locations where it is necessary to avoid trenched construction;

(b) as protection for carrier pipe from external loads or shock, either during or after construction of the highway;

(c) as a means of conveying leaking fluids or gases away from the area directly beneath the traveled way to a point of drainage in the highway ditch or a natural drainage way; and

(d) traffic safety considerations and maintaining the structural integrity of the roadway.

E. Restriction against varied use: Subject to the safety requirements of the various regulatory bodies, the following precautionary measures are required for pipeline crossings:

(1) Pipeline crossing utility accommodation permit applications shall specify the class of transmittants, the maximum working or test pressure, and the design standards for the carrier pipe.

(2) Prior approval shall be obtained from the Department before the utility is allowed to change the type of transmittant or raise the working or potential pressures beyond those provided for in the design and the utility accommodation permit. Non-compliance by the utility with any of the provisions of this regulation shall be grounds for rejection of the utility accommodation permit or the revocation of an existing permit.

F. Trenched construction and backfill: In trenched construction, bedding is the subgrade soil and its surface, as prepared to support a pipe. Backfill is the material that refills the rest of the trench, consisting of sidefill up to the level of top of facility, and of overfill above that level. The latter specifically includes restoration of the pavement structure and the road surface. From the Department's viewpoint, the pavement structure which is broken, disturbed, cut or otherwise damaged in any way, shall be removed and replaced to a design equal to or greater than the surrounding undisturbed pavement structure, as determined by the Department.. Open cut trenched construction on State roads shall be limited to areas where the pavement structure is deteriorated and in generally poor condition and only when justified in writing by the utility and subsequently approved by the District Traffic Engineer or his/her representative.

(1) In cases where the utility owner is allowed an open cut installation, the utility shall be responsible for the restoration and maintenance of the pavement structure, until such time that the Section of roadway is improved by resurfacing as approved by the Department.

(2) Where the utility or other party making the installation is not equipped to or fails to properly repair the damage to the pavement structure, the Department shall repair the damage and will bill the utility owner the actual costs incurred, including any administrative costs.

(3) open trench installations crossing the highway: From the Department's viewpoint, the essential features of open trench construction are detailed as follows:

(a) Restoration of the structural integrity of the roadbed.

(b) Security of the pipe against deformation and leakage.

(d) Open-cut trenched installations shall not be permitted unless it is not feasible to bore, push or jack under the roadway. All trenched or other utility installations shall conform to the applicable provisions of the current construction requirements of the Department, i.e., The New Mexico State Highway and Transportation Department Standard Specifications for Road and Bridge Construction, and any supplemental provisions thereto.

(e) Trenches shall be cut to have vertical faces with a maximum width of .61 m (2 feet), or the outside diameter of the pipe plus .46 m (1.5 feet) on each side, or as approved by the Engineer or his representative. The trench shall be shored where necessary to prevent cave-ins or sloughing, and shall meet OSHA requirements.

(f) Bedding should be provided to a depth of half the diameter of the pipe. Bedding shall consist of granular material, free from rocks, lumps, clods, cobbles, or frozen materials and shall be graded to a firm surface without abrupt change in bearing value. Unstable soils and rock ledges shall be sub-excavated from beneath the bedding zone and replaced with suitable granular material.

(g) Backfill shall be placed in 150.6 mm (6 inch) layers of granular materials, and each layer shall be consolidated (compacted) by mechanical tamping equipment and with a controlled addition of moisture, to a density of 95% maximum dry density (modified proctor method "C," T-99 or equivalent) determined by a standard compaction test. Consolidation by super-saturation, ponding or flooding will not be permitted in any circumstance. Materials and methods of compaction shall be adapted to achieve rapid restoration of traffic service. There shall be additional cutback of base and surfacing courses to minimize later development of sag in the replaced pavement over the trench.

(h) Pavement replacement may be performed by either the utility, or a contractor engaged by the utility, (constructed to a specification approved by the state) or by Department forces at the expense of the utility. The utility shall be liable from the date of completion of the pavement replacement, for the cost of repairs if the backfill subsides or the patched pavement fails, until such time that the roadway cut is resurfaced as approved by the Department. .

G. Untrenched construction and grout: Methods for installing a utility under a highway or roadway without disturbing the pavement surface are as follows:

(1) A pipe with a pilot shoe may be driven through compressible soil by steady thrust, hammering or vibration. Driven pipe must be smooth and uncoated, thus a casing or corrosion resistant carrier pipe should be used. Line and grade are difficult to control on long drives.

(2) Coring -- A casing without a pilot shoe can be drilled into more difficult soil, which enters the casing as it advances. The core is removed during and after the drilling. Control of line and grade is fairly easy.

(3) Boring -- A pipe can be jacked through a slightly oversized bore carved progressively ahead of the leading edge of the advancing pipe as the spoil is mucked back through the pipe. Line and grade control is excellent, but annular voids and overbreaks may be large and must be backfilled.

(4) Wet Boring -- A hole is sluiced by a jet of slurry and kept full of pressurized slurry to avoid collapse. The pipe is pushed through the slurry evacuating the excess. Soils may soften, expand or disintegrate from saturation by slurry moisture. This method is absolutely forbidden on all highways and roads under the jurisdiction of the Department.

(5) Untrenched installations (boring, coring or driving) will be required for all pipeline crossings of access controlled and other major highways. Open trench installations on other highways and roads will be permitted only where bad soil conditions or extremely difficult rocky conditions preclude untrenched construction, or where older pavement is severely deteriorated. All untrenched pipeline installations should extend under and across the entire roadway prism to a point 1.22 m (4 feet) beyond the toes of the foreslopes or borrow ditch bottom or across the access control lines, or as otherwise required by the Engineer or his/her representative.

(6) The oversize of boring operations is restricted to the minimum size necessary for the pipeline installation. The boring hole shall not exceed the pipe installation diameter by more than five percent (5%) oversize. The oversize excavation shall be backfilled to the satisfaction of the Engineer or his/her representative.

(7) All overbreaks, unused holes or larger diameter abandoned casings or pipes shall be backfilled with grout. The composition of the grout shall be cement mortar, a slurry of fine sand, or other fine granular materials, as local conditions dictate, and subject to the approval of the Engineer or his/her representative.

H. Relocation of existing pipelines: Highway design and construction requirements generally preclude compromise of proposed highway alignment or grade for new construction projects in order to avoid conflict with the line and grade of an existing pipeline. The feasibility of minor adjustments in the highway design to avoid extensive conflicts with existing utility facilities will be investigated, but in most instances a utility relocation or added pipeline protection will be required. Specific case factors are so varying as to make each such crossing unique. Therefore, standardized solutions are not uniformly applicable, but the following items will be considered:

(1) An existing pipeline should be relocated in alignment and/or grade, where the angle of the crossing is too acute, the top of the pipe is too close to the designed highway gradient, or its bedding will be depressed by static and dynamic highway loadings.

(2) An existing or relocated pipeline shall be encased or otherwise protected as would normally be required for a future pipeline installation, built under the same conditions.

(3) An existing pipeline, inadequate to support highway loadings, shall be sheltered by an adequately designed casing or reinforced by a jacket, cap, or replaced with heavier weight pipe.

(4) An existing pipeline which would lack adequate cover for protection from vehicular loads or highway construction operations, may be protected by a floating slab in lieu of encasement.

(5) Notwithstanding utility facility protection, the highway construction contractor shall be warned of, and made responsible for the security of utility facilities located within the construction limits of a project. Where there are unusual utility hazards, or where heavy construction equipment will cross a facility, the highway contractor shall provide a temporary earth cover, or other such protection as may be required.

(6) Further clarification of the responsibility of highway contractors to protect utilities and for the relocation of utilities concurrently with highway construction and other utility/highway contractor relationships, are defined as to the joint responsibilities required, in the New Mexico State Highway and Transportation Department Standard Specification for Highway and Bridge Construction, and any modifying provisions or rule changes applicable thereto.

I. Other design requirements:

(1) Overhead Power and Communication Lines: The type of utility construction, vertical clearances, the lateral location of poles and down guys and related ground mounted utility facilities along the roadside are factors of major importance in preserving a safe traffic environment, the appearance of the highway, and the efficiency and economy of highway construction and maintenance. As such, the physical location of aerial utility facilities shall be as close to the right-of-way line as possible, normally .3048 m (1 foot) inside the right-of-way line.

(2) Aerial utility lines to be installed longitudinally on highway rights of way will usually be limited to single pole construction. Joint-use single pole construction is encouraged at locations where more than one utility or type of facility are involved. Except in very unusual circumstances and for short distances only, duplication of utility facility aerial pole-line installations on the same side of the highway will not be permitted.

(3) The vertical clearance for overhead power and communication lines above the highway, and the lateral and vertical clearances from structures shall conform to the National Electrical Safety Code as a minimum, except where greater clearances are required by the utility, or where required by other industry or governmental codes or regulations.

(4) On and along conventional highways in rural areas, poles and related facilities shall be located at or as near to the right-of-way line as possible, normally within .3048 m (1 foot) thereof. Down guys, anchors or other components shall not project into cut and fill slopes, nor shall such surface mounted obstacles intrude into the clear roadside area for the segment of the highway involved.

(5) In keeping with the nature and extent of roadside development along conventional highways in urban areas, aerial or buried utility facilities shall be located at, or as near as possible to the right-of-way line. On curbed Sections, the utilities shall be located as far as possible behind the face of the outer curbs, and preferably behind the sidewalks. Utilities located within sidewalks shall not be permitted unless no other viable alternative can be identified; however, under no circumstances shall their location compromise ADA requirements. Utilities must be protected in accordance with the AASHTO guide insofar as possible. Variations must be fully justified to the Engineer or his/her representative. The Department may require certain details of the method and manner of relocation in order to accommodate aesthetic, environmental, ecological and historical considerations (i.e. commitments contained in EIS or other documents) or in order to obtain consistency with local zoning, codes or ordinances.

(6) Locations of aerial utility facilities on highways with exceptionally narrow rights-of-way, or on urban streets with abutting improvements are special cases that must be resolved in a manner consistent with prevailing limitations and conditions. Locations behind sidewalks are required where feasible. Before a utility requests Department approval of a location other than near the right-of-way line, consideration shall be given to designs utilizing self-supporting armless single pole construction, with vertical alignment of wires and cables, or other techniques permitted by the utility, industry or governmental standards or codes that are also conducive to a safe traffic environment. Exceptions to these clearances may be made where poles and guys may be placed behind existing barriers, guardrails, beyond deep drainage ditches, the toe or top of steep slopes, retaining walls and other similar protected locations, or when poles are of a breakaway type manufacture.

(7) Where irregularly shaped portions of the right-of-way lines extend beyond the normal right-of-way limits, individual consideration will be given to requests for variations to maintain a reasonably uniform alignment for longitudinal, aerial or underground utility facility installations.

(8) Longitudinal installations of utility facilities shall not be permitted in the highway median. In rare instances, aerial components of utility crossings may be permitted in a highway median in excess of 24.38 m (80 feet) in width, if the highway is not access controlled.

History

3/10/71, 11/15/96; Recompiled 12/31/01
3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.15 Installations on Highway Structures

Attachment of utility lines to a highway structure can materially affect the capacity of the structure, the safe operation of traffic, the efficiency of maintenance and reducing the aesthetic appeal of the structure.

A. Where it is feasible to locate utility lines elsewhere, attachments to highway structures should be avoided. However, when installation of the utility at an alternate location proves to be extremely difficult or unreasonably costly, consideration will be given for an attachment of utility lines to a highway structure. The attachment shall be made by a method acceptable to the Bridge Engineer of this Department.

B. All proposed attachment methods shall conform to adequate engineering considerations for preserving the highway structure's integrity, safety, ease of maintenance, and its appearance. In this respect, the following considerations shall govern:

C. Due to variations in highway structure designs and site specific considerations, it is not feasible to completely standardize the method by which utilities are attached to structures. Therefore each proposed attachment shall be considered on its individual merits, and shall be individually designed for the specific structure.

D. Utility line attachments to a highway structure shall not be considered unless the structure in question is of a design, age, and physical condition that is adequate to support the additional load and accommodate the utility without any compromise of the highway features, including reasonable ease of maintenance.

E. Attachment of a pipeline carrying a hazardous transmittant to a highway structure shall be avoided whenever possible. When such an attachment is permitted, the facility design shall be at a level to provide maximum safety.

F. Utility positioning on a highway structure which will inhibit access to any structure part for maintenance shall not be allowed. Utility access manholes shall not be allowed in a structure deck or load carrying member.

G. The entire utility installation on a highway structure shall be so located as to not reduce the vertical clearance otherwise available above river, stream, roadway surface or rails. In general, acceptable utility installations are those designed to occupy a position beneath the deck an in an interior bay of an I Girder Beam, or within a cell of a Box Girder Bridge. Installations shall always be above the bottom of girders on a Girder Bridge or above the bottom of the bottom cord on a Truss Bridge.

H. Utility line attachments to the visible outer portions of structures are unsightly, susceptible to damage, and shall not be permitted unless there is no reasonable alternative.

I. Utility line mountings shall be of sufficient strength to carry the weight of the utility and shall be of a type which will not rattle or loosen through vibrations caused by vehicular traffic. This is a matter of particular concern on steel structures. Utility attachments shall be designed to accommodate differences in thermal movements between the highway structure and the utility.

J. Where a utility facility is to pass through an abutment wingwall or other wall of a highway structure, the utility is required to neatly restore the disturbed construction by approved methods which shall preclude any leakage of water or backfill through the substructure elements. Where such construction is approved, any hole created in the highway structure shall be of a minimum size necessary for the installation. The annular space between the structure and pipe shall be completely filled with grout so as to seal the opening and effectively preclude the leakage of any moisture or backfill material through the substructure. Where a pipe or conduit is to be sleeved (cased) through the structure, the sleeve shall be tight sealed into the opening, and the annular space between the pipe conduit and the sleeve shall be sealed with a Department approved material.

K. Acceptable utility attachment methods are hangers or roller assemblies suspended from the underside of the bridge deck, or from hanger rods clamped to the flange of some superstructure member. Bolting through the bridge floor or deck shall not be permitted. Where there are transverse floor beams sufficiently removed from the underside of the deck to allow adequate clearances for the utility, the Bridge Engineer may consider a proposal to support the utility line on top of the floor beams.

L. Clearances of utility facilities from bridge members shall conform to all governing codes, and shall be such as not to render any portion of the structure inaccessible for any maintenance or other highway function.

M. The utility shall be required to make satisfactory provisions for lineal expansion and contraction of its facility as a result of temperature and pressure differentials. Line bends or expansion couplings are generally used for this purpose.

N. The utility shall restore or repair any portion of the structure or highway disturbed or damaged by utility installation or use.

O. If weatherall steel is utilized in the highway structure, utility attachments shall be of similar material.

P. A pipeline carrying volatile fluids, pressurized gas, water or sewage poses an element of risk when mounted on a highway structure. When such a carrier is placed in a casing pipe of leakproof construction, the hazard to the utility, the highway facility, and the traveling public can be minimized. It is good practice to case all such pipeline attachments through the highway structure. The casing pipe should be carried beyond the back of the structure abutment and be effectively vented at each end to detect leakage and prevent possible build-up of pressure. In addition, all welds shall be tested by non-destructive means.

Q. Where a casing is not provided for a pipeline attachment to a bridge, additional protective measures shall be taken. Such measures shall include, but are not limited to, higher safety factors in design and pressure testing. The safety design factor shall be twice that normally used.

R. Communication and electric power line attachments shall be suitably insulated, grounded and carried in a protective steel conduit or pipe from below the point of ground exit, to below the point of ground re-entry. Carrier pipe and casing pipe shall be suitably insulated from electric power lines.

S. All pipeline attachments carrying gas or liquid under pressure, which by nature of the transmittant might cause damage or injury if the transmittant escapes on or in the vicinity of the highway structure, shall be provided with emergency shutoff valves of automatic design. Such valves shall be placed within an effective distance on each side of the structure. Exceptions to this rule may be considered by the Engineer, upon written justification submitted by the utility.

T. The responsibility of the utility owner requesting a bridge or highway structure attachment cannot be over stressed. The utility shall ascertain the extent of the Department's design requirements prior to initiating the design for attachment. A Registered Professional Engineer experienced in structural design shall be responsible for the design effort. Complete plans showing all details of the proposed work, together with pertinent design documents shall be prepared and submitted, along with the New Mexico Public Highway Utility Accommodation Permit Application. Traffic control plans must also accompany the permit. The plans must be complete and adequate enough to show in detail the full extent of the proposed work.

U. All materials integrated into the design must be certifiable for quality and strength, and full specifications must be provided in support of the design.

U. A complete written justification must support the need for attachment and demonstrate that there is no viable cost effective alternative.

V. All components of the utility attachment shall be protected from corrosion. Steel components shall be galvanized or painted in accordance with current Standard Specifications For Highway And Bridge Construction.

History

3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.16 Clear Roadside Policy

The Department discourages the installation or relocation of any utility facilities within the designated clear zones of highways in this state. However, if severe space limitation precludes any other viable option, consideration will be given when the public need for utility services and access to properties adjacent to highways or streets is evaluated.

A. Specific installation guidelines: Utilities may be permitted to install facilities within the clear zones of highways in this state if the installation design:

(1) Is approved by the Engineer, District Engineer, District Traffic Engineer, or the Traffic Design Engineer of this Department.

(2) Provides for the installation of the utility facilities, including all supporting appurtenances, below the ground surface of the clear zone area involved.

(3) Provides for the protection of the above ground utility facility by the installation of an intervening barrier or barriers, crash cushions, impact attenuators or longitudinal barriers approved for the use as per the current Roadside Design Guide.

(4) Protects errant vehicles from collision with utility poles, luminaire standards or masts, or any other above ground structures supported by poles, by the incorporation of break-away features in the structure design. Break-away features may include a hinge design, slip plate design, slotted fuse plate design, frangible coupling design and other accepted designs. The utility owner must comply with the design standards set forth in the AASHTO designs and specifications when accepted by the Traffic Design Engineer, or District Traffic Engineer.

B. General requirements: In evaluating whether to allow utilities in the clear zone, utility owners must provide the Department with a complete justification in support of a request to install utilities within the clear zone. This justification must include:

(1) Comprehensive information to support the utilities contention that no other viable location is available.

(2) That an installation on nearby adjacent right-of-way would be prohibitively expensive.

(3) That a right-of-way corridor nearby would adversely affect wetland or agricultural lands or areas of scenic enhancement.

(4) The utility must provide the Department with completed and comprehensive plans and specifications, including:

(a) Grades and elevations tied by survey to the design grade of the highway segment involved.

(b) A clearly defined clear zone, shown on the utility's plans, along with details and elevation views.

(d) Any additional information in support of the design.

History

3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.17 The Accommodation of Utility Facilities Within Freeway or Interstate Right-of-Way

Pursuant to Federal Highway Administration (FHWA) regulations regarding the accommodation of longitudinal utility facilities within the access control limits of Freeways and Interstate Highway rights-of-way, the Department will allow under controlled circumstances, the placement of longitudinal utility facilities within the access control limits of the Interstate System or other fully access controlled Freeways. These regulations do not apply to utility lines for servicing facilities required for the operation of the Freeway.

A. Term and cost of permit: Permits for longitudinal utility facilities within the access controlled Freeways shall have a term as set by the Engineer, but in no event shall the term exceed twenty-five (25) years. The Engineer may impose charges, fees or other compensation or consideration as may be reasonable for the occupancy of the right-of-way by the utility. The permit shall be subject to any other reasonable conditions deemed appropriate by the Department under the circumstances. Even though payment may be made by the utility to the Department, no permit shall be exclusive, meaning the Department may issue additional permits to other utilities within the same Freeway right-of-way.

B. Physical location of new longitudinal utility facilities along interstate highways and freeways: New utilities to be installed longitudinally within the control of access lines of any freeway shall be subject to controlled conditions, and the utility requesting permits must meet the following requirements:

(1) The accommodation will not adversely affect the safety, design, construction, maintenance or stability (integrity) of the Freeway.

(2) The accommodation will not interfere with or impair the present or future use, or future expansion of the Freeway.

(3) Any alternative location would be contrary to the public interest. This determination must include an evaluation of the direct and indirect environmental and economic impacts resulting from disapproval of the use of such right-of-way for the accommodation of the facility.

(4) If by reason of any change in the location, construction, grade or by any other matter affecting the highway upon which any facility is located because of changing traffic conditions or otherwise, it shall become advisable in the opinion of the Engineer that said facility be removed, relocated or otherwise modified, the utility, upon written notice from the Engineer, shall remove, relocate or modify such facility without undue delay in such manner as the Engineer may direct or approve, at the utility's expense and at no cost to the Engineer. All facilities located on public right-of-way under the dual jurisdiction of the State and a subordinate governmental entity shall comply with all applicable rules and regulations of such entity properly and lawfully in force and including but not limited to provisions of local franchises not in conflict with the rules and regulations of the Engineer. The Engineer makes no warranty, either express or implied, as to the continued existence of any highway in any particular location and expressly assumes no obligation with regard to the facility upon change, vacation or abandonment of any highway or portions thereof.

(5) If approval for installation is granted, any and all utility installations and components associated thereto shall be buried parallel to the Freeway, and shall be located within 1.52 m (5 feet) of the access control line, wherever practicable. Surface components of buried facilities, i.e., valves, manholes, vents, etc., shall be located as close as possible to the access control line. The high point of structural elements such as manholes, vaults, and anchor blocks, shall be at or below the natural ground line of the right-of-way surface. All buried facilities will be installed at a minimum depth of 0.91 m (36 inches) or more from the right-of-way surface to the top of the facility. All trenches and ditches will be backfilled and compacted by the facility installer to the satisfaction of the Engineer. All excavations outside the roadway foreslopes shall be compacted to a density equal to the surrounding soil. All excavations within the toes of the foreslopes shall be compacted to ninety-five percent (95%) of maximum dry density as determined by a Standard Compaction Test, Modified Proctor Method T-99 or equivalent. Parallel ditches in excess of 106.68 m (350 feet) in length shall not remain open over 24 hours. Any excavations on or near the traveled way shall not remain open overnight. All future relocations or adjustments shall be the responsibility of the utility and shall be at the sole expense of the utility.

(6) No service connections shall be allowed from within access controlled facilities.

C. Existing utility facilities along proposed interstate highways or freeways: Where a utility facility already exists within the proposed right-of-way of an Interstate Highway or Freeway and it can be serviced, maintained and operated without access from the through-traffic roadways or ramps, it may remain as long as it does not adversely affect the safety, design, construction, operation, maintenance or stability of the Interstate Highway or Freeway; otherwise it must be relocated.

D. Major valley crossings, grade separation structures: Where an Interstate Highway or Freeway crosses a major valley or river on an existing structure, any utility facility carried by said structure at the time the highway route is improved may continue to be so carried when a relocation of the facility would not be cost effective, and provided that the utility facility could be serviced without interference with road users. All such approvals must be first cleared by the Department's Bridge Engineer.

(1) The expansion of a utility facility carried by an existing structure may be permitted provided the utility installed on the existing structure fulfills the methods of installation required by the Department's Bridge Engineer, and that any such installation can be serviced without interference with the road users.

(2) A new utility facility will not be permitted to be installed on a structure at or after the time the highway route is improved, except for special cases as covered in Paragraph 15 [now 17.4.2.15 NMAC], supra.

E. Utility facilities crossing interstate highways: New utility facility installations or the relocations of existing facilities may be permitted to cross Interstate Highways or Freeways. To the extent feasible and practical, they should cross on a line generally normal (crossing at 90 degrees) to the highway alignment and preferably under the Interstate Highway or Freeways.

F. Utilities along roads or streets crossing freeways: Where a utility follows a crossroad or street which is carried over or under a Freeway, provision shall be made for the utility to cross the Freeway at the location of the crossroad or street in such a manner that the utility can be serviced without access from the through-traffic roadways or ramps. Generally, the utilities are to be located within the right-of-way of the crossroad or street (existing or relocated) and may cross over or under the Freeway or be carried on or through the highway grade separation structure, provided the installation and servicing thereof can be accomplished without access from the through-traffic roadways or ramps. Where distinct advantage and appreciable cost saving are effected by locating the utilities outside the right-of-way of the crossroad or street, they may be so located, with written approval of the Department, in which case they shall be located and treated in the same manner as utility lines crossing the Freeway at points removed from grade separation structures, as in Paragraphs 17.7 [now Subsection G of 17.4.2.17 NMAC] and 17.8 [now Subsection H of 17.4.2.17 NMAC].

G. Overhead utility crossings: Overhead utility lines crossing a Freeway at points removed from grade separation structure, or those crossings near a grade separation but not within the right-of-way of a crossroad or street, in general, shall be adjusted so that the supporting utility pole and structure are located outside the outer edges of the through-traffic roadway side slopes and preferable outside the access control lines. In any case, supporting poles shall not be placed within the appropriate clear zone as designated in the current AASHTO publication "Roadside Design Guide, 1989," and as may be updated from time to time.

(1) Supporting poles may be placed in medians of sufficient width to provide for the previous mentioned clear zones from the edges of both roadways. If additional lanes are planned, the clear zone shall be determined from the ultimate edges of the roadway to be built. Where control of access and right-of-way lines are not one and the same, and where frontage roads are provided, supporting poles may be located in the areas between them. In extraordinary cases where such spanning of the roadway is not feasible, consideration may be given to conversion to underground facilities to cross the highways.

(2) At interchange areas, in general, support for overhead utility facilities will be permitted only where all of the following conditions are met:

(a) A clear zone is provided with respect to the freeway through-traffic lanes;

(b) The appropriate clear zone from the edge of the ramp is provided as designated for the specific condition in the AASHTO publication, "Roadside Design Guide, 1989," which may be updated from time to time;

(d) The conditions of Paragraph Section 17.12 [now Subsection L of 17.4.2.17 NMAC] "Access for Servicing Utilities" are satisfied; and

(e) The vertical clearance to overhead utility lines crossing freeways shall be determined by the Department, but in no case shall they be less than the vertical clearances required by the current National Electrical Safety Code.

H. Buried utility crossings: Buried utilities shall be of durable materials and so installed as to virtually preclude any necessity for disturbing the roadways to perform maintenance or expansion operations. The design and type of materials shall conform to standards and installations outlined in Paragraphs 13 and 14 [now 17.4.2.13 NMAC and 17.4.2.14 NMAC] of this regulation, or to the appropriate governmental or industry codes, rules and specifications, whichever is more restrictive. Manholes and other points of access to underground utilities may be permitted within the right-of-way of a freeway if (1) they are located beyond the shoulder of the through-traffic roadways or ramps, and (2) can be serviced or maintained without access from the through-traffic roadways or ramps.

I. Irrigation ditches and water canals: Except for necessary crossings, irrigation ditches and water canals shall be excluded from the right-of-way of Freeways, except for special cases as covered in Paragraph 17.2 [now Subsection B of 17.4.2.17 NMAC]. Crossings may be made by underground siphon or through culverts or on bridges as appropriate to the size of the canal, topographic condition and highway safety aspects. In general, locations and structure are to be selected and designed in the same manner as are facilities for natural transverse drainage. All ingress and egress for servicing or patrolling such irrigation facilities shall be from outside the control of access lines. The procurement of necessary ingress and egress is the responsibility of the irrigation ditch and water canal owners. Ditch-walkers or ditch-riders shall not be permitted to indiscriminately cross the Freeway at grade. Under appropriate traffic control arrangements, special ditch cleaning equipment may be permitted to cross in those cases where considerable travel distance would otherwise be required to utilized grade separation structures.

J. Provisions for expansion of utilities: When existing utilities are relocated in conjunction with the construction of a Freeway, provision shall be made for known and planned expansion of the utility facilities, particularly those underground. They shall be planned to avoid interference with traffic at some future date when additional or new overhead or underground lines are installed.

K. Utilities in vehicular tunnels: As a general rule, utilities shall not be permitted to occupy vehicular tunnels on freeways at new locations, except in special cases as covered in Paragraph 17.2 [now Subsection B of 17.4.2.17 NMAC].

(1) Utilities which transmit a hazardous commodity shall not be allowed in a vehicular tunnel under any circumstances.

(2) When a utility is located in an existing vehicular tunnel that is converted to a freeway, relocation of the utility may not be required, at the Department's discretion. Utilities not occupying an existing vehicular tunnel that is incorporated into a freeway shall not be permitted therein, except in special cases as covered in Paragraph 17.2 [now Subsection B of 17.4.2.17 NMAC].

L. Access for servicing utilities: Access for servicing a utility along or across a freeway shall be limited to access via frontage roads where provided; nearby or adjacent public roads or streets; or trails near the highway right-of-way lines, connecting only to an intersecting road, from any one of which entry may be made to the outer portion of the freeway right-of-way.

(1) In those special cases where utility supports, manholes or other appurtenances are located in medians or interchange areas, access to them from through-traffic roadways or ramps may be permitted, but only by utility accommodation permits issued by the Department to the utility owner setting forth the conditions for policing and other controls to protect the traveling public.

(2) Utilities requiring maintenance from within the Freeway right-of-way must obtain an approved utility accommodation permit from the Department before accessing the utility from within the Freeway.

(3) Advance arrangements, when practicable, shall be made between the utility and the Department for emergency repair and maintenance work within the rights-of-way of Freeways.

M. Construction and location details: The Department shall review and approve the location and the design of all utility installations and relocations affecting highways under the jurisdiction of this Department and issue New Mexico Public Highway Utility Accommodation Permits for any contemplated work on these highways.

N. Manner of making utility installations and relocation: In general, utility installations and relocations are to be made with consideration for highway and utility costs; maximum safety to the traveling public; the least possible interference with the highway facility and its operation; not increasing the difficulty or cost of highway maintenance to the Department; and all installations and/or relocations must have prior review, appropriate approvals and the associated documentation required by Departmental Authority.

History

3/10/71, 6/15/96, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.18 Safety Markers for Identification of Above Ground Utility Appurtenances, Within Public Highway Right-of-Way

Buried utility facilities with supporting above ground appurtenances shall be marked as follows:

A. All existing buried utilities, including pipeline carriers, delivering natural gas or other gaseous products, water, sewage, steam, buried electric lines, telephone and other communication systems, petroleum products, and any other buried facilities with above ground appurtenances thereto located within the rights-of-way of highways under the jurisdiction of the Department shall have such above ground appurtenances clearly marked with the appropriate warning markers as described herein.

B. Above ground appurtenances to all buried utility systems such as pipeline valves, regulators and the like, pad mounted transformers, telephone pedestals, junction boxes and the like, shall be identified with a yellow, red, orange or other appropriate industry colored flexible fiberglass restorable blade, four feet six inches (1.65 m) minimum height above the ground surface. It shall be color coded a minimum of six inches (150 mm) in height and three inches (75 mm) width at the top of the blade. The blade shall be visible in all directions. The color coded portion of the marker shall be at least two feet (.61 m) above the surrounding high grass, weed or shrubbery line.

C. The utility owner shall maintain the markers in good condition; color faded markers shall be replaced as necessary so that their visibility to maintenance crews and others is not impaired. The markers shall not be placed within the Access Control Lines of Interstate Highways or Freeways in a manner that would create a safety hazard, or by methods contrary to this regulation.

D. The utilities shall commence the placement of these markers on new facility installations within public highway rights-of-way thirty (30) days after the date this new statutory regulation is approved and becomes effective (the approval and effective date is that date inscribed on page one (1) of this rule). The utilities are also directed to make these marker installations on existing utility facilities on a continuing basis whenever their maintenance crews are repairing or maintaining their existing facilities located within the public highway right-of-way of this State in rural areas and/or on certain designated public highways within municipalities.

E. Variances not involving significant changes to the marker specifications detailed herein or the rules governing the installation of utilities within the access control lines, set forth in Paragraph 17 [now 17.4.2.17 NMAC] herein, may be approved by the Engineer or their representatives, upon the submittal by the utility owner of a written detailed justification supporting the variance requested.

F. During this marker installation process, the utility shall observe all appropriate regulations stipulated herein pertaining to the installation of utility facilities within the public highway right-of-way under control of this Department.

History

11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.19 Utility Relocations and Reimbursement

The Department develops their annual highway construction schedule based upon engineering studies conducted on an ongoing basis, that determines when and where highway construction projects will be let to contract. In the early stages of development, the Railroad & Utility Section of the Department or its approved representative will begin discussions with utility owners who are thought to have portions of their facilities in conflict with the proposed highway construction features. This Section sets forth the regulations pertaining to eligibility for utility relocation reimbursement, methods and scheduling of the utility relocation work required, and the documentation and record keeping required when the expenditure of public funds is involved.

A. Public and private utilities: Statutory reimbursement regulation pertains only to utilities. Utilities that have to be relocated or removed from the right-of-way will be handled in accordance with the terms of the New Mexico Public Highway Utility Accommodation Permit and these regulations. The relocation of a private utility, situated on private land and not dedicated to public use, is to be handled as a right-of-way taking consideration. A private utility on public right-of-way will be handled in accordance with terms of the permit and these regulations.

B. Interstate highway projects: On Interstate highway projects only, the required relocation of public utility facilities within existing public right-of-way is generally eligible for reimbursement by the Department, unless the facilities were installed with knowledge of future conflict, or as documented in an approved New Mexico Public Highway Utility Accommodation Permit which defines the future obligation of the utility owner. Facilities owned by a public utility that are situated on lands, easements or other properties, in which the owners have a documented compensable property right thereto, and which utilities shall be relocated because of conflict with highway features are also reimbursable to the utility owner.

C. Other state highway projects: On any type of state highway project (other than Interstate Highways) where the utilities are located on private right-of-way, and the owner holds a documented compensable property interest therein, the relocation required of the owner is compensable to the owner under the Department's regulations providing for reimbursement. On any Non-Interstate Projects where public utility facilities are located within existing public rights-of-way, the relocation cost is not eligible for reimbursement, unless the utility facility occupies the right-of-way under a Joint Use Agreement, issued and approved by the Department, which authorizes reimbursement issued and approved by the Department.

D. Other highway projects involving public funds: On any highway project where public utility facilities have once been relocated to the satisfaction of the Department for a specific highway project, but due to a revision or change in plan on the same highway project an additional complete or partial relocation is required, and the Department directs the utility to relocate all or some of their facilities by written instruction, then the additional complete or partial relocation costs are reimbursable to the utility owner by the Department.

(1) If additional relocations are required due to errors, omissions or faulty workmanship performed by the utility owner, their personnel and/or those engaged by the utility, or if any of these parties fail to complete the relocation in accordance with the Utility Adjustment Agreement, the utility relocation plans, specifications, and/or contract documents, the utility shall make any correction required as directed in writing by this Department. This remedial work will be at the sole expense of the utility owner, including administrative costs incurred by the Department pertaining to the remedial work, regardless of the cost responsibility for the previous relocation.

(2) On projects where overhead utilities that occupy public right of way have to be buried because of safety, environmental, archeological, aesthetic, or highway construction considerations, such relocation from overhead to underground shall be performed at the expense of the utility owner.

(3) Should any highway construction delay claims be paid by the Department because of unreasonable actions or inaction by the utility owner, all costs associated therewith shall be reimbursed to the Department by the utility within ninety (90) days of receipt of a reimbursement request.

E. Special districts, municipalities and counties: Pursuant to NMSA 1978, Section 67-8-21, financial assistance will be provided by the Department to special districts, municipalities and counties to relocate utilities if they can demonstrate they are unable to pay for the relocation costs themselves. To qualify for relocation costs, the special districts, municipalities and counties must officially notify the Department in writing that they have made a determination that utility relocation will be necessary as a result of a highway project. The notification must be explicit in terms of the need to relocate specific utilities and the need for financial assistance. It must also be specific as to whether the need is for engineering and design services, relocation construction or both. All reimbursement requests shall be considered on their individual merits and shall be forwarded to the Department for handling. All requests shall include the following as a minimum:

(1) A written request for reimbursement by an authorized representative of the utility.

(2) Letter of Transmittal, along with the following items:

(a) Copies of Utility Permits or other instruments authorizing the placement of utilities in their present location.

(b) Resolution by the appropriate governing body regarding the need to relocate utilities and the need for financial assistance, pursuant to relevant State statutes.

(c) Financial Statement that is current and sufficiently detailed for the State Department of Finance and Administration to perform an analysis and make an informed decision regarding the entity's financial condition.

(d) Current fiscal year budget as required by the local Government Division of the Department of Finance and Administration.

(i) Reimbursement for the cost of relocation shall be made only after the provisions of this regulation have been fulfilled and after the State Department of Finance and Administration, Local Government Division issues an official finding.

(ii) In the event the Department of Finance and Administration is unable to make a determination as to financial condition or the determination is not made in a timely manner, the Department shall then make such a determination.

F. Documentation required to determine eligibility for reimbursement: It is mandatory that a utility facility owner provide the Department with copies of their land use documentation to substantiate their right to occupy the public and private land affected by the proposed highway construction. If a utility owner is seeking reimbursement under New Mexico State Law, the right to compensation must be justified and substantiated by documented proof of the utilities existing compensable property rights. The Department will not reimburse a utility owner for any utility relocation occasioned by the construction of highway project unless the utility can prove their right to be paid. The documentation shall include copies of any land use conveyances, including Deeds, Easements, Permits, Land Use Agreements and any other documentation acceptable under the Laws of the State of New Mexico providing for transfer, sale and use of land, including a claim for prescriptive rights or adverse possession.

History

3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.20 Utility Relocation Procedures

The following procedures shall be followed to assure the proper completion of utility relocation necessitated by the State Highway Program. To provide uniformity and avoid duplication, these procedures shall be followed on all State Highway Projects whether or not Federal Aid participation is involved. The FHWA's reimbursement to the New Mexico State Highway and Transportation Department will be governed by State Law and State Regulations, as well as the Code of Federal Regulations, Title 23, Part 645, Subpart A and Subpart B. When State Law or Regulation differs from the aforementioned Code, (Part 645, Utilities), a determination shall be made by the Department, subject to concurrence by FHWA, as to which standards shall govern, and the record will be documented accordingly for each relocation in which the differing procedural action is undertaken. The Department shall develop a Utility Cooperative Agreement for handling the relocation of utilities. The Agreement shall clearly stipulate the responsibilities of each party for financing and accomplishing the relocation work, shall incorporate the appropriate regulation(s) by reference and designate the method to be used for performing the work. The method for developing all relocation costs, including engineering and relocation construction, shall be acceptable to the Department and to the Federal Highway Administration on Federal Aid projects. When applicable, the Agreement shall specify the terms and amounts of any contributions or repayments made or to be made by the utility to the Department under eligibility provisions of State Laws and Federal Regulations. When the relocation involves both work to be done at the Department's expense and work to be done at the expense of the utility, the Agreement shall state the share to be borne by each party. Except as otherwise provided by this Agreement, authorization by the Department to the utility to proceed with the relocation work may be given after it has been included in an approved program and fulfills State and Federal requirements. If the utility does not have the necessary resources to perform the relocation, such work may be done as follows: (1) a contract awarded by the utility to the lowest qualified bidder based on appropriate procurement procedures; (2) inclusion as part of the Department's highway construction contract let by the Department as agreed to by the utility; or (3) an existing continuing contract, provided the costs to the Department are reasonable. All contract work performed for the utility under a contract let by the Department shall be reported separately from the other contract items on the highway project. All utility relocation costs shall be recorded by means of work orders in accordance with a work order system approved by the Department, except when another method of developing and recording costs, such as a lump-sum agreement, has been approved by the Department, and the Federal Highway Administration when applicable. The utility shall keep its work order system or other accounting procedure approved by the Department in such a manner as to show the nature and cost of each item. The current Federal Aid Policy Guide shall be used as a guide for all cost development and reimbursement matters. All reimbursed costs shall be subject to state audit for a period of three years following the date of final payment.

A. Locating utilities: On all proposed highway construction and/or maintenance projects, utilities shall be located horizontally, vertically, shall be identified as to type and ownership, and their locations tied to the project center line. The locating process should meet, as a minimum, survey requirements outlined in the Department's Survey Manual, unless otherwise specified. Railroad facilities must also be treated as a utility, the facilities located and tied to the center line of track or other railroad structure, and referenced to existing railroad mile posts. The location should be conducted early enough in the project development process so as to allow for inclusion of the utility and/or railroad information in the highway construction Field Design Inspection plans.

B. Location stage: The Railroad and Utility Section of the Department shall become involved at the inception of each State Highway Project. The earliest conceptual design information available shall be reviewed to determine whether possible serious utility conflict can be avoided by minor highway alignment revisions without undue added cost. The assigned Agent should discuss the possibility of alignment changes with the assigned Project Development and Design Engineers as appropriate, and any other observations that have been made that might improve cost benefits to the project concerning the utility facilities. Liaison with the utility owners involved shall begin at this stage to avoid the installation of new utilities by the utility owners that could conflict to an even greater extent. If preliminary right-of-way maps are available, a preliminary review could disclose the extent of the utility involvement and give the Agent a workable idea as to the eligibility each owner may have for utility relocation reimbursement. Preliminary coordination meetings with all of the affected utilities in attendance should serve to avoid future problems concerning where each utility owner must place their relocated utilities to avoid conflict with the other utilities involved.

C. Project programming procedures: Utility adjustments eligible for reimbursement on Federal-Aid Highway Projects shall be programmed in accordance with the requirements set forth in Title 23 of the Code of Federal Regulations, Part 630(A). Generally, utility relocations and utility relocation engineering will be programmed when the initial state highway project programming is accomplished. Preliminary Engineering for the use of Consultant Engineers engaged by the utility owner will be programmed each time these services are required and authorized by the Department and the FHWA. The utility lead time cannot commence until the Utility Section has access to plans sufficiently completed to permit the utilities to design their relocations. Therefore, the plans should be in the post Grade & Drain or pre-Plan-in-Hand stage, with definite line grades, right-of-way, access control and other major features shown before they may be sent to the utilities with the formal authorization to proceed with their preliminary engineering. Prior to this stage, any plans provided to utilities must clearly be marked as "preliminary" with a statement that they are not yet authorized to proceed on any basis.

D. Preliminary engineering: Before preliminary engineering is authorized on a project, the basic eligibility for reimbursement of utility adjustment cost must be determined from a plan review. This eligibility is to be in conformity with the reimbursement policy set forth in Paragraph 19 [now 17.4.2.19 NMAC] herein. Plan review will, in most cases, resolve questions of such eligibility.

E. Engineering by utility's staff, or a consultant engineer: Preliminary engineering for utility relocation design can be accomplished by any of the following methods:

(1) By utilization of the utility owner's engineering staff;

(2) By utilization of a consultant engineer selected by the Department after consultation with the utility owner; contract shall be administered by the Department with the consent of the utility; or

(3) By the utilization of a consultant engineer selected by the utility owner under a contract approved by the Department and FHWA; the contract shall be administered by the utility owner.

(4) When the utility is not adequately staffed to perform the necessary preliminary engineering work related to the utility relocation on a State Highway Construction Project, Department and Federal funds may be used to reimburse the utility owner for amounts paid to engineers, architects, and others for allied services, provided such amounts are not based on a percentage of the relocation costs. The Department, utility owner and the engineering consultant shall agree in writing as to the services to be performed and the fee amount to be paid for the work in advance of the commencement of the engineering services agreed upon. The approval of these arrangements by the FHWA shall be obtained on all Federal Aid Projects.

(5) State and Federal funds may participate in the cost of consultant engineering services performed on existing continuing contracts between the utility and the consultant when it can be demonstrated that such work is performed regularly for the utility at a reasonable cost.

(6) The basic eligibility for reimbursement for the utility relocation costs must be determined from near final highway construction Plan and Profile Sheets developed after the Department's Grade and Drain Inspection. A utility owner must be otherwise entitled to utility relocation reimbursement costs to be eligible for payment for utility relocation preliminary engineering (PE). The PE written authorization is a commitment by the Department to reimburse the utility for PE, subject to compliance with these regulations.

(7) If the utility relocation preliminary engineering is determined to be ineligible for reimbursement after the plan review, a non-reimbursable PE notice will be sent to the utility owner requesting that they commence their relocation design effort at their own expense, and on a schedule which would insure that the utility relocation construction would be completed in a timely manner.

(8) If the project should be abandoned, postponed, or delayed by the Department, the utility is entitled to be paid for their design effort from the date of the PE authorization to the date of abandonment, but only if the utility was eligible initially for utility relocation PE.

(9) If a highway project is delayed, substantially revised or even abandoned and the utility has incurred engineering costs at the request of the Department, such costs are not eligible for reimbursement if the relocation is not reimbursable.

(10) It should be noted by the utility owner that any costs incurred by the utility owner in the initial negotiation phase, including early engineering reviews and relocation planning, will not be reimbursed. The Department shall not be liable for reimbursing any utility PE costs prior to notification and proof by the utility of its compensable property rights and after the Department has provided the utility written authorization of its intent to reimburse the utility for its costs of relocation.

17.4.2.21 UTILITY RELOCATION ESTIMATES

A. Developing and recording costs: It shall be necessary to develop a cost estimate for the utility relocation engineering and construction. All reimbursable utility relocations shall be in sufficient detail to permit analysis and evaluation of all anticipated costs and all such costs shall be recorded by means of work orders in accordance with an approved work order system except when another method of developing and recording costs, such as a lump-sum agreement, has been approved by the Department and the FHWA.

(1) Each utility shall keep its work order system or other approved accounting procedure in such a manner as to show the nature of each additions to or retirement from the facility, the total costs thereof, and the source of cost. As a minimum, each utility shall conform to the requirements of the Federal Aid Policy Guide on federal aid projects and/or to the Department's Estimate/Billing Guide.

(2) In the event there are changes in the scope of the reimbursable utility work covered by the approved Agreement, plans and estimate, state and/or federal reimbursement shall be limited to costs covered by a modification of the Agreement, a written change order or extra work order approved by the Department, FHWA or both.

B. Salvage, accrued depreciation, betterments:

(1) Credit to the highway project shall be required for the cost of any betterments to the facility being replaced or relocated and for the salvage of the materials removed.

(2) Credit to the highway project will be required for the accrued depreciation of utility facility being replaced such as a building, pumping station, filtration plant, power plant, substation, or other similar operational unit. Such accrued appreciation is that amount based on the ratio between the period of actual length of service and total life expectancy applied to the original cost. Credit for accrued depreciation shall not be required for a segment of the utility's service, distribution, or transmission lines. When the facilities, including equipment and operating facilities, described in Paragraphs 21.2.1 and 21.2.2 [now Paragraphs (1) and (2) of Subsection B of 17.4.2.21 NMAC] are not being replaced but rehabilitated and/or moved, as necessitated by the highway project, no credit for accrued depreciation is needed.

(3) Betterment credit shall not be required for additions or improvements which are:

(a) Required by the highway project;

(b) Replacement devices or materials that are of equivalent standards although not identical;

(d) Required by law under governmental and appropriate regulatory commissions code; or

(e) Required by current design practices regularly followed by the company in its own work, and there is a direct benefit to the highway project.

(4) In no event shall the total of all credits required under the provisions of this regulation exceed the total costs of relocation exclusive of the costs of additions or improvements necessitated by the highway project.

17.4.2.22 RIGHT-OF-WAY DISPOSITION

A. Replacement right-of-way: The Department and/or the FHWA may approve the acquisition of replacement right-of-way if the utility has the right of occupancy in its existing location because it holds the fee, an easement or other real property interest, and the damaging or taking is compensable in eminent domain, and is necessary to meet the requirements of the highway project. Such replacement right-of-way shall only be allowed where no change to the project for the utility's existing right-of-way, being transferred to the Department for highway purposes, is made.

(1) Any replacement right-of-way being paid for with state and/or federal funds shall be evaluated as to fair market value by a qualified and licensed New Mexico Real Estate Appraiser. A written evaluation/appraisal shall be accomplished and approved by the Department prior to acquisition.

(2) Acquisition of replacement right-of-way by the Department on behalf of the utility may be accomplished when it can be demonstrated by the utility that it is not staffed to accomplish the acquisition or consultant services are prohibitively expensive or unavailable. Acquisition by the Department should coincide with other Department acquisition functions, if at all possible, and shall be approved by the Right-of-Way Bureau Chief.

B. Joint use of right-of-way: When a utility occupies a utility corridor by virtue of an easement or other property interest, that is compensable under eminent domain laws, and the Department's highway project will envelop the utility corridor, the following regulation shall apply:

(1) If the utility's facilities are in physical conflict with proposed highway construction features, the utility may opt to vacate the Department's newly acquired right-of-way, obtain replacement right-of-way and relocate its facilities to the newly acquired utility corridor/easement. All eligible costs incurred by the utility in this situation are reimbursable when properly documented and supported.

(2) If the utility facilities do not conflict with proposed highway construction features and no relocation is necessary, they shall remain in place. When it becomes necessary to relocate the utility facilities, the Department shall reimburse the utility owner for all eligible expenses incurred for replacement right-of-way and relocation construction, if allowed under the terms of the permit. This one time future reimbursement obligation shall be documented by the issuance of a Joint Use Agreement, which defines future obligations of the Department to the utility. The Joint Use Agreement shall have no other purposes than those detailed herein, and shall not otherwise be issued by this Department.

(3) In the event a utility relocation is necessary and vacation of the existing utility corridor/right-of-way to replacement right-of-way is not a viable option, the utility may opt to relocate to another location within the newly acquired highway right-of-way if no conflict between the utility facilities and highway features exists. The costs for this utility relocation from utility right-of-way to highway right-of-way are reimbursable. Since this option has been granted for the benefit of the utility, at the utility's request, the Department will issue a New Mexico Highway Utility Accommodation Permit, after which time the utility owner shall be subject to the Permit provisions. This option does not deprive the utility owner of any land rights previously held, as the terms of the Permit grant the use of public right-of-way for a specific renewable time period. In the alternative, the utility may elect the option of locating completely outside highway right-of-way and under that option the utility would be eligible for relocation costs and replacement right-of-way costs.

History

3/10/71, 11/15/96; Recompiled 12/31/01
3/10/71, 11/15/96; Recompiled 12/31/01
3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.23 Utility Relocation/Construction Documentation

A complete review of all utility relocation documents shall be performed upon submittal to the Railroads and Utility Section by the utility. The review should demonstrate that the Agreement, Estimate and associated documents comply with State regulations and/or the Federal Aid Policy Guide.

A. Force account: When work will be performed by utility forces, the documentation shall include, 1) three (3) executed copies of the Utility Relocation Agreement, NMSHTD Form A-366; 2) three (3) completed copies of the completed Utility Relocation Questionnaire, NMSHTD Form A-365; 3) four (4) fully executed copies of the New Mexico Highway Utility Accommodation Permit Application, NMSHTD Form M-202 for each crossing and each longitudinal run, five (5) each if on the Interstate System); 4) four (4) executed copies of the Joint Use Agreement (if applicable), NMSHTD Form A-421; and 5) three (3) copies of the cost estimate; (6) three (3) copies of land use documents.

B. Continuing contract work: In addition to items in Paragraph 23.1 [now Subsection A of 17.4.2.23 NMAC], a copy of a fully executed Continuing Contract that is in force and effect, along with appropriate cost estimates associated thereto, shall be provided if work is to be performed by an outside contractor under contract with the utility.

C. Contract let out to bid: If a contract is to be let out to bid to the lowest qualified bidder by the utility, the utility shall provide to the Department three (3) copies of each utility's relocation cost estimate, construction plans and contract documents. Such documents may be prepared by the utility owner or a consultant engineer engaged by the utility.

(1) fWhen the relocation will be let to contract with an ultimate award to the lowest qualified bidder, the utility's engineering staff or a consultant engineer engaged by the utility must prepare a construction plan assembly that provides adequate location plans and profiles, structure installation details, technical specifications, and other plans and details appropriate to the type of facility being relocated. One set of reproducible transparencies of these plans and/or acceptable electronic files shall be provided to the Department.

(2) The consultant or utility shall also prepare a written contract which includes the administrative terms of the contract, definition of the scope of the work, clauses for liquidated damages, clauses for labor relations, materials and construction performance specifications, bidding documents with bid unit tabulation sheets, materials quality certifications, special provisions, if any, and other contractual arrangements, usually assembled in the form of a bound book.

(3) Prior to the advertisement and solicitation of bids, the utility owner shall supply the documents specified above and a list of prospective and qualified contractors to whom the utility has provided information concerning the utility relocation project that will be opened for bids. This documentation will be reviewed and approved by the Department. Prior to the actual solicitation of bids, the Utility must receive the Department's Authority to solicit bids, and an additional written authorization to award the contract after the bid opening. The Department's authorization to award the contract will be based upon the utility owner's written recommendation, stating that the contract is in order, and the amount bid is not excessive for the work to be performed.

D. Utility Relocation As Part of the Highway Construction Project shall be documented as follows:

(1) If the utility relocation is to be performed as part of the NMSHTD Highway Construction Project by the highway contractor, the utility must provide the Department with complete utility relocation construction plans in acceptable electronic and/or hard copy format, adequate enough to include/merge in the highway construction plan assembly. The utility must also provide complete installation specifications, which must be numbered to adhere to the specification numbering system used by the Department, and unit bid tabulations, for insertion in the highway bid units.

(2) Each unit of the bid proposal must be estimated and an overall total obtained so the Department can review the unit cost of each construction item and program the overall utility relocation costs. A contract with a single lump sum bid item, for the total project, is not acceptable to this Department.

(3) Close coordination with the Department's Contracts Specifications Section, and/or the Road, Bridge and Traffic Design Sections will be necessary to integrate the utility relocations into the highway construction project. Two (2) copies of all contract and bid documentation and one (1) set of the utility relocation plans in the form of reproducible transparencies and/or electronic file are required.

History

11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.24 Utility Construction Authorization

After review and approval of the utility relocation documents, authorization to proceed with construction shall be provided by the utility owner. The authorization letter, over the signature of the Department's Railroads and Utilities Section Manager, shall detail the specific authorization being provided, i.e., by Force Account, by lowest qualified bidder, by a contractor under a continuing contract, or authorizing the utility to commence utility relocation in accordance with an approved Lump Sum Agreement between the Department and the utility; a Lump Sum Agreement shall not exceed $100,000.00, unless authorized by the Department or FHWA. On non-reimbursable utility relocations, the Department shall authorize the utility owner to proceed with the relocation by written notice. The coordination between the Department and the utility should be no less than that required for reimbursable utility relocations. All authorizations to relocate shall include an advisory for the utility to coordinate their work with the appropriate District Construction Engineer and other utilities as appropriate. The notice of authorization to proceed with relocation construction to the utility shall also include authorization for the District Construction Engineer to assign an inspector to ensure compatibility of highway features and utility locations. The Department's Railroad and Utility Section Agent shall send a copy of the notice to the District Construction Engineer. (See Paragraph 24.2 [now Subsection B of 17.4.2.24 NMAC]on Inspection.)

A. Verbal authorizations: In urgent or emergency situations, verbal authorizations for the utility construction to commence may be made by the Department. On federal aid projects, concurrence from the FHWA shall be secured and documented by a memo to file prior to authorization. The utility should notify the Railroads and Utilities Section Manager by phone or in writing if the confirmation is not received within ten (10) working days, as undocumented authorizations may preclude reimbursement.

B. Inspection of utility relocations: Utility relocation inspection by the Department and/or the FHWA and the utility owner shall be performed during construction as necessary.

(1) A trained technician from the appropriate District shall be assigned to inspect and verify the labor, materials and equipment used by the utility owner or utility contractor performing the utility relocation construction. The Department's assigned inspector shall assist the utility owner or its contractor in determining the planned location of the utility facilities, as taken from the utility relocation plans. However, it is the sole responsibility of the utility owners for the accuracy of utility relocation work, including, but not limited to, surveying and staking performed by its employees or the utility contractor's employees. It is also the sole responsibility of the utility owner to do all necessary inspections to insure the integrity of utility construction, quality of materials being installed, construction methods, testing, and insure that the work is performed in a good and workmanlike manner.

(2) Periodic inspection of utility relocation work shall be made, as necessary, by the Department's assigned Railroads and Utilities Relocation Agent. The Agent shall also assist the utility owner, as necessary, in defining the highway features shown on highway construction and/or right-of-way plans and in resolving problems the utility may encounter during construction. The Agent shall also assist highway project personnel, as necessary, to interpret utility relocation plans, estimates, agreements and any other utility relocation contract documents.

C. Notification of beginning and completed utility relocation construction: Once the utility has received authorization from the Department to construct, it shall notify the Department, a minimum of three (3) weeks in advance, of the date it will commence utility relocation construction. Such notification by the utility shall be provided on the Department's Form No. A-369, "Acknowledgment of Authority for Utility Construction." Upon completion of the relocation work, the utility owner shall so notify the Department in writing, of the completion.

D. Highway-utility preconstruction conferences: When utility relocation is to be performed concurrent with highway construction, or if the relocation is not completed when the Department's contractor is scheduled to begin highway construction operations, a Utility Preconstruction Conference, either concurrent with the Department's or immediately following, should be held. The conference shall be called by the Department's Highway Project Manager and all affected utilities shall be invited to attend. The scheduling of the utility's relocation work shall be discussed and a sequence of construction developed to assure completion of utility relocation work as expeditiously as possible, without delay or conflict to the Department's Contractor. Any highway contractor delay claims paid by the Department due to unreasonable utility owner or utility contractor actions or inactions shall be reimbursed to the Department by the utility owner. Any such actions or inactions shall be fully documented by Department personnel so as to substantiate reimbursement claims.

History

3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.25 Billing and Audit Requirements

Payment to utilities shall be made only w hen the billings conform to State and Federal requirements, and are in sufficient detail so that each element is clear and its cast understood. Billings received prior to the appropriate authorization letter or that are inadequate or inaccurate shall be returned with appropriate correspondence to the utility.

A. Billings may be submitted on a progressive basis, but shall only include actual costs incurred; billings shall be identified as "first partial," "second partial," "final," etc. In all cases, billings shall be certified by the utility's auditor or person directly responsible for its accuracy.

B. It shall be the responsibility of the utility to ensure that final billings are submitted for payment within ninety (90) days of completion of the utility relocation work. Failure to submit billings within the ninety (90) day period may result in a penalty being assessed against the utility for five hundred dollars ($500.00) for amounts due the utility of twenty-five thousand dollars ($25,000.00) or less, and two and one-half percent (2.5%) for amounts due the utility that exceed twenty-five thousand ($25,000.00).

C. Any reimbursable amounts for utility work that remains outstanding (unpaid) for a period of one year from the date of completion of utility relocation work shall be forfeited by the utility. In such a situation, the Department will disencumber the funds previously authorized for reimbursement and such funds may revert to the state road fund.

D. When the utility performs reimbursable utility work, all utility records and accounts relating to the specific highway project are subject to audit by representatives of the State of New Mexico and the Federal Government for a period of three (3) years from the date of final payment. It shall also be the Department's prerogative to audit billings prior to reimbursement.

History

3/10/71, 11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.26 Resolution of Disputes

Disputes between the Department and utility owners regarding reimbursement eligibility, replacement right-of-way, utility/highway construction operations and other issues may develop. Most disputes are generally resolved at administrative levels, by staff more directly involved in the day to day operations of highway/railroads/utilities functions. Therefore, dispute resolutions shall begin with official notification to the Railroads and Utilities Section Manager. If a dispute is not resolved at the Railroad and Utility Section Manager level, the utility shall submit a request for hearing within thirty (30) days of the Manager's decision. Within a reasonable time, taking into consideration the nature of the dispute, a hearing shall be scheduled by the Department and a hearing officer appointed to conduct the hearing. The hearing officer's decision shall be final and the findings and orders shall be documented and made available to the appropriate parties. Any party aggrieved by any order may appeal to the District Court of Santa Fe County for a review pursuant to NMSA 1978, Section 67-8-19, as amended. A dispute involving eligibility for reimbursement or the amount of such reimbursement shall not be grounds for a delay in making an ordered relocation. The utility must suffer the relocation as ordered, pending the resolution of the dispute.

History

11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.27 Waivers for the Public Good

The Secretary of the Department, at his/her discretion, may waive any regulation herein, if such waiver will not violate any State Statute or Federal Regulation, and it has been determined to be for the public good. The Secretary shall appoint a three member committee, one member which must be from the Department's Office of General Counsel, to consider the waiver and prepare an appropriate justification.

History

11/15/96; Recompiled 12/31/01

N.M. Admin. Code § 17.4.2.28 Railroad Cost and Maintenance Responsibility on Highway/Railway Projects

During the development or maintenance of some highway projects, it shall be necessary to coordinate with and secure approval from railroad companies to resolve conflicts between highway construction features or maintenance activities and railroad property and/or facilities. This Section sets forth railroad eligibility for reimbursement by the Department for costs incurred in resolving such conflicts where construction of a highway project necessitates the use of railroad property or affects railroad facilities. There shall be a written agreement between the State and the railroad company, and such agreements shall meet the requirements of the Federal Aid Policy Guide, Part 646.

A. Preliminary negotiation: Preliminary negotiation should be initiated by the Department with the railroad at the location stage, if possible. Upon approval of the location, the railroad shall be provided with information showing a tie to the railroad center line, railroad mile post or bridge. A proposed highway typical Section shall be supplied, along with a request that the railroad's horizontal and vertical clearances, maintenance road, drainage and other requirements be forwarded to the Department as soon as possible. This information shall then be forwarded to the appropriate Engineering/Design Division Unit, preferably before design of the highway project begins. As soon as preliminary plans showing the railroad requirements are available, they shall be sent to the railroad, along with a letter requesting a field meeting with railroad officials. The negotiations and understandings reached at such meeting shall be documented and reviewed prior to beginning negotiations for a State/Railroad Agreement.

B. Right-of-way: Acquisition of right-of-way, other than railroad operating right-of-way, required for highway construction shall be handled as any other acquisition by the Department's Right-of-Way Bureau. When railroad operating right-of-way is required for highway construction purposes, including, but not limited to soil exploration, a right of entry shall be secured by the Department prior to entering railroad property. Such right of entry may be in letter or agreement form and shall be fully executed by the State and railroad. Where soil exploration within railroad property is necessary, it is preferable that Department crews perform such exploration, because of strict insurance and agreement provisions. Because the State is self-insured, it is less cumbersome and time consuming to have State forces perform exploration activities within railroad property.

C. Negotiations for agreements/authorizations: Negotiations for a final agreement can be started after the following plans are available for review by the railroad company: (1) the layout structure over or under the tracks if a grade separation is involved, showing a tie to the railroad centerline, minimum clearances, both horizontal and vertical, and provisions for extra tracks, and off track maintenance equipment, if such provisions are required; (2) right-of-way plans showing the crossing area or easements required from the railroad company, together with a description thereof; and (3) highway plans showing grade, drainage and other features that may affect the railroad. The plans shall be developed to a stage where changes by the Department will not require re-engineering by the railroad. If authorization has been received from the FHWA for preliminary engineering, the plans that are applicable shall be sent to the railroad company in quadruplicate, with an explanation of any items that may be obscure to the railroad company. The transmittal letter to the railroad shall include information regarding the letting date for the project, a request for review of the plans transmitted, and comments or approval, and a request for the railroad to prepare their force account estimate. This submittal is the authorization from the Department to the railroad to proceed with their engineering and design.

D. Processing agreements: Four (4) copies of the Agreement (two original signatures and 2 stamped originals) shall be submitted for processing, accompanied by a letter to the FHWA requesting an authorization to proceed with construction (include method of construction, i.e., force account, contract, etc.) if provisions for railroad work are part of the Agreement. When the authorization from FHWA is received, the Department shall authorize the railroad to proceed with the railroad work required, in accordance with the approved agreement, plans, and estimate.

E. Railroad liability for cost of project:

(1) federal aid projects: The classification of projects and the requisite railroad share the cost on federal aid projects shall conform to the Federal Aid Policy Guide, Part 646.

(2) state funded projects: The NMSHTD has determined that railway liability with respect to specific project types shall be as follows:

(a) grade crossing elimination: When a project eliminates an existing rail/highway at-grade-crossing, either by grade separation or relocation of the highway or the railway, whether or not railway active warning devices are in place, the project shall be deemed a benefit to the railroad. The assigned railroad liability shall be five percent (5%) of the cost of the project, which costs shall be based on the cost for preliminary engineering, right-of-way and construction costs, including utilities and railroad force account. Where the project does not result in closing an existing at-grade-crossing, railroad participation shall not be required. Railroad participation is limited to the grade separation structure and approaches required to transition to a theoretical highway profile, which would have been constructed if there were no railroad present, for the number of lanes on the existing highway and in accordance with the current design standards of the Department. Responsibility for maintenance of a newly constructed grade separation shall be as follows:

(i) Where a separation facility overpasses a railroad, maintenance responsibility for the entire structure and approaches shall be assumed by the Department.

(ii) Where a grade separation structure underpasses a railroad, maintenance of the approaches and of the entire structure below, including the deck plate, hand rails and parapets, shall be the responsibility of the Department. Maintenance of the water proofing, ballast, ties, rails and any portion of the supporting structure above the top of the ballast deck plate between parapets shall be the responsibility of the railroad company owning the tracks.

(iii) The cost of repairing damage to a structure, occasioned by collision, equipment failure or derailment of railroad equipment shall be borne by the railroad.

(b) grade crossing protection: This type includes all projects for protection of highways and railways by automatic signal devices. Authorizations for installation of automatic signal devices are described in the Federal Aid Highway Policy Guide, Part 646; the U.S. Department of Transportation on Railroad-Highway Grade Crossing Handbook, or as otherwise determined by the Department. Flashing light signals shall be installed at all highway projects crossing a railroad, when the highway traffic count exceeds 100 A.D.T. and there are more than two (2) trains per day at the crossing. When the highway facility consists of more than two (2) lanes, cantilever type signals shall be installed. Automatic flashing light signals with short-arm gates shall be installed if one or more of the following conditions prevail:

(i) Multiple mainline railroad tracks.

(ii) Multiple tracks at or in the vicinity of the crossing which may be occupied by a train or locomotive so as to obscure the movement of another train approaching the crossing.

(iii) High speed train operation combined with limited sight distance at either single or multiple track crossing.

(iv) A combination of high speeds and moderately high volumes of highway and railroad traffic.

(v) A high volume of vehicular traffic crossing the tracks; a high number of train movements; a substantial numbers of school buses or trucks carrying hazardous materials; unusually restricted sight distance; continuing accident occurrences; or any combination of these conditions.

(iv) A diagnostic team recommends them. Motion sensors and predictors shall be installed at locations where they may expedite highway traffic.

(c) The New Mexico State Highway Department has determined that at-grade crossing protection falls into four (4) general classifications and conditions, as follows:

(i) Where a highway or railway project requires installation of automatic signal

devices at a location which is presently only protected by advance warning signs and standard cross-bucks, the project is deemed to be of no benefit to the railroad company involved. The railroad rehabilitation work which will be required at such crossings, consisting of raising or lowering of track, pavement materials between tracks, including any widened roadway Section, shall be deemed to be of no benefit to the railroad and railroad participation in that portion of the project shall not be required.

(ii) Where an existing highway crosses a railroad at-grade and there are presently automatic signal devices in place, and if on account of highway widening, the signals must be relocated and the crossing improved but no new signals required, the project shall be considered to be of no benefit to the railroad and railroad participation shall not be required.

(iii) Where an existing highway crosses a railroad at-grade and there are presently automatic signal devices in place, and due to highway widening the signals must be replaced with cantilever type signals or signals with gates, the project shall be considered to be of no benefit to the railroad; the railroad rehabilitation work required at such crossings; consisting of raising or lowering of track, pavement materials

between tracks, including any widened roadway Section, shall be considered of no benefit to the railroad and railroad participation in that part of the project shall not be required.

(iv) Where an existing highway crosses a railroad at-grade and there are presently

automatic signal devices in place, and if on account of highway widening and improvement of the crossing the signal system must be modernized to include cantilever type or signals with gates, and the existing signals are to be relocated to the roadway median, the project shall be considered to be of no benefit to the railroad and railroad participation shall not be required. The railroad rehabilitation work which will be required at such crossing, consisting of raising or lowering of track pavement materials between tracks, including any widened roadway Section, shall be considered to be of no benefit to the railroad, and railroad participation in that part of the project shall not be required. Maintenance of automatic signal devices at the crossing surface and two (2) feet beyond each outside rail including space between multiple tracks under any of the above described conditions, shall become the responsibility of the railroad company involved.

(d) reconstruction of existing railroad/highway grade separation: A project to reconstruct an existing overpass or underpass shall include the entire structure and railroad and the highway approaches thereto. Since there is no railway liability for such projects, there shall be no benefit to the railroad and railroad participation shall not be required. Responsibility for maintenance shall be the same as described under I.A. [Subparagraph 3 of Paragraph 3 of Subsection E of 17.4.2.28 NMAC] and I.B. [Subparagraph (b) of Paragraph (3) of Subsection E of 17.4.2.28 NMAC], above.

(e) existing railroad crossed by new highway: Where a new highway is constructed which is not a relocation of an existing highway and it intersects an existing railroad, the construction of a separation structure or the installation of a signal device at such crossing will not be considered a benefit to the railroad and railroad participation shall not be required. Responsibility for maintenance shall be the same as described under I.A. [Subparagraph (a) of Paragraph (3) of Subsection E of 17.4.2.28 NMAC], I.B. [Subparagraph (b) of Paragraph (3) of Subsection E of 17.4.2.28 NMAC], and II.D (fourth classification) [Subparagraph (b) of Paragraph (2) of Subsection E of 17.4.2.28 NMAC], aforementioned.

(f) Existing highway crossed by a new railroad: Where a new railroad crosses an existing

highway, the required separation or signal devices and any pavement work at the crossing shall not be considered to be of benefit to the road user and 100% railroad participation shall be required. The determination as to separation or type of protection shall be according to the policy existing on the classification and traffic volume of the highway crossed and the relative traffic hazard. In the event exceptional situations arise and expansion of these regulations are necessary to cover the situation, the provisions of Federal Aid Policy Guide, Part 646, the U.S. Department of Transportation Grade Crossing Handbook, and other relevant data and/or conditions shall be considered; however, the decision of the Department shall be final.

F. Railroad Section 130 safety funds: On highway projects where railroad facilities are being impacted by highway construction, Section 130 funds shall not be used as a funding source unless the specific location of the rail/high facilities has been identified and included in an approved safety program by the State and FHWA. Exceptions may be projects where federal regulations that allow transfer of such funds have been considered and appropriate steps taken by the State and FHWA to allow their use. In all cases where railroad facilities are involved, early coordination between the Preliminary Engineering Bureau and the Railroads & Utilities Section shall be pursued so as to identify potential options for addressing conflicts and circumventing project delays.

History of 17.4.2 NMAC: [RESERVED]

History

3/10/71, 11/15/96; Recompiled 12/31/01

Chapter 5 Utility Interconnectivity and Cooperative Agreements

Part 410 Residential Customer Service by Gas, Electric and Rural Electric Cooperative Utilities

N.M. Admin. Code § 17.5.410.1 Issuing Agency

Public Regulation Commission.

History

17.5.410.1 NMAC - Rp, 17.5.410.1 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.2 Scope

A. This rule applies to electric, rural electric cooperative and gas utilities subject to the jurisdiction of the New Mexico public regulation commission.

B. In case of conflict between provisions of this rule and 17.9.560 NMAC or 17.10.650 NMAC, the provisions of this rule control.

History

17.5.410.2 NMAC - Rp, 17.5.410.2 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.3 Statutory Authority

NMSA 1978, Sections 8-8-4, 8-8-15, 27-6-17, 27-6-18.1, 62-6-4A, 62-6-19 through 62-6-21, 62-8-3 and 62-8-10.

History

17.5.410.3 NMAC - Rp, 17.5.410.3 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.4 Duration

Permanent.

History

17.5.410.4 NMAC - Rp, 17.5.410.4 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.5 Effective Date

July 1, 2011, unless a later date is cited at the end of a section.

History

17.5.410.5 NMAC - Rp, 17.5.410.5 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.6 Objective

The purpose of this rule is to establish uniform standards to be followed by electric, gas, and rural electric cooperative utilities in dealing with residential customers, to aid residential customers in obtaining and maintaining essential utility services, to promote safe and adequate service to residential customers, and to establish a basis for determining the reasonableness of such demands as may be made upon utilities by residential customers.

History

17.5.410.6 NMAC - Rp, 17.5.410.6 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.7 Definitions

In addition to the definitions contained in NMSA 1978, Section 62-3-3, as used in this rule, unless otherwise specified:

A. administering authority means the human services department or a tribal or pueblo entity that administers a tribe’s or pueblo’s low-income home energy assistance program under NMSA 1978, Section 27-6-18.1;

B. automatic adjustment clause means the adjustment procedure approved by the commission to recognize variations in the cost of fuel for electric generation, cost of purchased power, cost of purchased gas, or for any other cost factor approved by the commission;

C. billing period means a utility service usage period in accordance with applicable tariff schedules;

D. chronically delinquent means the status of a residential customer who during the prior twelve (12) months has been disconnected by that utility for nonpayment or who on three (3) or more occasions during the prior twelve months has not paid a bill by the date a subsequent bill is rendered;

E. cycle billing means a system employed by a utility which results in the rendition of bills for utility service to various residential customers on different days but on or about the same day of each billing period;

F. delinquent means the status of a bill rendered to a residential customer for utility service which remains unpaid after the due date of the bill;

G. discontinuance of service means an intentional cessation of service by a utility not voluntarily requested by a residential customer;

H. estimated bill means a bill for utility service which is not based on an actual reading of the residential customer's meter or other measuring device for the period billed;

I. heating season means the period beginning November 15 and continuing through March 15 of the subsequent year;

J. HSD means the New Mexico human services department;

K. installment agreement means an arrangement by a utility customer pursuant to 17.5.410.40 NMAC to make a series of payments of past due utility charges scheduled over a period greater than forty-five (45) days, and may be referred to as “payment plan” in customer notices;

L. LIHEAP means the low-income home energy assistance program administered by HSD or a tribal or pueblo entity that administers a tribe’s or pueblo’s low-income home energy assistance program under NMSA 1978, Section 27-6-18.1;

M. line extension means that part of a utility's system for the delivery of gas or electric utility service which extends and connects the utility's existing system to a residential customer, exclusive of yard lines or service drops;

N. medical professional means a licensed physician, physician’s assistant, osteopathic physician, osteopathic physician’s assistant or certified nurse practitioner;

O. nonheating season means the period beginning March 16 and continuing through November 14 of the same year;

P. rendition of a bill means the date of mailing or personal delivery of a bill by a utility;

Q. residential customer means any person being supplied with and legally liable for the payment of an electric or gas utility service for that person's household or domestic uses;

R. residential service means the provision of or use of electricity or gas for household or domestic purposes;

S. seriously or chronically ill means an illness or injury that results in a medical professional’s determination that the loss of utility service would give rise to a substantial risk of death or would gravely impair health;

T. settlement agreement means an agreement between a utility and a residential customer establishing terms and conditions for resolving a dispute;

U. special service means a service provided to a residential customer by a utility which is not subject to a tariff schedule;

V. specific date means an exact date, or a period of no more than five (5) business days beginning with an exact date. The date specified on the most recent bill or notice as the date by which past due amounts must be paid to avoid discontinuance of service constitutes a specific date for purposes of this rule;

W. utility charges means the billing or charges for the provision of utility service and other charges authorized by the commission pursuant to approved tariffs.

History

17.5.410.7 NMAC - Rp, 17.5.410.7 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.8 Application

A. A utility shall not unreasonably discriminate against any residential customer. Neither shall a utility discriminate against or penalize a residential customer for exercising any right granted by 17.5.410 NMAC, nor shall any provision herein be construed to relieve any residential customer from liability for proper utility charges.

B. A utility may adopt such reasonable rules governing its relations with residential customers as are necessary and which are not inconsistent with 17.5.410 NMAC and as prescribed in 17.1.210 NMAC.

C. Unless otherwise specified a utility shall not be required to file new tariffs pursuant to 17.5.410 NMAC. To the extent that existing tariffs are inconsistent with 17.5.410 NMAC, such tariffs are deemed to be superseded by the requirements of 17.5.410 NMAC and all provisions of 17.5.410 NMAC are deemed to apply to all utilities as though set forth in applicable tariffs unless the differences between the tariffs and 17.5.410 NMAC are permitted pursuant to an exemption or variance requested under 17.5.410.9 NMAC and granted by the commission.

History

17.5.410.8 NMAC - Rp, 17.5.410.8 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.9 Exemption and Variance

A. Exemption. If unreasonable hardship with no reasonable alternative to a utility or to a residential customer results from the application of any provision of 17.5.410 NMAC, application may be made to the commission for temporary or permanent exemption from its requirements.

B. Variances. A utility may file a written application with the commission seeking a variance from all or part of 17.5.410 NMAC for good cause shown, except that no variances shall be allowed from the provisions of 17.5.410.30 NMAC. Each variance request shall include an explanation for the requested variance together with an alternate proposal designed to achieve the purpose of the rule to be waived and to be implemented for application to the condition(s) requiring the variance.

C. Stay pending application for exemption or variance. An application for an exemption or a variance shall stay the application of 17.5.410 NMAC to the utility applying for the exemption or variance as it relates to the matter on which an exemption or a variance is sought for a period of twenty (20) days. Within that time frame the commission may for good cause shown extend the period of the stay.

D. Notice of application for exemption or variance. A utility filing an application for an exemption or a variance with the commission shall contemporaneously with such filing mail copies of such application by first class mail to the attorney general, and the intervenors in the utility's most recent rate case.

E. Exemption or variance hearings. The commission may schedule a hearing on any proposed exemption or variance.

History

17.5.410.9 NMAC - Rp, 17.5.410.9 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.10 Rendition of Bills

A. A utility shall render a bill to every residential customer for each billing period in accordance with applicable tariffs and the requirements and options of 17.5.410 NMAC.

B. A utility may either bill all of its residential customers on the same day of each billing period or bill its residential customers on a billing cycle. If a utility significantly alters a billing cycle, notice shall promptly be given to the affected residential customer(s).

C. When billing for concurrent service at a residence the usage and charge attributable to each such service shall be clearly set forth on the bill. Utility service to multiple locations billed to a single residential customer shall be stated separately for each location.

D. Upon approval of an experimental rate by the commission a utility shall give full written disclosure of such rate to the affected residential customer prior to implementing such rate, and the utility shall advise its residential customers of the financial impact of such rate based on typical patterns of usage.

History

17.5.410.10 NMAC - Rp, 17.5.410.10 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.11 Budget Payment Plans

A utility shall offer a budget payment plan to its residential customers. Such plans must be approved by the commission and must contain the following provisions at a minimum.

A. The budget payment plan shall provide the residential customer with a method of levelizing the bill for utility service. It shall be designed to avoid the accumulation of an unpaid balance which will be burdensome to pay in a single payment.

B. The budget payment plan shall be available to any residential customer who is then either current in payments for utility service or who has entered into and is complying with a settlement agreement or an installment agreement at any time during the year, without regard to the residential customer's length of service with the utility. Should a chronically delinquent residential customer fail to pay the amount specified in the budget payment plan, the utility may remove that residential customer from the plan and withhold the plan from that residential customer for up to twelve (12) succeeding months. A utility may also petition the commission for an order permitting it to offer its budget payment plan at specified times only or for less than a prospective twelve (12) month period upon a showing by the utility that offering such a plan at and for times specified in 17.5.410 NMAC will result in an undue financial burden to the utility.

C. In determining one (1) year's budget payment plan the computation shall be specific to each residential customer. If the residential customer has been served by the utility at the same location for the previous year, the budgeted payment should be based on the residential customer's actual use for the previous year and may be adjusted for known price changes, bill averages and normalized weather conditions. If the residential customer has not been served by the utility during the previous year at that location, the budgeted payment should be based on the actual use at that location for the previous year and may be adjusted for known price changes, bill averages and normalized weather conditions, as applied to the residential class of customers or similar residences.

D. The specific methodology of the plan shall be approved by the commission and shall be nondiscriminatory.

History

17.5.410.11 NMAC - Rp, 17.5.410.11 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.12 Contents of Bills

Bills for utility service shall include:

A. the beginning and ending meter reading dates or the number of days in the billing cycle and the date of the ending meter reading;

B. clear and conspicuous language identifying the bill as an estimated bill, if the bill has been estimated;

C. the number and kind of units metered;

D. any conversions from meter reading units to billing units;

E. any multiplier constants used to determine billing;

F. the date the bill is due;

G. any previous balance;

H. an identification of the applicable rate tariff;

I. the amount due for electric or gas usage;

J. the amount due for special services;

K. the total amount due;

L. gross receipts taxes and any other taxes or fees, if not a part of the base rate;

M. the automatic adjustment clauses approved by the commission in total and in cost per unit basis, as applicable;

N. contact information of the utility designating where the residential customer may initiate an inquiry or complaint regarding the bill as rendered or the service provided;

O. if the residential customer is on a budget payment plan, a statement of:

(1) the actual charges for service incurred for the current billing period;

(2) the budgeted amount due; and

(3) the actual balance of total services rendered.

History

17.5.410.12 NMAC - Rp, 17.5.410.12 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.13 Payment Standards

A. A residential customer shall be given at least twenty (20) calendar days from the date of rendition of a bill for payment in full before the bill is deemed delinquent.

B. A residential customer shall be given at least fifteen (15) calendar days from the date the bill is deemed delinquent before a utility may disconnect utility service, pursuant to the requirements of 17.5.410.31 through 17.5.410.35 NMAC.

C. If the last day for payment of a bill falls on a Saturday, Sunday, legal holiday, or other day when the offices of the utility which regularly receive payments are not open to the general public, the due date shall be extended to the next business day.

D. Receipt by a utility of a payment at the utility’s address shall be deemed received by the utility on that date. If payment is made on the utility’s website or at a third-party payment location authorized by the utility, the payment shall be deemed received within two business days of the payment date. If payment is made through any other third-party payment process, the date of payment shall be the date the payment is received by the utility from the third party. If the residential customer making payment has received a disconnect notice and provides verification of the payment to the utility prior to disconnection, the utility shall stop disconnection activities and shall not disconnect the residential customer without providing a subsequent final notice.

E. Any monies received by a utility from a residential customer in excess of the amount of a bill owing shall be credited immediately. Any monies received by a utility from a residential customer that exceed the amount billed by twenty five-dollars ($25) or more shall be refunded upon request.

History

17.5.410.13 NMAC - Rp, 17.5.410.13 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.14 Finance, Service, Carrying, Penalty and Special Service Charges

A. Unless otherwise approved by the commission a utility shall not assess a finance, service, carrying, or penalty charge to a residential customer for the reason that any utility service balance due and owing upon the bill remains outstanding beyond the period of time established for payment.

B. A utility shall not impose on residential customers a late fee for unpaid amounts due for utility service that is greater than eight percent (8%) on an annual basis.

C. A utility may include charges for special services together with utility charges on the same bill if the charges for special services are designated clearly and separately from utility charges. If partial payment is made the utility shall first credit such payment to any arrearage for utility charges.

D. A charge for connection or reconnection may not exceed the actual cost involved but shall be no less than the minimum allowed in applicable tariffs.

History

17.5.410.14 NMAC - Rp, 17.5.410.14 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.15 Estimated Bills

A. A utility may render a bill based on estimated usage to a seasonally billed residential customer if an appropriate tariff is on file with the commission and an actual reading is obtained before each change in the seasonal cycle.

B. A utility may render a bill based on estimated usage to a residential customer other than a seasonably billed residential customer if the utility through no fault of its own is unable to obtain access to the residential customer's premises for the purpose of reading the meter or in situations where the residential customer makes reading the meter unnecessarily difficult; a meter is defective or has been evidently tampered with or bypassed; or weather conditions prohibit meter readings or where other force majeure conditions exist. If the utility is unable to obtain an actual meter reading for these reasons it shall attempt to contact the residential customer to obtain access to the premises, or it shall undertake reasonably practical alternatives to obtain a meter reading.

C. Notwithstanding the provisions of Subsection B of 17.5.410.15 NMAC, a utility may not render a bill based on estimated usage for more than two (2) consecutive billing periods without prior notification to the commission, nor for an initial or final bill for service, unless otherwise agreed to by the residential customer and the utility.

D. The estimating procedures employed by the utility must be contained in a tariff on file with the commission.

E. The utility must, for no less than twelve (12) months, maintain accurate records of the reasons for each estimate and the efforts made to secure an actual reading.

F. If a utility underestimates a residential customer's usage and subsequently seeks to correct the bill, the residential customer shall be given an opportunity to participate in an installment agreement with regard to the underestimated amount.

G. Upon request, a utility shall explain to any residential customer how to read and report electric or gas usage. Upon an agreement between a residential customer and a utility, a residential customer may read and report the electric or gas usage as long as such usage is reported on a regular and accurate basis. The utility shall provide a reasonable means for the residential customer to report meter readings. In such a case, at least annually, a utility shall obtain an actual meter reading of residential customer usage in order to verify the accuracy of readings reported in this manner. 17.5.410 NMAC shall not prevent a utility from reading meters on a regular basis.

H. A utility's tariff may provide for a residential customer to read and report the electric or gas usage on a regular and accurate basis.

I. Notwithstanding Subsections B, C and H of 17.5.410.15 NMAC, a utility may estimate a billing in the event that a residential customer fails to timely and accurately report the self-reading.

History

17.5.410.15 NMAC - Rp, 17.5.410.15 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.16 Residential Security Deposits or Guarantees

A. A utility may not require a security deposit or other guarantee of payment as a condition of new or continued service to a residential customer except in the case of service:

(1) to a residential customer who has not previously had utility service with the utility and who has not established an acceptable credit rating;

(2) to a residential customer who has on three or more occasions, within a 12-month period, received a final notice;

(3) as a condition for reconnection of service following discontinuance of service by the utility; and

(4) to a residential customer who in an unauthorized manner has interfered with or diverted the service of the utility situated on or about or delivered to the residential customer's premises.

B. If a residential customer or prospective residential customer can demonstrate to the utility that the residential customer does not have adequate financial resources to pay the security deposit and the residential customer meets the qualifications of LIHEAP, or is subject to other special circumstances, the utility shall give special consideration to such a residential customer in determining whether or in what amount a security deposit will be charged or if payment by an installment agreement is appropriate. In making such determination, a utility shall accept documentation from the administering authority that such residential or prospective residential customer meets the qualifications of LIHEAP.

History

17.5.410.16 NMAC - Rp, 17.5.410.16 NMAC, 7-1-11; A, 3-29-13

N.M. Admin. Code § 17.5.410.17 Methods to Establish Acceptable Credit Rating

A. In determining whether a residential customer who has not previously had utility service with the utility has an acceptable credit rating, a utility shall consider the following:

(1) documentation that the residential customer owns or is purchasing the residence served;

(2) documentation that the residential customer has an adequate income;

(3) documentation that the residential customer has an adequate credit reference from a utility where the residential customer had prior utility service;

(4) documentation obtained by the utility from a commercial credit source; or

(5) any other reasonable documentation.

B. If a prospective residential customer cannot establish an acceptable credit rating but previously received utility service under the name of a spouse, the utility may consider prior utility service to that spouse in determining whether and in what amount a security deposit will be charged.

History

17.5.410.17 NMAC - Rp, 17.5.410.17 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.18 Amounts of and Accounting for Security Deposits

Any deposit policy shall be as set forth in the utility's tariff on file with the commission pursuant to 17.1.210 NMAC, but shall conform to the following provisions.

A. A deposit for a residential customer shall not exceed an amount equivalent to one sixth (1/6) of that residential customer's estimated annual billings. A utility shall base its billing estimates for purposes of calculating a deposit upon the most recent available prior 12-month corresponding period at the same service location; or, if there is not a comparable period of service at the same service location, the deposit shall be based upon consumption of similar units in the same area.

B. Simple interest on deposits at a rate not less than the rate required by law shall accrue annually to the residential customer's credit for the time the deposit is held by the utility. The deposit shall cease to draw interest on the date it is returned, on the date service is terminated, or on the date the refund is sent to the residential customer's last known address.

C. Each residential customer who posts a security deposit shall receive in writing at the time of tender of deposit or with the first bill a receipt as evidence thereof. The receipt shall contain the following minimum information:

(1) name of residential customer;

(2) date of payment;

(3) amount of payment; and

(4) statement of the terms and conditions governing the payment, retention, interest, and return of deposits.

D. A utility shall provide means whereby a residential customer entitled to a return of deposit is not deprived of the deposit refund even though the residential customer may be unable to produce the original receipt for the deposit, provided the residential customer can produce adequate identification to insure that the residential customer is entitled to a refund of the deposit.

History

17.5.410.18 NMAC - Rp, 17.5.410.18 NMAC, 7-1-11; A, 3-29-13

N.M. Admin. Code § 17.5.410.19 Refund of Deposits, Termination of Guarantees

A. Any residential customer who has not been chronically delinquent for the twelve-month period from the date of deposit or guarantee shall promptly receive a credit or refund in the amount of the deposit together with accrued interest due or shall be permitted to terminate any guarantee. If the amount of the deposit exceeds the amount of the current bill, the residential customer may request a refund in the amount of the excess if such excess exceeds twenty five dollars ($25). If the residential customer fails to qualify for a refund of the deposit on the first anniversary date of the deposit, that account shall be reviewed at least annually, and the amount of the deposit shall be credited if the residential customer has not been chronically delinquent during the preceding twelve (12) months. A residential customer may request a refund at any time after twelve (12) months payment history, which refund shall promptly be paid if the residential customer has not been chronically delinquent during the prior twelve-month (12) period, or a utility may pay such refund in the absence of a request within a reasonable period of time.

B. Unclaimed deposits shall be handled as provided by law.

History

17.5.410.19 NMAC - Rp, 17.5.410.19 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.20 Record of Deposits

A utility shall keep records of deposits and issue receipts of deposits in accordance with the requirements of Paragraphs (5), (7), (8) and (9) of Subsection B of 17.9.560.12 NMAC and Paragraphs (5), (7), (8) and (9) of Subsection B of 17.10.650.11 NMAC.

History

17.5.410.20 NMAC - Rp, 17.5.410.20 NMAC, 7-1-11; A, 3-29-13

N.M. Admin. Code § 17.5.410.21 Internal Utility Complaint Procedures

A utility shall establish internal procedures pursuant to 17.1.210 NMAC for the prompt, efficient, and thorough receipt, investigation, and, where possible, resolution of all residential customer inquiries, disputes, service requests, and complaints regarding residential utility service and charges. Such internal procedures shall provide that:

A. a utility shall be prepared at all times during normal business hours to receive all residential customer inquiries, disputes, service requests, and complaints;

B. a utility shall have qualified personnel available and prepared to respond to all residential customer inquiries, disputes, service requests, and complaints at all reasonable times during normal business hours;

C. a utility shall make reasonable arrangements for residential customers unable to communicate in the English language to receive assistance;

D. a utility shall provide qualified and authorized utility personnel at reasonable times during normal business hours to negotiate settlement agreements and installment agreements on behalf of the utility; and

E. a utility shall provide qualified personnel or other reasonable means at all times to receive and initiate responses to customer contacts regarding any emergency condition involving utility services.

History

17.5.410.21 NMAC - Rp, 17.5.410.21 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.22 Testing of Utility Meters

A residential customer may request the testing of a utility meter pursuant to Subsection A of 17.9.560.14 NMAC and Paragraph (4) of Subsection A of 17.10.650.13 NMAC or NMSA 1978, Section 62-6-22.

History

17.5.410.22 NMAC - Rp, 17.5.410.22 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.23 Public Notice of Residential Customer Rights

The utility shall prepare in both Spanish and English information subject to commission approval which in layman's terms summarizes the rights and responsibilities of the utility and its residential customers in accordance with 17.5.410 NMAC. This information shall be displayed prominently by the utility and shall be available to the general public. The utility shall advise new residential customers of the availability of such information upon commencement of utility service and shall advise its existing residential customers of such availability on an annual basis. The information shall state that it is being provided in accordance with 17.5.410 NMAC and shall contain information concerning, but not limited to:

A. billing procedures, including estimated billing, budget payment plans, installment agreements, and third-party notification programs;

B. methods for residential customer verification of billing accuracy;

C. a description of the operation of applicable rate tariffs, automatic adjustment clauses, and cost of service indexing;

D. residential customer payment requirements and procedures;

E. security deposit and guarantee requirements;

F. special consideration in determining deposits and installment agreements for residential and prospective residential customers who meet the qualifications of LIHEAP;

G. procedures relating to discontinuance and reconnection of service;

H. the utility's inquiry, dispute, service request, and complaint procedures;

I. an explanation of meter reading procedures which would enable a residential customer to read his or her own meter;

J. a procedure whereby a residential customer may avoid discontinuance of service during an extended period of absence;

K. procedures for filing a complaint with the commission;

L. the utility's policy concerning discontinuance of service to those whose lives or health may be endangered by discontinuance;

M. the names and addresses of state and local governmental agencies which have programs available to assist eligible persons with payment of their utility bills;

N. winter moratorium protection; and

O. a statement that members of New Mexico tribes or pueblos who need help with translation or with other matters may contact the director of the commission’s consumer relations division at (888) 427-5772, who will contact the appropriate tribal or pueblo official for assistance.

History

17.5.410.23 NMAC - Rp, 17.5.410.23 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.24 Notice, Availability and Public Access to Schedules

A. A utility shall keep on file and provide public access to a copy of 17.5.410 NMAC and its current applicable residential rates, rules, and regulations and shall maintain up-to-date maps, plans, or records of its entire transmission and distribution systems with such other information as may be necessary to enable the utility to advise prospective residential customers as to facilities for serving any locality. Suitable signs shall be posted conspicuously in public areas at utility offices calling to the public's attention that this information is available for inspection.

B. Unless otherwise directed by the commission a utility shall notify its affected residential customers of any change in its tariffs which have been suspended by the commission.

History

17.5.410.24 NMAC - Rp, 17.5.410.24 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.25 Assistance to Customers

A. The utility shall assist the residential customer or prospective residential customer in selecting an appropriate rate tariff and furnish such additional information concerning that tariff as the residential customer may reasonably request.

B. A utility shall maintain residential customer records which contain details of all bills and correspondence sent to or received from the residential customer and evidence of all payments, deposits, guarantees, or other monies received from the residential customer.

C. Copies of residential customer records shall be furnished to that residential customer upon request.

D. Copies of a residential customer's records relevant to a matter in dispute, or for good cause shown, shall be furnished to any person authorized in writing by the residential customer to receive such records.

E. The utility shall correct any nondisputed mistakes in a residential customer's payment history that are brought to its attention.

F. A utility shall maintain records which contain the number of:

(1) disputes that require further action by the utility beyond the initial contact related to billing and services;

(2) settlement agreements made by the utility;

(3) discontinuance of service notices sent to residential customers;

(4) discontinuances of service and the number of reconnections for non-payment;

(5) security deposits collected, number credited or refunded, number of guarantees received and number terminated;

(6) residential customers with installment agreements;

(7) residential customers with budget payment plans;

(8) estimated bills;

(9) medical certifications received before and after discontinuance of service pursuant to 17.5.410 NMAC;

(10) times beyond twelve (12) hours after receipt of a medical certification before each reconnection of service was accomplished; and

(11) residential customers within whose households resides a disabled, elderly, or other person who may suffer injury or death if utility service is discontinued to the extent that the utility has actual knowledge of the conditions.

G. The above-enumerated records shall be kept for the period of time required by 17.9.560 NMAC and 17.10.650 NMAC, or if not so required for at least three (3) years.

History

17.5.410.25 NMAC - Rp, 17.5.410.25 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.26 Reports to Commission

Upon commission request the utility shall provide information required by Subsection F of 17.5.410.25 NMAC to the commission within ten (10) business days or other time period agreed to by the commission.

History

17.5.410.26 NMAC - Rp, 17.5.410.26 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.27 Line Extensions

Upon a residential customer's request for a line extension a utility shall:

A. provide the residential customer with a copy of the utility's line extension policy and explain the content of such policy;

B. establish a reasonable time not exceeding thirty (30) days after the residential customer has complied with all reasonable utility requirements for the delivery to the residential customer of the utility's estimate for the line extension;

C. complete construction of the line extension within sixty (60) days after the residential customer signs the utility's line extension agreement and after the utility has secured all applicable permits, rights-of-way, materials, and labor necessary for the line extension, and the utility has completed all other applicable contractual obligations; a utility shall be required to exercise due diligence and good faith in its efforts to obtain such permits, rights-of-way, materials, labor, and contractual compliance; however, the utility shall not be required to complete construction of the line extension within this time frame where force majeure or hazardous conditions exist;

D. advise the residential customer that if the residential customer is not satisfied with the line extension proposal of the utility including cost and time of construction, an informal review of the proposal may be provided by utility personnel located in the service area of the residential customer and authorized to conduct such reviews; such personnel shall be in a position to modify such proposal, where appropriate;

E. inform the residential customer in writing of how the residential customer's options concerning the type of installation of a line extension will affect utility charges based on present rates or rates which are the subject of a pending case concerning rates; at a minimum comparisons of average annual utility charges for that residential customer shall be provided.

History

17.5.410.27 NMAC - Rp, 17.5.410.27 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.28 Cost of Line Extension

The amount charged to the residential customer for a line extension shall be based on the estimated total cost to the utility and shall be clearly stated in the written line extension agreement entered into between the utility and the residential customer. The method for collecting the amount charged to the residential customer shall be outlined in applicable tariffs filed with the commission.

History

17.5.410.28 NMAC - Rp, 17.5.410.28 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.29 Notice of Availability of Energy Assistance and Winter Moratorium Protection

Utilities shall make available to the public information regarding:

A. LIHEAP application forms, qualification requirements, application procedures, and locations at which residential customers may submit LIHEAP applications; and

B. winter moratorium protection against discontinued and disconnected service for residential customers who meet the qualifications of LIHEAP, including an explanation of payment options and circumstances under which services may be disconnected or discontinued.

C. Required notice.

(1) Required notice prior to heating season. Beginning with the August billing cycle and prior to the next heating season, all public natural gas and electric utilities subject to the terms of the winter heating season disconnection moratorium law shall communicate in writing to all residential customers at least two times the following statement on either a bill, in a bill insert or through a direct mailing:

(a) “Protection from winter shut-off begins November 15, (year). To avoid potential disconnection of services please contact the human services department at 800-283-4465, or the appropriate tribal or pueblo entity for eligibility information for low income heating energy assistance program (LIHEAP). Your service will not be disconnected from November 15, (year), through March 15, (year), if you meet the qualifications of LIHEAP and have no past due amounts or you remain current on any settlement or installment agreement for amounts due as of November 15, (year). Members of New Mexico tribes or pueblos who need help with translation or with other matters may contact the commission’s consumer relations division at (888) 427-5772, who will contact the appropriate tribal or pueblo official for assistance.”

(b) Where it is technically feasible, the foregoing notice language shall be written in both English and Spanish. If not feasible the following statement shall be included “Para informacion en espanol llame (phone no.).”

(2) Required notice of end of moratorium protection. Beginning with the February billing cycle all public natural gas and electric utilities subject to the terms of the winter heating season disconnection moratorium law shall communicate in writing to all residential customers at least one time the following statement on either a bill, in a bill insert or through a direct mailing:

(a) “Protection from winter shut-off ends March 15, (year). To avoid potential disconnection of services please contact (utility name) (phone number) to make arrangements for payment. Members of New Mexico tribes or pueblos who need help with translation or with other matters may contact the commission’s consumer relations division at (888) 427-5772, who will contact the appropriate tribal or pueblo official for assistance.”

(3) 15-day notice of discontinuance of service. All natural gas and electric utilities subject to the terms of the winter heating season disconnection moratorium law shall include the following statements in both English and Spanish in all 15-day disconnect notices issued pursuant to this rule during the heating season:

(a) “15-day disconnect notice for services;”

(b) “Your service will not be disconnected from November 15, (year), through March 15, (year), if you meet the qualifications of the low income home energy assistance program (LIHEAP) and have no past due amounts, or you remain current on any settlement or installment agreement for amounts due as of November 15, (year). For information call New Mexico human services department at 1-800-283-4465, or the tribal or pueblo entity that administers a tribe’s or pueblo’s LIHEAP.”

History

17.5.410.29 NMAC - N, 7-1-11

N.M. Admin. Code § 17.5.410.30 Winter Moratorium Protections

A. Unless requested by the residential customer, no utility shall discontinue or disconnect service to a residential customer during heating season for nonpayment of the residential customer’s utility bill if the utility receives notice that the residential customer meets the qualifications of LIHEAP as determined by the administering authority for the current heating season and:

(1) the residential customer has no past due charges on November 15 of the current heating season; or

(2) the residential customer has a settlement agreement or an installment agreement with the utility for amounts other than those owing from the prior heating season, and the residential customer continues to make the agreed-upon payments under the settlement or installment agreement.

B. At any time during the current heating season, a residential customer may become eligible for winter moratorium protection from discontinuance or disconnection of service if a notice issued by the administering authority is provided to the utility that the customer meets the qualifications of LIHEAP and the residential customer either pays the amount due as of November 15 or enters into a settlement or installment agreement for such past-due amounts and continues to make the agreed-upon payments under the settlement or installment agreement.

C. Any residential customer that has had services disconnected or discontinued during the current winter heating season for whom the utility receives, subsequent to the disconnection or discontinuance of service, a proof of qualification issued by the administering authority and has met the payment requirements of Subsection A of 17.5.410.30 NMAC, shall have service reconnected as soon as reasonable but not later than the next working day if otherwise qualified for protection. Immediate payment of a reconnection fee, if any, shall not be a prerequisite to such reconnection.

D. The utility shall make installment agreement options available to any residential customer that has an unpaid bill pursuant to the regulations of the commission.

E. A residential customer who has defaulted on the residential customer’s chosen installment agreement and whose utility service has been discontinued or disconnected during the non-heating season shall be reconnected and maintain the protection afforded by this section by paying reconnection charges if any, and by paying the amount due pursuant to the installment agreement by the date on which service is reconnected.

F. If a residential customer notifies the utility that the residential customer needs payment assistance and requests that the utility report the residential customer’s need to the administering authority, the utility shall promptly report the request for assistance to the administering authority, provided that the administering authority called is willing to act on calls made by utilities on behalf of customers.

History

17.5.410.30 NMAC - N, 7-1-11

N.M. Admin. Code § 17.5.410.31 Discontinuance of Service

A. A utility may discontinue service to a residential customer without prior notice in the event of:

(1) a condition determined by the utility to be hazardous;

(2) residential customer use of equipment in such manner as to adversely affect the utility's equipment or the utility's service to others;

(3) residential customer's tampering with, damaging, or deliberately destroying the equipment furnished and owned by the utility; or

(4) unauthorized use of service provided by the utility.

B. A utility may discontinue service to a residential customer for:

(1) nonpayment of a delinquent account pursuant to 17.5.410.33 NMAC;

(2) failure to post a security deposit or guarantee pursuant to 17.5.410.33 NMAC, as applicable; except that a utility may not discontinue service to an existing residential customer solely for failure to pay a deposit; or

(3) failure to comply with the terms and conditions of a settlement agreement or installment agreement entered into pursuant to this rule.

C. A utility may discontinue utility service to a residential customer after three (3) days' prior written notice in the event of the residential customer's:

(1) refusal to grant access at reasonable times to equipment installed upon the premises of the residential customer for the purpose of inspection, meter reading, maintenance, or replacement;

(2) failure to furnish such service, equipment, permits, certificates, or rights-of-way as shall have been specified by the utility as a condition to obtaining service or in the event such equipment or permissions are withdrawn or terminated;

(3) violation of or noncompliance with the utility's rules on file with and approved by the commission;

(4) provision of a fraudulent medical certification form or financial certification form.

D. The three-day notice required by Subsection C of 17.5.410.31 NMAC shall be in English and Spanish and shall include the following:

(1) a statement of the reason(s) why the utility has issued notice to discontinue utility service pursuant to Subsection C of 17.5.410.31 NMAC;

(2) the title(s), address, telephone number(s), and working hours of utility personnel responsible for carrying out the rights prescribed in 17.5.410 NMAC;

(3) a statement that the residential customer can obtain a review by utility personnel of the reasons for the proposed discontinuance of service, which shall stay the discontinuance during the review, and a statement that a complaint may be filed with the commission if the residential customer disagrees with the utility's determination of the facts upon which the proposed discontinuance is based;

(4) a statement that members of New Mexico tribes or pueblos who need help with translation or with other matters may contact the commission’s consumer relations division at (888) 427-5772, who will contact the appropriate tribal or pueblo official for assistance.

History

17.5.410.31 NMAC - Rp, 17.5.410.29 NMAC, 7-1-11; A, 3-29-13

N.M. Admin. Code § 17.5.410.32 Prohibitions on Discontinuance of Service

A utility shall not discontinue service for:

A. the failure of a residential customer to pay for special services;

B. the failure of a residential customer to pay for service received at a separate metering point, residence, or location; however, in the event of discontinuance or termination of service at a separate residential metering point, residence, or location, a utility may transfer any unpaid balance due to any other residential service account of the residential customer and proceed in accordance with subsection B of 17.5.410.31 NMAC;

C. the failure of the residential customer to pay for a different class of service received at the same or different location; however, placing more than one meter at the same location for purposes of billing the usage of specific devices under optional rate tariffs or provisions is not construed as a different class of service;

D. nonpayment of the disputed amount of a bill, as provided by 17.5.410.36 NMAC;

E. delinquency in payment for service to a previous occupant of the same premises unless a court has found the new residential customer legally liable for the debt of the previous occupant or the previous occupant continues to reside at the premises;

F. failure of a residential customer to pay the bill of another residential customer as guarantor thereof;

G. failure of a residential customer to pay an estimated bill rendered in violation of 17.5.410.15 NMAC;

H. the failure of a residential customer to pay for service received during the heating season if the residential customer qualifies for winter moratorium protection; or

I. the failure of a residential customer to pay for service received if the utility has received a signed medical certification form and a financial certification form as provided by this rule.

History

17.5.410.32 NMAC - Rp, 17.5.410.30 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.33 Requirements Prior to Discontinuance of Service Pursuant to Subsection B of 17.5.410.31 Nmac

Each utility shall file a tariff for its residential customer service that shall include the following minimum standards for discontinuance of utility services with standardized languages as provided below.

A. Fifteen-day notice. At least fifteen (15) days before a utility discontinues service to a residential customer, the utility shall provide written notice to the residential customer stating its intent to discontinue service and setting forth the residential customer's rights regarding discontinuance of service, budget payment plans, and installment agreements. The notice shall be in English and Spanish. The notice shall be delivered to the residential customer in person, by U.S. mail, postage prepaid, addressed to the last address for the residential customer known to the utility, or by electronic mail if a residential customer has elected to receive electronic billing.

(1) Notwithstanding the provisions of Paragraph (3) of Subsection C of 17.5.410.31 NMAC a fifteen-day notice shall contain:

(a) the title, address, telephone number, and working hours of utility personnel responsible for administering the procedures in this section;

(b) a statement that “if the past due balance on your account has been paid, please disregard this notice”;

(c) a statement that “to avoid disconnection we must receive your past due balance of ($.) no later than (month/day/year), or payment arrangements must be made; please see the enclosed notice for more information”;

(d) a statement in both English and Spanish of “customers’ rights and responsibilities” set forth in 17.5.410.42 NMAC, and a utility can choose the method of enclosing the required statement of “customers’ right and responsibilities”.

(2) Notice of winter moratorium protection. At a minimum, during the heating season, each utility shall notify its residential customers who have not been previously qualified for protection under the provisions of the winter moratorium of their rights set forth in this rule and in the format required by this rule.

(3) The 15-day notice shall include specific notice that the utility will not discontinue utility service if the residential customer provides the utility either of the following:

(a) documentation for winter moratorium protection in accordance with this rule; or

(b) valid medical and financial certification forms pursuant to this rule.

B. Final notice. Each utility shall communicate with a residential customer by telephone, mail if delivery to the residential service address can be verified, or personal contact at least two (2) days prior to the specific date of discontinuance of service to: remind the residential customer of the pending date of discontinuance of service; advise the residential customer again of the potential availability of financial assistance for utility service payments; obtain payment of delinquent accounts; and during the heating season, provide a reminder of the protection under the moratorium.

(1) The utility shall have up to five (5) business days from the specific date to perform the disconnection of services or be required to reissue a final notice pursuant to this subsection.

(2) The utility employee who personally contacts a residential customer and the utility employee sent to discontinue utility services shall note any information from the residential customer that a person living in the residential customer’s residence is seriously or chronically ill. Such information shall immediately be reported to a utility employee authorized to prevent discontinuance. That employee shall either delay the discontinuance if it is apparent that the forms required by this rule will be received, or state in writing why discontinuance of service will not be delayed.

(3) However, a utility is not required to delay discontinuance of service pursuant to Paragraph (2) of Subsection B of 17.5.410.33 NMAC for more than two (2) times within a twelve-month period. The utility and utility employee shall be held harmless for errors made in good faith in noting, acting upon, or failing to act upon the information provided by the residential customer.

(4) A utility may use reasonable means to verify the accuracy of information on a medical or financial certification form.

(5) The utility employee sent to discontinue utility service may be empowered to receive payment of delinquent bills, and upon receipt of approved payment method, shall cancel the discontinuance order.

(6) A utility shall not issue a final notice of discontinuance of service to a residential customer when the utility has received notice that actual termination is prohibited by law.

C. Third-party notification: Each utility shall offer its residential customers a third-party notification program and shall notify residential customers that such program is available. The utility shall extend the third-party notification program to those residential customers who notify the utility in writing of their desire to participate in the program and designate a specific person, organization, or governmental agency that is ready, willing, and able to assist the residential customer with the payment of utility bills. Upon receipt of such notice from a residential customer, a utility shall not discontinue service to a participating residential customer for nonpayment of past due charges without:

(1) contacting the designated person, organization, or governmental agency by phone or in writing at least fifteen (15) days prior to the proposed discontinuance of service; and

(2) determining that the designated person, organization, or governmental agency has not made a commitment to assist with payment of the residential customer's past due charge within a reasonable period of time.

D. Timing of discontinuance of service. A utility may discontinue service to a residential customer during the hours from 7:30 a.m. to 4:00 p.m. on Monday through Thursday. A utility may not discontinue service less than twenty-four (24) hours prior to a holiday or weekend unless the utility's business office is open for receipt of payment of past due charges and utility personnel are available to restore service during the holiday or weekend once payment is received.

History

17.5.410.33 NMAC - Rp, 17.5.410.31 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.34 Emergency Discontinuance of Service

Notwithstanding any other provision of 17.5.410 NMAC, a utility may temporarily and without notice discontinue residential service for reasons of operation, maintenance, health, safety, or a state of emergency.

History

17.5.410.34 NMAC - Rp, 17.5.410.32 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.35 Restoration of Service

Upon a residential customer's request a utility shall restore service promptly when the cause for discontinuance of service has been eliminated, applicable restoration or reconnection charges paid, and, if required, satisfactory payment arrangements have been made. At all times a reasonable effort shall be made to restore service on the day restoration is requested, and in any event restoration shall be made no later than the next working day following the day on which the cause for discontinuance of service has been eliminated. Provided further that in the event a medical certification and a financial certification contemplated by Paragraph (6) of Subsection C of 17.5.410.42 NMAC is received, service shall be reestablished within twelve (12) hours of receipt.

History

17.5.410.35 NMAC - Rp, 17.5.410.33 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.36 Billing Disputes; Notice by Residential Customer; Payment of Undisputed Amount

A residential customer may advise a utility by written notice, by telephone, by email, or in person that utility charges are in dispute. If a residential customer disputes the amount of utility charges, the residential customer shall pay the utility an amount equal to that part of the utility charges not in dispute. The amount not in dispute shall be mutually determined by the parties. Failure of a residential customer to pay a utility the nondisputed amount of utility charges shall constitute a waiver of the residential customer’s right to continued service.

History

17.5.410.36 NMAC - Rp, 17.5.410.34 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.37 Settlement of Disputed Amount

A. When a utility and a residential customer settle a dispute, the utility and residential customer may enter into a settlement agreement to pay the amount of the bill. If applicable, any excess amount paid previously by the residential customer shall promptly be credited to the residential customer's account, and if the amount is in excess of twenty-five dollars ($25) and if so requested by the residential customer, the excess amount shall promptly be refunded.

B. If the terms of the settlement agreement extend beyond forty-five (45) days, it shall be considered an installment agreement and shall be subject to the requirements of 17.5.410.40 NMAC.

C. If a residential customer fails to comply with the settlement agreement, a utility shall notify the residential customer at least seven (7) days before discontinuing service that service will be discontinued.

D. A settlement agreement to pay an outstanding past due balance does not relieve the residential customer of the obligation to pay future bills on a current basis.

History

17.5.410.37 NMAC - Rp, 17.5.410.36 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.38 Adjustment of Bills

Bills that are incorrect due to meter or billing errors shall be adjusted in accordance with the requirements of 17.9.560 NMAC and 17.10.650 NMAC.

History

17.5.410.38 NMAC - Rp, 17.5.410.38 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.39 Filing Complaint with Commission

A. Notice to customers. If the residential customer and utility are unable to resolve a dispute, the utility representative shall:

(1) advise the residential customer that if the complaint cannot be resolved to the parties' satisfaction, each has a right to file an informal or formal complaint with the commission; and

(2) give the residential customer the address and telephone number where the residential customer may file a complaint with the commission;

(3) if the residential customer is a member of a New Mexico tribe or pueblo, the utility shall advise the customer that he or she can request help with translation or other assistance by contacting the commission’s consumer relations division at (888) 427-5772, who will contact the appropriate tribal or pueblo official for assistance.

B. Informal complaints by Native Americans. The commission’s consumer relations division, to the extent practicable and consistent with applicable law, should process informal complaints filed by Native Americans in accordance with any applicable guidelines or directives established by the complainant’s tribe or pueblo.

History

17.5.410.39 NMAC - Rp, 17.5.410.39 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.40 Installment Agreements

A. A utility shall attempt to arrange an installment agreement for the payment of past due charges when a residential customer who has not been chronically delinquent indicates an inability to pay the charges. Service will not be discontinued if, on or before the specific date for discontinuance, the residential customer enters into an installment agreement with the utility. The utility may also maintain a list of organizations in the area that may provide assistance to residential customers in paying utility bills and shall notify residential customers that application forms for LIHEAP are available upon request and at its billing offices. Utilities are encouraged to refer low-income assistance inquiries to the administering authority consistent with Subsection A of 17.410.41 NMAC.

B. A utility is not required to enter into an installment agreement with a chronically delinquent residential customer. However, if a chronically delinquent residential customer can demonstrate to the utility that the residential customer does not have adequate financial resources to pay the outstanding bill without participation in an installment agreement because the residential customer meets the qualifications of LIHEAP, or is subject to other special circumstances, the utility shall give special consideration to such a residential customer in determining whether to offer an installment agreement. In making such determination, a utility shall accept documentation from the administering authority that such residential customer meets the qualifications of LIHEAP.

C. Every installment agreement shall provide that service will not be discontinued if the residential customer pays a reasonable portion of the outstanding bill when terms of the installment agreement are reached and agrees to pay the remaining outstanding balance in reasonable installments until the bill is paid. For purposes of determining reasonableness the parties shall weigh the following:

(1) the size of the outstanding balance;

(2) the residential customer's ability to pay;

(3) the residential customer's payment history;

(4) the time the balance has been outstanding;

(5) the reasons why the balance has been outstanding;

(6) a six month installment agreement for residential customers with significant arrearages; and

(7) any other relevant factors relating to the residential customer's service.

D. An installment agreement to pay an outstanding past due balance on a bill does not relieve the residential customer from the obligation to pay future bills on a current basis.

E. If the residential customer has entered into an installment agreement as provided by this rule, the residential customer shall receive a statement of:

(1) the actual service charges incurred for the current billing period;

(2) the amount of the installment payment due; and

(3) the total amount due (sum of (1) and (2)).

F. A residential customer may offer the utility a proposed installment agreement or a proposed change in the terms of an existing installment agreement. If the utility and the residential customer do not reach an agreement, the utility may refuse the offer orally and shall note in that residential customer’s records the reason for refusal and what special consideration was given for residential customers who meet the qualifications of LIHEAP. Upon final refusal, the utility also shall provide oral notice of the right of the residential customer to appeal the refusal to the commission.

History

17.5.410.40 NMAC - Rp, 17.5.410.40 & 41 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.41 Failure to Comply with Installment Agreement

A. If a residential customer fails to comply with an installment agreement, a utility may discontinue service after notifying the residential customer by personal delivery of written notice, by first class mail or electronic mail, if the residential customer has elected to receive electronic billing, that the residential customer is in default of the installment agreement.

(1) The notice shall be written in simple language in English and Spanish and shall state:

(a) the nature of the default;

(b) the specific date service shall be stopped; and

(c) the following statements: "if you have difficulty paying this bill, and feel you may qualify for assistance in paying your utility bill from the low-income home energy assistance program (LIHEAP) or another assistance program in your community, contact the human services department at 1-800-283-4465, the tribal or pueblo entity that administers a tribess or pueblo’s LIHEAP, or contact the residential customer service representative at this utility; application forms for LIHEAP are available at the billing offices of this utility, at the human services department, and at the tribal or pueblo entity that administers a tribe’s or pueblo’s LIHEAP; application forms should be returned to the human services department or the tribe or pueblo entity that administer’s a tribe’s or pueblo’s LIHEAP; the human services department and the tribal or pueblo entity, and not this utility, administer the program and determine your eligibility to receive assistance."

(2) The notice shall also state that unless a payment which brings the installment agreement current is made within seven (7) days from the date of notice the utility will discontinue service on or after the specific date identified in the notice; provided, however, that during the period from November 15 to March 15, the provisions of 17.5.410.30 NMAC shall apply.

B. Each utility shall provide a procedure for reviewing residential customer allegations that a proposed installment agreement is unreasonable, that a utility charge is not due and owing, or that the residential customer has not violated an existing installment agreement. Such procedure shall provide due notice to residential customers, shall not be conducted by the credit department of the utility, and shall authorize the reviewing employee to order appropriate corrective action. A utility shall not discontinue service until the review is completed.

C. Nothing in 17.5.410.40 through 17.5.410.41 NMAC shall preclude a utility and a residential customer from renegotiating the terms of an installment agreement.

History

17.5.410.41 NMAC - Rp, 17.5.410.42 NMAC, 7-1-11

N.M. Admin. Code § 17.5.410.42 Customers’ Rights and Responsibilities

A statement of customer’s rights and responsibilities is required to be enclosed in each 15-day notice of discontinuance of service and served by a utility on a residential customer pursuant to 17.5.410.33 NMAC. Each statement shall be in both English and Spanish and shall be on file with the commission.

A. Each statement shall be entitled in bold letters “your rights and responsibilities regarding discontinuance of services”.

B. Each statement shall be addressed to “Dear (utility name) residential customer.

C. Each statement shall include:

(1) a statement that “this notice is to inform you that your utility payment is past due; your service will be disconnected after the date printed on the enclosed bill if payment is not made by then; upon request, we can provide outstanding charge information to you including the dates of service during which the outstanding charges were incurred and the date and amount of the last payment”;

(2) a statement that “you can participate in a payment plan if you can demonstrate that you do not have the financial resources to pay the outstanding amount, or if you are low income or are subject to other special circumstances”;

(3) a statement in capital letters that “IF YOU HAVE DIFFICULTY PAYING THIS BILL, AND FEEL YOU MAY QUALIFY FOR ASSISTANCE IN PAYING YOUR UTILITY BILL FROM THE LOW INCOME HOME ENERGY ASSISTANCE PROGRAM, OR ANOTHER ASSISTANCE PROGRAM IN YOUR COMMUNITY, CONTACT THE COMMUNITY ASSISTANCE SECTION OF THE HUMAN SERVICES DEPARTMENT AT 1-800-283-4465, THE TRIBAL OR PUEBLO ENTITY THAT ADMINISTERS A TRIBE’S OR PUEBLO’S LIHEAP, OR THE CUSTOMER SERVICE REPRESENTATIVE AT THIS UTILITY”;

(4) a statement in capital letters that “LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) APPLICATION FORMS FOR THE LOW INCOME HOME ENERGY ASSISTANCE PROGRAM ARE AVAILABLE AT THE BILLING OFFICES OF THIS UTILITY, AT THE HUMAN SERVICES DEPARTMENT, AND AT THE TRIBAL OR PUEBLO ENTITY THAT ADMINISTERS A TRIBE’S OR PUEBLO’S LIHEAP. YOU SHOULD RETURN THE APPLICATION FORMS TO THE HUMAN SERVICES DEPARTMENT OR THE TRIBAL OR PUEBLO ENTITY THAT ADMINISTERS THE PROGRAM AND DETERMINES YOUR ELIGIBILITY TO RECEIVE ASSISTANCE”;

(5) a statement that “if you believe that there is an error in your billing, contact us immediately for a review; after you pay the undisputed amount of your bill, we will postpone disconnection of your service until the dispute is resolved”;

(6) a statement that “if you or someone in your household are seriously or chronically ill, we will not disconnect your service, if at least two days before the disconnection date, we receive an original of the attached [utility name] medical and financial certification forms; the medical certification form must be completed by a licensed medical professional; an original of the attached financial certification form, stating that you qualify for financial assistance, must be completed by an agency providing assistance in or for the state of New Mexico;

(7) a statement that “if your service has been disconnected, we will restore service within twelve hours after you have satisfied the certification requirements above; your obligation to pay your bill is not relieved if service is continued or reestablished because we receive these certifications”;

(8) a statement that “between November 15 through March 15, if you qualify for low income home energy assistance program (LIHEAP), you may be protected from having your services disconnected for non-payment; for more information, please call us at (utility telephone number)”;

(9) a statement in capital letter that “TO RESTORE SERVICE THAT HAS BEEN DISCONNECTED, A RECONNECT FEE OF $ MAY BE CHARGED”;

(10) a statement of the utility-specific programs, if any;

(11) a statement that “we can put you in touch with other organizations in your community that might be able to help you; if you have a relative, friend, or agency that will assist in paying your bills, and you want us to notify them when disconnect notices are sent, contact us”;

(12) a statement that “(utility budget bill program name) can help even out your payments throughout the year; you still pay for all of the energy you use; you can cancel your participation at any time; upon cancellation, all amounts are due and become payable within 30 days; any credits will be applied to your account”;

(13) a statement “see your bill for your local (utility name) payment office location; or, contact us for third-party and other pay locations nearest you”;

(14) a statement “to contact us, call us at (utility phone number) from (utility hours) (utility days); holiday hours vary or, go to (utility web site)”;

(15) a statement “if you are not satisfied with the arrangements that we provide, you have the right to file a complaint with the NMPRC, 1120 Paseo de Peralta, Santa Fe, NM 87501; telephone 505-827-6940 or 1-888-4 ASK PRC or 1-888-427-5772”; and

(16) a statement that “special consideration will be given to a residential customer who meets the qualifications of LIHEAP, or has other special circumstances, in determining deposits and installment agreements; in making such determination, a utility shall accept documentation from the administering authority that such residential customer meets the qualifications of LIHEAP.”

History

17.5.410.42 NMAC - N, 7-1-11

N.M. Admin. Code § 17.5.410.43 Medical Certification Form

MEDICAL CERTIFICATION - PLEASE NOTE: To be complete, ALL fields must be filled in, valid, and legible. NOTE: In order to continue to receive gas or electric service from (name of utility), a complete medical certification form and a complete financial certification form must be submitted. This certification is valid for ninety (90) days from the signature date of medical professional.

PATIENT OR LEGAL GUARDIAN

I certify the information provided is true and correct. I understand that if I provide false information, I could be denied continued medical emergency gas or electric utility service from (name of utility company) _____________

I, (printed name of patient) ________________, hereby authorize the medical professional signing this certification to disclose to (name of utility company)_____________the information contained in this medical certification form.

(patient or legal guardian signature) ________________________________ (date) ______________________

PRIMARY UTILITY ACCOUNT HOLDER

I, (printed name of primary account holder)____________________, hereby certify that I am the person responsible for the charges for gas or electric utility service at (service address) _______________________________ and that a seriously or chronically ill person (as defined by Rule 17.5.410.7 NMAC) resides there.

I further certify that I will immediately notify (name of utility company)___________________ or arrange to have such notification provided, if there is a change in the status of the seriously or chronically ill person residing at the service address, including relocation or a change in the physical condition of such person which renders continued medical emergency gas or electric utility service unnecessary.

(primary account holder signature) _________________________________ (date) ______________________

DOCTOR’S USE ONLY

I, (printed name of medical professional) _________________________________ certify that: I am, (1) a licensed physician or physician's assistant licensed or accepted by the New Mexico medical board and practicing under the New Mexico Medical Practice Act, (2) an osteopathic physician or osteopathic physician's assistant practicing under the New Mexico Osteopathic Physician's Practice Act or (3) a certified nurse practitioner licensed by the New Mexico board of nursing and practicing under the New Mexico Nursing Practice Act; I hold license number/NPI Number_____________; and that on (date)_________ I examined (name of patient) ________________________ who I am informed resides at (service address) ______________________________________________________

I certify that the said person has the following condition in which loss of ____ gas or ____electric (please indicate type of service by checking) utility service would give rise to substantial risk of death or gravely impair health and that this condition qualifies as a serious or chronic illness pursuant to Rule 17.410.7 NMAC:

(Describe condition and reasons for continued gas or electric utility service (if applicable, list medically necessary equipment)).

DEFINITION OF SERIOUS OR CHRONICALLY ILL PER RULE 17.5.410.7 NMAC: AN ILLNESS OR INJURY THAT RESULTS IN A MEDICAL PROFESSIONAL'S DETERMINATION THAT THE LOSS OF GAS OR ELECTRIC UTILITY SERVICE WOULD GIVE RISE TO A SUBSTANTIAL RISK OF DEATH OR GRAVELY IMPAIR HEALTH.

(signature of medical professional) ________________ (date) ____________(office address of medical professional) __________________ (telephone number, and fax number of medical professional) _____________________

ONLY for patients meeting the requirements for extended medical certification, also complete the additional certification below if it applies to this patient:

DOCTOR’S USE ONLY – EXTENDED MEDICAL CERTIFICATION (VALID FOR 1 YEAR)

I (printed name of medical professional) ____________certify that the above mentioned patient's medical condition (description of approved condition)_________________is permanent and will not improve within 12 months from ______________ (today’s date)

SEE OTHER SIDE FOR FINANCIAL CERTIFICATION

Revised December, 2012

History

17.5.410.43 NMAC - Rp, 17.5.410.43 NMAC, 7-1-11; A, 3-29-13

N.M. Admin. Code § 17.5.410.44 Financial Certification Form

FINANCIAL CERTIFICATION (VALID FOR 90 DAYS ONLY)

PLEASE NOTE: to be complete, ALL fields must be filled in, valid and legible.

BY SIGNING BELOW, I, THE ACCOUNT HOLDER, ACKNOWLEDGE THAT THIS CERTIFICATE DOES NOT RELIEVE ME OF MY RESPONSIBILITY TO PAY MY CURRENT AND PAST BILLS WITH (NAME OF UTILITY).

• For administering authority (human services department (HSD) or tribal authority) certification: primary account holder completes Section I, and HSD or tribal authority completes Section II.

• For self certification: primary account holder completes Section III and attaches a copy of the primary account holder's current medicaid eligibility.

(Even when extended medical certification is authorized, financial recertification is required every 90 days for the account holder.)

SECTION I - AUTHORIZATION TO RELEASE INFORMATION – PRIMARY ACCOUNT HOLDER

I, (printed name of primary account holder)_________, authorize administering authority to release to (name of utility) information from my file as deemed necessary for the purpose of qualifying for the medical certification program.

I certify the information provided is true and correct. I understand that if I provide false information, I can be denied continued medical emergency gas or electric utility service.

(primary account holder’s signature)______________________(utility account number)______________

(primary account holder’s social security number) ________________(primary account holder’s telephone number) ___________________ (service address, city, state, zip code) ___________________________________________

SECTION II - ADMINISTERING AUTHORITY (HSD OR TRIBAL) USE ONLY

I, (name of agency representative)______, an authorized representative of (administering authority)______________ hereby certify that (primary account holder and social security number) , the primary account holder named in Section I, currently meets the income guidelines as defined by the administering authority (such as low income home energy assistance program (LIHEAP) (agency representative signature) (phone number and fax number) ______________________ (date)

SECTION III —SELF CERTIFICATION - PRIMARY ACCOUNT HOLDER - ATTACH COPY OF CUR

-OR-

SECTION III - SELF CERTIFICATION - PRIMARY ACCOUNT HOLDER - ATTACH COPY OF CURRENT NEW MEXICO MEDICAID ELIGIBILITY FOR PRIMARY ACCOUNT HOLDER

I, (printed name of primary account holder)________________ hereby certify that I am the person responsible for the charges for gas or electric utility service at (service address)____and that a seriously or chronically ill person (as defined by Rule 17.5.410.7 NMAC) (patient’s name) resides there.

I certify the information provided is true and correct. I understand that if I provide false information, I could be denied continued medical emergency gas or electric utility service.

(primary account holder signature) ______________ (date) _________ (primary account holder’s social security number) _____________________ (service address, city, state, zip code)_________________________________

It is in the account holder’s best interest to make regular payments toward current and past due balances; the account holder is encouraged to contact (name of utility) to make payment arrangements.

SEE OTHER SIDE FOR MEDICAL CERTIFICATION

Revised December 2012

HISTORY OF 17.5.410 NMAC:

Pre-NMAC Filing History:

General Order No. 5, Regulations Governing Service Supplied by Electric Public Utilities, 1-1-42.

General Order No. 6, Regulations Governing Service Supplied by Gas Public Utilities, 11-17-42

First Revised General Order No. 6, Regulations Governing Service Supplied by Gas Public Utilities, Case No. 753, 3-1-65.

First Revised General Order No. 5, Regulations Governing Service Supplied by Electric Public Utilities, Case No. 771, 9-1-65.

PSC 68-1, Statutes and General Orders, filed 1-16-68.

Second Revised General Order No. 6, Regulations Governing Service Supplied by Gas Public Utilities, Case No. 919, 9-18-68.

Second Revised General Order No. 5, Regulations Governing Service Supplied by Electric Public Utilities, Case No. 906, 9-19-68.

PSC 70-1, Statutes and General Orders, filed 7-9-70.

PSC 77-1, Amendments to Second Revised General Order No. 5 and Second Revised General Order No. 6, filed 4-4-77.

General Order No. 32, In the Matter of an Interim Policy Governing the Disconnection of Utility Service to, filed 11-22-77.

General Order No. 32-A, Rules Governing Discontinuance of Utility Service for Non-Payment of Past Due Utility Charges, filed 3-1-79.

General Order No. 34, Rules and Regulations Governing Residential Customer Services by Gas, Electric and Rural Electric Cooperative Utilities, NMPUC Case No. 1504, filed 11-9-79.

NMPSC Rule 410, Residential Customer Service by Gas, Electric, and Rural Electric Cooperatives, Case No. 2086, filed 6-30-88; A, Case No. 2232, filed 12-22-88; A, Case No. 2308, filed 5-7-90; A, Case No. 2396, filed 8-9-91 NMPUC Rule 410, Residential Customer Service by Gas, Electric, and Rural Electric Cooperatives, Case No. 2506, filed 10-4-93.

History of Repealed Material:

General Order No. 32, In the Matter of an Interim Policy Governing the Disconnection of Utility Service to - Repealed, 8-9-88

General Order No. 32-A, Rules Governing Discontinuance of Utility Service for Non-Payment of Past Due Utility Charges - Repealed, 3-23-87

17.5.410 NMAC, Residential Customer Service By Gas, Electric and Rural Electric Cooperative Utilities filed 10-11-2001 was replaced by 17.5.410 NMAC, Residential Customer Service By Gas, Electric and Rural Electric Cooperative Utilities, effective 07-1-2011.

History

17.5.410.44 NMAC - Rp, 17.5.410.44 NMAC, 7-1-11; A, 3-29-13

Part 440 Extensions, Improvements, Additions, and Cooperative Agreements Between or Among Utilities

N.M. Admin. Code § 17.5.440.1 Issuing Agency

New Mexico public regulation commission.

History

17.5.440.1 NMAC - Rp, 17.5.440.1 NMAC, 12/27/2022

N.M. Admin. Code § 17.5.440.2 Scope

This rule applies to investor-owned electric, gas, water, and sewer utilities subject to the jurisdiction of the New Mexico public regulation commission, however, Subparagraph (a) of Paragraph (1) of Subsection A of 17.5.440.8 NMAC and Paragraph (3) of Subsection C of 17.5.440.8 NMAC shall apply to all electric utilities, and Subparagraph (a) of Paragraph (1) of Subsection A of 17.5.440.9 NMAC and Paragraph (2) of Subsection D of 17.5.440.9 NMAC shall apply to all gas, water, and sewer utilities, subject to the jurisdiction of the New Mexico public regulation commission.

History

17.5.440.2 NMAC - Rp, 17.5.440.2 NMAC, 12/27/2022

N.M. Admin. Code § 17.5.440.3 Statutory Authority

Paragraph (10) of Subsection B of Section 8-8-4 NMSA 1978 and Section 8-8-15 NMSA 1978.

History

17.5.440.3 NMAC - Rp, 17.5.440.3 NMAC, 12/27/2022

N.M. Admin. Code § 17.5.440.4 Duration

Permanent.

History

17.5.440.4 NMAC - Rp, 17.5.440.4 NMAC, 12/27/2022

N.M. Admin. Code § 17.5.440.5 Effective Date

December 27, 2022, unless a later date is cited at the end of a section.

History

17.5.440. NMAC - Rp, 17.5.440.5 NMAC, 12/27/2022

N.M. Admin. Code § 17.5.440.6 Objective

This rule is intended to provide reporting and filing requirements and guidance for public utilities and utility division staff.

History

17.5.440.6 NMAC - Rp, 17.5.440.6 NMAC, 12/27/2022

N.M. Admin. Code § 17.5.440.7 Definitions

As used in this rule:

A. “repairs or replacements” means any public utility activity, that is also a capital expenditure, that repairs, or replaces with the same or substantially similar, equipment or property that has either failed, is in the process of failing, or deteriorated, or that is at the end of its useful life, or that is otherwise necessary to repair or replace; and

B. “undertaking” means the extension, system improvement, repair or replacement, or addition for which the public utility is required to report to the Commission pursuant to 17.5.440.8 NMAC and 17.5.440.9 NMAC.

History

17.5.440.7 NMAC - Rp, 17.5.440.7 NMAC, 12/27/2022

N.M. Admin. Code § 17.5.440.8 Electric Utilities

A. Report requirements for extensions, system improvements, repairs or replacements, or additions:

(1) A public utility shall, prior to making any of the following described extensions, system improvements, repairs or replacements, or additions as set forth in Subparagraphs (a) through (e) of 17.5.440.8 NMAC below, file a report with the commission setting forth the character of the undertaking, the purpose sought thereby to be accomplished, the means by which that purpose is intended to be realized, the estimated costs involved in the employment of those means, the data upon which the engineering and economic feasibility of the undertaking is based, any reasonable alternatives to the proposed undertaking that have been considered, any system upgrades that may be needed due to the undertaking, and, if Subparagraph (a) of 17.5.440.8 NMAC below is applicable, the name or names of the utility or utilities toward which the proposed extension is to be made.

(a) Any extension, of any electric facility outside the limits of a municipality to a point within one-half mile of the facilities of any other utility or utilities rendering electric service.

(b) Any extension, system improvement, repairs or replacements, or addition to any transmission or distribution line, plant, facility, or system, exclusive of generating facilities, which will have an estimated cost to the utility under the uniform system of accounts of $1,000,000 or more on a total company basis and for which the utility intends to seek rate recovery from its New Mexico customers, regardless of the location of the line, plant, facility, or system.

(i) In calculating the estimated cost, the utility shall include the cost of any system upgrades that are directly related to, or required as a result of, such addition, repair or replacement, or system improvement.

(ii) The estimated cost shall be reasonable and proposed in good faith.

(c) Any addition to, or repair or replacement of, or improvement of, any electric generating facility which will have an estimated cost to the utility under the uniform system of accounts of $2,000,000 or more on a total company basis and for which the utility intends to seek rate recovery from its New Mexico customers, regardless of the location of the electric generating facility.

(ii) The estimated cost shall be reasonable and proposed in good faith.

(d) Substantial system characteristic improvements involving a change in operating voltage of electric lines. Substantial system characteristic improvements involving reconductoring, rephasing (addition or deletion of phases) of electric lines resulting in a length of two miles or more. System improvements of an overall or system wide nature shall be submitted to the commission as an overall plan.

(e) Any extensions, system improvements, repairs or replacements, or additions for which the public utility claims or intends to claim safe harbor under 17.9.592.15 NMAC that have an estimated cost to the utility under the uniform system of accounts of $1,000,000 or more on a total company basis and for which the utility intends to seek rate recovery from its New Mexico customers, regardless of the location of the undertaking.

(i) In calculating the estimated cost, the utility shall include the cost of any system upgrades that are directly related to, or required as a result of, such extension, system improvement, repair or replacement, or addition.

(ii) The estimated cost shall be reasonable and proposed in good faith.

(2) The report is for informational purposes and shall not constitute nor be deemed to constitute an application by the utility for authority to engage in the reported undertaking.

(3) Reports shall include sufficient information to enable the commission to appropriately relate the proposed extension, system improvement, repair or replacement, or addition to maps of existing facilities.

(4) The utility shall file reports on forms to be furnished by the commission and shall be numbered serially.

B. The commission shall not be precluded from requiring the filing of further information by the reporting utility with respect to its proposed undertaking.

C. Filing and service procedures:

(1) The utility shall file a report at least 30 days prior to the commencement of construction of the extension, system improvement, repair or replacement, or addition, except in the event of unplanned emergency undertakings, in which case the report shall be filed not more than 30 days after the onset of the emergency.

(2) Upon the utility’s filing of a report, commission utility division staff shall review the report and notify by email the utility, office of general counsel, and the individual commissioners of statutory, regulatory, or feasibility issues, if any, within a reasonable time prior to the commencement of construction, or within a reasonable time following the filing of a report on an unplanned emergency undertaking.

(3) Where a utility is required to file a report with the commission pursuant to Subparagraph (a) of Paragraph (1) of Subsection A of 17.5.440.8 NMAC, the utility shall, at the time of filing its report with the commission, serve a copy of the filed report on the utility or utilities toward whose facilities the extension is proposed to be made.

(a) Proof of service of such copy shall be made and filed with the commission under the certificate of the person making the service.

(b) If the service is made by mail, it shall be made by certified mail with return receipt requested, it shall include the corresponding 440 filing number, and the return receipt shall be filed with the commission with the proof of service.

(c) Thereafter, no complaint by a utility in opposition to the proposed extension will be entertained by the commission unless filed with the commission by the opposing utility within 20 days of its receipt of the served copy of the report.

(d) The provisions of this section will be waived whenever the commission is furnished proof in writing that the utility toward whose facilities the extension is proposed to be made has no complaints.

(4) A public utility shall notify each individual commissioner by email when it files a report or amended report with estimated or actual costs of $8,000,000 or more on a total company basis.

D. Duty to amend report:

(1) Prior to any request for rate recovery for the undertaking, the utility shall amend a report to update the undertaking’s estimated costs, if the estimates increased or decreased by greater than twenty percent, and to reflect the utility’s actual costs incurred for that undertaking.

(a) In its amended report, the utility shall provide explanations for why its initial estimated costs were inaccurate and why its actual costs fell below or exceeded its estimated costs.

(b) The amended report shall be included with the utility’s request for rate recovery.

(2) The utility shall amend a report to accurately reflect the undertaking’s materially altered character or purpose, or if the utility pursues a reported alternative, pursuant to Paragraph (1) of Subsection A of 17.5.440.8 NMAC, at least 30 days prior to the commencement of construction of the extension, system improvement, repair or replacement, or addition. If a utility files an amended report pursuant to this Paragraph, commission utility division staff shall follow the procedures of Paragraph (2) of Subsection C of 17.5.440.8 NMAC above.

History

17.5.440.8 NMAC -Rp, 17.5.440.9 NMAC, 12/27/2022

N.M. Admin. Code § 17.5.440.9 Gas, Water, and Sewer Utilities

A. Report requirements for extensions, system improvements, and additions:

(1) Each public utility shall, prior to making any of the following described extensions, system improvements, or additions as set forth in Subparagraphs (a) through (e) of 17.5.440.9 NMAC below, file a report with the commission setting forth the character of the undertaking, the purpose sought thereby to be accomplished, the means by which that purpose is intended to be realized, the estimated costs involved in the employment of those means, the data upon which the engineering and economic feasibility of the undertaking is based, any reasonable alternatives to the proposed undertaking, and, if Subparagraph (a) of 17.5.440.9 NMAC below is applicable, the name or names of the utility or utilities toward which the proposed extension is to be made.

(a) Any extension of or any change in the routing of any distribution or transmission line which will extend to within one-half mile of the facilities of any other utility or utilities rendering the same kind of service.

(b) Any extension, system improvement, or addition to any transmission or distribution line, plant, facility, or system which will have an estimated cost under the uniform system of accounts of $200,000 or more on a total company basis and for which the utility intends to seek rate recovery from its New Mexico customers, regardless of the location of the line, plant, facility, or system.

(c) Any extension or system improvement one-half mile or more in length of any transmission or distribution line outside of any municipality which involves any changes in routing, pipe size, pipe material, or design pressure for gas or water lines.

(d) Any extension of one-half mile or more in length within the limits of a municipality where the pressure is in excess of 400 p.s.i.

(2) The report is for informational purposes and shall not constitute an application by the utility for authority to engage in the reported undertaking.

(3) Reports shall include sufficient information to enable the commission to appropriately relate the proposed extension, system improvement, or addition to maps of existing facilities.

(4) The utility shall file reports on forms to be furnished by the commission and shall be numbered serially.

B. The commission shall not be precluded from taking any action which it deems appropriate with respect to reports filed pursuant to this rule and the undertaking.

C. The commission shall not be precluded from requiring the filing of further information by the reporting utility with respect to its proposed undertaking.

D. Service procedure and policy:

(1) Upon the utility’s filing of a report, commission utility division staff shall review the report and notify the Commission of statutory, regulatory, or feasibility issues, if any, and shall recommend appropriate actions to be taken, if any, pursuant to Subsections B and C of 17.5.440.9 NMAC above, as determined by staff.

(2) Where a utility is required to file a report with the commission pursuant to Subparagraph (a) of Paragraph (1) of Subsection A of 17.5.440.9 NMAC, the utility shall at the time of filing its report with the commission serve a copy of the filed report on the utility or utilities toward whose facilities the extension is proposed to be made.

(a) Proof of service of such copy shall be made and filed with the commission under the certificate of the person making the service.

(b) If the service in made by mail, it shall be made by certified mail with return receipt requested, it shall include the corresponding 440 filing number, and the return receipt shall be filed with the commission with the proof of service.

History

17.5.440.9 NMAC - Rp, 17.5.440.10 NMAC, 12/27/2022

N.M. Admin. Code § 17.5.440.10 Annual Report

A. Each public utility shall, by March 31 of each calendar year, file a report with the commission summarizing:

(1) each of the utility’s filings pursuant to 17.5.440.8 NMAC or 17.5.440.9 NMAC for the prior calendar year, as described in Subsection B of 17.5.440.10 NMAC below;

(2) each of the utility’s planned filings pursuant to 17.5.440.8 NMAC or 17.5.440.9 NMAC for the following 365-day period, as described in Subsection C of 17.5.440.10 NMAC below; and

(3) the utility’s projects from the prior calendar year that were not deemed undertakings pursuant to Subparagraphs (b) and (c) of Paragraph (1) of Subsection A of 17.5.440.8 NMAC, and Subparagraph (b) of Paragraph (1) of Subsection A of 17.5.440.9 NMAC, as described in Subsection D of 17.5.440.10 NMAC below.

B. Annual reports shall contain the following information for each filing pursuant to 17.5.440.8 NMAC or 17.5.440.9 NMAC of the prior calendar year:

(1) filing and construction commencement dates;

(2) category of report pursuant to Paragraph (1) of Subsection A of 17.5.440.8 NMAC or Paragraph (1) of Subsection A of 17.5.440.9 NMAC;

(3) estimated and actual costs, as may be amended, associated with each of the reported extensions, system improvements, repairs or replacements, or additions;

(4) general locations of the extensions, system improvements, repairs or replacements, or additions; and

(5) a short description, including a project status update, of the reported extensions, system improvements, repairs or replacements, or additions.

C. Annual reports shall contain the following information for every planned filing pursuant to 17.5.440.8 NMAC or 17.5.440.9 NMAC to be made during the following 365-day period:

(1) planned filing and construction commencement dates or timeframe;

(2) category of report pursuant to Paragraph (1) of Subsection A of 17.5.440.8 NMAC or Paragraph (1) of Subsection A of 17.5.440.9 NMAC;

(3) estimated costs associated with each of the extensions, system improvements, repairs or replacements, or additions;

(4) planned location of the extensions, system improvements, repairs or replacements, or additions;

(5) a short description of the extensions, system improvements, repairs or replacements, or additions, including the adjacent infrastructure to which the extensions, system improvements, repairs or replacements, or additions are expected to interconnect, and the third parties with whom the utility expects to engage with contractually; and

(6) any reasonable alternatives to the planned extensions, system improvements, repairs or replacements, or additions.

D. Annual reports shall include, for the prior calendar year, the aggregated total actual costs (not individual project costs) of all extensions, system improvements, repairs or replacements, and additions that are not required to be reported pursuant to Subparagraphs (b) and (c) of Paragraph (1) of Subsection A of 17.5.440.8 NMAC due to falling below the cost thresholds. Annual reports shall include the same information as estimated for the following 365-day period.

E. Annual reports shall include the aggregated total estimated and actual costs for all reports, and for each individual category of report pursuant to Paragraph (1) of Subsection A of 17.5.440.8 NMAC or Paragraph (1) of Subsection A of 17.5.440.9 NMAC, for extensions, system improvements, repairs or replacements, or additions made during the prior calendar year.

F. Annual reports shall include the aggregated total estimated costs for all of the utility’s planned filings pursuant to 17.5.440.8 NMAC or 17.5.440.9 NMAC for the following 365-day period. The estimated total cost shall be reasonable and proposed in good faith.

G. Commission staff shall notify the commission of a public utility’s noncompliance with 17.5.440.10 NMAC within 60 days of the filing of the annual report.

HISTORY: Codified by NMPSC Case No. 2086, order dated June 30, 1988; Amended by NMPSC Case No. 2232, order dated December 19, 1988; Amended by NMPSC Case No. 2277, order dated December 29, 1989. Formerly NMPSC Second Revised General Order No. 10, superseded for purposes of rule reorganization and codification.

Pre-NMAC History: The material in this part was derived from that previously filed with the State Records Center and Archives.

PSC 68-1, Statutes, General Orders, filed 1/16/1968.

PSC 70-1, Statutes and General Orders, filed 7/9/1970.

NMPSC Rule 440, Extensions, Improvements, Additions, and Cooperative Agreements Between or Among Utilities, filed 6/30/1988.

History of Repealed Material:

NMPSC Rule 440, Extensions, Improvements, Additions, and Cooperative Agreements Between or Among Utilities, filed 6/30/88 - Repealed effective 5/15/2013.

17.5.440 NMAC, Extensions, Improvements, Additions, and Cooperative Agreements Between or Among Utilities filed 5/1/2013, Repealed effective 12/27/2022.

Other: 17.5.440 NMAC, Extensions, Improvements, Additions, and Cooperative Agreements Between or Among Utilities filed 5/1/2013, Replaced by Extensions, System Improvements, Repairs or Replacements, Additions, And Cooperative Agreements Between or Among Utilities effective 12/27/2022.

History

17.5.440.10 NMAC - N, 12/27/2022

Chapter 6 Affiliate Transactions

Part 450 Affiliate Transactions

N.M. Admin. Code § 17.6.450.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.2 Scope

NMPSC Rule 450 [17.6.450 NMAC] applies to all water, electric, gas, and rural electric cooperative utilities subject to the Commission's jurisdiction.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.3 Statutory Authority

NMPSC Rule 450 [17.6.450 NMAC] is adopted under the authority vested in this Commission by the Public Utility Act, NMSA 1978, Section 62-3-1 et seq., and in particular by NMSA 1978, Section 62-6-19E.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.4 Duration

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.5 Effective Date

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.6 Objective

The purpose of NMPSC Rule 450 [17.6.450 NMAC] is to set forth the Commission's policy and requirements concerning Class I and Class II transactions by public utilities under the Commission's jurisdiction. The intent of the Commission in promulgating NMPSC Rule 450 [17.6.450 NMAC] to assure reasonable and proper utility service at fair, just, and reasonable rates; to require reasonable access to the books and records of a utility and its affiliates so that such an assurance can be made; to assure that appropriate cost allocations are made; and to assure that no cross-subsidization occurs between the utility and an affiliated interest. It is not the Commission's purpose or intent to approve, disapprove, or regulate any specific nonutility business or venture conducted by any utility's affiliates.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.7 Definitions

When used in NMPSC Rule 450 [17.6.450 NMAC] unless otherwise specified the following definitions will apply:

A. "Affiliated Interest" or "Affiliate" is as defined by NMSA 1978, Section 62-3-3A.

B. "Class I Transaction" is as defined by NMSA 1978, Section 62-3-3J.

C. "Class II Transaction" is as defined by NMSA 1978, Section 62-3-3K.

D. "Commission" means the New Mexico Public Service Commission. [New Mexico Public Regulation Commission]

E. “Holding Company" or "Public Utility Holding Company" is as defined by NMSA 1978, Section 62-3-3M.

F. "Corporate Subsidiary" is as defined by NMSA 1978, Section 62-3-3L.

G. "Utility" or "Public Utility" is as defined by NMSA 1978, Section 62-3-3G.

17.6.450.8 [TABLE OF CONTENTS:]

A. General Provisions: [17.6.450.9 NMAC]

(1) Purpose [17.6.450.6 NMAC]

(2) Authority [17.6.450.3 NMAC]

(3) Reason for Adoption [17.6.450.9 NMAC]

(4) Application [17.6.450.2 NMAC]

(5) Investigation [17.6.450.9 NMAC]

(6) Definitions [17.6.450.7 NMAC]

B. Class II Transactions: Approval of General Diversification Plan [17.6.450.10 NMAC]

C. Class I Transactions: Notification of Class I Transactions [17.6.450.11 NMAC]

D.. Procedures for Applications for Approval of General Diversification Plans: Applications for Approval of General Diversification Plans [17.6.450.12 NMAC]

E. Reporting [17.6.450.13 NMAC]

(1) Class II Transaction Reports

(2) Class I Transaction Reports

F. Rate Treatment [17.6.450.14 NMAC]

(1) Allocations

(2) Class I Transactions

(3) Class II Transactions

(4) Confidentiality

(5) Sanctions for Failure to Provide or Permit Discovery

(6) Remedies

G. Divestiture and Spin-off: Commission Approval Required [17.6.450.15 NMAC]

H. Affiliated Interests Existing as of May 19, 1982: Filing of Diversification Summary [17.6.450.16 NMAC]

I. Additional Investigations and Information: [17.6.450.17 NMAC]

J. Enforcement: [17.6.450.18 NMAC]

K. Miscellaneous [17.6.450.19 NMAC]

(1) Powers Not Limited

(2) Supplement to Other Rules

(3) Severability

(4) Variances

History

Recompiled 12/30/01
Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.9 General Provisions

A. Reason for Adoption: NMPSC Rule 450 [17.6.450 NMAC] is adopted in order to fulfill the requirements of NMSA 1978, Section 62-6-19E.

B. Investigation: The Commission hereby undertakes an ongoing investigation into Class I transactions and Class II transactions and their resulting effects, and finds that the information required to be provided by NMPSC Rule 450 [17.6.450 NMAC] is reasonably required and is pertinent, material, and relevant to such investigation.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.10 Class Ii Transactions

APPROVAL OF GENERAL DIVERSIFICATION PLAN:

A. No public utility may engage in a Class II transaction after November 30, 1982 [the effective date of former General Order No. 39] without first obtaining written approval of a general diversification plan from the Commission.

B. The general diversification plan shall include:

(1) to the extent known the name, home office address, and chief executive officer of each affiliate, corporate subsidiary, holding company, or person which is the subject of the Class II transaction;

(2) a statement of the goals and effects upon the utility operation of the Class II transaction including an analysis of the benefits, risks, and any costs to the public utility which could arise, and including all tax effects on the utility both on a consolidated entity basis and on a stand-alone basis;

(3) the type of corporate structure to be used;

(4) the means of implementing the corporate structure to be used, including, but not limited to, amendments to corporate articles, any issuances, acquisitions, cancellations, exchanges, transfers, or conversions of securities, and the impact of such on the rights of creditors and security holders;

(5) the anticipated capital structure for the utility, its affiliates, and the consolidated entity (utility plus affiliates) for the next five (5) years;

(6) the contemplated annual and cumulative investment in each affiliated interest for the next five (5) years in dollars and as a percentage of projected net utility plant and an explanation of why this level of investment is reasonable and will not increase the risks of investment in the public utility;

(7) an explanation of how the affiliate(s) will be financed, by whom, and the type and amounts of capital or instruments of indebtedness;

(8) an explanation of how the utility's capital structure, cost of capital, and ability to attract capital at reasonable rates will be impacted;

(9) an explanation of how the utility can assure that adequate capital will still be available for the construction of necessary new utility plants and at no greater cost than if the utility did not engage in this Class II transaction;

(10) to the extent not answered in (9) above, an explanation of how ratepayers will be protected and insulated from any risks, costs, or other adverse and material effects attributable to Class II transactions or their resulting effects;

(11) if the utility intends to divest a corporate subsidiary, an explanation of the reasons for such divestiture, how it will be accomplished, how it will affect utility operations, financial viability, cost of capital, and adequacy of service during the next ten (10) years following divestiture, the anticipated proceeds to the utility, the extent, if any, that the utility intends for ratepayers to share in the proceeds or otherwise benefit from the divestiture, the amount of and reasons why any ratepayer funds have flowed directly or indirectly to the benefit of the corporate subsidiary; and

(12) to the extent not provided above, such information or representations that will allow the Commission to make the findings contained in NMPSC Rule 450.7(c) [Subsection C of 17.6.450 10.NMAC].

C. The Commission shall approve the general diversification plan if it contains the above information in detail acceptable to the Commission and if the Commission finds that such approval is in the public interest. Approval is in the public interest if the Commission finds that the level of investment appears reasonable and that it appears the utility's ability to provide reasonable and proper utility service at fair, just, and reasonable rates will not be adversely and materially affected by Class II transactions and their resulting effect, and if the utility represents and the Commission, based upon such representations, finds that:

(1) the books and records of the utility will be kept separate from those of nonregulated business and in accordance with the Uniform System of Accounts;

(2) the Commission and its staff will have access to the books, records, accounts, or documents of the affiliate, corporate subsidiary, or holding company pursuant to NMSA 1978, Sections 62-6-17 and 62-6-19;

(3) the supervision and regulation of the public utility pursuant to the Public Utility Act will not be obstructed, hindered, diminished, impaired, or unduly complicated;

(4) if a holding company is formed the utility will not pay excessive dividends to such holding company, and the holding company will not take any action which will have an adverse and material effect on the utility's ability to provide reasonable and proper service at fair, just, and reasonable rates;

(5) the public utility will not without prior approval of the Commission:

(a) loan its funds or securities or transfer similar assets to any affiliated interest, or

(b) purchase debt instruments of any affiliated interests or guarantee or assume liabilities of such affiliated interests;

(6) all applicable statutes, rules, or regulations, federal or state, have been or will be complied with;

(7) when required by the Commission the utility will have an allocation study (which will not be charged to ratepayers) performed by a consulting firm chosen by and under the direction of the Commission; and

(8) when required by the Commission the utility will have a management audit (which will not be charged to ratepayers) performed by a consulting firm chosen by and under the direction of the Commission to determine whether there are any adverse effects of Class II transactions upon the utility.

D. The Commission's approval of a general diversification plan and any findings or conclusions made in connection therewith shall in no way limit or preclude the Commission from subsequently investigating and reviewing Class I and Class II transactions or from taking such steps as it deems necessary to protect ratepayers and to assure that the utility's ability to provide reasonable and proper utility service at fair, just, and reasonable rates will not be adversely and materially affected.

E. The Commission may require the modification of a general diversification plan and may attach conditions to the approval thereof in order to make such plan consistent with the public interest or to avoid material and adverse effects on the utility's ability to provide reasonable and proper service at fair, just, and reasonable rates.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.11 Class I Transactions

NOTIFICATION OF CLASS I TRANSACTIONS:

A. A public utility which enters into any agreement or other arrangement or any amendment thereto under which a Class I transaction would occur shall give written notification to the Commission within five (5) days after the agreement, arrangement, or amendment thereto is entered into.

B. Such notification shall include:

(1) the terms of the arrangement, agreement, or amendment;

(2) a description of the goods, services, or other property interest to be provided to or by the utility;

(3) a discussion (including any studies or other pertinent information) of whether the utility could or attempted to obtain the goods or services at a price lower than that obtainable under the Class I transaction;

(4) if the utility is selling, leasing, or providing goods, services, or other property interests to an affiliate, a discussion (including any studies or other pertinent information) of whether the utility could or attempted to obtain a better price than under the Class I transaction; and

(5) a statement of the purpose of the transaction explaining how it benefits the utility or its ratepayers or both.

C. Notification is not necessary for Class I transactions which consist only of the provision of normal water, electric, gas or sewer service by a utility to an affiliate under tariffs filed with the Commission.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.12 Procedures for Applications for Approval of General Diversification Plans

APPLICATIONS FOR APPROVAL OF GENERAL DIVERSIFICATION PLANS:

A. A utility seeking approval of its general diversification plan shall file an application with the Commission.

B. Concurrently with the filing of any application under NMPSC Rule 450 [17.6.450 NMAC] the utility will send notice of such filing to each intervenor in its preceding rate case and the Attorney General.

C. Upon the filing of any application under NMPSC Rule 450 [17.6.450 NMAC] the Commission shall determine whether good cause exists to hold a hearing in the matter. If the Commission determines that good cause exists, notice of the hearing shall be given to the utility and each intervenor in its preceding rate case, and notice shall also be published in a newspaper of general circulation in the county where the principal New Mexico office of the utility is located and such other counties as the Commission directs. Such notice shall be given at least twenty (20) days prior to the hearing.

D. If the Commission determines that good cause does not exist to hold a hearing, public notice shall be published as above at least twenty (20) days prior to consideration by the Commission at an open meeting. The applicant shall bear the cost of all publications.

E. Hearings and other procedures will be conducted in a manner consistent with the Commission's Rules of Practice and Procedure.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.13 Reporting

A. Class II Transaction Reports:

(1) Any declaration, filing, petition, prospectus, application, offering memorandum, or registration statement pertaining to a Class II transaction which is filed with any court of competent jurisdiction, the United States Securities and Exchange Commission, or other federal or state administrative agency shall be filed simultaneously with the Commission.

(2) After approval of a utility's general diversification plan or after the filing of a diversification summary, the utility must provide to the Commission unless otherwise ordered by the Commission:

(a) concurrent notification of all new or expanded lines of business or ventures entered into by the utility or any affiliate and any change or transfer of rights, obligations, or assets between the utility and any affiliate; and

(b) a verified annual report covering the last calendar year to be filed as an addendum to the annual report required by NMPSC Rules 510, 610, or 720 [17.3.510 NMAC, 17.3.610 NMAC, or 17.12.720 NMAC] which shall include:

(i) an explanation and description of all affiliates, their relationship to each other and the utility, the types of business in which they are involved, and a listing of their exact names and home office addresses;

(ii) the total investment in each affiliate;

(iii) the joint officers, directors, employees, and facilities and an explanation of their functions and how they are divided;

(iv) all agreements or contracts required to implement and/or continue the Class II transaction(s) and any amendments thereto;

(v) a summary and explanation of any transactions or agreements between the utility and its affiliates, corporate subsidiaries, and holding company;

(vi) the allocation factors utilized, the dollar amounts involved, and an explanation of how the factors are computed, why that methodology is appropriate, and why the allocation is required;

(vii) an explanation and justification of any changes to any part of the utility's general diversification plan or any representations made to the Commission in connection therewith;

(viii) the immediate and projected long-term (up to five (5) years) impact of the Class II transaction(s) on the capital structure of the public utility;

(ix) an identification and detailed complete explanation of the method by which any Class II transaction or any action related thereto that has a utility accounting impact is or will be accounted for by the utility;

(x) the names of the officers and managers of the utility and its affiliates;

(xi) the most recent balance sheet and income statement from each of the utility's affiliates, corporate subsidiaries, and holding company which have been provided to or are in the possession of the utility;

(xii) the effect of the Class II transactions or any action related thereto on the financial performance of the utility and the utility's ability to provide reasonable and proper service at fair, just, and reasonable rates;

(xiii) all costs and fees related to the Class II transaction(s) and any necessary corporate restructuring;

(xiv) a year-by-year, annual five-year projection using pro forma financial statements showing the effects of the utility's decision to enter into Class II transactions compared with a decision not to enter into Class II transactions and showing the expected impact of the Class II transactions and their resulting effect on utility rates and/or other matters relating to the public interest;

(xv) the end-of-year consolidated capital structure (utility plus affiliates);

(xvi) an explanation of how the utility's capital structure, cost of capital, and ability to raise capital have been impacted by Class II transactions and their resulting effect;

(xvii) the amount of dollars transferred between the utility and each affiliate during the annual period and the purpose of each transfer;

(xviii) an explanation of how the utility's taxes and their calculation have been impacted, both on a stand-alone basis and consolidated basis, by Class II transactions and their resulting effect;

(xix) a five-year, year-by-year projection of new utility capital requirements categorized and identified to the extent the utility is able and the projected sources and amounts of capital that will be used to meet these requirements; and

(xx) an explanation of any impacts on new utility capital requirements from Class II transactions and their resulting effect.

(c) The Commission may, upon receipt of the annual report and a finding of good cause, commence an investigation into the diversification activities pursuant to the provisions of the Public Utility Act and the rules of this Commission.

B. Class I Transaction Reports: Each utility engaging in a Class I transaction during the preceding period shall, unless otherwise ordered by the Commission, provide a statement with its Annual Report covering the twelve months preceding the date its Annual Report is due to be filed showing all monies, securities, or other items of value paid or transferred by a utility to an affiliate or by an affiliate to a utility showing the dollar amount of each Class I transaction by account (using Uniform System of Accounts) and broken down by the type of good or service provided, the quantity, and the price paid or received.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.14 Rate Treatment

A. Allocations: There is no presumption that a utility's allocation method is reasonable. The burden of proof shall be on the utility in a rate case or other proceeding to justify its method of allocation of expenses, any factors used, and amounts allocated.

B. Class I Transactions: There is no presumption that a Class I transaction is reasonable. The utility has the burden of proof to show that all Class I transaction costs and contract conditions are reasonable.

C. Class II Transactions: The utility shall bear the burden of proof to show that its rates, costs including cost of capital, and service have not been materially and adversely affected by any Class II transaction or its resulting effect and that the utility has not subsidized its affiliates.

D. Confidentiality: Any person who so qualifies may petition the Commission for a protective order for confidential or proprietary information, as provided by NMSA 1978, Section 62-6-17(D).

E. Sanctions for Failure to Provide or Permit Discovery: If any person fails to obey an order to provide or permit discovery with regard to any matter related to Class I transactions or Class II transactions and their resulting effect, the Commission may impose sanctions pursuant to Rule 37 of the New Mexico Rules of Civil Procedure for the District Courts and/or penalties pursuant to NMSA 1978, Article 12, Chapter 62, and/or if the person is a utility the Commission may disapprove the utility's general diversification plan.

F. Remedies:

(1) Upon a finding that a utility has failed to carry its burden of proof regarding Class I and Class II transactions, or upon a finding that a Class II transaction or its resulting effect is adversely and materially affecting the utility's ability to provide reasonable and proper service at just and reasonable rates, or a finding that a cross-subsidization or improper allocation has occurred, the Commission may take such steps as it deems necessary to correct such situations and to compensate ratepayers for any resulting risks, costs, service reductions, or other adverse and material effects including, but not limited to, adjustments to the utility's cost of capital, capital structure, expenses, or revenues.

(2) Upon a Commission finding that a Class II transaction or the resulting effect thereof has materially and adversely affected the utility's ability to provide reasonable and proper utility service at fair, just, and reasonable rates and/or imposed other costs or risks on the ratepayer, the Commission may order the utility to develop and file a proposed plan of action which will eliminate the cause of, and compensate ratepayers for, such effect, costs, or risks and will provide appropriate monitoring procedures.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.15 Divestiture and Spin-Off

COMMISSION APPROVAL REQUIRED: An affiliate or a holding company may not divest itself of or spin-off a public utility without the prior written approval of the Commission. The Commission shall investigate such divestiture or spin-off and shall give its approval only upon a showing that such divestiture or spin-off is in the public interest.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.16 Affiliated Interests Existing as of May 19, 1982

FILING OF DIVERSIFICATION SUMMARY:

A. Any utility which had any affiliates as of May 19, 1982 is required to have filed a diversification summary with the Commission by December 30, 1982 [thirty (30) days after the effective date of former General Order No. 39].

B. For the purpose of NMPSC Rule 450.19(c) [Subsection C of 17.6.450.16 NMAC], Class I transactions and Class II transactions shall include in addition to their definitions in NMPSC Rule 450.6 [17.6.450.7 NMAC] anything which was classified as a Class I transaction or Class II transaction as of November 30, 1982 [the effective date of former General Order No. 39].

C. The diversification summary shall include:

(1) the exact name of each affiliate together with the home office address and name of chief executive officer;

(2) the date on which each affiliate became affiliated with the public utility;

(3) the method or methods by which the affiliated interest was accomplished and is maintained;

(4) a chart or listings clearly presenting --

(a) the identities of and interrelationships among the public utility and all affiliates;

(b) the percentage and number of each class of voting securities of each affiliate which is owned directly or indirectly by another affiliate or by the public utility;

(c) if control of any person is maintained other than by the ownership or control of voting securities, the basis of such control;

(d) the type of business organization (e.g., corporation, partnership, trust, etc.); and

(e) the state(s) or other jurisdiction(s) of domicile;

(5) a description of all Class I and Class II transactions that were operative or outstanding on May 19, 1982 including, but not limited to, the following:

(a) their nature and purpose;

(b) the identity of all parties involved; and

(c) the nature and amounts of any payments or transfers of assets and all rights and obligations established between the parties;

(6) a brief description of any litigation or administrative proceedings pending or concluded on or after May 19, 1982, in which any affiliate of a public utility is involved which may have a material effect upon the solvency or capital structure or the value of any asset of the affiliate or the public utility, including, but not limited to, foreclosure of property, calls upon guarantees, bankruptcy, receivership, or other corporate reorganizations;

(7) the latest financial statements for each affiliate on an individual basis that have been provided to or are in the possession of the utility;

(8) latest annual reports to shareholders of each affiliate which have been provided to or are in the possession of the utility;

(9) an identification and detailed complete explanation of the method by which any Class II transaction or any action related thereto that has a utility accounting impact is or has been accounted for by the utility;

(10) the allocation factors utilized, the dollar amounts involved during the utility's latest fiscal year, and an explanation of how the factors are computed, why that methodology is appropriate, and why allocation is required;

(11) the joint officers, directors, employees, and facilities and an explanation of their functions and how they are divided;

(12) the effect of the Class II transactions on the financial performance of the utility and the utility's ability to provide reasonable and proper service at fair, just, and reasonable rates;

(13) a year-by-year annual five-year projection using pro forma financial statements showing the effects of Class II transactions compared with a decision not to continue such transactions and showing the expected effect of each decision on rates; and

(14) an explanation of how ratepayers have been protected and insulated from any risks, costs, or other adverse effects attributable to Class II transactions or their resulting effect.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.17 Additional Investigations and Information

The Commission may conduct additional investigations of any matters pertaining to Class I and Class II transactions where it deems appropriate and may require additional information to be filed.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.18 Enforcement

Enforcement of NMPSC Rule 450 [17.6.450 NMAC], any provision thereof, or any order of the Commission pursuant to NMPSC Rule 450 [17.6.450 NMAC] may be accomplished through any sanction, method, or procedure expressed or implied in the Public Utility Act.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.6.450.19 Miscellaneous

A. Powers Not Limited: Nothing contained herein shall be construed to limit the Commission in its powers, duties, or authority under the Public Utility Act.

B. Supplement to Other Rules: NMPSC Rule 450 [17.6.450 NMAC] does not supersede any other rule of the Commission but is to be construed as a supplement to such rules.

C. Severability: If any part or application of NMPSC Rule 450 [17.6.450 NMAC] is held invalid, the remainder or its application shall not be affected.

D. Variances: The Commission may in its discretion grant variances from any provisions herein or their application.

17.6.450.20 [HISTORY: Codified by NMPSC Case No. 2086, order dated June 30, 1988, Amended by NMPSC Case No. 2232, order dated December 19, 1988; Amended by NMPSC Case No. 2277, order dated December 29, 1989. Formerly NMPSC General Order 39, superseded for purposes of rule reorganization and codification.]

HISTORY OF 17.6.450 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

General Order 39, Rules Regarding Class I and Class II Utility Transactions Under Chapter 109 Laws of 1982, 12/9/82.

NMPSC Rule 450, Affiliate Transactions; 6/30/88.

History of Repealed Material: [RESERVED]

History

Recompiled 12/30/01
Recompiled 12/30/01

Chapter 7 Energy Conservation

Part 2 Energy Efficiency

N.M. Admin. Code § 17.7.2.1 Issuing Agency

The New Mexico public regulation commission.

History

17.7.2.1 NMAC - Rp, 17.7.2.1 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.2 Scope

This rule applies to all electric, gas, and distribution cooperative utilities subject to the Efficient Use of Energy Act and the commission’s jurisdiction.

History

17.7.2.2 NMAC - Rp, 17.7.2.2 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.3 Statutory Authority

Sections 62-3-1, 62-8-6, and 62-17-1 to -11 NMSA 1978.

History

17.7.2.3 NMAC - Rp, 17.7.2.3 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.4 Duration

Permanent.

History

17.7.2.4 NMAC - Rp, 17.7.2.4 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.5 Effective Date

August 26, 2025, unless a later date is cited at the end of a section.

History

17.7.2.5 NMAC - Rp, 17.7.2.5 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.6 Objective

The objective of this rule is to implement the Efficient Use of Energy Act’s requirements for public utilities to acquire a portfolio of cost-effective energy efficiency and load management and to establish criteria to evaluate and implement a portfolio of cost-effective energy efficiency and load management that reduces energy demand and energy consumption.

History

17.7.2.6 NMAC - Rp, 17.7.2.6 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.7 Definitions

In addition to the definitions provided in Section 62-17-4 NMSA 1978, the following definitions shall apply.

A. Definitions beginning with “A”: [RESERVED]

B. Definitions beginning with “B”: [RESERVED]

C. Definitions beginning with “C”: [RESERVED]

D. Definitions beginning with “D”: “decoupling” means a rate adjustment mechanism to remove regulatory disincentives to ensure that the revenue per customer approved by the commission in a general rate case proceeding is recovered by a public utility without regard to the quantity of electricity or natural gas actually sold by the public utility subsequent to the date the rate took effect.

E. Definitions beginning with “E”: “estimate” means a projection or forecast utilizing well known, commercially available, or standard engineering, economic, and financial calculations, ratings, and simulations, or other reasonable means.

F. Definitions beginning with “F”: [RESERVED]

G. Definitions beginning with “G”: [RESERVED]

H. Definitions beginning with “H”: [RESERVED]

I. Definitions beginning with “I”: [RESERVED]

J. Definitions beginning with “J”: [RESERVED]

K. Definitions beginning with “K”: [RESERVED]

L. Definitions beginning with “L”:

(1) “life-cycle basis” means utilizing the expected useful life of the energy efficiency and load management and applying a net present value methodology that does not adjust a discount rate for taxes in order to estimate the associated monetary costs and avoided monetary costs of the measure or program being evaluated; and

(2) “low-income customer” means a customer with an annual household income at or below two hundred percent of the federal poverty level, as published annually by the United States department of health and human services.

M. Definitions beginning with “M”: “measurement and verification” means an analysis performed by an independent evaluator that estimates, consistent with Subsection B of 17.7.2 NMAC, reductions of energy usage or peak demand, and determines any actual reduction of energy usage or peak demand that directly results from the utility's implementation of particular energy efficiency or load management measures or programs.

N. Definitions beginning with “N”: “net benefits” means the difference between the present value of costs and the present value of benefits.

O. Definitions beginning with “O”: [RESERVED]

P. Definitions beginning with “P”:

(1) “plan period” means the three years comprising the triennial plan;

(2) “plan year” means a calendar year for which commission approval is requested or granted;

(3) “plan year overage” means the prior plan year’s actual expenditures that exceeded actual collections at the approved funding level; and

(4) “plan year underage” means the prior plan year’s actual collections at the approved funding level that exceeded actual expenditures.

Q. Definitions beginning with “Q.”: [RESERVED]

R. Definitions beginning with “R”: “RFP” means “request for proposals.”

S. Definitions beginning with “S”: [RESERVED]

T. Definitions beginning with “T”: “triennial plan” means a utility’s plan to evaluate and implement, over a plan period, a portfolio of cost-effective energy efficiency and load management that reduces energy demand and consumption.

U. Definitions beginning with “U”: [RESERVED]

V. Definitions beginning with “V”: [RESERVED]

W. Definitions beginning with “W”: [RESERVED]

X. Definitions beginning with “X”: [RESERVED]

Y. Definitions beginning with “Y”: [RESERVED]

Z. Definitions beginning with “Z”: [RESERVED]

History

17.7.2.7 NMAC - Rp, 17.7.2.7 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.8 Requirements for Triennial Plans

A. A public utility that is not a distribution cooperative utility shall file an application seeking approval of a triennial plan three years from the filing date of its previous application.

B. Compliance with pre-filing requirements: A public utility’s triennial plan shall:

(1) describe how the public utility has met the pre-filing requirements of Subsection E of Section 62-17-5 NMSA 1978, including descriptions of the process used to solicit non-binding recommendations, and any competitive bids required by the commission for good cause;

(2) identify by name, association, and contact information, each stakeholder that participated in the pre-filing process, including commission staff, the attorney general, and the energy, minerals and natural resources department; and

(3) summarize each stakeholder’s non-binding recommendation on the design, implementation, and use of third-party energy service contractors through competitive bidding for programs and measures.

C. Plan year funding; costs; expenditures:

(1) A triennial plan shall include the estimated plan year funding for energy efficiency and load management portfolio costs for each plan year during the plan period.

(2) Estimated plan year funding for an electric public utility’s triennial plan costs shall be expressed in dollars and shall be no less than three percent and no more than five percent of billing revenues from all of its customers’ bills that the electric public utility estimates to be billed during the plan year to customer classes with the opportunity to participate, excluding:

(a) gross receipts taxes, franchise fees, and right-of-way access fees;

(b) revenues that the electric public utility estimates to bill during the plan year to any single customer that exceed $75,000.00;

(c) any customer’s plan year self-directed program credits approved by the electric public utility or by a commission approved self-directed program administrator; and

(d) any customer’s plan year self-directed program exemptions approved by the electric public utility or by a commission approved self-directed program administrator.

(3) Estimated plan year funding for a gas public utility’s triennial plan costs shall be expressed in dollars and shall not exceed five percent of customers’ bills that the gas public utility estimates to be billed during the plan year, excluding:

(a) gross receipts taxes, franchise fees, and right-of-way access fees;

(b) revenues that the gas public utility estimates to bill during the plan year to any single customer that exceed $75,000.00;

(c) any customer’s plan year self-directed program credits approved by the gas public utility or by a commission-approved self-directed program administrator; and

(d) any customer’s plan year self-directed program exemptions approved by the gas public utility or by a commission-approved self-directed program administrator.

(4) A triennial plan shall include a calculation of the difference between the prior plan year’s actual plan expenditures and the prior plan year’s applicable funding required by statute.

(5) In each plan year, a public utility shall make its best efforts to expend its approved triennial plan funding while seeking to maximize cost-effective energy efficiency and load management.

(a) A public utility may periodically adjust its plan year expenditures by an amount not greater than ten percent of the approved funding level if the adjustment will result in aligning plan year expenditures more closely with projected plan year collections.

(b) A public utility may seek approval, by motion in its most recent triennial plan approval docket, to adjust its plan year expenditures by more than ten percent of the approved funding level.

(6) The public utility shall utilize well known, commercially available, or standard engineering, economic and financial calculations, ratings, and simulations, or other reasonable methods, to determine monetary costs and avoided monetary costs at the portfolio and program levels.

D. A triennial plan shall include an executive summary.

E. For each proposed measure or program, including a previously approved measure or program submitted for reauthorization, a triennial plan shall contain:

(1) a detailed description of the measure or program;

(2) the expected useful life of the measure or program;

(3) any participation requirements and restrictions of the measure or program;

(4) the time period during which the measure or program will be offered;

(5) a description of any competitive bid process for the measure or program;

(6) the estimated number of measure or program participants, supported by testimony and exhibits;

(7) the estimated economic benefit to participants attributable to the measure or program, supported by testimony and exhibits;

(8) the estimated annual energy savings for, and the estimated energy savings over the useful life of, program, supported by written testimony and exhibits, expressed in:

(a) kilowatt hours and dollars for electric utilities; and

(b) therms and dollars for gas utilities;

(9) the estimated annual demand savings for, and the estimated demand savings over the useful life of, the measure or program, expressed in kilowatts and dollars, supported by testimony and exhibits;

(10) a detailed budget that identifies the estimated monetary program costs to be incurred by the public utility in acquiring, developing, and operating each measure or program on a life-cycle basis and for each year of the expected useful life of the measure or program;

(11) the estimated monetary program costs to be incurred by the public utility in acquiring, developing, and operating each measure or program on a life-cycle basis, supported by testimony and exhibits that:

(a) demonstrate and justify how the estimated monetary program costs will be equal to or greater than the actual monetary program costs; and

(b) explain the public utility’s rationale and methodology used to determine the estimated monetary program costs;

(12) the estimated avoided monetary cost associated with developing, acquiring, and operating associated supply side resources, supported by testimony and exhibits that:

(a) demonstrate and justify how the estimated avoided monetary costs will be equal to or greater than the actual avoided monetary costs; and

(b) explain the public utility’s rationale and methodology used to estimate the avoided monetary cost associated with acquiring, developing, and operating the associated supply side resource; and

(13) supporting documentation, underlying data, calculations, estimates, and other items, presented in a manner that facilitates the preparation of a measurement and verification report by an independent program evaluator, along with compilation and preparation of the public utility’s reporting requirements that facilitates a simple comparison of estimated results to actual results, including the public utility’s cost of capital and discount rate.

F. A triennial plan shall include an evaluation and determination that it will reduce energy usage, energy demand, or both.

G. A triennial plan shall include an analysis showing that the portfolio is cost-effective by meeting the utility cost test and is designed to provide every affected customer class with the opportunity to participate and benefit economically.

H. A public utility may request approval of an annual incentive award in its application requesting approval of a triennial plan. An annual incentive award shall:

(1) be based on the utility’s costs or net benefits;

(2) be based on satisfactory performance of the triennial plan in a given plan year, which may be shown by the utility meeting or exceeding the energy savings requirements of this rule;

(3) be supported by testimony and exhibits; and

(4) not exceed the product (expressed in dollars) of:

(a) its weighted cost of capital (expressed as a percent) plus two percent, and

(b) its approved plan year funding.

I. For each approved large customer self-directed program, the utility’s triennial plan shall describe the process that enabled the utility to determine that a large customer self-directed program met the cost-effective definition set forth in Subsection B of Section 62-17-9 NMSA 1978 and merited the credit or exemption.

J. The commission shall act expeditiously on a request for approval of a triennial plan. If a public utility requests approval of a tariff rider simultaneously with its triennial plan, then the review procedures of 17.7.2.13 NMAC shall control.

History

17.7.2.8 NMAC - Rp, 17.7.2.8 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.9 Residential Programs

A. Energy efficiency and load management programs directed to residential customers shall enable residential customers or households to conserve energy, reduce demand, or reduce residential energy bills.

(1) A public utility may stack its incentives with other state or federal programs as available to make energy efficiency and load management more attractive to residential customers.

(2) A public utility shall not be penalized through the independent program evaluation process for stacking incentives or programs, such as receiving free-ridership penalties or less than full credit for energy efficiency.

B. A public utility shall direct at least ten percent of its plan year funding, during each year of the plan period, to programs for low-income customers.

(1) The commission may approve a public utility to deviate from the ten percent low-income spending requirement if the public utility’s portfolio is not cost-effective overall.

(2) A public utility may coordinate with existing community resources, including affordable housing programs, and low-income weatherization programs managed by other utilities and federal, state, county, or local governments. This section does not preclude the public utility from designing and proposing other low-income programs.

(3) A public utility shall prefer utilizing providers with experience in the effective design, administration, and provision of low-income energy efficiency and load management measures and programs, along with experience in identifying and conducting outreach to low-income households. In the absence of qualified providers, a public utility that does not provide measures or programs directly may solicit qualified competitive bids for these services.

(4) In developing the utility cost test for energy efficiency and load management directed to low-income customers, unless otherwise quantified in a commission proceeding, the public utility shall assume that twenty percent of the calculated energy savings is the reasonable value of:

(a) reductions in working capital;

(b) reduced collection costs;

(d) improved customer service effectiveness; and

(e) other appropriate factors qualifying as utility system economic benefits.

History

17.7.2.9 NMAC - Rp, 17.7.2.9 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.10 Self-Directed Program Credits for Large Customers

A. A large customer may be eligible to receive a credit equal to the expenditures that the large customer makes at its facilities toward cost-effective energy efficiency and load management projects.

(1) A large customer’s expenditures shall meet the utility cost test as a condition to receiving approval for a credit.

(2) The credit may be used to offset up to seventy percent of an energy efficiency tariff rider.

(3) Eligible expenditures shall have a simple payback period of more than one year but less than seven years.

(4) Projects that have received rebates, financial support, or other substantial program support from a utility are not eligible for a credit.

(5) Any credit not fully utilized in the year it is received shall carry over to subsequent years.

B. Large customers shall seek and receive approval for credits from the utility or a commission-approved self-direct administrator.

C. Large customers applying for an investor-owned electric utility bill credit shall meet the electricity consumption size criteria set forth in Subsection G of Section 62-17-4 NMSA 1978 and the utility cost test.

D. Large customers applying for gas utility bill credit shall meet the gas consumption criteria as set forth in Subsection G of Section 62-17-4 NMSA 1978 and the utility cost test.

E. Large customers seeking a credit shall provide, to the public utility or the commission-approved self-direct program administrator, access to all relevant engineering studies and documentation needed to verify energy savings of a project, and allow access to its site for reasonable inspections at reasonable times. All records relevant to a self-directed program shall be maintained by the large customer for the duration of the program, and evaluated in accordance with this rule, subject to appropriate protections for confidentiality.

F. The utility shall designate a qualified representative to review, and approve or disapprove, requests for credits.

G. The commission may appoint a program administrator to review, and approve or disapprove, requests for credits.

H. Approvals or disapprovals by the utility representative or administrator shall be subject to commission review.

(1) Within 30 business days, the utility representative or administrator shall file each self-directed program review, approval, or disapproval with the commission, and serve notice on all interested parties.

(2) Notice of an appeal of a utility or administrator approval or disapproval of a large customer credit request shall be filed with the commission within 30 calendar days of the approval or disapproval action.

I. Implementation of credits shall be designed to minimize utility administrative costs.

J. Self-directed program participants, or large customers seeking exemption, shall submit qualified in-house or contracted engineering studies, and such other information as may be reasonably required by the utility or program administrator, to demonstrate qualification for self-directed program credits.

K. The public utility or administrator shall act expeditiously on requests for self-direct program approval.

L. For investor-owned electric utilities, the equivalent amount of energy savings associated with a large customer’s self-directed program shall be accounted for in calculating its compliance with minimum required energy savings.

M. Credit eligibility:

(1). Large customer expenditures incurred to produce electric energy savings or electric demand savings are only eligible for an electric utility bill credit.

(2) Large customer expenditures incurred to produce natural gas energy savings or natural gas demand savings are only eligible for a gas utility bill credit.

(3) Large customer expenditures incurred to produce electric and natural gas energy savings, electric and natural gas demand savings, or any combination of energy savings and demand savings for both electric and natural gas, are eligible for an electricity bill credit and a gas utility bill credit, provided that the same energy efficiency expenditures or load management expenditures shall not be double counted.

History

17.7.2.10 NMAC - Rp, 17.7.2.10 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.11 Self-Directed Program Exemptions for Large Customers

A. To receive approval for an exemption to paying seventy percent of the tariff rider, a large customer shall demonstrate, to the reasonable satisfaction of the public utility or self-directed program administrator, that it has exhausted all cost-effective energy efficiency and load management projects at its facilities.

(1) Projects that have received rebates, financial support, or other program support from a utility are not eligible for an exemption.

(2) Eligible expenditures shall have a simple payback period of more than one year but less than seven years.

B. Large customers shall seek and receive approval for exemptions from the utility or a commission-approved self-direct administrator.

C. Large customers applying for an investor-owned electric utility bill exemption shall meet the electricity consumption size criterion set forth in Subsection G of Section 62-17-4 NMSA 1978.

D. Large customers applying for a gas utility bill exemption shall meet the gas consumption criterion set forth in Subsection G of Section 62-17-4 NMSA 1978.

E. The utility shall designate a qualified representative to review, and approve or disapprove, requests for exemptions.

F. The commission may appoint a program administrator to review, and approve or disapprove, requests for exemptions.

G. Approvals or disapprovals by the utility representative or administrator shall be subject to commission review.

(1) Within 30 business days , the utility representative or administrator shall file each self-directed program approval or disapproval with the commission, and serve notice on all interested parties.

(2) Notice of an appeal of a utility or administrator approval or disapproval of a large customer exemption request shall be filed with the commission within 30 calendar days of the approval or disapproval action.

H. Self-directed program participants, or large customers seeking an exemption shall provide, to the public utility or the commission approved self-direct program administrator, access to all relevant engineering studies and documentation needed to verify energy saving of a project, and allow access to its site for reasonable inspections, at reasonable times. All records relevant to a self-directed program shall be maintained by the large customer for the duration of the program, and evaluated in accordance with this rule, subject to appropriate protections for confidentiality.

I. Self-directed program participants, or large customers seeking exemption, shall submit qualified in-house or contracted engineering studies, and such other information as may be reasonably required by the utility or program administrator, to demonstrate qualification for self-directed program exemptions.

J. The utility or administrator shall act expeditiously on requests for self-direct program approval.

K. For investor-owned electric utilities, the equivalent amount of energy savings associated with a large customer’s self-directed program shall be accounted for in calculating its compliance with minimum required energy savings.

L. Credit eligibility:

(1) Large customer expenditures incurred to produce electric energy savings or electric demand savings are only eligible for an electric utility bill credit.

(2) Large customer expenditures incurred to produce natural gas energy savings or natural gas demand savings are only eligible for a gas utility bill credit.

(3) Large customer expenditures incurred to produce electric and natural gas energy savings, electric and natural gas demand savings, or any combination of energy savings and demand savings for electric and natural gas, are eligible for an electricity bill credit and a gas utility bill credit, provided that the same energy efficiency expenditures or load management expenditures shall not be double counted.

History

17.7.2.11 NMAC - Rp, 17.7.2.11 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.12 Modification or Termination

A. Within each plan year, the commission may, or any party may move the commission to, modify a program, terminate a program, or approve a new program.

(1) A motion to modify, terminate, or approve a program shall be filed in the public utility’s most recent triennial plan approval docket.

(2) The commission’s modification or termination of a program shall occur only after an adequate period of implementation has elapsed and the commission determines that the program is not sufficiently meeting its goals and purposes.

(3) Program modification or termination shall not nullify any preexisting obligations of the utility, alternative energy efficiency provider, or contractor for performance or failure to perform.

(4) Program termination shall be accomplished in a manner that allows the utility to fully recover its prudent and reasonable program costs.

B. Within each plan year, a public utility may modify, terminate, or add measures in its portfolio; modify customer incentive levels; or make other adjustments to an approved measure or program if necessary to maintain the overall success of the measure or program; so long as the portfolio remains cost-effective under the utility cost test.

History

17.7.2.12 NMAC - Rp, 17.7.2.12 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.13 Requirements for Cost Recovery

A. An electric utility shall only recover energy efficiency and load management costs from customer classes with an opportunity to participate in approved programs.

B. A public utility, at its option, may recover its prudent and reasonable program costs and approved incentives, either through an approved tariff rider, in base rates or a combination of both.

C. If a public utility seeks recovery of costs through a tariff rider, the utility shall file an advice notice and present the proposed ratemaking treatment to the commission for approval in its application for approval of its triennial plan.

(1) The public utility’s tariff rider ratemaking treatment proposal shall reconcile recovery of any costs currently being recovered through a tariff rider or in base rates, or by a combination of the two, as well as any new costs proposed to be recovered through a tariff rider or in base rates, or by a combination of the two.

(2) Unless otherwise ordered by the commission, the public utility shall:

(a) apply the tariff rider on a monthly basis; and

(b) include language on customer bills explaining program benefits.

D. If a public utility seeks base rate recovery of costs, the utility shall present the proposed ratemaking treatment to the commission for approval in a general rate case.

(1) The public utility’s base rate ratemaking treatment proposal shall reconcile recovery of any costs currently being recovered through a tariff rider or in base rates, or by a combination of the two, as well as any new costs proposed to be recovered through a tariff rider or in base rates, or by a combination of the two.

(2) The commission shall not reduce a public utility’s return on equity based on approval of profit incentives pursuant to the Efficient Use of Energy Act.

E. The commission may approve a public utility to defer program costs and incentives for future recovery through creation of a regulatory asset with carrying charges.

F. Commission review of tariff rider:

(1) A tariff rider proposed by a public utility to fund approved energy efficiency and load management costs shall go into effect 30 days after filing, unless suspended by the commission for a period not to exceed 180 days.

(2) If the tariff rider to fund approved programs is not approved or suspended within 30 days after filing, it shall be deemed approved.

(3) If the commission suspends the effective date of a tariff rider to fund approved programs, but the commission does not act to approve or disapprove the tariff rider by the end of the suspension period, the tariff rider shall be deemed approved.

(4) The commission shall act expeditiously on a public utility’s request for approval of a tariff rider to fund new programs.

(5) Annual reconciliation:

(a) A public utility shall annually reconcile its approved tariff rider, accounting for any plan year overage or underage.

(b) The public utility shall include its reconciliation in the public utility’s annual report, supported by appropriate exhibits, workpapers, or other documentation necessary to understand the reconciliation.

(c) Commission staff shall evaluate the public utility’s tariff rider reconciliation upon filing and notify the commission if staff identifies any issues or proposes any corrective instructions.

(d) If the commission does not act to approve or disapprove, with corrective instructions, a reconciliation within 30 days, it shall be deemed approved.

(c) If a public utility’s annual reconciliation would result in changes to the utility’s tariff if approved, the annual reconciliation shall additionally be filed as an advice notice.

G. Funding for the services of an independent program evaluator shall be paid by the public utility and treated as a regulatory asset to be recovered through rates established in the public utility’s next general rate proceeding.

History

17.7.2.13 NMAC - Rp, 17.7.2.13 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.14 Annual Report

A. A public utility shall file a report annually detailing its actions taken to comply with and fulfill the Efficient Use of Energy Act, this Rule, and its triennial plan approved for the reported year.

(1) The public utility shall file its annual report on the calendar date anniversary of the filing of its triennial plan in each plan year of the plan period.

(2) The public utility shall file its annual report in the docket associated with the triennial plan covering the plan year subject of the report.

(3) The public utility shall make its annual report publicly accessible on its website.

B. A public utility shall include the following information for each program in its annual report:

(1) documentation of expenditures in the reported plan year, and estimates of expenditures expected in the next plan year, including documentation of any adjustments to expenditures in the reported plan year and expected adjustments to the next plan year;

(2) estimated and actual customer participation levels for the reported plan year;

(3) estimated and actual energy savings for the reported plan year;

(4) estimated and actual demand savings for the reported plan year;

(5) estimated and actual monetary costs for the reported plan year;

(6) estimated and actual avoided monetary costs for the reported plan year;

(7) an evaluation of its cost-effectiveness;

(8) for a self-directed program, an evaluation of its cost-effectiveness and pay-back period; and

(9) a comparison of estimated energy savings, demand savings, monetary costs and avoided monetary costs to actual energy savings, demand savings, actual monetary costs, and avoided monetary costs by year.

C. A public utility shall also include the following information in its annual report:

(1) the most recent measurement and verification report of the independent evaluator;

(2) a listing of each program expenditure not covered by the independent measurement and verification report and related justification as to why the evaluation was not performed;

(3) a listing of the total number of triennial plan participants served by year;

(4) the total number of customers applying for and participating in self-directed programs;

(5) the total number of customers applying for and receiving self-directed program exemptions;

(6) measurement and verification of self-directed program targets,

(7) self-directed program payback periods and achievements;

(8) self-directed program customer expenditures on qualifying projects;

(9) self-directed program oversight expenses incurred by the utility representative or administrator;

(10) if unable to comply, an explanation of why the public utility cannot achieve the minimum requirements of 17.7.2.19 NMAC, and a proposal for alternative requirements for acquiring cost-effective and achievable energy efficiency and load management;

(11) a reconciliation of the public utility’s commission-approved tariff rider;

(12) a calculation of any plan year overage or underage; and

(13) any other information that may be required by the commission.

History

17.7.2.14 NMAC - Rp, 17.7.2.14 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.15 Measurement and Verification

A. Every energy efficiency and load management program shall be independently evaluated at least every three years.

B. A public utility shall submit to the commission with its annual report for that year, a comprehensive measurement, verification, and program evaluation report prepared by an independent program evaluator.

(1) Commission staff shall select and direct an independent program evaluator to prepare and submit a comprehensive measurement, verification, and program evaluation report to the commission.

(2) Commission staff shall:

(a) undertake a competitive bid process and abide by State purchasing rules and commission policies in selecting an independent program evaluator;

(b) develop an RFP, including the scope, terms of work, and evaluation process to score the RFP responses;

(d) rank and recommend competitive qualified bidders to the commission;

(e) negotiate a contract with the competitive bidder who is awarded the bid; and

(f) administer the contract, including:

(i) confirming that contract deliverables are met;

(ii) reviewing invoices and related contract performance; and

(iii) approving utility invoices after review.

(3) Commission staff shall consult with the public utility and other interested stakeholders in the selection of the independent program evaluator.

C. An independent program evaluator shall:

(1) measure and verify energy and demand savings;

(2) determine program cost-effectiveness by utilizing the data contained in the utility’s approved triennial plan;

(3) assess the public utility’s performance in implementing its triennial plan;

(4) assess whether the utility has complied with its requirements under the Efficient Use of Energy Act and this rule, and whether it has operated in good faith;

(5) provide recommended improvements for program performance;

(6) confirm that programs were implemented, meet reasonable quality standards, and are operating fully and correctly;

(7) utilize applicable international performance measurement and verification protocols, describe any deviation from those protocols, and explain the reason for such deviation;

(8) evaluate self-directed programs, expenditures, credits, and exemptions using the same measurement and verification standards applied to utility measures and programs by the utility or commission-approved self-directed program administrator; and

(9) fulfill any other measurement and verification duties required by law.

D. The independent program evaluator shall provide all information and documentation at the portfolio and program levels, and all assumptions utilized in its evaluation.

E. The public utility shall cooperate with the independent program evaluator and commission staff in making information and personnel available to facilitate the independent program evaluator’s report.

F. Upon written request by a large customer, the information provided by the large customer to the utility or program administrator, independent program evaluator, or others, shall remain confidential except as otherwise ordered by the commission.

G. The independent evaluation process, including net-to-gross and free-ridership calculations, should be independent of other state and federal incentives as to not penalize a public utility for stacking incentives or programs.

History

17.7.2.15 NMAC - Rp, 17.7.2.15 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.16 Distribution Cooperatives

A. Every 24 months, a distribution cooperative utility shall examine the potential to assist its customers in reducing energy consumption or peak electricity demand in a cost-effective manner.

(1) Based on these studies, a distribution cooperative utility shall establish or update energy efficiency and load management savings targets, and it shall implement or update cost-effective energy efficiency and load management programs that are economically feasible and practical for its members and customers.

(2) The governing body of the distribution cooperative utility, rather than the commission, shall have the authority to approve or deny energy efficiency and load management savings targets and programs.

(3) In offering or implementing energy efficiency, conservation or load management programs, a distribution cooperative utility shall attempt to minimize any cross-subsidies between customer classes.

B. A distribution cooperative utility shall file a report by May 1st annually, describing all of its programs or measures that promote energy efficiency, conservation, or load management.

(1) The report shall set forth the costs of each measure or program for the previous calendar year and the resulting effect on electricity consumption.

(2) The report shall include a description of all planned programs or measures to promote energy efficiency, conservation, or load management, and the planned implementation dates.

C. Costs resulting from programs or measures to promote energy efficiency, conservation, or load management may be recovered by the distribution cooperative utility through its general rates. In requesting approval to recover such costs in general rates, the distribution cooperative utility may elect to use the procedure set forth in Subsection G of Section 62-8-7 NMSA 1978.

History

17.7.2.16 NMAC - Rp, 17.7.2.16 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.17 Audit

A. The commission may audit a public utility to examine whether the public utility’s triennial plan costs are prudent, reasonable, and properly assigned to programs in accordance with the Efficient Use of Energy Act, this rule, commission orders, and other applicable requirements and standards.

B. The cost of an audit may be considered a recoverable program cost unless it results in a commission finding of the public utility’s malfeasance or misfeasance; in which case, audit costs may not be recoverable from the public utility’s customers.

History

17.7.2.17 NMAC - Rp, 17.7.2.18 NMAC, 8/26/2025

N.M. Admin. Code § 17.7.2.18 Energy Savings Targets for Electric Utilities

A. A public utility providing electricity service to New Mexico customers shall acquire or implement, over plan years 2026-2030, a portfolio of cost-effective and achievable energy efficiency and load management available in its service territory that shall produce a savings, by plan year 2030, of at least five percent of its 2025 total retail kilowatt-hour sales to New Mexico customer classes that had the opportunity to participate.

B. If the commission determines, after public hearing on an electric utility’s triennial plan, that the minimum requirements of this section exceed the achievable amount of energy savings available to the electric utility, or that the costs to achieve the minimum requirements of this section are neither prudent nor reasonable, the commission shall establish lower minimum energy savings requirements for the utility based on the maximum amount of energy savings that the commission determines may be achievable for the utility.

C. The commission-provided incentives for an electric utility’s compliance with this section shall be the same as that which the commission provides for a triennial plan pursuant to Subsection H of 17.7.2.8 NMAC.

History

17.7.2.18 NMAC - N, 8/26/2025

N.M. Admin. Code § 17.7.2.19 Decoupling

A. A public utility may petition the commission for approval of a decoupling rate adjustment mechanism.

(1) A public utility shall separately calculate regulatory disincentives removed through a rate adjustment mechanism for the rate class or classes to which the mechanism applies.

(2) A public utility shall collect or refund regulatory disincentives removed through a rate adjustment mechanism through a separate tariff rider than that for which the commission approved the public utility to collect triennial plan costs and incentives.

(3) A public utility’s petition shall be included in a general rate case filing.

B. Burden of proof:

(1) The public utility petitioner shall bear the burden to prove that the proposed decoupling rate adjustment mechanism will result in just and reasonable rates.

(2) The public utility petitioner shall bear the burden to prove that rate regulation has created regulatory disincentives or barriers to the utility’s expenditures on energy efficiency and load management that will be alleviated through the adoption of a decoupling rate adjustment mechanism.

(3) The public utility petitioner shall bear the burden to prove that the proposed decoupling rate adjustment mechanism will remove regulatory disincentives or barriers for public utility expenditures on energy efficiency and load management.

(4) The public utility petitioner may not prove its need for a decoupling rate adjustment mechanism by citing revenue losses resulting from business risks or other factors not specified in this rule.

C. Commission review:

(1) The commission shall review the public utility’s petition to ensure that the decoupling rate adjustment mechanism balances the interests of the public, consumers, and investors, and results in just and reasonable rates.

(2) The commission shall approve a public utility’s petition for a decoupling rate adjustment mechanism unless the commission finds it to be unjust or unreasonable. If the commission finds the petition to be unjust or unreasonable, the commission may:

(a) modify the proposed decoupling rate adjustment mechanism; or

(b) deny the petition pursuant to Subsection D of Section 62-8-7 NMSA 1978.

(2) The commission shall not reduce a public utility’s return on equity based on approval of a decoupling rate adjustment mechanism.

D. A public utility that receives commission approval for a decoupling rate adjustment mechanism:

(1) shall be eligible to earn an increased annual incentive award capped at fifteen percent of its approved plan year funding pursuant to Subsection H of 17.7.2.8 NMAC; and

(2) may seek a variance from the plan year funding requirements of Paragraphs (2) and (3) of Subsection C of 17.7.2.8 NMAC.

HISTORY OF 17.7.2 NMAC:

Pre NMAC History: none.

History of Repealed Material:

17.7.2 NMAC, Energy Efficiency (filed 2/2/2007), repealed 5/3/2010.

17.7.2 NMAC, Energy Efficiency (filed 4/16/2010), repealed 1/1/2015.

17.7.2 NMAC, Energy Efficiency, filed (04/16/2010) - Repealed effective 9/26/2017.

17.7.2 NMAC, Energy Efficiency, filed (9/14/2017) - Repealed effective 8/26/2025.

NMAC History:

17.7.2 NMAC, Energy Efficiency (filed 2/2/2007) was replaced by 17.7.2 NMAC, Energy Efficiency, effective 5/3/2010.

17.7.2 NMAC, Energy Efficiency, (filed 04/16/2010) was replaced by 17.7.2 NMAC, Energy Efficiency, effective 9/26/2017. 17.7.2 NMAC, Energy Efficiency, (filed 9/14/2017) was replaced by 17.7.2 NMAC, Energy Efficiency, effective 8/26/2025.

History

17.7.2.19 NMAC - N, 8/26/2025

Part 3 Integrated Resource Plans for Electric Utilities

N.M. Admin. Code § 17.7.3.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.7.3.1 NMAC - Rp, 17.7.3.1 NMAC, 10/27/2022

N.M. Admin. Code § 17.7.3.2 Scope

A. This rule applies to all electric utilities subject to the commission’s jurisdiction over integrated resource planning.

B. Impact on other rules: Except as specifically provided herein, this rule does not supersede any other rule of the commission but is to be construed as a supplement to such rules.

C. Severability: If any part or application of this rule is held invalid, the remainder of its application shall not be affected.

History

17.7.3.2 NMAC - Rp, 17.7.3.2 NMAC, 10/27/2022

N.M. Admin. Code § 17.7.3.3 Statutory Authority

This rule is adopted under the authority vested in this commission by the New Mexico Constitution, Article XI, Section 2; the Public Regulation Commission Act, Paragraph (10) of Subsection B of Section 8-8-4 NMSA 1978 and Section 8-8-15 NMSA 1978; the Public Utility Act, Section 62-3-1 NMSA 1978, et seq., Section 62-3-2 NMSA 1978, Subsection H of Section 62-3-3 NMSA 1978, Section 62-6-4 NMSA 1978, Section 62-8-1 NMSA 1978, and Section 62-8-13 NMSA 1978; the Efficient Use of Energy Act, Section 62-17-1 NMSA 1978, et seq., and Section 62-17-10 NMSA 1978; the Renewable Energy Act, Section 62-16-1 NMSA 1978, et seq.; the Energy Transition Act, 62-18-1 NMSA 1978, et seq.; the grid modernization statute, Section 62-8-13 NMSA 1978; and the Community Solar Act, Section 62-16B-1 NMSA 1978, et seq.

History

17.7.3.3 NMAC - Rp, 17.7.3.3 NMAC, 10/27/2022

N.M. Admin. Code § 17.7.3.4 Duration

Permanent.

History

17.7.3.4 NMAC - Rp, 17.7.3.4 NMAC, 10/27/2022

N.M. Admin. Code § 17.7.3.5 Effective Date

October 27, 2022, unless a later date is cited at the end of a section.

History

17.7.3.5 NMAC - Rp, 17.7.3.5 NMAC, 10/27/2022

N.M. Admin. Code § 17.7.3.6 Objective

A. The objective of this rule is to set forth the commission’s requirements for the preparation, filing, review, and acceptance of integrated resource plans by public utilities supplying electric service in New Mexico in order to identify the most cost-effective portfolio of resources to supply the energy needs of customers. This rule regulates utility integrated resource planning and procurement consistent with the commission’s statutory obligations to ensure fair, just, and reasonable rates.

B. This rule serves the commission’s objectives of increasing transparency, involving stakeholder participation early in the process, and tying the IRP outcome directly to the procurement process.

C. To assist utilities in identifying the most cost-effective portfolio, this rule establishes a transparent, competitive format for analyzing alternative resource portfolio plans.

D. This format promotes fair and robust competition in selection of resources to ensure consistency, efficiency, and harmony with the integrated resource planning and procurement process.

(1) In proposing cost-effective resources, utilities shall prioritize those that best comply with the state’s requirements for reducing greenhouse gas emissions, fostering equitable clean energy development, and grid modernization.

(2) Utilities shall consider the following resources, including but not limited to: distributed energy resources, demand response, energy efficiency, renewable energy, flexible generation, low-emission or zero carbon resources, energy storage systems, and transmission and distribution grid improvements.

History

17.7.3.6 NMAC - Rp, 17.7.3.6 NMAC, 10/27/2022

N.M. Admin. Code § 17.7.3.7 Definitions

When used in this rule, unless otherwise specified the following definitions shall apply:

A. Definitions beginning with “A”:

(1) action plan means the proposed process and specific actions the utility shall carry out to implement the integrated resource plan spanning a three year period following the filing of the utility’s integrated resource plan;

(2) availability factor means the ratio of the time a generating facility is available to produce energy at its rated capacity to the total amount of time in the period being measured;

B. Definitions beginning with “B”: [RESERVED]

C. Definitions beginning with “C”: capacity factor means the ratio of the net energy produced by a generating facility during a given time period to the amount of net energy that could have been produced if the facility operated continuously at full capacity during that same time period;

D. Definitions beginning with “D”:

(1) demand response means a form of load management that involves changes in electric usage by end-use customers from their normal consumption patterns, either in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized;

(2) demand-side resource means storage, responsive distributed generation, and loads engaged in demand response programs that can support the grid by responding to market signals or direct load control;

(3) derating means a temporary or permanent reduction in the expected power output of a generating facility;

(4) distributed energy resource (DER) means the equipment used by an interconnection customer to generate, store, or generate and store electricity that operates in parallel with the electric distribution system.

(a) DER may include, but is not limited to: an electric generator with or without an energy storage system, a prime mover, or combination of technologies capable of injecting power and energy into the electric distribution system, which also includes the interconnection equipment necessary to safely interconnect with the distribution system;

(b) DER may not always be interconnected with the bulk power system;

(c) DER may include distributed generation resources, distributed energy storage, demand response energy efficiency, and electric vehicles and chargers that are connected to the electric distribution power grid;

(e) DER may be capable of exporting active power to an electric power system;

(f) DER includes the customer’s interconnection facilities but shall not include the area electric power system operator’s interconnection facilities.

E. Definitions beginning with “E”:

(1) emergency procurement means a utility’s procurement to address a system-based emergency condition including a serious threat to public health, welfare, safety, or property caused by a flood, fire, epidemic, riot, act of terrorism, equipment failure, or similar event.

(2) energy efficiency means measures, including energy conservation measures, or programs that target consumer behavior, equipment, or devices, to result in a decrease in consumption of electricity without reducing the quantity or quality of energy services;

(3) energy storage resource means a commercially available technology that is capable of absorbing energy, storing it for a period of time, and thereafter delivering the energy.

(a) specifically, it means a commercially available technology that:

(I) uses mechanical, chemical, or thermal processes to:

(ii) store energy, including energy generated from renewable energy resources and energy that would otherwise be wasted, and deliver the stored energy for use at a later time; or

(iii) store thermal energy for direct use for heating or cooling at a later time in a manner that reduces the demand for electricity at the later time;

(iv) is composed of stationary equipment;

(v) if being used for electric grid benefits, is operationally visible and capable of being controlled by the distribution or transmission entity managing it, to enable and optimize the safe and reliable operation of the electric system; and

(b) achieves any of the following:

(a) reduces peak electrical demand;

(b) defers the need, or substitutes for, an investment in electric generation, transmission, or distribution assets;

(d) lowers customer costs by storing energy when the cost of generating or purchasing it is low and delivering it to customers when the costs are high.

F. Definitions beginning with “F”:

(1) facilitated stakeholder process means the statutory public advisory process pursuant to Section 62-17-10 NMSA 1978, conducted by a commission appointee to facilitate advisory discussions among stakeholders, including members of the public, to advise the public utility and reach potential agreement in the utility’s development of its statement of need and action plan;

(2) flexibility means the ability of a power system or resource to timely respond as needed to changes in supply and demand through deployment or curtailment of resources by system managers or other control methods, to maintain a balanced load, and to compensate for the variability of renewable energy resources;

(3) flexible generation means generation resources that can start, ramp up, and ramp down quickly and efficiently, can be dispatched, and run at low output levels, and can serve frequency response and ancillary service needs, as needed;

G. Definitions beginning with “G”: [RESERVED]

H. Definitions beginning with “H”: heat rate means the ratio of energy inputs used by a generating facility expressed in British thermal units, to the energy output of that facility expressed in kilowatt-hours;

I. Definitions beginning with “I”:

(1) integrated resource plan (IRP) means a public utility’s plan to meet New Mexico jurisdictional retail customers’ existing and future demand in accordance with this rule and applicable state policies.

(a) specifically, it means a set of resource options that a utility could use to meet the service needs of its customers over a forecast period, including an explanation of the supply and demand circumstances under which, and the extent to which, each resource option would be used to meet those service needs.

(b) these resource options include, but are not limited to, using, refurbishing, and constructing utility plant and equipment, buying power generated by other entities, controlling customer loads, and implementing customer energy conservation;

(2) independent monitor (IM) means a person or entity appointed by the commission to oversee the conduct of a utility’s competitive procurement process as addressed in this rule. The IM shall report to the commission regarding the utility’s conformance with the most recently accepted statement of need and action plan and the sufficiency, reasonableness, competitive fairness, and completeness of that process;

J. Definitions beginning with “J”: [RESERVED]

K. Definitions beginning with “K”: [RESERVED]

L. Definitions beginning with “L”:

(1) load forecasting means the prediction of the demand for electricity and energy over the planning period for the utility;

(2) load management means measures or programs that target equipment or devices to decrease peak electricity demand or shift demand from peak to off-peak periods;

M. Definitions beginning with “M”: most cost-effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations;

N. Definitions beginning with “N”:

(1) net capacity means the amount of flexible capacity necessary to supply instantaneous demand over and above the available capacity from variable energy resources, including wind and solar generation;

(2) net load means the difference between forecasted load and expected electricity production from variable generation resources;

O. Definitions beginning with “O”: [RESERVED]

P. Definitions beginning with “P”:

(1) planning period means the future period for which a utility develops its IRP, which, for purposes of this rule, is 20 years;

(2) public utility or utility has the same meaning as in the Public Utility Act, except that it does not include a distribution cooperative utility as defined in the Efficient Use of Energy Act.

Q. Definitions beginning with “Q”: [RESERVED]

R. Definitions beginning with “R”:

(1) regional energy market means an organized interstate market for energy, ancillary services, or capacity, operated by an independent entity (independent system operator or regional transmission operator) subject to regulatory authority of the Federal energy regulatory commission;

(2) renewable energy means electrical energy generated by use of renewable energy resources and delivered to a public utility;

(3) renewable energy resource means the following energy resources, with or without energy storage:

(a) solar, wind and geothermal;

(b) hydropower facilities brought in service on or after July 1, 2007;

(c) biomass resources, limited to agriculture or animal waste, small diameter timber, not to exceed eight inches, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds in New Mexico; provided that these resources are from facilities certified by the energy, minerals and natural resources department to:

(i) be of appropriate scale to have sustainable feedstock in the near vicinity;

(ii) have zero life cycle carbon emissions; and

(iii) meet scientifically determined restoration, sustainability and soil nutrient principles;

(d) fuel cells that do not use fossil fuels to create electricity; and

(e) landfill gas and anaerobically digested waste biogas; and

S. Definitions beginning with “S”: statement of need means a description and explanation of the amount and type of new resources, expressed in terms of energy or capacity, necessary to reliably meet an identified level of electricity demand in the planning horizon and to effect state policies.

T. Definitions beginning with “T”: [RESERVED]

U. Definitions beginning with “U”: [RESERVED]

V. Definitions beginning with “V”: [RESERVED]

W. Definitions beginning with “W”: [RESERVED]

X. Definitions beginning with “X”: [RESERVED]

Y. Definitions beginning with “Y”: [RESERVED]

Z. Definitions beginning with “Z”: [RESERVED]

History

17.7.3.7 NMAC - Rp, 17.7.3.7 NMAC, 10/27/2022

N.M. Admin. Code § 17.7.3.8 Integrated Resource Plans for Electric Utilities

A. A public utility supplying electric service to customers shall file with the commission every three years a proposed integrated resource plan (IRP) to meet the service needs of its customers over the planning period. The plan shall show the resource options the utility intends to use to meet those needs. The plan shall also specify how the implementation and use of those resource options would vary with changes in supply and demand. The utility is only required to identify a resource option type, unless a commitment to a specific resource exists at the time of the filing. The utility shall also discuss any plans to reduce emissions from existing resources through sales, leases, deratings, or retirements.

B. The IRP submitted to the commission by an electric utility shall contain the utility’s New Mexico jurisdictional information as follows:

(1) description of existing resources, see Appendix A;

(2) current load forecast, see Appendix A;

(3) load and resources table, see Appendix A;

(4) new load and facilities arising from special service agreements, economic development projects, and affiliate transactions;

(5) identification of resource options, see Appendix A;

(6) statement of need, see 17.7.3.10 NMAC;

(7) determination of the resource portfolio, see Appendix A; and

(8) action plan, see 17.7.3.11 NMAC.

C. The utilities shall file their IRP on a staggered schedule, as follows:

(1) Public service company of New Mexico shall file an IRP pursuant to 17.7.3.8 NMAC on or before September 1, 2023.

(2) Southwestern public service company shall file an IRP pursuant to 17.7.3.8 NMAC on or before September 1, 2024.

(3) El Paso electric company shall file an IRP pursuant to 17.7.3.8 NMAC on or before September 1, 2025.

D. A multi-jurisdictional utility shall include in its IRP a description of its resource planning requirements in the other state(s) where it operates, and a description of how it is coordinating the IRP with its out-of-state resource planning requirements.

E. The utility shall promptly notify the commission and participants of material events that would have the effect of changing the statement of need or action plan had those events been recognized when the statement of need or action plan was accepted.

(1) The utility shall, within two weeks of knowledge of the material event or events, submit a filing in its most recent IRP docket detailing the material events and options being considered as proposed modifications to the accepted action plan.

(2) This notice shall occur prior to the development of any proposed action plan modifications to ensure that the commission has advance notice. The utility shall serve the filing on everyone on the service list as well as each commissioner.

(3) The utility bears the burden of explaining why the events qualify as material and whether it shall file a variance, pursuant to 1.2.2.40 NMAC or 17.7.3.17 NMAC, from the accepted statement of need or action plan.

History

17.7.3.8 NMAC - Rp, 17.7.3.9 NMAC, 10/27/2022

N.M. Admin. Code § 17.7.3.9 Facilitated Stakeholder Process; Irp Process

A. At least six months prior to the filing of its IRP, the utility shall notify the commission, members of the public, the New Mexico attorney general, and all parties to its most recent base rate case and most recent IRP case of its intent to file an IRP. The commission, upon notification, shall initiate a facilitated process for the utility, commission utility division staff, and stakeholders to reach a potential agreement on a proposed statement of need pursuant to 17.7.3.10 NMAC and an action plan pursuant to 17.7.3.11 NMAC. The commission, aside from utility division staff and the appointed facilitator, shall not participate in the facilitated stakeholder process.

(1) The utility shall provide commission utility division staff and stakeholders who have signed a confidentiality agreement reasonable access to the same modeling software used by the utility on equal footing as the utility, and shall perform a reasonable number of modeling runs per staff or a stakeholder, if requested by staff or a stakeholder, in accordance with commission precedent, and the utility shall share all modeling information.

(2) Nothing in this Section shall preclude commission utility division staff from providing an analysis based on an alternative, open-source modeling software.

B. In selecting the facilitator, the commission, through its designee, may solicit recommendations of the names of independent firms or individuals that demonstrate independence from public utilities supplying electric service in the state, their affiliates, and likely bidders, and demonstrate the qualifications, expertise, and experience to perform the functions of a facilitator as provided in this rule. The commission shall comply with the New Mexico procurement code in its solicitation of a facilitator.

(1) The facilitator shall provide a statement of interest to the commission which discloses any contracts or other economic arrangements of any kind between the facilitator and any investor-owned electric utility or affiliate within the last four years.

(2) The facilitator shall notify the commission and utility of any perceived or actual conflicts that arise during the course of the facilitation process.

C. The commission, through its designee, shall develop a standard form of contract between the facilitator and the commission that requires the facilitator, in consultation with the utility, to issue notice of facilitated stakeholder meetings, and to host and moderate facilitated stakeholder meetings, including but not limited to, preparing the agenda, and acting as the coordinator between the utility’s presentation and the stakeholders’ questions and comments.

D. Funding for the services of the facilitator shall be paid by the utility and treated as a regulatory asset to be recovered through rates established in the utility’s next general rate proceeding.

E. Not later than six months after the facilitated stakeholder process commences, the utility shall file the IRP with the commission, explaining all resolved and unresolved issues resulting from the facilitated process.

(1) Written public comments may be filed within 30 days of the utility’s filing of the IRP.

(a) Written public comments may include the commenter’s own draft statement of need and action plan for commission review.

(b) Written public comments shall be made part of the utility’s IRP as addendums.

(2) The utility shall file, within 60 days of the utility’s filing of the IRP, a written response to all timely filed written public comments, stating whether it adopts any of the written comments as amending the IRP and the reasons why or why not.

(3) The commission’s utility division staff shall consider the filed written public comments and the utility’s written responses and shall file a statement with the commission within 90 days of utility’s filing of the IRP as to whether the statement of need and action plan comply with the policies and procedures of this rule.

(4) If the commission has not acted within 120 days of the filing of the IRP, the statement of need and action plan are deemed accepted as compliant with this rule. If the commission determines that the statement of need or action plan do not comply with the requirements of this rule, the commission shall identify the deficiencies and return it to the utility with instructions for re-filing.

History

17.7.3.9 NMAC - N, 10/27/2022; A, 11/29/2022

N.M. Admin. Code § 17.7.3.10 Statement of Need

A. The statement of need is a description and explanation of the amount and the types of new resources, including the technical characteristics of any proposed new resources, to be procured, expressed in terms of energy or capacity, necessary to reliably meet an identified level of electricity demand in the planning horizon and to effect state policies.

B. The statement of need shall not solely be based on projections of peak load. The need may be attributed to, but not limited by, incremental load growth, renewable energy customer programs, or replacement of existing resources, and may be defined in terms of meeting net capacity, providing reliability reserves, securing flexible resources, securing demand-side resources, securing renewable energy, expanding or modifying transmission or distribution grids, or securing energy storage as required to comply with resource requirements established by statute or commission decisions.

History

17.7.3.10 NMAC - N, 10/27/2022; A, 11/29/2022

N.M. Admin. Code § 17.7.3.11 Action Plan

A. The utility’s action plan shall:

(1) detail the specific actions the utility shall take to implement the IRP spanning a three year period following the filing of the utility’s IRP;

(2) detail the specific actions the utility shall take to develop any resource solicitations or contracting activities to fulfill the statement of need as accepted by the commission; and

(3) include a status report of the specific actions contained in the previous action plan.

B. The utility shall update the commission by filing two reports describing the utility’s implementation of the action plan. These reports shall be filed in the existing IRP docket one year after the filing of the IRP, and two years after the filing of the IRP, respectively.

C. An action plan does not replace or supplant any requirements for applications for approval of resource additions set forth in New Mexico law or commission regulations.

D. The utility shall promptly notify the commission and participants of material events that would have the effect of changing the results of the utility’s action plan had those events been recognized when the action plan was developed.

E. In accepting the action plan, the commission shall take into consideration contractual obligations as between the utility and any regional transmission organizations or balancing authorities of which the utility is a member.

History

17.7.3.11 NMAC - N, 10/27/2022

N.M. Admin. Code § 17.7.3.12 Request for Proposals Process

A. Scope and purpose: Unless the commission grants a public utility’s variance application pursuant to 17.7.3.17 NMAC for a variance from Section 12 of this rule, the utility shall follow the request for proposals process to ensure cost competitiveness and fairness in procurement by comparing proposals among bidders through a transparently designed and monitored request for proposals.

B. To address the utility’s procurement need, if any, as described in the statement of need, and to fulfill the objectives of the utility’s action plan, the utility shall issue a request for proposals (RFP) in the current IRP docket, within five months of the commission’s acceptance of its statement of need and action plan.

C. Prior to the utility’s commencement of an RFP solicitation, the utility shall provide the commission, the IM, and parties to the utility’s pending IRP case with the documents and contracts that constitute the RFP solicitation (RFP documents) and a timeline for soliciting, accepting, and evaluating bids.

D. Within 21 days of receipt of the RFP documents, commissioners, commission utility division staff, and intervenors may submit comments to the utility, including on whether its proposed RFP conforms with its accepted statement of need and action plan and is not unduly discriminatory. Comments shall be considered, and may be incorporated, by the utility prior to the issuance of the RFP.

E. The utility may issue the RFP after comments are submitted on the independent monitor’s design report pursuant to Subsection I of 17.7.3.14 NMAC. The utility shall file a notice with the commission of any final changes to the RFP design upon issuance.

F. The proposed RFP(s) shall include:

(1) bid evaluation criteria;

(2) the overall amount and duration of power the utility is soliciting and any other details concerning its resource needs;

(3) a request for bidders’ reasonable estimates of any new transmission costs and transmission upgrade costs for resources, if known;

(4) the extent and degree to which resources shall be dispatchable, including the requirement, if necessary, that resources be able to operate under automatic dispatch control;

(5) the utility's proposed contract(s) for the acquisition of resources;

(6) proposed contract term lengths;

(7) the applicable discount rate;

(8) the timeline, including the solicitation period, the evaluation period, and the expected selection period;

(9) all security requirements and the rationale behind them; and

(10) any other information necessary to implement a competitive RFP process.

G. For a proposed RFP, each utility shall provide:

(1) a description of information that the utility claims is confidential;

(2) descriptions of proposed protection methods for:

(a) bid prices; and

(b) other bid details.

H. Not later than 120 days after the utility receives bids for its projected needs, the utility shall provide the IM with an evaluation of proposals that meet the above stated criteria, a detailed description of price and non-price criteria, its preferred portfolio of resources, along with a timeline for resource development.

I. The utility shall evaluate bids submitted in response to an RFP using the following price and non-price criteria:

(1) consistency with the terms and requirements of the Efficient Use of Energy Act and the Renewable Energy Act; and other public policies regarding resource preferences adopted by New Mexico or the federal government;

(2) cost of the resource that would be borne by ratepayers, described in terms of the net present value of capacity cost and lifetime cost of energy calculation;

(3) resource effect on system operations and reliability, credit, and financial risks to the utility;

(4) any risks imposed on ratepayers, including assessment of relative amounts of risk inherent among different technologies, fuel sources, or financing arrangements;

(5) environmental impacts including, but not limited to, those associated with resources that emit carbon dioxide or create long-term waste disposal issues;

(6) resource dispatchability and operational flexibility benefits or constraints;

(7) the utility shall include in its evaluation the estimated cost and environmental impact of transmission upgrades or distribution infrastructure upgrades necessary to deliver the project’s energy, capacity, or services;

(8) each bidder shall be responsible for all costs associated with interconnecting its project to the transmission grid or, if applicable, to local distribution facilities; and

(9) completeness and credibility of a detailed critical path schedule, and ability to meet scheduled construction start date and commercial operational date, including completing the interconnection process.

J. Additional criteria used by the utility for evaluation may not establish a preference for utility ownership or for projects proposed by a utility-affiliated company. The utility shall not unreasonably discriminate between proposals for a utility-owned or utility affiliate-owned resource and proposals for a resource owned by an independent power producer through a purchased power agreement.

K. The bid evaluation shall ensure that all bids are compared and evaluated on a consistent basis that is competitive, fair, and shall be subject to review by the commission.

L. The utility may issue additional RFPs in the current IRP docket, adhering to the processes and procedures described in 17.7.3.12 NMAC, if prudent following a material event pursuant to Subsection D of 17.7.3.11 NMAC.

M. Nothing in this rule shall be construed to prevent a public utility from procuring resources as required by the REA, Section 62-16-4 NMSA 1978, the EUEA, Section 62-17-5 NMSA 1978, or 17.9.570 NMAC. Such procurements shall be included in the utility’s forecasting, statement of need, and action plan.

History

17.7.3.12 NMAC - N, 10/27/2022; A, 11/29/2022

N.M. Admin. Code § 17.7.3.13 Cost Recovery

A. Acceptance of the utility’s statement of need and action plan does not constitute a finding of prudence or pre-approval of costs associated with acquiring additional resources.

B. Any costs incurred to implement an accepted action plan shall be considered in a general rate case, resource acquisition proceeding, or appropriate application for a CCN.

History

17.7.3.13 NMAC - N, 10/27/2022

N.M. Admin. Code § 17.7.3.14 Independent Monitor

A. Scope and purpose: The independent monitor’s role is to help the commission determine that the request for proposals design and execution is fair, competitive, and transparent. The independent monitor shall advise the commission and report on the RFP process, but the independent monitor shall not make or participate in the public utility’s decisions regarding the procurement process or the selection of resources.

B. Following commission acceptance of a public utility’s statement of need and action plan, the commission shall appoint an independent monitor to monitor the procurement process of a public utility for competitive resource procurements pursuant to 17.7.3.12 NMAC. The independent monitor, as provided in this Section, shall assist the commission in ensuring that all such processes are reasonable and competitively fair and shall report to the commission regarding those matters as provided in this rule. The commission may appoint an IM for emergency procurements pursuant to 17.7.3.17 NMAC.

C. The commission shall, through its designee:

(1) undertake a process consistent with state purchasing rules and commission policies in recommending a pool of qualified IMs;

(2) develop an RFP, including the scope, terms of work, and evaluation process to score the RFP responses;

(3) receive, review, score, and rank the RFP responses;

(4) confer with the public utility on the recommendation of the IM;

(5) recommend qualified bidders to the commission for appointment as the IM; and

(6) administer the contract with the appointed IM, including: confirming that contract deliverables are met, reviewing invoices and related contract performance, and approving utility invoices after staff's review and approval.

D. In selecting the IM, the commission, through its designee, may solicit recommendations of the names of independent firms or individuals that demonstrate independence from public utilities supplying electric service in the state, their affiliates, and likely bidders, and demonstrate the qualifications, expertise, and experience to perform the functions of an IM as provided in this rule.

(1) The IM shall provide a statement of interest to the commission which discloses any contracts or other economic arrangements of any kind between the IM and any investor-owned electric utility or affiliate within the last four years.

(2) The IM shall notify the commission and utility of any perceived or actual conflicts that arise during the course of the procurement process.

E. The commission, through its designee, shall develop a standard form of contract between an IM and the commission that requires the IM to perform the functions of an IM as provided in this rule in a manner that is not subject to the control of the public utility. The standard form of contract between an IM and the commission for IM services as provided for in this rule shall include, but shall not be limited to, the identification of the IM’s functions and scope of work as provided in Subsection G of 17.7.3.14 NMAC.

F. Funding for the services of the IM shall be paid by the utility and treated as a regulatory asset to be recovered through rates established in the utility’s next general rate proceeding.

G. Duties of the independent monitor:

(1) The IM shall file a minimum of two reports with the commission. The first report shall analyze the RFP design (design report). The final report shall review the fairness of the RFP execution (final report).

(a) In the design report, the IM shall report to the commission on RFP design within 28 days of the public utility’s provision of RFP documents pursuant to Subsection C of 17.7.3.12 NMAC. The IM shall analyze the proposed RFP, including but not limited to its scope, instructions, conditions for eligible proposals, specifications, time schedules, disclosure of bid evaluation methods, and term sheets. The RFP design report shall state whether the contents of the proposed RFP comply with the requirements of 17.7.3.10 NMAC through 17.7.3.12 NMAC and are otherwise reasonable, competitively fair, designed to promote a robust bid response, and designed to identify a utility’s most cost-effective option among resource alternatives to meet its service needs in compliance with this rule.

(b) In the final report, the IM shall, within 30 days of the utility’s submission of its shortlist to the IM, review and report on the reasonableness, competitiveness, and fairness of the utility’s solicitation, evaluation, and procurement processes, including but not limited to bid screening, comparison, evaluation, and short-listing criteria.

(i) The IM shall state whether the RFP process implemented by the public utility complied with the requirements of 17.7.3.11 NMAC and 17.7.3.12 NMAC.

(ii) The IM’s report shall also provide summary information on the results of the bids, including the number of bids sorted by the following criteria: by resource type, capacity or energy, price range by resource type, and whether there were any deficiencies in those respects that should be addressed by the commission in a future proceeding for approval of the solicited projects. The commission may rely on that opinion to request that the utility make modifications in a timely manner.

(2) At any point during the public utility’s RFP process the IM may notify the commission and the utility of any deficiency as contemplated in Subsection G of 17.7.3.14 NMAC.

H. The public utility shall provide the IM with prompt and continuing access to all documents, data, assumptions, models, specific model inputs, bidding and weighting criteria used, and any other relevant information reviewed, produced, or relied on by the public utility in the preparation and conduct of its competitive resource procurement process.

I. All communications, including but not limited to reports pursuant to this Section, provided by the IM to the commission, shall be made part of the commission’s public records in a timely manner in the public utility’s most recent IRP docket.

(1) The public utility, commission utility division staff, and any parties to the public utility’s most recent IRP docket may comment within 14 days of the filing of the design report to the public record. After the design report comment deadline of 14 days, the utility may issue the RFP.

(2) In any proceeding filed by a public utility for approvals stemming from its solicitation made pursuant to the RFP process as described in 17.7.3.12 NMAC, the commission may rely upon any reports or findings of the IM assigned to monitor that solicitation as evidence, provided that such evidence shall not be conclusive as to whether or not a resource proposed by the utility shall be approved.

J. All communications between the public utility and any bidders shall be shared at the same time with the IM. Commission utility division staff and any parties are restricted from initiating contacts with the independent monitor. The independent monitor may initiate contact with the utility, commission utility division staff, and any parties.

(1) For all contacts with the public utility, commission utility division staff, and any parties in the resource plan proceeding, the independent monitor shall maintain a log that briefly identifies the entities communicating with the IM, the date and duration of the communication, the means of communication, the topics discussed, and the materials exchanged, if any.

(2) The communications log shall be contained in the IM’s report to the commission pursuant to Subparagraph (b) of Paragraph (1) of Subsection G of 17.7.3.14 NMAC.

K. The independent monitor shall serve as an advisor to the commission and shall not be a party to the proceedings in accordance with 1.2.3.9 NMAC. As such, the independent monitor shall not be subject to discovery nor cross-examination at hearing, if one is held, but the public utility, commission utility division staff, and any parties shall have the opportunity to respond to any reports or findings of the IM pursuant to Paragraph (1) of Subsection I of 17.7.3.14 NMAC.

L. The commission shall not appoint an independent monitor for a utility’s procurement for which the commission grants a variance pursuant to Subsection D of 17.7.3.17 NMAC.

History

17.7.3.14 NMAC - N, 10/27/2022; A, 11/29/2022

N.M. Admin. Code § 17.7.3.15 Confidentiality of Information

A. The utility may submit any portions of its IRP under seal to the extent the utility deems specific information to be confidential.

B. The utility shall seek a protective order under Subsection B of 17.1.2.8 NMAC for those portions of its IRP it considers confidential, and the utility shall have the burden of proving its right to such protection.

(1) Any information submitted under seal pursuant to this paragraph shall remain under seal for a period of three years, after which time it shall become public unless the utility seeks and obtains further protection from the commission.

(2) Information submitted under seal shall be available for review by the commission and its designated representatives and by any person who has entered into a confidentiality agreement with the utility in a form approved by commission order, provided, however, that bidders or potential bidders shall not have access to competitively sensitive information of other bidders.

C. The utility shall not disclose any bid information for which a non-winning bidder has requested confidential treatment except in accordance with a commission protective order limiting disclosure of such information to persons who execute and file a confidentiality agreement with the commission as provided in that order.

History

17.7.3.15 NMAC - Rp, 17.7.3.11 NMAC, 10/27/2022

N.M. Admin. Code § 17.7.3.16 Exemptions

A. Motion for exemption from rule: Upon motion by a utility and for good cause shown, the commission may exempt public utilities with fewer than five thousand customers and distribution-only public utilities from the requirements of this rule.

B. Filing of a notice of exemption from rule: Upon the filing of a notice of exemption in the utility’s most recent IRP docket, a utility shall be exempted from the requirements of 17.7.3.12 and 17.7.3.14 NMAC for the following procurements:

(1) emergency procurements; and

(2) capacity or energy from the generation facilities of other utilities or from non-utility generators pursuant to agreements for a two year term or less (including renewal terms) or for 20 megawatts of capacity or less;

C. Multi-state resource planning: The commission shall take into account a public utility’s resource planning requirements in other states and shall authorize utilities that operate in multiple states to implement plans that coordinate the applicable state resource planning requirements.

History

17.7.3.16 NMAC - Rp, 17.7.3.14 NMAC, 10/27/2022; A, 11/29/2022

N.M. Admin. Code § 17.7.3.17 Variances and Amendments

A. A utility may file a request for a variance from the requirements of this rule.

B. Such application shall:

(1) describe the situation which necessitates the variance;

(2) set out the effect of complying with this rule on the utility and its customers if the variance is not granted;

(3) identify the section(s) of this rule for which the variance is requested;

(4) describe the expected result which the request shall have if granted; and

(5) state how the variance shall aid in achieving the purposes of this rule.

C. The commission may grant a request for a procedural variance through an order issued by the chair, a commissioner, or a designated hearing examiner.

D. The following types of procurements that deviate from the utility’s commission-accepted action plan shall be submitted to the commission as an application for a variance pursuant to 17.7.3.17 NMAC:

(1) capacity or energy from newly-constructed, utility-owned, supply-side resources with a nameplate rating of 20 megawatts or less;

(2) improvements or modifications to existing utility generation facilities that change the production capability of the generation facility site in question by 20 megawatts or less based on the utility’s share of the total power generation at the facility site and that have an estimated cost of $20 million or less;

(3) interruptible service provided to the utility’s electric customers;

(4) modification to, or amendment of, existing power purchase agreements provided that the modification or amendment does not extend the agreement more than four years, does not add more than 20 megawatts of nameplate capacity to the utility's system, and is cost effective in comparison to other supply-side alternatives available to the utility; and

(5) utility administered demand-side programs.

HISTORY of 17.7.3 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the state records center and archives under:

Public Service Commission, NMPSC Rule 420, Energy Conservation Programs For Electric and Gas Utilities, filed 6/30/1988.

History of Repealed Material: NMPSC Rule 420, Energy Conservation Programs For Electric and Gas Utilities (filed 6/30/1988) repealed 4/16/2007.

17.7.3 NMAC - Integrated Resource Plans for Electric Utilities filed 3/30/2007, repealed 10/27/2022.

Other History:

Only that applicable portion of NMPSC Rule 420, Energy Conservation Programs For Electric and Gas Utilities (filed 6/30/1988) was renumbered, reformatted and replaced by 17.7.3 NMAC, Integrated Resource Plans for Electric Utilities, effective 4/16/2007.

17.7.3 NMAC - Integrated Resource Plans for Electric Utilities filed 3/30/2007, replaced by 17.7.3 NMAC - Integrated Resource Plans for Electric Utilities, effective 10/27/2022.

History

17.7.3.17 NMAC - Rp, 17.7.3.15 NMAC, 10/27/2022; A, 11/29/2022

Part 4 Integrated Resource Plans for Gas Utilities

N.M. Admin. Code § 17.7.4.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.7.4.1 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.2 Scope

This rule applies to all gas utilities subject to the commission’s jurisdiction over integrated resource planning.

A. Supplement to other rules: Except as specifically provided herein, this rule does not supersede any other rule of the commission but is to be construed as a supplement to such rules.

B. Severability. If any part or application of this rule is held invalid, the remainder or its application shall not be affected.

History

17.7.4.2 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.3 Statutory Authority

This rule is adopted under the authority vested in this commission by the New Mexico Public Regulation Commission Act, NMSA 1978, Section 8-8-15; the Public Utility Act, NMSA 1978, Section 62-3-1 et seq.; and the Efficient Use of Energy Act, NMSA 1978, Section 62-17-1 et seq.

History

17.7.4.3 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.4 Duration

Permanent.

History

17.7.4.4 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.5 Effective Date

April 16, 2007, unless a later date is cited at the end of a section.

History

17.7.4.5 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.6 Objective

The purpose of this rule is to set forth the commission’s requirements for the preparation, filing, review and acceptance of New Mexico retail integrated resource plans by public utilities supplying retail natural gas service in New Mexico.

History

17.7.4.6 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.7 Definitions

Unless otherwise specified, the following definitions will apply when used in this rule:

A. energy efficiency means measures, including energy conservation measures, or programs that target consumer behavior, equipment or devices to result in a decrease in consumption of natural gas without reducing the amount or quality of energy services;

B. integrated resource plan (IRP) means a public utility’s plan to meet New Mexico jurisdictional retail customers existing and future demand, which for natural gas utilities incorporates the evaluation of supply- and demand-side options that create a reliable resource mix to accommodate customer demand;

C. load and resources table means an accounting and comparison of a utility’s firm gas supplies with its peak customer obligations and reserve requirements for each year of the planning period;

D. load management means measures or programs that target equipment or devices to result in decreased peak demand or shifting demand from peak to off-peak periods;

E. load forecasting means the prediction of the demand for an energy commodity over each of the succeeding four to ten years for the utility’s New Mexico jurisdictional utility system;

F. planning period means the future period for which a utility develops its IRP; for purposes of this rule, the planning period is four to ten years and begins the year the utility files its plan with the commission;

G. public advisory process means the process through which a public utility provides information to interested parties and receives input from interested parties during the development of its IRP;

H. resources means supply-side resources, energy efficiency or renewable resources used to meet utility system requirements;

I. supply side resource means a resource that can provide natural gas supplies to the natural gas utility’s transmission and distribution pipeline systems; supply side resources include utility owned generating facilities, and capacity purchased from other utilities and non utilities.

History

17.7.4.7 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.8 General Provisions

The commission adopts this rule in order to fulfill the requirements of NMSA 1978, Section 62-17-10.

History

17.7.4.8 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.9 Irp for Natural Gas Utilities

Public utilities supplying natural gas service to customers shall file an initial IRP with the commission within twelve months of the effective date of this rule and every four years thereafter.

History

17.7.4.9 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.10 Contents of the Gas Utility Irp

The contents of the IRP submitted by a utility providing natural gas retail service in New Mexico shall contain the utility’s jurisdictional:

A. current load forecast;

B. description of existing portfolio of resources;

C. summary of foreseeable resource needs for the planning period;

D. anticipated resources to be added during the planning period and the evaluation of various options that could reasonably be added to the utility’s resource portfolio;

E. a summary description of natural gas supply sources and delivery systems;

F. a summary identification of critical facilities susceptible to supply-source or other failures;

G. description of the public advisory process; and

H. other information that may aid the commission in reviewing the utility’s planning processes.

History

17.7.4.10 NMAC - N, 4-16-07; A, 12-31-12

N.M. Admin. Code § 17.7.4.11 Evaluation of Natural Gas Resources

A. The utility shall evaluate the ability of its natural gas resources to provide adequate redundancy of supply and of delivery systems.

B. The utility shall evaluate, as appropriate, renewable energy, energy efficiency, load management and conventional supply-side resources on a consistent and comparable basis and take into consideration risk and uncertainty of energy supply, price volatility and costs of anticipated environmental regulations in order to identify the most cost-effective portfolio of resources to supply the energy needs of customers. The evaluation shall be based on a present-value analysis of revenue requirements and shall include discussion of any economic, risk, environmental, and reliability analyses.

History

17.7.4.11 NMAC - N, 4-16-07; A, 12-31-12

N.M. Admin. Code § 17.7.4.12 Public Advisory Process

A. At least one year prior to the filing date of its IRP, a utility shall initiate a public advisory process to develop its IRP. The utility shall initiate the process by providing notice at least 30 days prior to the first scheduled meeting to the commission, interveners in its most recent general rate case, and participants in its most recent energy efficiency and IRP proceedings. The utility shall at the same time, also publish this notice in a newspaper of general circulation in every county in which it serves and in the utility’s billing inserts. This notice shall consist of:

(1) a brief description of the IRP process;

(2) time, date and location of the first meeting;

(3) a statement that interested individuals should notify the utility of their interest in participating in the process; and

(4) utility contact information.

B. Meetings held as part of the public participation process shall be noticed and scheduled on a regular basis and shall be open to members of the public who shall be heard and their input considered as part of the public participation process. Upon request, the utility shall provide an executive summary containing a non-technical description of its most recent IRP.

C. The purposes of the public participation process are for the utility to provide information to, and receive and consider input from, the public regarding the development of its IRP. Topics to be discussed as part of the public participation process include, but are not limited to, the utility’s load forecast; evaluation of existing supply- and demand-side resources; the assessment of need for additional resources; identification of resource options; modeling and risk assumptions and the cost and general attributes of potential additional resources; and development of the most cost-effective portfolio of resources for the utility’s IRP.

D. In its initial IRP advisory process, the utility and participants shall explore a procedure to coordinate the IRP process with energy efficiency and load management program proposals. Any proposed procedure shall be designed to conserve commission, participant and utility resources and shall indicate what, if any, variances may be needed to effectuate the proposed procedure.

History

17.7.4.12 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.13 Confidentiality of Information

The utility may submit under seal any portions of its IRP that reveals its contracted portfolio, its major suppliers, transportation volumes, or its contract pricing, on a contract-by-contract basis, to the extent the utility deems specific information to be confidential. The utility also may seek a protective order under Subsection B of 17.1.2.8 NMAC for other portions of its IRP it considers confidential, but the utility shall have the burden of proving its right to such protection. Any information submitted under seal pursuant to this paragraph shall remain under seal for a period of two (2) years, after which time it shall become public unless the utility seeks and obtains further protection from the commission. Information submitted under seal shall be available for review by the commission and its designated representatives and by any person who has entered into a confidentiality agreement with the utility in a form approved by commission order.

History

17.7.4.13 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.14 Notice of Material Changes

The utility shall promptly notify the commission and participants of material events that would have the effect of changing the results of the utility’s IRP had those events been recognized when the IRP was developed.

History

17.7.4.14 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.15 Commission Review, Acceptance and Action

A. Compliance Review. The commission will review the utility’s proposed IRP for compliance with the procedures and objectives set forth herein. The commission may accept the proposed IRP as compliant with this rule without a hearing, unless a protest is filed that demonstrates to the commission’s reasonable satisfaction that a hearing is necessary. Protests must be filed within thirty (30) days of the filing of the proposed IRP. If the commission has not acted within forty-five (45) days after the filing of the proposed IRP, that IRP is deemed accepted as compliant with this rule. If the commission determines the proposed IRP does not comply with the requirements of this rule, the commission will identify the deficiencies and return it to the utility with instructions for re-filing.

B. Use in Resource Acquisition Proceedings. In a proceeding concerning a utility's request for a CCN for a new utility resource, or in other proceedings concerning a utility’s resource acquisition, the utility shall present evidence that the requested resource is consistent with the commission-accepted utility IRP unless material changes, as described in Section 17.7.4.14 of this rule, have occurred that would warrant a different utility course of action. Evidence that the resource is consistent with the IRP, and that there have not been material changes that would warrant a different course of action by the utility, will constitute prima facie evidence that the resource-type, but not the particular resource being proposed, is required by the public convenience and necessity.

History

17.7.4.15 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.16 Additional Investigations and Information

The commission may conduct an investigation of any matters pertaining to a public utility’s IRP where it deems appropriate and may require additional information to be filed.

History

17.7.4.16 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.17 Exemptions

A. Motion for Exemption from Rule. Upon motion by a utility and for good cause shown, the commission may exempt public utilities with fewer than five thousand customers and distribution-only public utilities from the requirements of this rule.

B. Multi-State Resource Planning. The commission shall take into account a public utility's resource planning requirements in other states and shall authorize utilities that operate in multiple states to implement plans that coordinate the applicable state resource planning requirements.

History

17.7.4.17 NMAC - N, 4-16-07

N.M. Admin. Code § 17.7.4.18 Variances and Amendments

A utility may file a request for a variance from the requirements of this rule or to amend its IRP filing to reflect substantially changed circumstances. Such application shall describe the situation which necessitates the variance; set out the effect of complying with this rule on the utility and its customers if the variance is not granted; identify the section(s) of this rule for which the variance is requested; describe the expected result that the request will have if granted; and state how the variance will aid in achieving the purposes of this rule. The commission may grant a request for a procedural variance through an order issued by the chairman, a commissioner or a designated hearing examiner. Other variances shall be presented to the commission as a body for determination.

HISTORY of 17.7.4 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the state records center and archives under:

Public Service Commission, NMPSC Rule 420, Energy Conservation Programs For Electric and Gas Utilities, filed 06-30-1988.

History of Repealed Material: NMPSC Rule 420, Energy Conservation Programs For Electric and Gas Utilities (filed 06-30-1988) repealed 4-16-07.

Other History:

Only that applicable portion of NMPSC Rule 420, Energy Conservation Programs For Electric and Gas Utilities (filed 06-30-1988) was renumbered, reformatted and replaced by 17.7.4 NMAC, Integrated Resource Plans for Gas Utilities, effective 4-16-07.

History

17.7.4.18 NMAC - N, 4-16-07

Part 430 Costs of Residential Energy Conservation Programs for Covered Utilities

N.M. Admin. Code § 17.7.430.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.7.430.2 Scope

NMPSC Rule 430 [17.7.430 NMAC] shall apply to all regulated utilities operating in the State of New Mexico which meet the definition of "Covered Utility."

History

Recompiled 12/30/01

N.M. Admin. Code § 17.7.430.3 Statutory Authority

NMPSC Rule 430 [17.7.430 NMAC] is adopted under the authority vested in the Commission by the Public Utility Act, NMSA 1978, Section 62-3-1 et. seq., and the National Energy Conservation Policy Act, Public Law 95-619, 92 Stat. 3206, November 9, 1978, Section 215(c)(1)(C).

History

Recompiled 12/30/01

N.M. Admin. Code § 17.7.430.4 Duration

History

Recompiled 12/30/01

N.M. Admin. Code § 17.7.430.5 Effective Date

History

Recompiled 12/30/01

N.M. Admin. Code § 17.7.430.6 Objective

NMPSC Rule 430 [17.7.430 NMAC] is promulgated pursuant to Section 215(c)(1)(C) of the National Energy Conservation Policy Act, Public Law 95-619, 92 Stat. 3206, November 9, 1978, 42 USC Section 8201 et. seq. (NECPA). NECPA requires the establishment of utility programs to encourage and facilitate the installation of energy conservation measures and renewable resource measures. Administration of utility programs is overseen by the New Mexico Energy, Minerals and Natural Resources Department, which has promulgated a New Mexico Residential Conservation Service Plan approved by the U.S. Department of Energy. The New Mexico Public Service Commission [New Mexico Public Regulation Commission] is charged with determining whether utility programs carried out under Section 215(b) of NECPA should be treated as a current expense of providing utility service and charged to all ratepayers of a utility in the same manner as current operating expenses of providing utility service, or charged to the residential customer for whom the activity is performed. Section 215(c)(1)(C). The purpose of NMPSC Rule 430 [17.7.430 NMAC] is to require that all costs incurred by a utility under Section 215(b) of NECPA be treated as a current expense charged to all ratepayers.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.7.430.7 Definitions

When used in NMPSC Rule 430 [17.7.430 NMAC] unless otherwise specified the following definitions will apply:

A. "Utility Program" or "Program" means a program meeting the requirements of Section 215 of NECPA.

B. "Eligible Customer" means a person who:

(1) owns or occupies a residential building and

(2) receives a fuel bill from a covered utility or participating home heating supplier for fuel used in such residential building.

C. "Covered Utility" means in any calendar year a public utility which during the second preceding calendar year had either:

(1) sales of natural gas for purposes other than resale which exceeded 10 billion cubic feet or

(2) sales of electric energy for purposes other than resale which exceeded 750 million kilowatt hours.

D. "Program Audit" means an energy audit in which the estimates of costs and savings are based on an on-site inspection of an eligible customer's residence by an auditor qualified according to the New Mexico Residential Conservation Service Plan promulgated by the New Mexico Energy, Minerals and Natural Resources Department.

17.7.430.8 [TABLE OF CONTENTS:]

A. Purpose: [17.7.430.6 NMAC]

B. Authority: [17.7.430.3 NMAC]

C. Application [17.7.430.2 NMAC]

D. Definitions: [17.7.430.7 NMAC]

E. Treatment of Program Costs [17.7.430.9 NMAC]

F. Customer Charges [17.7.430.10 NMAC]

G. Billing Practice [17.7.430.11 NMAC]

History

Recompiled 12/30/01
Recompiled 12/30/01

N.M. Admin. Code § 17.7.430.9 Treatment of Program Costs

The following program elements are to be treated as a current operating expense:

A. Administrative and general expenses, including those associated with program audits, list distribution, customer billing services, and "arranging". These administrative costs may include any costs the utility incurs if it conducts random post-installation inspections required by 10 CFR Section 456.313(b) and conciliation conferences required by 10 CFR Section 456.315(a);

B. Project Manager requirements, including:

(1) program audits;

(2) arranging for a lender to make a loan to an eligible customer to finance the purchase and installation costs of energy conservation and renewable resource measures, including the costs of arranging repayment of the principal and interest of a loan as part of the periodic bill; and

(3) arranging to have the program measures installed.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.7.430.10 Customer Charges

There shall be no charge to a customer who requests a program audit over and above those charges in rates based on current operating expenses.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.7.430.11 Billing Practice

Costs incurred by the utility attributable to the RCS Program and passed on to the ratepayers shall not be stated as a separate line item on bills.

17.7.430.12 [HISTORY: NMPSC Case No. 2086, order dated June 30, 1988, unless otherwise noted. Formerly NMPSC General Order No. 38, superseded for purposes of rule reorganization and codification.]

HISTORY OF 17.7.430 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

General Order No. 38, Rules And Regulations Governing Costs Of Residential Energy Conservation Programs For Covered Utilities, 5/18/82.

NMPSC Rule 430, Costs Of Residential Energy Conservation Programs For Covered Utilities, 6/30/88.

History of Repealed Material: [RESERVED]

History

Recompiled 12/30/01
Recompiled 12/30/01

Chapter 8 Renewable Energy

Part 2 Selection of and Participation in Projects

N.M. Admin. Code § 17.8.2.1 Issuing Agency

New Mexico Renewable Energy Transmission Authority (“RETA” or the “Authority”).

History

17.8.2.1 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.2.2 Scope

This rule applies to all renewable energy transmission-related projects submitted to the New Mexico renewable energy transmission authority (“authority”) seeking the authority’s participation in the project.

History

17.8.2.2 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.2.3 Statutory Authority

NMSA 1978, Section 62-16A-1 et seq., as amended.

History

17.8.2.3 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.2.4 Duration

Permanent.

History

17.8.2.4 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.2.5 Effective Date

December 15, 2011, unless a later date is cited at the end of a section.

History

17.8.2.5 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.2.6 Objective

This rule sets forth the criteria by which the authority may consider undertaking a renewable energy related project as defined by NMSA 1978, Section 62-16A-2. The rule also articulates the authority’s participation in those projects.

History

17.8.2.6 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.2.7 Definitions

A. “Act” means the New Mexico Renewable Energy Transmission Authority Act, NMSA, 1978, Chapter 62, Article 16A, as amended.

B. “Acquire” or “acquisition” means to obtain eligible facilities by lease, construction, reconstruction or purchase, whether directly by the authority or by an entity in which the authority has a majority ownership interest. The authority may lease, construct, reconstruct or purchase eligible facilities through an agent when doing so is consistent with the act. If at any time after acquisition, the authority sells, leases or otherwise relinquishes its ownership interested in the eligible facilities, the authority will nevertheless be deemed to have acquired the eligible facilities.

C. “Authority” means the New Mexico renewable energy transmission authority.

D. “Board” means the appointed members of the authority.

E. “Electric service reliability” means the continuity of electric service experienced by retail customers. A project or facility will not be considered to affect electric service reliability if it does not materially diminishes electric service reliability of the transmission system in New Mexico.

F. “Letter of support” means a letter issued by the authority in order to assist the developer in attracting financial or other support for the project.

G. “Memorandum of understanding” or “MOU” means a written agreement entered into between the authority and an applicant for the purpose of informing the public of RETA’s involvement in a project; allowing a greater exchange of information; implying a financial or project development commitment between the two; or for any other reason the board deems appropriate.

H. “Participation” means involvement of any kind by the authority in a project, including, but not limited to, planning, acquiring, financing, developing, managing, operating, consulting, cooperating or otherwise taking part in a project, which has been approved by the authority.

I. “Partnership” means the authority’s affiliation with a person for the purpose of RETA participation in a project.

J. “Person” means a federal, state or local public entity, a public utility, or a private entity or individual.

K. “Project committee” means the subcommittee of the board established to review projects.

History

17.8.2.7 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.2.8 Reta Participation in Projects

A. General:

(1) The board may, in its sole discretion, choose to provide support for a project based on evaluation criteria set forth in this rule, as further described in policies adopted by the board. The type and amount or degree of support provided by the authority will generally depend on the request of an applicant, the evaluation of the project based on the criteria, and RETA’s resource capacity to support the project.

(2) The authority may decline to participate in any project, or may participate in any project through a letter of support; an MOU; a joint development agreement; financing of a project in whole or in part; entering into a partnership or limited liability company agreement with a person; or acquisition of a project.

B. Evaluation criteria:

(1) The evaluation of a project will be consistent with the type of request being made and may include, to the extent applicable, an evaluation of project feasibility, administrative capacity, financial position, benefit to the state of New Mexico, and economic and demographic factors. The authority may use one or more of these criteria during the evaluation process; depending on the type of request being considered. Further detail regarding the basis for RETA’s evaluation of a project may be issued by the board in a policy.

(2) In accordance with NMSA 1978, Section 62-16A-4(F), the authority shall not own or control facilities unless:

(a) the facilities are leased to or help for lease or sale to a public utility or such other person approved by the public regulation commission;

(b) the operation, maintenance and use of the facilities are vested by lease or other contract in a public utility or such other person approved by the public regulation commission;

(c) the facilities are owned or controlled for a period of not more than 180 days after termination of a lease or contract described in Paragraph (1) or (2) of this subsection or after the authority gains possession of the facilities following a breach of such lease or contract or as a result of bankruptcy proceedings; or

(d) the facilities do not affect in-state retail rates or electric service reliability.

C. Evaluation by RETA projects committee: Employees of the authority will make a best effort to evaluate applications and compile a recommendation for the projects committee within 60 days of a request made pursuant to this rule. A project shall not proceed to the board for consideration unless the committee has evaluated it and recommended consideration by the full board. The committee may, in its sole discretion, request additional information from an applicant prior to making a recommendation to the full board. A project shall not be presented to the full board if the committee has denied the request or has not yet completed a full review.

History

17.8.2.8 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.2.9 Confidentiality

A. All information obtained by the authority that is proprietary technical or business information shall be confidential and not subject to inspection pursuant to the Inspection of Public Records Act (NMSA 1978, Section 14-2-4). Proprietary confidential information includes, but is not limited to, power purchase agreements, interconnection agreements, construction contracts, equipment supply or procurement agreements, operation and maintenance agreements, real property related agreements, financing agreements (including security, pledge and mortgage agreements), costs of production, costs of transmission, transmission service agreements, credit reviews, detailed power models and financing statements.

B. The authority may enter into confidentiality agreements as necessary consistent with the Inspection of Public Records Act and the act.

History

17.8.2.9 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.2.10 Filing Rules

Each rule, amendment, or repeal thereof adopted by the authority shall be filed with the state records center in accordance with NMSA 1978, Section 14-4-3 and published in the New Mexico register in accordance with NMSA 1978, Section 14-4-7.1.

HISTORY OF 17.8.2 NMAC: [RESERVED]

History

17.8.2.10 NMAC - N, 12/15/2011

Part 3 Eminent Domain

N.M. Admin. Code § 17.8.3.1 Issuing Agency

New Mexico Renewable Energy Transmission Authority (“Authority”).

History

17.8.3.1 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.2 Scope

This rule applies to the authority’s exercise of the authority’s power of eminent domain for acquiring property or interests in property for projects the authority has determined are eligible facilities, as that term is defined in NMSA 1978, Section 62-16A-2, and for which the authority has determined to participate in the project, but in circumstances in which the authority is not acquiring the project. In exercising any authority provided for herein, the authority shall act in accordance with all applicable laws.

History

17.8.3.2 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.3 Statutory Authority

NMSA, 1978, Sections 42A-1-1 et seq., and 62-16A-1 et seq.

History

17.8.3.3 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.4 Duration

Permanent.

History

17.8.3.4 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.5 Effective Date

December 15, 2011, unless a later date is cited at the end of a section.

History

17.8.3.5 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.6 Objective

The purpose of this rule is to specify the objective standards and procedures the authority will follow in considering applications for exercise of its power of eminent domain, the negotiation procedures required of persons submitting applications with landowners and those claiming an interest in property, the contents of applications, condemnation procedures, and related matters.

History

17.8.3.6 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.7 Definitions

In addition to the definitions in NMSA 1978, Sections 62-16A-2, 42A-1-2, , as used in this rule:

A. “Agreement” means a project ownership and property agreement as described in this rule and includes the applicant and the authority’s understanding regarding the authority’s participation in the project, project ownership, project financing, project management, and any other matter required by the authority. The parameters of the authority’s exercise of its eminent domain powers shall be set forth in the agreement.

B. “Authority” means the renewable energy transmission authority.

C. “Applicant” means any person that submits an application to the authority pursuant to this rule and in the manner set forth herein. Applications will only be considered if the authority has already agreed to participate in the project.

D. “Eligible facilities” means facilities to be financed or acquired by the authority, in which, within one year after beginning the transmission or storage of any electricity, and thereafter, at least 30 percent of the electric energy, as estimated by the authority, originates from renewable energy sources.

E. “Eminent domain code” means the statutory provisions governing condemnation in New Mexico, NMSA 1978, Section 42A-1-1 et seq., as modified from time to time.

F. “Person” includes a natural individual, partnership, corporation, association other legal or fiduciary entity and a governmental entity.

G. “Project” means, for the purposes of this rule, an undertaking by the authority to finance or plan, acquire, maintain and operate eligible facilities located in part or in whole within the state of New Mexico in which the authority has agreed to participate.

H. “Property” means real property under the laws of the New Mexico, and may include one or more individual parcels of land or a portion or portions thereof, any improvements thereon or connected therewith or any easement or other interest therein.

I. “Property owner(s)” means any person or entity having an ownership interest in the property.

History

17.8.3.7 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.8 Project Ownership and Property Agreement

A. The applicant may apply to the authority for approval of an agreement and exercise of the authority’s eminent domain powers for the purpose of property acquisition, condemnation, property management, property disposition, and related matters. The parameters of the authority’s exercise of its eminent domain powers shall be set forth in the agreement.

B. Contents of application: The applicant must file with the authority an application, which shall contain:

(1) a description of the project, including:

(a) identification of all applicants and other persons with a financial interest in the project;

(b) a description of the project and its purpose(s);

(d) a description of the property on the proposed project route that the applicant does not have an interest in; and

(e) a description of the scope of work for the project and the projected timeline for completion of the work;

(2) a copy of the draft agreement(s) proposed for approval;

(3) copies of memorandum of understanding (MOU) or prior agreements, if any, regarding the authority’s support for or participation in the project;

(4) a statement explaining why the property comprising the proposed route in New Mexico is necessary for the project;

(5) copies of any reviews of the proposed project under the National Environmental Policy Act, 42 U.S.C. Section 4321 et seq. (NEPA), or other similar reviews;

(6) evidence that the applicant has made reasonable and diligent efforts to acquire the property by negotiation, including by offering at least fair market value for the property;

(7) a statement verifying, under oath, that the proposed exercise of eminent domain authority does not involve taking any utility-owned property;

(8) a copy of a determination by the New Mexico public regulation commission that the proposed project will not materially diminish electric service reliability of the transmission system in New Mexico, if issued;

(9) a form of draft publication of the notice in compliance with Subsection C of 17.8.3.8 NMAC;

(10) any other information or exhibits the applicant wishes to submit in support of the application.

C. Any information contained in the application which the applicant believes is exempt from disclosure pursuant to the Inspection of Public Records Act (Chapter 14, Article 2 NMSA 1978) or the New Mexico Renewable Energy Transmission Authority Act (Chapter 6, Article 16A NMSA 1978) must be clearly marked in the application and, if feasible, separated from the remainder of the application.

D. Notice and comment on application:

(1) Notice.

(a) At the same time the application is submitted to the authority, the applicant shall provide a copy of the application to private property owner(s) of record of the properties that lie within the proposed project route in New Mexico, in the same manner as provided in Subsection B of 17.8.3.8 NMAC.

(b) The authority shall cause notice of the application to be published in a newspaper of general circulation available in every county in which the property within the proposed project route in New Mexico lies. The notice shall not include any information from the application that is exempt from disclosure pursuant to the Inspection of Public Records Act (Chapter 14, Article 2 NMSA 1978) or the New Mexico Renewable Energy Transmission Authority Act (Chapter 6, Article 62A NMSA 1978). Upon request by the authority, the applicant shall publish notice in accordance with this rule.

(c) Such published notice shall appear at least three times a minimum of seven days apart, with the first occurrence published within 14 days after the date of the authority’s approving the form of notice and at least 30 days prior to the date of the authority board meeting at which the application will be considered.

(d) The notice shall contain the following information:

(i) identification of the applicant(s);

(ii) a description of the project and its purpose;

(iii) a description of the proposed project route in New Mexico and a statement that a map is available at RETA’s offices;

(iv) a statement that the applicant has applied to the authority for approval of the agreement and exercise of its eminent domain authority pursuant to this rule;

(v) the date, time and place of the authority meeting at which the authority may consider the application, if known, together with the further statement that interested persons should contact the authority for confirmation of the meeting date, time, and place;

(vi) a statement that any interested person may examine the application and related exhibits, except such information exempt from disclosure pursuant to the Inspection of Public Records Act (Chapter 14, Article 2 NMSA 1978) or the New Mexico Renewable Energy Transmission Authority Act (Chapter 6, Article 62A NMSA 1978), submitted to the authority at the offices of the authority in Santa Fe, and indicating the address and telephone number of the authority;

(vii) a statement that property owners whose property lies within the proposed project route in New Mexico may submit written comments on the application to the authority on or before the date of the board of directors’ meeting at which the authority will consider the application;

(viii) a statement that property owner(s) whose property lies within the proposed project route in New Mexico may appear at the time and place of the authority’s board of directors’ meeting at which the authority will consider the application, and may make written or oral comments on the application at the meeting;

(ix) a statement that any and all agency approvals required by law have been obtained and all reviews required by any other agency have been satisfactorily completed. Copies of all supporting documentation or review results shall be submitted along with the application.

(e) The applicant shall bear the cost of publication.

(f) If the authority requires the applicant to publish the notice in accordance with this rule, the applicant shall ensure that an affidavit of publication is provided to the authority promptly upon last publication of the notice.

(2) Comment. The authority shall provide opportunity for written and oral comments on the application by property owner(s) whose property lies within the proposed project route in New Mexico. The authority shall provide a comment period of at least 30 days following last publication of the notice pursuant to Paragraph (1) of Subsection D of 17.8.3.8 NMAC, but may provide a reasonable extension of the comment period, not to exceed sixty 60 additional days. Oral comments shall be received at the meeting of the authority wherein the issue is to be considered.

E. Findings and determination:

(1) For projects in which the authority already participates, the authority may approve the proposed agreement if the criteria below are satisfied in the sole discretion of the board of directors of the authority:

(a) The property comprising the route in New Mexico is necessary for the project. Consideration and selection of the proposed route through review under NEPA, or other governmental review, if undertaken, shall serve to satisfy this requirement.

(b) The proposed project route in New Mexico will not involve taking utility-owned property. Applicant’s affidavit or letters or documentation from relevant New Mexico utilities shall serve to satisfy this requirement.

(c) The project will not materially diminish electric service reliability of the transmission system in New Mexico, as determined by the New Mexico public regulation commission. If the public regulation commission has not yet made this determination, the authority may approve the application subject to a New Mexico public regulation commission determination.that the project will not materially diminish electric service reliability of the transmission system in New Mexico.

(d) The project and the proposed agreement, as may be modified by the authority, are in the public interest.

(e) The applicant has the financial capacity to complete the project.

(2) The authority shall make its determination on the application within 120 days of the applicant’s submittal of its application, which may be extended if the comment period is extended.

(3) If the authority denies the application, the authority shall inform the applicant in writing within 15 days after the denial the reasons for the denial in the context of the criteria set forth herein, and shall provide opportunity to submit an amended application. The new application shall include additional information demonstrating the applicant has met the requirements for approval set forth herein. The amended application will go through the approval process contained in this section including the requirements for public notice and comment.

History

17.8.3.8 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.9 Negotiation with Property Owners

Prior to the exercise of the authority’s eminent domain powers, negotiations with private property owner(s) by the applicant must be by reasonable and diligent efforts to acquire property needed for the project, including by offering at least fair market value for the property. At any time during applicant’s negotiations with property owner(s) and upon the applicant’s request, the authority may participate in such negotiations in order to facilitate the voluntary acquisition of property for a project, but the applicant shall remain responsible for conducting good faith negotiations.

History

17.8.3.9 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.10 Condemnation Procedures

A. Condemnation proceedings.

(1) Upon initiating condemnation procedures, the authority shall expeditiously and diligently follow the condemnation procedures set forth in the Eminent Domain Code found at NMSA 1978, Section 42A-1-1 et seq. as it may be modified from time to time.

(2) The applicant shall cooperate with the authority to assist the authority in carrying out the authority’s procedures set forth herein and its obligations under the law in an expeditious and diligent manner.

B. Costs and expenses.

(1) The applicant shall be responsible for all costs and expenses incurred by the authority in the condemnation action, including all attorneys’ fees. The applicant shall pay all such costs and expenses within 30 days after receipt of an invoice for such from the authority, subject to dispute provisions which shall be set forth in the agreement. If an applicant fails to timely pay all such costs and expenses, the authority may discontinue the condemnation action.

(2) Prior to the authority’s initiation of condemnation proceedings under the Eminent Domain Code, the applicant shall obtain a surety or cash bond in an amount agreed to by the parties and as required by law.

(3) The authority shall diligently work to reasonably minimize damages, other costs, and litigation expenses for which the applicant is responsible. The authority shall consult with the applicant prior to incurring substantial costs or expenditures, whenever practicable. The authority shall not make any offer above fair market value without prior approval by the applicant.

History

17.8.3.10 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.11 Other Agreements; Disposition of Property

A. In addition to the agreement, the authority and the applicant may enter into any other contracts or agreements they deem necessary setting forth the roles and obligations of the parties in the condemnation proceeding, the disposition and use of the property once acquired by the authority, and any other matter. The authority may dispose of any or all of the property in accordance with New Mexico law if it determines that doing so fulfills a public purpose. The use of the property for the same purpose for which the property was condemned is deemed to fulfill a public purpose.

B. If the property cannot be used for the purpose for which it was condemned, and if practicable and permissible under existing laws, the authority shall offer the property owner an opportunity to purchase the property from the authority at fair market value.

History

17.8.3.11 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.12 Indemnification

The agreement shall provide that the applicant shall indemnify and hold harmless the authority against any and all liability arising pursuant to the authority’s actions under this rule and the Eminent Domain Code.

History

17.8.3.12 NMAC - N, 12/15/2011

N.M. Admin. Code § 17.8.3.13 Variances

A. An applicant may request a variance from any of the requirements of this rule, provided such variance will not create a conflict with state law.

B. A petition for variance must be supported by an affidavit signed by an officer of the applicant or someone with authority to sign for the applicant.

C. The applicant shall send notice of any request for a variance to the property owner(s) who are affected by the variance or who possess an ownership interest in the property. The notice shall indicate the nature of the variance requested and state that the property owner(s) may submit written or oral comments on the request for a variance. The authority may, at its discretion, require an informal conference or formal evidentiary hearing prior to making its determination on a request for variance. In the event an informal conference or a formal evidentiary hearing is held, oral comment shall be accepted at that time.

D. A petition for variance shall:

(1) identify the section of this rule for which the variance is requested;

(2) describe the situation that necessitates the variance;

(3) describe the effect of complying with this rule on the applicant if the variance is not granted; and

(4) describe the result the variance will have if granted.

HISTORY OF 17.8.3 NMAC: [RESERVED]

History

17.8.3.13 NMAC - N, 12/15/2011

Chapter 9 Electric Services

Part 520 Lists of Retirement Units of Property for Electric Utilities

N.M. Admin. Code § 17.9.520.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.520.2 Scope

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.520.3 Statutory Authority

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.520.4 Duration

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.520.5 Effective Date

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.520.6 Objective

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.520.7 Definitions

17.9.520.8 [TABLE OF CONTENTS]

A. List of Retirement Units for Rural Electric Cooperatives [17.9.520.9 NMAC]

B. List of Retirement Units for Electric Utilities Other Than Rural Electric Cooperatives [17.9.520.10 NMAC]

History

Recompiled 12/30/01
Recompiled 12/30/01

N.M. Admin. Code § 17.9.520.9 List of Retirement Units for Rural Electric Cooperatives

All corporations organized under the New Mexico Rural Electric Cooperative Act subject to the Commission's jurisdiction shall use and comply fully with the requirements of the Rural Electrification Administration's STANDARD LIST OF RETIREMENT UNITS, REA Bulletin No. 181-2, with any subsequent revisions.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.520.10 List of Retirement Units for Electric Utilities Other Than Rural Electeic Cooperatives

All electric utilities subject to the Commission's jurisdiction except corporations organized under the New Mexico Rural Electric Cooperative Act shall use and comply with the requirements of the National Association of Railroad and Utilities Commissioners' LIST OF RETIREMENT UNITS OF PROPERTY FOR ELECTRIC UTILITIES, 1961, with any subsequent revisions by the National Association of Regulatory Utility Commissioners.

17.9.520.11 [HISTORY: NMPSC Case No. 2086, order dated June 30, 1988, unless otherwise noted. Formerly First Revised NMPSC General Order No. 12, superseded for purposes of rule reorganization and codification.]

HISTORY OF 17.9.520 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

NMPSC Rule 520, Lists Of Retirement Units Of Property For Electric Utilities, 6/30/88.

History of Repealed Material: [RESERVED]

History

Recompiled 12/30/01
Recompiled 12/30/01

Part 530 Filing Requirements in Support of Rate Schedules for Investor-Owned Electric Utilities

N.M. Admin. Code § 17.9.530.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.530.2 Scope

The data requirements specified in Appendix A shall apply to the investor-owned electric utilities doing business in New Mexico.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.530.3 Statutory Authority

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.530.4 Duration

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.530.5 Effective Date

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.530.6 Objective

The adoption by the New Mexico Public Service Commission [New Mexico Public Regulation Commission] of the minimum data requirements specified in Appendix A to NMPSC [17.9.530 NMAC] (incorporated herein by reference) is pursuant to the authority conferred upon the Commission by the Public Utility Act, NMSA 1978, Section 62-3-1 et seq. and NMPSC Rules 110 and 210 [17.1.2 NMAC and 17.1.210 NMAC]. The purpose of NMPSC Rule 530 [17.9.530 NMAC] is to define and specify the minimum data requirements to be filed in support for a tendered new rate schedule or rate schedule which will supersede, supplement, or otherwise change the provision of a rate schedule required to be on file with this Commission.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.530.7 Definitions

When used in Appendix A unless otherwise specified the following definitions will apply.

A. “Accounting Method” means the uniform system of accounting prescribed by the Commission.

(1) “Functional Accounting” means the grouping of plant and expense accounts according to the specified function or purpose which the plant or expense performs in rendering the utility service; for example, production, transmission, distribution, etc.

(2) “Primary Account” means the grouping of plant and expenditures by balance sheet account number; for example, accounts 101, 102, 103, etc.

(3) “Detailed Account” means the breakdown of plant and expenditures into subaccounts, that is, electric plant accounts; for example, accounts 301, 302, 303, etc.

B. Accounting Period:

(1) “Calendar Year” means a consecutive twelve-month accounting period beginning with January 1 and ending with December 31; and

(2) “Fiscal Year” means a consecutive twelve-month accounting period.

C. “Adjustment” means a calculation made with reasonable accuracy to the book balance of accounts to reflect an annualization, a known and measurable change, or estimate based on projection for the full twelve-month period of the Test Year. “Pro Forma Adjustment” means a computation made to develop the effect of an annualization, a known and measurable change, or estimate based on projection on the financial statements presented for Test Year purposes in a rate case.

D. “Allocation” means the process by which the total cost of service is separated into the major functions of plant, such as production, transmission, distribution; classified into the types of services provided, such as demand, energy, customer; and assigned to the various classes of customers served within a regulatory jurisdiction or among regulatory jurisdictions.

E. “Annualization” means a computation made to reflect a full twelve-month effect of an item of income or expense which is recorded in the utility’s financial statements for only a portion of a year.

F. “Base Period” means the applicant utility’s twelve (12) consecutive months of actual experience as reflected on the book balance of accounts, the last day of which shall not be more than one hundred fifty (150) days prior to the date of tender for filing.

G. “Book Balance Amounts” means the amounts actually recorded by the applicant utility on its books of account. Whenever property and/or services are acquired for other than cash the basis for valuation for book purposes shall be explained.

H. “Classification” means the separation of plant and expenses into the principal categories of the services rendered such as demand related, energy related, customer related, etc.

I. “Cost of Service” means the total annual cost of rendering the utility service expressed in monetary value including a return on invested capital and operational and administrative costs and expenses.

J. “Department” or “Division” means a responsibility center within the corporate structure of a public utility enterprise where revenues and expenses are accumulated as a result of a commodity or service rendered.

K. “Depreciated Original Cost” means the cost of property to the person first devoting it to the public service less the accrued depreciation reserve. Depreciated original cost shall not include the cost of reproduction as a going concern and other elements of value.

L. “Filing” means notification to the Commission by means of a tendered change in rate schedules by a public utility enterprise of its intent to initiate proceedings regarding such change pursuant to the provisions of the Commission’s Administrative Code.

(1) The “Filing Date” shall occur on the date on which the tendered change in rate schedules is completed by receipt at the offices of the Commission.

(2) The “Effective Date” shall occur on the date that such tendered change in rate schedules is permitted to become effective by the Commission pursuant to the provisions of the Commission’s Administrative Code, thirty (30) days after the filing date, or on such other date as may be ordered by the Commission.

M. “Functionalization” means the separation of costs according to major function or purpose which the plant or expense performs in rendering the utility service; for example, production, transmission, distribution, general, etc.

N. “Interconnected.” For reporting purposes herein a public utility is “interconnected” to another jurisdiction if power flows from the applicant utility’s New Mexico service area to its service area in another jurisdiction without leaving the applicant utility’s system.

O. “Lead-Lag Study” is a method sometimes employed in developing the amount of cash working capital to be included in a Rate Base determination for a utility company. The study seeks to measure and quantify the lag (delay) in receipt of revenues from customers from the time service is rendered offset by the lead that is the period the utility company has from the time it incurs an expense until cash is actually disbursed in payment for the expense.

P. “Litigation” means all contested matters before regulatory commissions, administrative bodies, and state or federal courts. Litigation also includes arbitration proceedings and other similar dispute resolution proceedings. Uncontested regulatory filings, contract drafting, negotiation and management, routine legal advise and other similar legal matters which are not in dispute are not considered litigation for the purposes of this rule.

Q. “Rate Base” means the net investment value upon which the applicant utility shall be permitted to earn a specified return. Generally, the Rate Base represents the value of utility property used and useful in rendering the public utility service and may contain elements of value reflecting the cost of the utility property to the person first devoting it to the public service and other items such as cash working capital, materials, supplies, and prepayments. In accordance with existing New Mexico Statutes [NMSA 1978] the applicant’s Rate Base may also reflect the cost of reproduction as a going concern and other elements of value. “Reproduction Cost” means the estimated cost to reproduce an item of property or other asset currently owned at current prevailing prices.

R. “Rate Class” means a group of the applicant utility’s customers who exhibit similar use characteristics and who are grouped together for cost allocation and rate design purposes.

S. “Test Year Period.” Nothing herein shall preclude an applicant utility from adopting either an Historical Test Year Period or a Future Test Year Period, as defined below, as the basis for the determination by the Commission of the applicant utility’s total revenue requirements. The Test Year Period prescribed in the individual data request schedules shall incorporate the necessary adjustments in conformance with the definition given above for the type of Test Year Period selected by the applicant utility.

(1) “Historical Test Year Period” means the Base Period after all proper adjustments, such as annualizations and known and measurable changes, for which period the applicant utility’s total revenue requirements shall be determined.

(2) “Future Test Year Period” means the twelve (12) consecutive months following the last day of the applicant utility’s twelve (12) months of actual experience [otherwise the Base Period] adjusted for known and measurable changes and/or estimates based on projections for which period the applicant utility’s total revenue requirements shall be determined.

17.9.530.8 [TABLE OF CONTENTS]

A. Applicability [SCOPE] [17.9.530.2 NMAC]

B. Letter of Transmittal [17.9.530.9 NMAC]

C. Failure to Comply [17.9.530.10 NMAC]

D. Variances [17.9.530.11 NMAC]

E. History [17.9.530.12 NMAC]

F. Appendix Minimum Data Standard Filing Requirements [17.9.530.13 NMAC]

History

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Recompiled 12/30/01

N.M. Admin. Code § 17.9.530.9 Letter of Transmittal

In the letter of transmittal the applicant shall:

A. notify the New Mexico Public Service Commission of the tendered rate schedules which will supersede, supplement, or otherwise change any provision of a rate schedule required to be on file with the Commission;

B. include copies of each tendered rate schedule which will supersede, supplement, or otherwise change the provision of a rate schedule required to be on file with the Commission;

C. state the date on which the applicant proposes to make the changes in service or rate, rule, or practice effective;

D. state a brief description of the proposed changes in service and/or rate, the reason for each proposed change, and shall show that all the requisite agreements to the proposed change, including any contract embodied therein, have in fact been obtained;

E. state that notice has been given or will be given as required by the Rules of the New Mexico Public Service Commission; and

F. list the documents submitted in support of the proposed changes.

History

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N.M. Admin. Code § 17.9.530.10 Failure to Comply

The failure of the applicant to fulfill the minimum data requirements specified in Appendix A shall constitute sufficient cause for the Commission to reject the applicant’s filing pursuant to NMPUC Rule 210 [17.1.10 NMAC].

History

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N.M. Admin. Code § 17.9.530.11 Variances

A. Pursuant to NMPUC Rules 110 and 210 [17.1.2 NMAC and 17.1.210 NMAC] an applicant utility unable to comply fully with any data request contained in Appendix A due to good and sufficient cause should give notice in writing to the Commission of the applicant utility’s inability to comply with the provisions of such data request at least thirty (30) days prior to the actual filing of the Minimum Data Requirements Filing Package.

B. Upon receipt of such notification and after consideration by the Commission of the applicant utility’s stated reasons for failure to comply fully with the provisions of the data request, the Commission shall within fifteen (15) days notify the applicant utility in writing of its decision concerning the applicant utility’s notice of its inability to comply with the Commission’s Data Filing Requirements.

17.9.530.12 [HISTORY: Codified by NMPUC Case No. 2086, Order dated June 30, 1988; amended by NMPUC Case No. 2232, Order dated December 19, 1988; amended by NMPUC Case No. 2561, Order dated April 4, 1994. Formerly NMPUC General Order No. 40, superseded for purposes of rule reorganization and codification.]

History

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Recompiled 12/30/01

N.M. Admin. Code § 17.9.530.13 Appendix a Minimum Data Standard Requirements

A. Schedule A Series: Summaries of the proposed cost of service.

(1) Sch. A-1: Summary of the overall cost of service and the claimed revenue deficiency: Base Period; Test Year Period.

(2) Sch. A-2: Summary of the revenue increase or decrease at the proposed rates by rate classes: Test Year Period.

(3) Sch. A-3: Summary of the cost of service adjustments by functional classification: Test Year Period.

(4) Sch. A-4: Summary of Rate Base: Base Period; Test Year Period; Test Year Period RCND--OPTIONAL.

(5) Sch. A-5: Summary of total capitalization and the weighted average cost of capital: Base Period; Test Year Period; Test Year Period RCND--OPTIONAL.

B. Schedule B Series: Original cost of plant in service.

(1) Sch. B-1: Original cost of plant in service by primary account: Base Period; Test Year Period.

(2) Sch. B-2: Original cost of plant in service by detail account: Base Period; Test Year Period.

(3) Sch. B-3: Original cost of plant in service by monthly balances: Base Period; Test Year Period.

(4) Sch. B-4: Construction work in progress: Base Period; Test Year Period.

(5) Sch. B-5: Allowance for funds used during construction transferred to plant in service: Base Period; Test Year Period.

(6) Sch. B-6: Plant held for future use: Base Period; Test Year Period.

(7) Sch. B-7: Nuclear fuel in process: Base Period; Test Year Period.

C. Schedule C Series: Accumulated provision for depreciation and amortization.

(1) Sch. C-1: Accumulated provision for depreciation and amortization by functional classification and detailed plant account: Base Period; Test Year Period.

(2) Sch. C-2: Depreciation rate study: Base Period; Test Year Period.

(3) Sch. C-3: Depreciation and amortization methods: Base Period; Test Year Period.

D. Schedule D Series: Original cost of plant in service adjusted to the cost of reproduction as a going concern and other elements of value--OPTIONAL.

(1) Sch. D-1: Original cost of plant in service adjusted to the cost of reproduction as a going concern and other elements of value--OPTIONAL: Base Period; Test Year Period.

(2) Sch. D-2: Cost of reproduction as a going concern and other elements of value adjusted for age and condition--OPTIONAL: Base Period; Test Year Period.

E. Schedule E Series: Working capital allowance.

(1) Sch. E-1: Cash working capital allowance: Base Period; Test Year Period.

(2) Sch. E-2: Materials and supplies, prepayments, and deferred charges: Base Period; Test Year Period.

(3) Sch. E-3: Fuel inventories by plant location: Base Period; Test Year Period.

(4) Sch. E-4: Amounts of working capital items charged to operating and maintenance expense: Base Period; Test Year Period.

F. Schedule F Series: Other property and investments.

(1) Sch. F-1: Other property and investments: Base Period; Test Year Period.

(2) [RESERVED]

G. Schedule G Series: Capitalization, the cost of capital, and the overall rate of return.

(1) Sch. G-1: Capitalization, the cost of capital, and the overall rate of return in conformance with an original cost Rate Base: Base Period; Test Year Period.

(2) Sch. G-2: Capitalization, the cost of capital, and the overall rate of return in conformance with a cost of reproduction as a going concern and other elements of value Rate Base--OPTIONAL: Base Period; Test Year Period.

(3) Sch. G-3: Embedded cost of borrowed capital with term of maturity in excess of one year from date of issue: Base Period; Test Year Period.

(4) Sch. G-4: Cost of short-term borrowed capital including revolving credit agreements and other notes payable: Base Period; Test Year Period.

(5) Sch. G- 5: Embedded cost of preferred stock capital: Base Period; Test Year Period.

(6) Sch. G-6: Ratio of earnings to fixed charges: Base Period; Test Year Period.

(7) Sch. G-7: Issuance restrictions on borrowed and preferred stock capital: Base Period; Test Year Period.

(8) Sch. G-8: Common stock equity capital: Base Period; Test Year Period.

(9) Sch. G-9: Historical activity in common stock, paid-in capital, and retained earnings: Base Period; Test Year Period.

(10) Sch. G-10: Summary of applicant’s support for the claimed rate of return on common stock equity capital.

H. Schedule H Series: Expenses of operation.

(1) Sch. H-1: Operation and maintenance expenses: Base Period; Test Year Period.

(2) Sch. H-2: Cost of fuel: Base Period; Test Year Period.

(3) Sch. H-3: Revenue generated through the fuel adjustment clause: Base Period; Test Year Period.

(4) Sch. H-4: Payroll distribution and associated payroll taxes: Base Period; Test Year Period.

(5) Sch. H-5: Expenses associated with advertising, contributions, donations, lobbying and political activities, memberships, and outside services: Base Period; Test Year Period.

(6) Sch. H-6: Other administrative and general expenses: Base Period; Test Year Period.

(7) Sch. H-7: Depreciation and amortization expense: Base Period; Test Year Period.

(8) Sch. H-8: Taxes other than income taxes: Base Period; Test Year Period.

(9) Sch. H-9: Federal and state income taxes: Base Period; Test Year Period.

(10) Sch. H-10: Reconciliation of net income per books to net income for income tax purposes: Base Period; Test Year Period.

(11) Sch. H-11: Income tax effect as result of applicant joining in a consolidated federal income tax return: Base Period; Test Year Period.

(12) Sch. H-12: Accumulated tax deferrals: Base Period; Test Year Period.

(13) Sch. H-13: Investment tax credits: Base Period; Test Year Period.

(14) Sch. H-14: Expenses associated with affiliated interests: Base Period; Test Year Period.

(15) Sch. H-15: Expenses associated with nonutility services: Base Period; Test Year Period.

(16) Sch. H-16: Schedule I Series: Explanation of the adjustments to expenses of operation.

I. Schedule I Series: Balance sheet, income statement, statement of changes in financial position.

(1) Sch. I-1: Balance sheet: Base Period; Test Year Period.

(2) Sch. I-2: Income statement: Base Period; Test Year Period.

(3) Sch. I-3: Statement of changes in financial position: Base Period; Test Year Period.

J. Schedule J Series: Construction program and sources of construction funds.

(1) Sch. J-1: Construction program: Base Year and Projected.

(2) Sch. J-2: Sources of construction funds: Base Year and Projected.

K. Schedule K Series: Fully allocated cost of service study.

(1) Sch. K-1: Allocation of Rate Base--jurisdictional: Base Period; Test Year Period.

(2) Sch. K-2: Allocation of Rate Base--functional classification: Base Period; Test Year Period.

(3) Sch. K-3: Allocation of Rate Base--demand, energy, and customer: Base Period; Test Year Period.

(4) Sch. K-4: Allocation of Rate Base to rate classes: Base Period; Test Year Period.

(5) Sch. K-5: Allocation of total expenses--jurisdictional: Base Period; Test Year Period.

(6) Sch. K-6: Allocation of total expenses--functional classification: Base Period; Test Year Period.

(7) Sch. K-7: Allocation of total expenses--demand, energy, and customer: Base Period; Test Year Period.

(8) Sch. K-8: Allocation of total expenses to rate classes: Base Period; Test Year Period.

L. Schedule L Series: Allocated cost of service per billing unit of demand, energy, and customer by rate classification.

(1) Sch. L-1: Allocated cost per billing unit of demand, energy, and customer: Base Period; Test Year Period.

(2) [RESERVED]

M. Schedule M Series: Allocation Factors.

(1) Sch. M-1: Allocation factors used to assign items of plant and expenses to the various rate classes: Base Period; Test Year Period.

(2) Sch. M-2: Classification factors used to assign items of plant and expenses to demand, energy, and customer: Base Period; Test Year Period.

(3) Sch. M-3: Demand and energy loss factors: Base Period; Test Year Period.

N. Schedule N Series: Rate of return by rate classification.

(1) Sch. N-1: Rate of return by rate classification: Base Period; Test Year Period.

(2) [RESERVED]

O. Schedule O Series: Rate design.

(1) Sch. O-1: Total revenue requirements by rate classification: Base Period; Test Year Period.

(2) Sch. O-2: Proof of revenue analysis: Test Year Period.

(3) Sch. O-3: Comparison of rates for service under the present and proposed schedules.

(4) Sch. O-4: Explanation of proposed changes to existing rate schedules.

P. Schedule P Series: Key operating statistics.

(1) Sch. P-1: Peak demand information.

(2) Sch. P-2: Plant in service.

(3) Sch. P-3: Property retirements and property investments information.

(4) Sch. P-4: Operation and maintenance expense information.

(5) Sch. P-5: Customer information.

(6) Sch. P-6: Weather data.

(7) Sch. P-7: Power plant maintenance information.

(8) Sch. P-8: Customer service interruption information.

(9) Sch. P-9: Line loss information.

(10) Sch. P-10: Reliability indices information.

(11) Sch. P-11: Reserve margin information.

(12) Sch. P-12: Fuel statistics information.

Q. Schedule Q Series: Required Reports.

(1) Sch. Q-1: Load research program and conservation plan.

(2) Sch. Q-2: Description of company.

(3) Sch. Q-3: Annual Report to stockholders.

(4) Sch. Q-4: Reports to the Securities and Exchange Commission.

(5) Sch. Q-5: Form 1 reports.

(6) Sch. Q-6: Opinion of independent public accountants.

R. Schedule R Series: Testimony and exhibits.

History

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N.M. Admin. Code § 17.9.530.14 Appendix

A. Schedule A Series: Summaries of the proposed cost of service. In this series of schedules the applicant shall show the New Mexico jurisdictional total cost of service in summary form for the Base Period and for the Test Year Period, as appropriate, and the proposed total cost of service in summary form for the Proposed Test Year Period as developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package. Summaries of the proposed cost of service shall be provided as specified in the following schedules.

(1) Schedule A-1: Summary of the overall cost of service and the claimed revenue deficiency.

(a) [Base Period]: In this schedule the applicant shall show the cost of service for the Base Period on an unadjusted basis including but not limited to: revenues, operation and maintenance expenses, depreciation expense, taxes on other than income, taxes on income, and the resulting return.

(b) [Test Year Period]: In this schedule the applicant shall show each of the items included in the Base Period, all adjustments thereto, the sum of each of these items at the end of the Test Year Period, and the revenue deficiency.

(c) A full explanation of each of the adjustments made to the balances shown at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

(2) Schedule A-2: Summary of the revenue increase or decrease at the proposed rates by rate classes.

(a) [Base Period]: Not required.

(b) [Test Year Period]: In this schedule the applicant shall show for the New Mexico jurisdiction:

(i) Base revenue for the Test Year Period under existing rates and under proposed rates.

(ii) Fuel and purchased power revenues for the Test Year Period under existing rates and under proposed rates.

(iii) Other revenue for the Test Year Period.

(iv) Total revenue for the Test Year Period under existing rates and under proposed rates.

(v) The amount of the revenue increase or decrease expressed both in dollars and as a percent. The revenue increase shall be the total revenue from the proposed rates less the total revenue from the existing rates for the Test Year Period.

(3) Schedule A-3: Summary of the cost of service adjustments by functional classification.

(a) [Base Period]: Not required.

(b) [Test Year Period]: In this schedule the applicant shall show by functional classification the account balances for the Base Period and the adjustments made to the Base Period balances to reflect the applicant’s cost of service for the Test Year Period.

(4) Schedule A-4: Summary of Rate Base.

(a) [Base Period]: In this schedule the applicant shall show the Rate Base components on an original cost basis for the Base Period on an unadjusted basis.

(b) [Test Year Period]: In this schedule the applicant shall show the Rate Base components on an original cost basis for the Base Period, all adjustments made thereto, and the sum of these components for the Test Year Period.

(c) [Test Year Period--Optional]: At the option of the applicant the Rate Base components as adjusted for the Test Year Period may be adjusted further to reflect the cost of reproduction as a going concern and other elements of value. The information required in this schedule will be supplied when the applicant claims cost of reproduction as a going concern and other elements of value to support its proposed rate adjustment.

(d) A full explanation of each of the adjustments made to the component balances of Rate Base at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

(5) Schedule A-5: Summary of total capitalization and the weighted average cost of capital.

(a) [Base Period]: In this schedule the applicant shall show the total claimed capitalization and the weighted average cost of capital for the Base Period on an unadjusted basis.

(b) [Test Year Period]: In this schedule the applicant shall show the total claimed capitalization and the weighted average cost of capital at the end of the Base Period, the adjustments made thereto, and the total claimed capitalization and the weighted average cost of capital for the Test Year Period.

(c) [Test Year Period--Optional]: At the option of the applicant the total claimed capitalization and weighted average cost of capital as adjusted for the Test Year Period may be adjusted further to reflect the cost of reproduction as a going concern and other elements of value. The information required in this schedule will be supplied when the applicant claims cost of reproduction as a going concern and other elements of value to support its proposed rate adjustment.

(d) A full explanation of each of the adjustments made to the claimed total capitalization and the weighted average cost of capital at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

B. Schedule B Series: Original cost of plant service: In this series of schedules the applicant shall show the amounts of utility plant under the various classifications for the Base Period and for the Test Year Period, as appropriate, and as developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package.

(1) Schedule B-1: Original cost of plant in service by primary account:

(a) [Base Period]: In this schedule the applicant shall show the utility plant book balances by primary account at the beginning of the Base Period; the book balances for additions, retirements, and transfers made thereto during the Base Period; and the book balances at the end of the Base Period including totals for the original cost of plant in service.

(b) [Test Year Period]: In this schedule the applicant shall show each of the utility plant accounts shown for the Base Period as of the end of the Base Period; all adjustments thereto for additions, retirements, and transfers; and the balances at the end of the Test Year Period including totals for the the original cost of plant as adjusted.

(2) Schedule B-2: Original cost of plant in service by detail account.

(a) [Base Period]: In this schedule the applicant shall show by functional classification the detailed plant account book balances at the beginning of the Base Period; the book balances for additions, retirements, and transfers made thereto during the Base Period; and the book balances at the end of the Base Period including subtotals by functional classification and totals for the original cost of plant in service.

(b) [Test Year Period]: In this schedule the applicant shall show by functional classification the detailed plant account balances at the end of the Base Period; all adjustments thereto for additions, retirements, and transfers; and the balances at the end of the Test Year Period including subtotals by functional classification and totals for the original cost of plant in service.

(3) Schedule B-3: Original cost of plant in service by monthly balances.

(a) [Base Period]: In this schedule the applicant shall show by functional classification the detailed plant account book balances at the beginning of each month and at the end of the Base Period including subtotals by functional classification and totals for the original cost of plant in service.

(b) [Test Year Period]: In this schedule the applicant shall show by functional classification the detailed plant account book balances at the beginning of each month as adjusted for the Test Year Period and at the end of the Test Year Period including subtotals by functional classification and totals for the original cost of plant in service as adjusted.

(4) Schedule B-4: Construction work in progress. [Report only those Items for which $100,000 or more have been expended by the end of the Base Period.]

(a) [Base Period]: In this schedule the applicant shall show the items included in construction work in progress for the Base Period by functional classification including a proper description of the project, work order number, estimated cost of the project, expenditures at the end of the Base Period, and the total book balance for construction work in progress at the end of the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the items included in construction work in progress for the Test Year Period by functional classification including a proper description of the project, work order number, estimated completion date, total estimated cost of the project, adjustments made thereto for the Test Year Period expenditures, and the total balance for construction work in progress at the end of the Test Year Period as adjusted. The information required in this schedule shall be supplied when the applicant claims construction work in progress to support a rate increase adjustment.

(5) Schedule B-5: Allowance for funds used during construction generated and transferred to plant in service.

(a) [Base Period]: In this schedule the applicant shall show the amounts of allowance for funds used during construction which were generated and transferred to plant in service during the Base Period and for the four (4) years prior thereto along with the corresponding capitalization rates used to calculate the amounts generated. In addition the applicant shall include a complete explanation of the methods, procedures, and calculations used in computing the amount of funds generated and transferred to plant in service.

(b) [Test Year Period]: In this schedule the applicant shall show the amounts of allowance for funds used during construction as adjusted from the Base Period along with an explanation of the methods, procedures, and calculations used in computing the amount of funds generated and transferred to plant in service.

(6) Schedule B-6: Plant held for future use.

(a) [Base Period]: In this schedule the applicant shall show a list of plant held for future use as of the end of the Base Period including a proper description, date of purchase, anticipated use, anticipated date that property will be placed in service, and the book balance of each item of plant at the end of the Base Period including a total of these balances of plant held for future use.

(b) [Test Year Period]: In this schedule the applicant shall show a list of plant held for future use as of the end of the Test Year Period including a proper description, date of purchase, anticipated use, anticipated date that property will be placed in service, adjustments made to the Base Period balances for the Test Year Period, and the balance of each item of plant at the end of the Test Year Period including a total of these balances of plant held for future use as adjusted.

(7) Schedule B-7: Nuclear fuel in process. [FERC accounts 120.1 through 120.5]

(a) [Base Period]: In this schedule the applicant shall show the beginning balance for FERC Accounts 120.1 through 120.5 of the Base Period and the monthly changes to these accounts during the Base Period including, where applicable, payments to vendors or to participating agents, the date payment was made, the name of vendor or participating agent, anticipated use of fuel, and the closing balance for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the closing balance of FERC accounts 120.1 through 120.5 for the Base Period, all adjustments thereto for the Test Year Period, and the closing balance as of the end of the Test Year Period.

C. Schedule C Series: Accumulated provision for depreciation and amortization. In this series of schedules the applicant shall show information concerning the accumulated provision for depreciation and amortization for the Base Period and for the Test Year Period, as appropriate, and as developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package.

(1) Schedule C-1: Accumulated provision for depreciation and amortization by functional classification and detailed plant account:

(a) [Base Period]: In this schedule the applicant shall include the book balance at the beginning of the Base Period for depreciation and amortization by functional classification and detailed plant account; the book balances for accruals, retirements, abandonments, and transfers entered on the books during the Base Period; and the book balances at the end of the Base Period including subtotals by functional classification and totals for the accumulated provision for depreciation and amortization.

(b) [Test Year Period]: In this schedule the applicant shall show by functional classification and detailed plant account the balances for accumulated provision for depreciation and amortization at the end of the Base Period; all adjustments thereto for accruals, retirements, abandonments, and transfers; and the balances at the end of the Test Year Period including subtotals by functional classification and totals for the accumulated provision for depreciation and amortization as adjusted.

(2) Schedule C-2: Depreciation rate study.

(a) [Base Period]: In this schedule the applicant shall show by functional classification and detailed plant account all changes made during the Base Period to the approved book depreciation rates, the property service lives, or the net values of properties included in the Base Period. In addition the applicant shall include for any changes made to the book depreciation rates during the Base Period reference to the appropriate supporting study, schedule, or workpapers which shall constitute a part of the applicant’s filing package. This information will be in accordance with NMPSC Rule 340 [17.3.340 NMAC].

(b) [Test Year Period]: In this schedule the applicant shall show by functional classification and detailed plant account any changes proposed to the Base Period approved book depreciation rates, the property service lives, or the net service value of properties included in the Base Period.

(c) A full explanation of each of the adjustments made to the Base Period book depreciation rates shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package. This information will be in accordance with NMPSC Rule 340 [17.3.340 NMAC].

(3) Schedule C-3: Depreciation and amortization methods.

(a) In this schedule the applicant shall show a full description of the methods, formulae, and procedures used to determine book depreciation and amortization of the applicant’s utility plant in service as applicable to either the Base Period or to the Test Year Period.

(b) This schedule shall only be required of those utilities requesting a change in depreciation methods, formulae, or procedures. Otherwise reference to the utility’s applicable NMPSC Rule 340 [17.3.340 NMAC] report shall constitute compliance with this schedule.

D. Schedule D Series: Original cost of plant in service adjusted to the cost of reproduction as a going concern and other elements of value--Optional. In this series of schedules the applicant shall show the original cost of plant in service adjusted to the cost of reproduction as a going concern and other elements of value. The information required in this series shall be supplied when the applicant claims cost of reproduction as a going concern and other elements of value to support a rate increase adjustment.

(1) Schedule D-1: Original cost of plant in service adjusted to the cost of reproduction as a going concern and other elements of value--Optional.

(a) [Base Period]: In this schedule the applicant shall show the original cost of plant in service by functional classification and detailed account at the end of the Base Period adjusted to the cost of reproduction as a going concern and other elements of value at the end of the Base Period and shall include therein subtotals and the total for the adjusted value of the original cost of plant in service. In addition the applicant shall state herein the rationale, methods, formulae, and calculations used to adjust the original cost of plant in service.

(b) [Test Year Period]: In this schedule the applicant shall show the original cost of plant in service by functional classification and detailed account as adjusted for the Test Year Period and as adjusted to the cost of reproduction as a going concern and other elements of value and shall include therein subtotals and the total for the adjusted value of the original cost of plant in service. In addition the applicant shall state herein the rationale, methods, formulae, and calculations used to adjust the original cost of plant in service.

(2) Schedule D-2: Cost of reproduction as a going concern and other elements of value adjusted for age and condition--Optional.

(a) [Base Period]: In this schedule the applicant shall show the adjustment for age and condition of the Base Period cost of reproduction as a going concern and other elements of value by functional classification and shall include therein the subtotal and the total for the cost of reproduction as a going concern value. In addition the applicant shall state therein the rationale, methods, formulae, and calculations used to arrive at the value for age and condition of the cost of reproduction as a going concern.

(b) [Test Year Period]: In this schedule the applicant shall show the adjustment for age and condition of the Test Year Period cost of reproduction as a going concern and other elements of value by functional classification and detail account and shall include therein the subtotal and the total for the cost of reproduction as a going concern value. In addition the applicant shall state therein the rationale, methods, formulae, and calculations used to arrive at the value for age and condition of the cost of reproduction as a going concern.

E. Schedule E Series: Working capital allowance: In this series of schedules the applicant shall show the amounts claimed for working capital for the Base Period and for the Test Year Period as developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package.

(1) Schedule E-1: Cash working capital allowance:

(a) [Base Period]: In this schedule the applicant shall show the computation for the allowance of cash working capital for the Base Period on an unadjusted basis. At the applicant’s option a lead‑lag study may be supplied to satisfy the requirements of this data request.

(b) [Test Year Period]: In this schedule the applicant shall show the computation for the allowance of cash working capital as of the end of the Base Period, the adjustments made thereto, and the total claimed cash allowance for the Test Year Period. At the applicant’s option a lead-lag study may be supplied to satisfy the requirements of this data request.

(c) A full explanation of each of the adjustments made to the balance for cash working capital allowance as of the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

(2) Schedule E-2: Materials and supplies, prepayments, and deferred charges.

(a) [Base Period]: In this schedule the applicant shall show for each month of the Base Period on an unadjusted basis the beginning monthly book balances and the end‑of‑period balance for materials and supplies, prepayments, and deferred charges and shall include therein subtotals, totals, and the average of the thirteen (13) balances for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show for each month of the Test Year Period the beginning monthly balance for materials and supplies, prepayments, and deferred charges; all adjustments thereto; and the subtotals, totals, and the average of the thirteen (13) balances for the Test Year Period.

(c) A full explanation of each of the adjustments made to the balances for materials and supplies, prepayments, and deferred charges for the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

(3) Schedule E-3: Fuel inventories by plant location.

(a) [Base Period]: In this schedule the applicant shall show for each month of the Base Period the beginning monthly balances and the Base Period ending balance of fuel inventories on an unadjusted basis and shall include therein subtotals, totals, and the average of the thirteen (13) balances for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show for each month of the Test Year Period the beginning monthly book balances and the period ending balance of fuel inventories; all adjustments thereto; and the subtotals, totals, and the average of the thirteen (13) balances for the Test Year Period.

(c) A full explanation of each of the adjustments made to the balances for fuel inventories as of the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

(4) Schedule E-4: Amounts of working capital items charged to operating and maintenance expenses.

(a) [Base Period]: In this schedule the applicant shall show for each month of the Base Period the monthly amounts of working capital items charged to operating and maintenance expenses on an unadjusted basis and shall include therein totals for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show for each month of the Test Year Period the monthly amounts of working capital items charged to operating and maintenance expenses, all adjustments thereto, and the totals for the Test Year Period.

(c) A full explanation of each of the adjustments made to the balances of working capital items charged to operating and maintenance expenses as of the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

F. Schedule F Series: Other property and investments: In this series of schedules the applicant shall show the information requested on investments in other-than-utility property for the Base Period and for the Test Year Period as developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package. To the extent that the information required herein has been supplied and is currently on file with the New Mexico Public Service Commission [New Mexico Public Regulation Commission] pursuant to the provisions of NMPSC Rule 450 [17.6.450 NMAC], notice herein that such filing has been made will fulfill the requirements for this series of schedules.

(1) Schedule F-1: Other property and investments.

(a) [Base Period]: In this schedule the applicant shall show its investments in other-than-utility property as of the beginning of the Base Period and as of the end of the Base Period on an unadjusted basis. The applicant shall include therein a description of the property or investment; the amounts invested; the types of securities owned, loaned, pledged, and/or advanced; the applicable cost rates; the equity in the undistributed earnings since date of acquisition; and the interest and/or dividend income received from such property or investment. In addition, if regulatory approval was required for any security acquired or advancement made in connection with such property or investment, the applicant shall state the name of the Commission, the date authorization was granted, and the case or docket number.

(b) [Test Year Period]: In this schedule the applicant shall show its investments in other-than-utility property as of the end of the Base Period; all adjustments made thereto for the Test Year Period; the balance at the end of the Test Year Period including therein a description of the property or investment; the amounts invested; the types of securities owned, loaned, pledged, and/or advanced; the applicable cost rates; the equity in the undistributed earnings since date of acquisition; and the interest and/or dividend income received from such property or investment. In addition, if regulatory approval was required for any security acquired or advancement made in connection with such property or investment, the applicant shall state the name of the Commission, the date authorization was granted, and the case or docket number.

(c) A full explanation for each of the adjustments made to the balances shown at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

G. Schedule G Series: Capitalization, the cost of capital, and the overall rate of return. In this series of schedules the applicant shall show the total capitalization by class of capital, the claimed capital structure, the embedded cost rates including the claimed rate of return on the common stock equity component, and the resulting weighted average cost of capital for the Base Period and for the Test Year Period as developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package.

(1) Schedule G-1: Capitalization, the cost of capital, and the overall rate of return in conformance with an original cost Rate Base:

(a) [Base Period]: In this schedule the applicant shall show the claimed capitalization, the cost of capital thereon, and the overall claimed rate of return as of the end of the Base Period on an actual basis; a description of the various classes of capital; the capital structure ratios; the effective embedded cost rates; and the weighted cost rate for each class of capital.

(b) [Test Year Period]: In this schedule the applicant shall show the capitalization, the cost of capital, and the overall claimed rate of return as of the end of the Base Period; all adjustments thereto; a description of the various classes of capital; the dollar amounts outstanding at the end of the Test Year Period; the capital structure ratios; the estimated cost rates; and the weighted cost rate for each class of capital.

(c) A full explanation of each of the adjustments made to the balances and cost rates of capital shown at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

(2) Schedule G-2: Capitalization, the cost of capital, and the overall rate of return in conformance with a cost of reproduction as a going concern and other elements of value Rate Base--Optional.

(a) [Base Period]: In this schedule the applicant shall show the claimed capitalization, the cost of capital thereon, and the overall claimed rate of return as of the end of the Base Period on an actual basis; the adjustment thereto for the cost of reproduction as a going concern value; a description of the various classes of capital; the dollar amounts outstanding at the end of the Base Period as adjusted; the capital structure ratios; the effective embedded cost rates; and the weighted cost rate for each class of capital. The information required in this schedule will be supplied when the applicant claims cost of reproduction as a going concern and other elements of value to support its proposed rate adjustment.

(b) [Test Year Period]: In this schedule the applicant shall show the capitalization, the cost of capital, and the overall claimed rate of return as of the end of the Test Year Period as adjusted further to the cost of reproduction as a going concern value; a description of the various classes of capital; the dollar amounts outstanding at the end of the Test Year Period as adjusted; the capital structure ratios; the estimated cost rates; and the weighted cost rate for each class of capital. The information required in this schedule will be supplied when the applicant claims cost of reproduction as a going concern and other elements of value to support its proposed rate adjustment.

(3) Schedule G-3: Embedded cost of borrowed capital with term of maturity in excess of one year from date of issue:

(a) [Base Period]: In this schedule the applicant shall show the embedded cost of borrowed capital based on the actual principal amounts outstanding at the end of the Base Period. In addition the applicant shall show the following particulars for each class and series of borrowed capital outstanding:

(i) description of issue;

(ii) date of issuance;

(iii) date of maturity;

(iv) coupon or nominal interest rate;

(v) principal amount of issue at offering;

(vi) price at offering;

(vii) gross proceeds;

(viii) underwriter’s commission, discount, or premium;

(ix) expense of issue;

(x) net proceeds--(1) amount, (2) per unit;

(xi) effective yield to maturity [by reference to any generally acceptable table of bond yields or computer computation];

(xii) principal amount outstanding at end of Base Period;

(xiii) annual interest requirements;

(xiv) weighted effective cost rate;

(xv) if issue is owned by an affiliate, state name and relationship of owner to applicant; and

(xvi) if issue is convertible, state terms of conversion.

(b) [Test Year Period]: In this schedule the applicant shall show the cost of borrowed capital [particulars i through xvi] after all adjustments to the actual balances and cost rates at the end of the Base Period.

(4) Schedule G-4: Cost of short-term borrowed capital including revolving credit agreements and other notes payable:

(a) [Base Period]: In this schedule the applicant shall show the cost of short-term borrowed capital based on the actual principal amounts outstanding at the end of the Base Period. In addition the applicant shall show the following particulars for each class and series of short‑term borrowed capital outstanding:

(i) description of issue;

(ii) date of issuance;

(iii) date of maturity;

(iv) coupon or nominal interest rate;

(v) principal amount of issue at offering;

(vi) annual interest requirements;

(vii) average principal balance outstanding monthly during the period;

(viii) average weighted interest cost rate on average principal balance outstanding monthly during the period; and

(ix) if issue is owned by an affiliate, state name and relationship of owner to applicant.

(b) [Test Year Period]: In this schedule the applicant shall show the cost of short-term borrowed capital [particulars i through ix] after all adjustments to the actual balances and cost rates at the end of the Base Period.

(5) Schedule G-5: Embedded cost of preferred stock capital:

(a) [Base Period]: In this schedule the applicant shall show the embedded cost of preferred stock capital based on the actual principal amounts outstanding at the end of the Base Period. In addition the applicant shall show the following particulars for each class and series of preferred stock outstanding:

(i) description of issue [including number of shares offered];

(ii) date of issuance;

(iii) dividend rate;

(iv) price at offering;

(v) gross proceeds;

(vi) underwriter’s commission, discount, or premium;

(vii) issuance expense;

(viii) net proceeds--(1) amount, (2) per unit;

(ix) effective dividend cost rate;

(x) principal amount outstanding at end of period;

(xi) annual dividend requirements;

(xii) weighted effective cost rate;

(xiii) if issue is owned by an affiliate, state name and relationship; and

(xiv) if issue is convertible, state terms of conversion.

(b) [Test Year Period]: In this schedule the applicant shall show the cost of preferred stock capital [particulars i through xiv] after all adjustments to the actual balances and cost rates at the end of the Base Period.

(6) Schedule G-6: Ratio of earnings to fixed charges:

(a) [Base Period]: In this schedule the applicant shall show the computation of the ratio of earnings to fixed charges for the Base Period on an actual basis and for the four (4) years preceding the Base Period using the following format, where appropriate:

(i) Fixed charges, as defined by the Securities and Exchange Commission: (1) Interest on Long-term Debt; (2) Amortization of Debt Premium, Discount, and Expense; (3) Interest on Short-term Debt; (4) Other Interest; (5) Estimated Interest Factor of Lease Rental Charges Total Fixed Charges.

(ii) Earnings, as defined by the Securities and Exchange Commission; (1) Net Earnings; (2) Add Fixed Charges, as above.

(iii) Earnings Available for Fixed Charges After Provision for Income Taxes.

(iv) Add Income Taxes: (1) Federal; (2) Deferred-net; (3) Investment Tax Credit Adjustment; (4) Investment Tax Credit; (5) State.

(v) Earnings Available for Fixed Charges Before Provision for Income Taxes.

(vi) Ratio of Earnings to Fixed Charges After Provision for Income Taxes.

(vii) Ratio of Earnings to Fixed Charges Before Provision for Income Taxes.

(b) [Test Year Period]: In this schedule the applicant shall show the computation of the ratio of earnings to fixed charges for the Test Year Period after adjustments made to the Base Period balances using the same format as prescribed for the Base Period.

(7) Schedule G-7: Issuance restrictions on borrowed and preferred stock capital: In this schedule the applicant will show a brief summary of the most current restrictions imposed on the applicant in the issuance of borrowed and preferred stock capital.

(8) Schedule G-8: Common stock equity capital:

(a) [Base Period]: In this schedule the applicant shall show the common stock activity as of the end of the Base Period and for five (5) years preceding the Base Period on an actual basis and shall show therein the following particulars:

(i) year-end number of shares outstanding;

(ii) year-end book value per share;

(iii) annual earning per share;

(iv) year-end market-to-book value ratio;

(v) annual cash dividend per share;

(vi) annual stock dividends per share;

(vii) dividend yield per share;

(viii) average monthly high/low market price;

(ix) stock splits and/or changes in par value;

(x) sales of common stock;

(xi) date of sale;

(xii) number of shares sold;

(xiii) gross proceeds;

(xiv) underwriter’s commission, discount, or premium;

(xv) issuance expense; and

(xvi) type of offering.

(b) [Test Year Period]: In this schedule the applicant shall show the common stock activity as of the end of the Base Period, all adjustments made to the particulars a through p [i through xvi] prescribed for the Base Period, and the results as of the end of the Test Year Period.

(c) A full explanation of each of the adjustments made to the balances shown as of the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

(9) Schedule G-9: Historical activity in common stock, paid-in capital, and retained earnings:

(a) [Base Period]: In this schedule the applicant shall show the historical activity in common stock, paid-in capital, and retained earnings for the last ten (10) years as of the end of each year on an actual basis and shall include therein the beginning balance, additions, reductions, and the ending balance concluding with the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the actual balances for the Base Period, all adjustments to the Base Period balances, and the ending balance for the Test Year Period.

(10) Schedule G-10: Summary of applicant’s support for the claimed rate of return on common stock equity capital: In this schedule the applicant shall state briefly the analyses, methods, and conclusions on which the applicant depends for its support of the claimed rate of return on common stock equity capital.

H. Schedule H Series: Expenses of operation: In this series of schedules the applicant shall show information concerning its expenses of operation by each account of the Uniform System of Accounts prescribed by the New Mexico Public Service Commission [New Mexico Public Regulation Commission] for the Base Period and for the Test Year Period as developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package.

(1) Schedule H-1: Operation and maintenance expenses:

(a) [Base Period]: In this schedule the applicant shall show operation and maintenance expenses by functional classification and detailed account on an unadjusted basis by month for the Base Period and shall include therein subtotals and totals by functional classification and detailed account. Amounts included in Account 920, Administrative & General Salaries; Account 923, Outside Services Employed; and Account 928, Regulatory Commission Expenses, shall further be separated to identify those amounts in each detailed account which are litigation expenses as defined by NMSA 1978, Section 62-13-3 and those amounts which are not litigation expenses. Amounts included in any other detailed account which are litigation expenses as defined by Section 62-13-3 shall also be separately identified.

(b) [Test Year Period]: In this schedule the applicant shall show operation and maintenance expenses by functional classification and detailed account by month for the Base Period, all adjustments made thereto for the Test Year Period, and the balances as of the end of the Test Year Period and shall include therein subtotals and totals by functional classification and detailed account. Test year period litigation expenses should be handled in the same manner as described above for the base period.

(c) A full explanation of each of the adjustments made to the balances shown at the end of the Bass Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

(2) Schedule H-2: Cost of fuel:

(a) [Base Period]: In this schedule the applicant shall show the cost of fuel by month on an unadjusted basis for the Base Period by type of fuel, quantity in MMBTU, and the unit cost in dollars per MMBTU.

(b) [Test Year Period]: In this schedule the applicant shall show the cost of fuel by month for the Base Period, all adjustments thereto, the balances as of the end of the Test Year Period by type of fuel, quantity in MMBTU, and the unit cost in dollars per MMBTU.

(3) Schedule H-3: Revenue generated through the fuel adjustment clause:

(a) [Base Period]: In this schedule the applicant shall show an analysis of the reconciliation of fuel and purchased power expense with the fuel cost adjustment revenues on an unadjusted basis for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show an analysis of the reconciliation of fuel and purchased power expense with the fuel cost adjustment revenues as adjusted for the Test Year Period.

(4) Schedule H-4: Payroll distribution and associated payroll taxes:

(a) [Base Period]: In this schedule the applicant shall show the payroll distribution and the associated payroll taxes included in operating expenses on an unadjusted basis for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the payroll distribution and the associated payroll taxes included in operating expenses for the Base Period, all adjustments made thereto, and the balances for the Test Year Period.

(5) Schedule H-5: Expenses associated with advertising, contributions, donations, lobbying and political activities, memberships, and outside services:

(a) [Base Period]: In this schedule the applicant shall show the expenses incurred as a result of advertising, contributions, donations, lobbying and political activities, memberships, and outside services by month on an unadjusted basis for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the expenses associated with advertising, contributions, donations, lobbying and political activities, memberships, and outside services for the Base Period; all adjustments made thereto; and the balances for the Test Year Period.

(6) Schedule H-6: Other administrative and general expenses:

(a) [Base Period]: In this schedule the applicant shall show other administrative and general expenses such as transfer credits, regulatory commission expenses, duplicate charges, and other miscellaneous general expenses not shown elsewhere, separately by month for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show other administrative and general expenses such as transfer credits, regulatory commission expenses, duplicate charges, and other miscellaneous general expenses not shown elsewhere, separately by month for the Base Period; all adjustments thereto; and the balances for these items for the Test Year Period.

(7) Schedule H-7: Depreciation and amortization expense:

(a) [Base Period]: In this schedule the applicant shall show the depreciation and amortization expense by functional classification and detailed plant account on an unadjusted basis for the Base Period, the book depreciation rate, and the annual expense accrual. The applicant shall include therein subtotals and totals by functional classification and detailed plant account.

(b) [Test Year Period]: In this schedule the applicant shall show the depreciation and amortization expense by functional classification and detailed plant account for the Base Period, all adjustments thereto, and the annual expense accrual for the Test Year Period. The applicant shall include therein subtotals and totals by functional classification and detailed plant account.

(8) Schedule H-8: Taxes other than on income:

(a) [Base Period]: In this schedule the applicant shall show the taxes, excluding federal and state income taxes, by type of tax accrued, prepaid, and charged on an actual basis for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the taxes, excluding federal and state income taxes, by type of tax for the Base Period, all adjustments made thereto, and the balances for the Test Year Period.

(c) A full explanation of each of the adjustments made to the balances shown for the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

(9) Schedule H-9: Federal and state income taxes:

(a) [Base Period]: In this schedule the applicant shall show the computation for federal and state income taxes on an unadjusted basis for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the computation for federal and state income taxes reflecting all adjustments made for the Test Year Period.

(10) Schedule H-10: Reconciliation of net income per books to net income for income tax purposes:

(a) [Base Period]: In this schedule the applicant shall show the reconciliation of the net income per books to the net income as reported to the Federal Internal Revenue Service for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the reconciliation of the net income as adjusted for the Test Year Period to the net income as would be reported to the Federal Internal Revenue Service for the Test Year Period.

(11) Schedule H-11: Income tax effect as a result of applicant joining in a consolidated federal income tax return:

(a) [Base Period]: In this schedule the applicant shall show a detailed analysis for the Base Period of the applicant’s tax effect as a result of joining in the filing of a consolidated federal income tax return.

(b) [Test Year Period]: In this schedule the applicant shall show a detailed analysis for the Test Year Period of the applicant’s tax effect at the proposed revenue as a result of joining in the filing of a consolidated federal income tax return.

(12) Schedule H-12: Accumulated tax deferrals:

(a) [Base Period]: In this schedule the applicant shall show the accumulated tax deferrals by month on an unadjusted basis for the Base Period and shall include therein the actual balances for additions and reductions and the balances as of the end of the Base Period. In addition the applicant shall show the item giving rise to the tax deferral separately, such as accelerated amortization, liberalized depreciation, asset depreciation range, investment tax credit, job development credit, etc.

(b) [Test Year Period]: In this schedule the applicant shall show the accumulated tax deferrals as of the end of the Base Period, all adjustments thereto for the Test Year Period, and the balances at the end of the Test Year Period. In addition the applicant shall show the item giving rise to the tax deferral separately, such as accelerated amortization, liberalized depreciation, asset depreciation range, investment tax credit, job development credit, etc.

(13) Schedule H-13: Investment tax credits:

(a) [Base Period]: In this schedule the applicant shall show an analysis of the investment tax credits earned, utilized, and amortized during the Base Period on an unadjusted basis. In addition the applicant shall show herein the particulars concerning any sale/leaseback transactions under the safe-harbor lease provisions of the Accelerated Cost Recovery System established by the Economic Recovery Tax Act of 1981 and amendments thereto, such as the investor/lessor, amount of property, cash payment, term of lease, discount, and tax rate.

(b) [Test Year Period]: In this schedule the applicant shall show an analysis of the investment tax credit for the Base Period, all adjustments made thereto for the Test Year Period, and the balances at the end of the Test Year Period. In addition the applicant shall show herein the particulars concerning any sale/leaseback transactions under the safe-harbor lease provisions of the Accelerated Cost Recovery System established by the Economic Recovery Tax Act of 1981 and amendments thereto, such as the investor/ lessor, amount of property, cash payment, term of lease, discount, and tax rate.

(14) Schedule H-14: Expenses associated with affiliated interests:

(a) [Base Period]: In this schedule the applicant shall show the charges or credits on an unadjusted basis for the Base Period between applicant and any other affiliated or associated company, or for corporate organizations of applicant operating as departments or divisions, including therein the proper account classification; a description of the service performed; and the basis for the determination of the charge or credit. For reporting purposes herein items of $10,000 or more shall be shown individually; items of $10,000 or less may be aggregated by type of item.

(b) [Test Year Period]: In this schedule the applicant shall show the charges or credits for the Base Period, all adjustments made thereto, and the balances for the Test Year Period between applicant and any other affiliated or associated company, or for corporate organizations of applicant operating as departments or divisions, including therein the proper account classification; a description of the service performed; and the basis for the determination of the charge or credit. For reporting purposes herein items of $10,000 or more shall be shown individually; items of $10,000 or less may be aggregated by type of item.

(15) Schedule H-15: Expenses associated with nonutility services:

(a) [Base Period]: In this schedule the applicant shall show the investments, revenues, and expenses pertaining to the applicant’s nonutility services on an unadjusted basis for the Base Period. The applicant shall include a full explanation of the rationale, methods, formulae, and calculations used in the allocation of these expenses to the nonutility service.

(b) [Test Year Period]: In this schedule the applicant shall show the investments, revenues, and expenses pertaining to the applicant’s nonutility services for the Base Period; all adjustments made thereto; and the balances as of the end of the Test Year Period. The applicant shall include a full explanation of the rationale, methods, formulae, and calculations used in the allocation of these expenses to the nonutility service.

(16) Schedule H-16: Explanation of the adjustments to expenses of operation: In this schedule the applicant shall state in a brief explanation the nature of each adjustment made to the book balances of expenses of operation.

I. Schedule I Series: Balance sheet, income statement, statement of changes in financial position: In this series of schedules the applicant shall submit copies of the financial forms, as required herein.

(1) Schedule I-1: Balance sheet:

(a) [Base Period]: To satisfy the requirements of this schedule the applicant shall submit a copy of its balance sheet which conforms with the end of the Base Period of operations reported herein and shall include all notes pertaining thereto.

(b) [Test Year Period]: To satisfy the requirements of this schedule the applicant shall submit a copy of its balance sheet which conforms with the end of the Test Year Period of operations reported herein and shall include all notes pertaining thereto.

(2) Schedule I-2: Income statement:

(a) [Base Period]: To satisfy the requirements of this schedule the applicant shall submit a copy of its income statement which conforms with the end of the Base Period of operations reported herein and shall include all notes pertaining thereto.

(b) [Test Year Period]: To satisfy the requirements of this schedule the applicant shall submit a copy of its income statement which conforms with the end of the Test Year Period of operations reported herein and shall include all notes pertaining thereto.

(3) Schedule I-3: Statement of changes in financial position:

(a) [Base Period]: To satisfy the requirements of this schedule the applicant shall submit a copy of its statement of changes in financial position which conforms with the end of the Base Period of operations reported herein and shall include all notes pertaining thereto.

(b) [Test Year Period]: To satisfy the requirements of this schedule the applicant shall submit a copy of its statement of changes in financial position which conforms with the end of the Test Year Period of operations reported herein and shall include all notes pertaining thereto.

(c) A full explanation of each of the adjustments made to the balances shown at the and of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

J. Schedule J Series: Construction program and sources of construction funds: In this series of schedules the applicant shall show its proposed construction program and the sources of construction funds as developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package.

(1) Schedule J-1: Construction program:

(a) In this schedule the applicant shall show by functional classification the capital requirements and shall include allowance for funds used during construction, related to its construction underway during the Base Period, and for construction planned for the next two (2) succeeding years.

(b) A full explanation of all assumptions and estimates used to arrive at the projections shown shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

(2) Schedule J-2: Sources of construction funds:

(a) In this schedule the applicant shall show the planned sources of construction funds by years to conform with the planned construction program and shall include therein the amounts by class of capital and the anticipated cost rates on the proposed financing.

K. Schedule K Series: Fully allocated cost of service study: In this series of schedules the applicant shall show the total cost of service for the Base Period and for the Test Year Period separated by jurisdiction if applicant is interconnected between two (2) or more jurisdictions and where applicable by corporate department or division; by functional classification; classified to demand, energy, and customer; and by rate classification as developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package.

(1) Schedule K-1: Allocation of Rate Base--jurisdictional:

(a) [Base Period]: In this schedule the applicant shall show the Rate Base components on an unadjusted basis for the Base Period separated by jurisdiction and, where applicable, by corporate department or division.

(b) [Test Year Period]: In this schedule the applicant shall show the Rate Base components after adjustments to the Base Period balances separated by jurisdiction and, where applicable, by corporate department or division.

(2) Schedule K-2: Allocation of Rate Base--functional classification:

(a) [Base Period]: In this schedule the applicant shall show the Rate Base components on an unadjusted basis for the Base Period separated by functional classification.

(b) [Test Year Period]: In this schedule the applicant shall show the Rate Base components after adjustments to the Base Period balances separated by functional classification.

(3) Schedule K-3: Allocation of Rate Base--demand, energy, and customer:

(a) [Base Period]: In this schedule the applicant shall show the Rate Base components on an unadjusted basis for the Base Period separated as to demand, energy, and customer.

(b) [Test Year Period]: In this schedule the applicant shall show the Rate Base components after adjustments to the Base Period balances separated by demand, energy, and customer.

(4) Schedule K-4: Allocation of Rate Base to rate classes:

(a) [Base Period]: In this schedule the applicant shall show the Rate Base components on an unadjusted basis for the Base Period separated by rate classification.

(b) [Test Year Period]: In this schedule the applicant shall show the Rate Base components after adjustments to the Base Period balances separated by rate classification.

(5) Schedule K-5: Allocation of total expenses--jurisdictional:

(a) [Base Period]: In this schedule the applicant shall show the total expenses on an unadjusted basis for the Base Period separated by jurisdiction and, where applicable, by corporate department or division.

(b) [Test Year Period]: In this schedule the applicant shall show the total expenses after adjustments to the Base Period balances separated by jurisdiction and, where applicable, by corporate department or division.

(6) Schedule K-6: Allocation of total expenses--functional classification:

(a) [Base Period]: In this schedule the applicant shall show the total expenses on an unadjusted basis for the Base Period separated by functional classification.

(b) [Test Year Period]: In this schedule the applicant shall show the total expenses after adjustments to the Base Period balances separated by functional classification.

(7) Schedule K-7: Allocation of total expenses--demand, energy, and customer:

(a) [Base Period]: In this schedule the applicant shall show total expenses on an unadjusted basis for the Base Period separated as to demand, energy, and customer.

(b) [Test Year Period]: In this schedule the applicant shall show total expenses after adjustments to the Base Period balances separated as to demand, energy, and customer.

(8) Schedule K-8: Allocation of total expenses to rate classes:

(a) [Base Period]: In this schedule the applicant shall show total expenses on an unadjusted basis for the Base Period separated by rate classification.

(b) [Test Year Period]: In this schedule the applicant shall show total expenses after adjustments to the Base Period balances separated by rate classification.

L. Schedule L Series: Allocated cost of service per billing unit of demand, energy, and customer by rate classification: In this series of schedules the applicant shall show the allocated cost of service by rate classification per billing unit of demand, energy, and customer as requested in each schedule and developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package.

(1) Schedule L-1: Allocated cost per billing unit of demand, energy and customer:

(a) [Base Period]: In this schedule the applicant shall show the total allocated cost of service and the total allocated cost of service per billing unit of demand, energy, and customer on an unadjusted basis for the Base Period existing rate schedules.

(b) [Test Year Period]: In this schedule the applicant shall show the total allocated cost of service and the total allocated cost of service per billing unit of demand, energy, and customer for the proposed rate schedules after adjustments to the Base Period balances.

(2) [RESERVED]

M. Schedule M Series: Allocation factors: In this series of schedules the applicant shall provide a list of the allocation factors used to assign items of plant and expenses to the various rate classes as well as a brief summary of the derivation of the allocation factors used.

(1) Schedule M-1: Allocation factors used to assign items of plant and expenses to the various rate classes:

(a) [Base Period]: In this schedule the applicant shall provide a list of the allocation factors used to assign items of plant and expenses on an unadjusted basis to the rate classes for the Base Period. In addition the applicant shall provide a brief explanation of the derivation of the allocation factors used.

(b) [Test Year Period]: In this schedule the applicant shall provide a list of the allocation factors used to assign items of plant and expenses to the rate classes after adjustments to the Base Period balances. In addition the applicant shall provide a brief explanation of the derivation of the allocation factors used.

(2) Schedule M-2: Classification factors used to assign items of plant and expenses to demand, energy, and customer:

(a) [Base Period]: In this schedule the applicant shall provide a tabulation of the classification factors used to assign items of plant and expenses to the appropriate demand, energy, and customer components on an unadjusted basis for the Base Period, showing therein the classification and a brief rationale for the classification.

(b) [Test Year Period]: In this schedule the applicant shall provide a tabulation of the classification factors used to assign items of plant and expenses to the appropriate demand, energy, and customer components after adjustments to the Base Period balances, showing therein the classification and a brief rationale for the classification.

(3) Schedule M-3: Demand and energy loss factors:

(a) [Base Period]: In this schedule the applicant shall provide the demand and energy loss factors used to assign the cost of service responsibility on an unadjusted basis to the Base Period. In addition the applicant shall briefly explain herein the methods, procedures, and formulae used to determine the loss factors and demand and energy losses.

(b) [Test Year Period]: In this schedule the applicant shall provide the demand and energy loss factors used to assign the cost of service responsibility after adjustments to the Base Period balances. In addition the applicant shall briefly explain herein the methods, procedures, and formulae used to determine the loss factors and demand and energy losses.

N. Schedule N Series: Rate of return by rate classification: In this series of schedules the applicant shall show the rate of return and the relative rate of return by rate classification as developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package.

(1) Schedule N-1: Rate of return by rate classification:

(a) [Base Period]: In this schedule the applicant shall show the rate of return and the relative rate of return by rate classification for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the rate of return and the relative rate of return by rate classification under the proposed rate schedules for the Test Year Period.

(2) [RESERVED]

O. Schedule O Series: Rate design: In this series of schedules the applicant shall show the total revenue requirement by rate classification as developed from the supporting schedules and workpapers included elsewhere in the applicant’s filing package.

(1) Schedule O-1: Total revenue requirements by rate classification:

(a) [Base Period]: In this schedule the applicant shall show the total revenue requirements on an unadjusted basis by rate classification for the Base Period, showing therein on a separate basis: base revenues, revenues derived from fuel and purchased power, and other revenue.

(b) [Test Year Period]: In this schedule the applicant shall show by rate classification:

(i) the total revenue requirements under existing rate schedules after adjustments to the Base Period balances, showing therein on a separate basis: base revenues, revenues derived from fuel and purchased power, and other revenue;

(ii) the total revenue requirements under the proposed rates after adjustments to the Base Period balances, showing therein on a separate basis: base revenues, revenues derived from fuel and purchased power, and other revenue; and

(iii) the difference between the total revenue under existing rates and the total revenue under the proposed rates expressed in both dollars and as a percent.

(2) Schedule O-2: Proof of revenue analysis:

(a) [Base Period]: Not required.

(b) [Test Year Period]: To satisfy the requirements of this request the applicant shall include a proof of revenue by rate class utilizing the proposed rate schedules.

(c) A full explanation of each of the adjustments made to the Base Period information shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant’s filing package.

(3) Schedule O-3: Comparison of rates for service under the present and proposed schedules: To satisfy the requirements of this request the applicant shall include herein a tabulation showing a comparison of the rates for each rate classification for the present and proposed schedules.

(4) Schedule O-4: Explanation of proposed changes to existing rate schedules: In this schedule the applicant shall provide a brief explanation for the proposed change to the Base Period existing rate schedules and shall include therein the justification and support for the proposed change.

P. Schedule P Series: Key operating statistics: In this series of schedules the applicant shall provide the statistical data as requested in the following series of schedules and shall include therein an explanation or reference to the appropriate supporting schedules or workpapers for any adjustments made to the historical data requested or to the data for the Base Period. In addition, detailed explanations of all estimates and assumptions used to arrive at future values of data shall be provided.

(1) Schedule P-1: Peak demand information: In this schedule the applicant shall provide the following peak demand data:

(a) for total system, if applicant is interconnected to another jurisdiction and New Mexico jurisdiction for the twelve (12) months of the Test Year Period;

(b) for the New Mexico jurisdiction for the twelve (12) months of the Test Year Period as per:

(i) functional classification;

(ii) major customer classification, if available, or estimated by: (1) coincident peak at source, (2) noncoincident peak at source, and (3) voltage level at the meter;

(c) for total system, if applicant is interconnected to another jurisdiction and New Mexico jurisdiction for the four (4) years prior to the Test Year Period by month; and

(d) for total system, if applicant is interconnected to another jurisdiction and New Mexico jurisdiction for the five (5) years beyond the Test Year Period by month.

(2) Schedule P-2: Plant in service: In this schedule the applicant shall provide the following plant in service data, as requested:

(a) for total system, if applicant is interconnected to another jurisdiction;

(b) by New Mexico jurisdiction;

(d) for four (4) years prior to Test Year Period;

(e) for twelve (12) months of the Test Year; and

(f) for five (5) years beyond the Test Year Period.

(3) Schedule P-3: Property retirements and property investment information: In this schedule the applicant shall provide the following property retirements and property investment data, as requested:

(a) for total system, if applicant is interconnected to another jurisdiction;

(b) for New Mexico jurisdiction;

(d) for four (4) years prior to the Test Year Period;

(e) for twelve (12) months of the Test Year Period; and

(f) for five (5) years beyond Test Year Period.

(4) Schedule P-4: Operation and maintenance expense information: In this schedule the applicant shall provide the following operation and maintenance expense data, as requested:

(a) for total system, if applicant is interconnected with another jurisdiction;

(b) for New Mexico jurisdiction;

(d) for four (4) years prior to the Test Year Period;

(e) for twelve (12) months of the Test Year Period; and

(f) for five (5) years beyond the Test Year Period.

(5) Schedule P-5: Customer information: In this schedule the applicant shall provide the following customer data, as requested:

(a) for New Mexico jurisdiction and service area;

(b) annual KWH sales and the revenue produced and the increase or decrease in KWH sales due to changes in number of customers and due to other adjustments by customer class for twelve (12) months of the Test Year Period;

(i) four (4) years prior to the Test Year Period,

(ii) the Test Year Period, and

(iii) five (5) years beyond the Test Year Period; and

(d) annual KWH sales for:

(i) four (4) years prior to the Test Year Period, and

(ii) five (5) years beyond the Test Year Period.

(6) Schedule P-6: Weather data: In this schedule the applicant shall provide weather data, including cooling and heating degree days by service area, used by the applicant to support any adjustments to sales due to weather.

(7) Schedule P-7: Power plant maintenance information: In this schedule the applicant shall provide the following power plant maintenance data:

(a) total maintenance by operating unit for four (4) years prior to the Test Year Period by month; and

(b) scheduled system maintenance by operating unit for:

(i) twelve (12) months of the Test Year Period, and

(ii) five (5) years beyond the Test Year Period by month.

(8) Schedule P-8: Customer service interruption information: In this schedule the applicant shall provide the following customer service interruption data:

(a) for total system, if applicant is interconnected to another jurisdiction and for the New Mexico Jurisdiction for four years prior to the Test Year Period by: (1) occurrence, (2) duration, and (3) geographical location; and

(b) for twelve (12) months of the Base Period.

(c) Only those service interruptions of a duration of fifteen (15) minutes or longer and affecting at least 15 MW of load need be reported in this schedule.

(9) Schedule P-9: Line loss information:

(a) In this schedule the applicant shall provide the following line loss data, as requested:

(i) for total system, if applicant is interconnected to another jurisdiction;

(ii) for New Mexico jurisdiction;

(iii) by demand, energy, and voltage level;

(iv) for four (4) years prior to the Test Year Period;

(v) for twelve (12) months of the Test Year Period; and

(vi) for five (5) years beyond Test Year Period.

(b) The methods, procedures, and formulae used by the applicant to determine the line loss information herein reported should conform with the methods, procedures, and formulae used by the applicant to determine the information reported at Schedule M-3: Demand and Energy Loss Factors.

(c) Whenever the applicant has used a different method, procedure, and formula for developing line loss information, this fact shall be reported and a brief description of the method, procedure, and formula used shall be provided.

(10) Schedule P-10: Reliability indices information: In this schedule the applicant shall provide the following reliability data, as requested:

(a) by total system, if applicant is interconnected to another jurisdiction;

(b) for New Mexico jurisdiction;

(d) for twelve (12) months of the Test Year Period; and

(e) for five (5) years beyond the Test Year Period.

(11) Schedule P-11: Reserve margin information: In this schedule the applicant shall provide the following reserve margin data, as requested:

(a) for total system, if applicant is interconnected to another jurisdiction;

(b) for New Mexico jurisdiction;

(d) for twelve (12) months of the Test Year Period; and

(e) for five (5) years beyond Test Year Period.

(12) Schedule P-12: Fuel statistics information. In this schedule the applicant shall provide the following fuel data, as requested:

(a) for total system, if applicant is interconnected to another jurisdiction;

(b) for New Mexico jurisdiction;

(d) overall cost of fuel in $/MMBTU;

(e) generation by type of fuel;

(f) for four (4) years prior to Test Year Period; and

(g) for twelve (12) months of Test Year Period.

Q. Schedule Q Series: Required reports: In this series of schedules the applicant shall submit a copy of the most current reports as requested herein:

(1) Schedule Q-1: Load research program: To satisfy the requirements of this schedule the applicant shall submit a copy of its latest load research program.

(2) Schedule Q-2: Description of company: To satisfy the requirements of this schedule the applicant shall submit a statement describing the company and its scope of operations by service areas and shall include an organizational chart.

(3) Schedule Q-3: Annual Report to stockholders: To satisfy the requirements of this schedule the applicant shall submit a copy of its latest Annual Report to stockholders.

(4) Schedule Q-4: Reports to the Securities and Exchange Commission: To satisfy the requirements of this schedule the applicant shall submit copies of its latest SEC Form 10K and SEC Form 10Q and shall include copies of the Form 10Q conforming to the latest Form 10K accounting period.

(5) Schedule Q-5: Form 1 reports:

(a) To satisfy the requirements of this schedule the applicant shall submit a copy of the latest Form 1 report required to be on file at the New Mexico Public Service Commission [New Mexico Public Regulation Commission]. Where the applicant has duly filed such report with the New Mexico Public Service Commission [New Mexico Public Regulation Commission], notice herein of the fact will satisfy the requirements of this schedule.

(b) In addition, if the applicant is required to file Form 1 with the Federal Energy Regulatory Commission, the latest Form 1 report filed at the Federal Energy Regulatory Commission shall be submitted herein.

(6) Schedule Q-6: Opinion of independent public accountants: To satisfy the requirements of this schedule the applicant shall submit a copy of the opinion of its independent certified public accountant stating that an independent examination of the book amounts and accounting adjustments thereto of the applicant utility company’s books and records has been made for the Base Period, as defined herein, and that the results thereof are in all material respects in compliance with the Uniform System of Accounts prescribed by the New Mexico Public Service Commission [New Mexico Public Regulation Commission].

R. Schedule R Series: Testimony and exhibits: To the extent that testimony and exhibits are required in support of the materials submitted in compliance with the filing requirements herein, the applicant shall submit testimony and exhibits of such composition, scope, and format so as to serve as the applicant’s case-in-chief in the event the matter is set for hearing. Further, any utility seeking recovery of litigation expenses as defined in Section 62-13-3 NMSA 1978 shall file sufficient testimony to enable the Commission to find those expenses were prudently incurred.

HISTORY OF 17.9.530 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

General Order No. 40, Minimum Data Standard Filing Requirements For Investor-Owned Electric Utilities, 10/27/83.

NMPSC Rule 530, Filing Requirements In Support Of Rate Schedules For Investor-Owned Electric Utilities; supersedes General Order No. 40, filed 10/27/83, 6/30/88.

History of Repealed Material: [RESERVED]

History

Recompiled 12/30/01

Part 531 Disclosure of Electric Rates by Function in Customer Bills

N.M. Admin. Code § 17.9.531.1 Issuing Agency

New Mexico Public Utility Commission [New Mexico Public Regulation Commission], 224 East Palace Avenue, Santa Fe, NM 87501.

History

6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.2 Scope

This rule applies to every investor-owned, rural electric cooperative, or municipal electric utility operating in New Mexico that is subject to the jurisdiction of the Commission as provided in the Public Utility Act.

History

6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.3 Statutory Authority

The New Mexico Public Utility Act, NMSA 1978 Section 62-1-1 et seq., in particular NMSA 1978 Sections 62-6-1, 62-6-4, and 62-10-2.

History

6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.4 Duration

Permanent.

History

6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.5 Effective Date

June 30, 1998, unless a later date is cited at the end of a Section or Paragraph.

History

6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.6 Objective

The purpose of this rule is to provide information to the Commission and to consumers regarding the generation, transmission and distribution functions of the electric services being provided by utilitys. To that end, this rule requires that electric utilitys include information in customer bills about the portion of the rates attributable respectively to generation, transmission and distribution activity. This information will serve to educate customers about the various services being rendered by their electric utility and the cost of those services.

History

6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.7 Definitions

As used in this rule, unless otherwise specified:

A. Commission or NMPUC means the New Mexico Public Utility Commission or its successor agency.

B. Commission Staff means persons, other than Hearing Examiners, Commission Technical Advisors and Commission Counsel, employed by the Commission.

C. Customer charge means the charge which is usually characterized as a customer or monthly service charge, does not vary with the level of usage, and generally includes such costs as administrative, billing, and metering costs.

D. Distribution means the delivery of electric power from the transmission system through distribution lines to the meter of the retail customer.

E. Functions means the various activities involved in providing electric service, including generation, transmission and distribution. For purposes of this rule, attributing portions of rates to different functions means separately identifying and disclosing that portion of the utilitys rates which reasonably reflect the costs attributable to each of the three functions, not including the customer charge. (Note: The definition of "functionalization" provided in NMPUC Rule 530 on minimum data filing requirements shall provide guidance in this identification; "functionalization" in that rule refers to the costs of providing the utility service separated by the major function or purpose which the plant or expense performs in rendering the utility service, for example, production, transmission, distribution, etc.)

F. Generation means the production or acquisition of energy supply.

G. Transmission means the activities involved in the transmission of electric power from the source or producer of power to the distribution system.

History

6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.8 Relationshipto Other Commission Rules

Unless otherwise specified, this rule is not intended to supersede any other rule of the Commission but to supplement such rules, including but not limited to NMPUC Rule 410. In the case of conflict, the provisions of this rule shall apply.

17.9.531.9 INFORMATION TO BE INCLUDED IN CUSTOMER BILLS

A. Every electric utility shall separately state in its bills to retail customers the portions of its rates (not including the customer charge or any separately stated, Commission-approved fuel and purchased power cost adjustment clause) which are attributable to generation, transmission and distribution functions, respectively. The utility shall provide this information for each per kilowatt or per kilowatt hour charge for the customer class to which the customer belongs. Examples of possible bill formats are provided in 17 NMAC 10.531.16 and 17 NMAC 10.531.17 NMAC [now 17.9.531.16 NMAC and 17.9.531.17 NMAC].

B. The information required by 17 NMAC 10.531.9.1 [now Subsection A of 17.9.531.9 NMAC] shall be revenue-neutral for the utility and for each customer and customer class. No provision of this rule is intended to affect the rates on file with the Commission and a utility's filing pursuant to this rule shall not be construed to be a request for new rates or a change in rates under NMSA 1978 Section 62-8-7 or NMPUC Rules 110, 210, 530 or 540.

C. In the event that adjustments based on a fuel and purchased power cost adjustment clause approved by the Commission under NMPUC Rule 550 are not separately stated in the utility's customer bills, the utility may, without further approval by the Commission, modify the information required by this rule consistently with the change in rates resulting from the fuel and purchased power cost adjustment clause.

17.9.531.10 BASIS FOR INFORMATION

A. The information required by 17 NMAC 10.531.9 [now 17.9.531.9 NMAC] shall be based on the revenue requirements and rates in effect for the utility.

B. Data used to develop and support the information provided pursuant to 17 NMAC 10.531.9 [now 17.9.531.9 NMAC] may include data filed by the utility in its last rate proceeding, any reports filed with the Commission, including cost of fuel adjustment reports, annual reports, and data included in Federal Energy Regulatory Commission (FERC) Form No. 1 in the case of investor-owned utilitys or Rural Utility Services (RUS) Form 7 in the case of rural electric cooperatives.

History

6-30-98; Recompiled 12/31/01
6-30-98; Recompiled 12/31/01
6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.11 Commission Review and Approval

To implement the requirements of this rule in the most expeditious manner possible, the following procedures shall be followed

A. Each electric utility shall submit the information required by 17 NMAC 10.531.9 [now 17.9.531.9 NMAC] to the Commission on or before August 1, 1998. The utility shall submit the information in the form of proposed bill formats for each customer class, together with the data and calculations upon which it bases its determination of the portions of its rates attributable to different functions. The utility shall include as part of this filing a copy of the first insert it proposes to send to customers under 17 NMAC 10.531.12.1 [now Subsection A of 17.9.531.12 NMAC] and a copy of the customer education program it intends to implement under 17 NMAC 10.531.12.2 [now Subsection B of 17.9.531.12 NMAC]. A copy of the filing shall be served on the Attorney General, Commission Staff and the parties to the utilitys most recent general rate proceeding, except as provided in 17 NMAC 10.531.11.4 [now Subsection D of 17.9.531.11 NMAC].

B. Commission Staff and other interested parties may submit written comments on the utilitys filing, including any proposed revisions and all supporting materials, to the Commission within 10 days of service by the utility pursuant to 17 NMAC 10.531.11.1 [now Subsection A of 17.9.531.11 NMAC]. The Commission shall review the submittals of the utility and any interested parties, together with the data and calculations on which they are based and any other information requested by the Commission, and determine the information to be included in customer bills and the manner of presentation, as well as the nature and timing of the utilitys customer education program.

C. The utility shall use the new bill format beginning either with the October 1998 billing cycle or the second billing cycle after issuance of the Commissions order under 17 NMAC 10.531.11.2 [now Subsection B of 17.9.531.11 NMAC], whichever is later, or as otherwise directed by the Commission.

D. Notwithstanding the service provisions of 17 NMAC 10.531.11.1 [now Subsection A of 17.9.531.11 NMAC]., in the case of rural electric cooperatives, service shall be made on the Attorney General, Commission Staff and the parties to the cooperatives most recent general rate proceeding, if conducted within the five years immediately prior to service. If no general rate proceeding has been conducted during that time period, service shall be made on the Attorney General, Commission Staff and any other person requesting such service.

E. Utilitys shall file their new bill formats with the Commission in accordance with NMPUC Rule 210.11.

17.9.531.12 CUSTOMER EDUCATION PROGRAM

A. Bill inserts. During the billing cycle just prior to the implementation of the bill format adopted pursuant to 17 NMAC 10.531.11 [now 17.9.531.11 NMAC]., the utility shall include an insert with its bills which explains the new format. The utility shall also include a bill insert with the first two bills sent to each customer using the new bill format, and no less often than every six months thereafter. These inserts shall describe the different functional components of electric service, defining each function in clear terms, and shall be approved by the Commission prior to their use. In the case of a rural electric cooperative, the explanation otherwise provided by an insert may be furnished in the enchantment magazine, subject to Commission approval.

B. Required plan. Each electric utility affected by this rule shall develop a plan for providing timely information to its customers about the new bill format and the functional components of electric service. Each utilitys plan shall include appropriate means of communication, such as the use of community forums, radio and television announcements, newspaper advertisements, or World Wide Web sites, in addition to the bill inserts described in 17 NMAC 10.531.12.1 [now Subsection A of 17.9.531.12 NMAC]. The utilitys plan is subject to review and approval by the Commission as provided in 17 NMAC 10.531.11 [now 17.9.531.11 NMAC].

17.9.531.13 PROCEDURES FOR REVISING INFORMATION BASED ON RATE CHANGES

A. If a rate case is pending on the effective date of this rule, the Commission shall order the utility to propose the information required by 17 NMAC 10.531.9.1 [now Subsection A of 17.9.531.9 NMAC]. consistent with its rate filing or as the Commission may otherwise direct.

B. A utility requesting a change of rates after the effective date of this rule shall propose the information required by 17 NMAC 10.531.9.1 [now Subsection A of 17.9.531.9 NMAC]. in its rate filing.

C. A rural electric cooperative that changes its rates without a hearing pursuant to NMSA 1978 Section 62-8-7F shall include the information required by 17 NMAC 10.531.9.1 [now Subsection A of 17.9.531.9 NMAC]. in its rate filing.

D. At the time that a utilitys changed rates become effective, bills to customers shall separately state the portions of those rates which are attributable respectively to generation, transmission and distribution functions.

History

6-30-98; Recompiled 12/31/01
6-30-98; Recompiled 12/31/01
6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.14 Variances

A utility may request a variance from the informational requirements of this rule if the approach it proposes would provide comparable information to the consumer in a more accurate or understandable manner. The utility shall send notice of its application for a variance to the Attorney General, Commission Staff and the parties to the utility's most recent general rate proceeding. The Commission may grant the variance, with or without modifications, for good cause shown.

History

6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.15 Extensions

A utility, Commission Staff or other interested party may request an extension of time in which to take an action required by this rule, for good cause shown. The request for extension shall include a specific date by which the moving party proposes to take the action for which an extension is being requested. The moving party shall send notice of its request for an extension to the Attorney General, Commission Staff and the parties to the utilitys most recent general rate proceeding.

History

6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.16 Residential Bill Format

This Section illustrates the difference between the format for a residential bill prior to the effective date of this rule and a sample format that would satisfy the requirements of this rule. Both the formats and the dollar figures used are for illustrative purposes only. The examples are not intended to reflect actual bills and do not include all possible charges, such as gross receipts taxes.

A. Format prior to this rule.

Customer Charge $ 9.00

Energy Charge 500kWh @ $0.08/kWh $40.00

Fuel & Purchased Power Cost 500kWh @ $0.0003/kWh $ 0.15

Total Charges $49.15

B. Sample format under this rule.

Customer Charge $ 9.00

Energy Charge

Generation $0.045/kWh

Transmission $0.010/kWh

Distribution $0.025/kWh

Total Energy Charge 500kWh @ $0.080/kWh $40.00

Fuel & Purchased Power 500kWh @ $0.0003/kWh $ 0.15

Total Charges $49.15

History

6-30-98; Recompiled 12/31/01

N.M. Admin. Code § 17.9.531.17 Commercial or Industrial Bill Format

This Section illustrates the difference between the format for a commercial or industrial bill prior to the effective date of this rule and the format to be used under the rule. Both the formats and the dollar figures used are for illustrative purposes only. The examples are not intended to reflect actual bills and do not include all possible charges, such as gross receipts taxes.

A. Format prior to this rule.

Customer Charge $250.00

Demand Charge 60 kW @ $10.00/K $600.00

Energy Charge 26,280 kWh @ $0.035/kWh $919.80

Total Charges $1,769.80

B. Sample under this rule.

Customer Charge $250.00

Demand Charge

Generation $ 5.15/kW

Transmission $ 3.60/kW

Distribution $ 1.25/kW

Total Demand Charge 60kW @ $10.00/kW $600.00

Energy Charge

Generation $0.018/kWh

Transmission $0.010/kWh

Distribution $0.007/kWh

Total Energy Charge 26,280 kWh @ $0.035/kWh $919.80

Total Charges $1,769.80

History of 17.9.531 NMAC: [RESERVED]

History

6-30-98; Recompiled 12/31/01

Part 540 Procedures for Review of Rates Proposed by Rural Electric Cooperatives

N.M. Admin. Code § 17.9.540.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.2 Scope

A. Except as provided in Subsection B all rural electric cooperatives organized under the Rural Electric Cooperative Act, hereinafter referred to sometimes as “coops," shall comply with the provisions of NMPSC Rule 540 [17.9.540 NMAC] when proposing a new rate or rates. NMPSC Rules 110.39 through 110.41 [17.1.2.53 NMAC] relating to applications for change of rates shall not be applicable.

B. The provisions of NMPSC Rules 540.1 through 540.10 [17.9.540.1 through 17.9.540.15 NMAC] shall not affect the Commission's regulation of the sale, furnishing, or delivery by wholesale suppliers of electricity to coops under NMSA 1978, Section 62-6-4B et seq. NMPSC Rule 540.11 [17.9.540.16 NMAC] shall apply to each rural electric cooperative regardless of the law under which it is organized or whether or not it is a wholesale supplier of electricity.

C. The provisions of NMPSC Rule 540 [17.9.540 NMAC] do not apply to new coop rules as the term "rules" is used in NMPSC Rule 210 [17.1.210 NMAC].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.3 Statutory Authority

NMPSC Rule 540 [17.9.540 NMAC] is adopted under the authority vested in this Commission by the Public Utility Act, NMSA 1978, Section 62-3-1 et. seq.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.4 Duration

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.5 Effective Date

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.6 Objective

The purpose of NMPSC Rule 540 [17.9.540 NMAC] is to carry out the explicit legislative intent of Laws 1985, Chapter 176, which amended NMSA 1978, Section 62-3-2 and Section 62-8-7, to limit governmental regulation of rate setting by rural electric cooperatives (whose members have direct control over rates through an elected board) to the maximum extent consistent with retaining oversight by the Commission.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.7 Definitions

17.9.540.8 [TABLE OF CONTENTS:]

A. Purpose [17.9.540.6 NMAC]

B. Authority [17.9.540.3 NMAC]

C. Applicability [17.9.540.2 NMAC]

D. Filings by Coops Proposing a New Rate or Rates [17.9.540.9 NMAC]

E. Protests by Coop Members [17.9.540.10 NMAC]

F. Form and Filing of Protest [17.9.540.11 NMAC]

G. Commission Procedure Upon Receipt of a Protest [17.9.540.12 NMAC]

H. Notice to Customers Prior to Filing of Proposed Rates [17.9.540.13 NMAC]

I. Review and Hearing of Proposed Rates [17.9.540.14 NMAC]

J. Status of Protestant During Proceeding [17.9.540.15 NMAC]

K. Debt Cost Adjustment Clause [17.9.540.16 NMAC]

L. Effective Date [17.9.540.17 NMAC]

History

Recompiled 12/30/01
Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.9 Filings by Coops Proposing a New Rate of Rates

A. A coop which has complied with NMPSC Rule 540.8 [17.9.540.13 NMAC] below shall file with the Commission a schedule proposing a new rate or rates together with an affidavit describing how the notice required by NMPSC Rule 540.8 [17.9.540.13 NMAC] has been made, to which affidavit is annexed a copy of the notice. The filing shall be in accordance with NMPSC Rule 210 [17.1.210 NMAC] except that NMPSC Rule 210.14 [Subsection C of 17.9.210.10 NMAC] (entitled "Additional Information as to Effect of Proposed Rates") and NMPSC Rule 210.13(b) [Paragraph 2 of Subsection B of 17.9.210.10 NMAC] (relating to filing of testimony) thereof shall not be applicable. The filing shall become effective:

(1) on the date set forth in the Advice Notice, that date being no less than thirty (30) days after such filing;

(2) on any date the coop subsequently agrees to;

(3) on the day following the entry of an order by the Commission determining that just cause does not exist for reviewing the proposed rate or rates pursuant to NMPSC Rule 540.7(c) [Subsection C of 17.9.540.12 NMAC]; or

(4) if the Commission determines there is just cause for review pursuant to NMPSC Rule 540.7 [17.9.540.12 NMAC], in accordance with subsections C and D of NMSA 1978, Section 62-8-7.

B. A coop shall submit with its filing:

(1) the coop's most recent REA Form 7;

(2) a proof of revenue statement for each class of customers to which the new rate or rates apply;

(3) a statement comparing the new rate or rates with the present rate or rates, which statement shall contain the information required in NMPSC Rule 540.8(b)(3) [Paragraph 3 of Subsection B of 17.9.540.13 NMAC]; and

(4) a brief statement explaining what has caused the need for the rate adjustment.

C. A coop may, but is not required to, include in its filing any data, exhibits, illustrations, prepared testimony, or written argument which is pertinent to the schedule proposing a new rate or rates. Whether or not a coop includes such matters in its filing does not affect its duty to furnish prepared testimony and exhibits if ordered under NMPSC Rule 540.7(d) [Subsection D of 17.9.540.12 NMAC]. Any testimony and exhibits included in the coop's filing shall conform to the requirements of NMPSC Rule 110 [17.1.2 NMAC].

D. Failure to abide by the requirements set forth or incorporated by reference herein shall be deemed grounds for rejection of the filing.

E. Rates which have been filed and which by operation of law have become effective without hearing by the Commission shall not be construed to bear the approval of the Commission but may be subject to inquiry by the Commission at any time.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.10 Protests by Coop Members

A. Any member of the coop may protest the proposed rate or rates by filing a protest in accordance with the requirements of NMPSC Rule 540.6 [17.9.540.11 NMAC] upon the filing of the schedule proposing the new rate or rates. Protests must be filed no later than twenty (20) days after the coop files the schedule. The term "member" herein shall mean each incorporator of a coop and each person admitted to and retaining membership therein and shall include a husband and wife admitted to a joint membership.

B. In order to determine whether just cause may exist for review pursuant to NMPSC Rule 540.7 [17.9.540.12 NMAC], the Commission will ordinarily consider among other matters whether a protestant has exhausted remedies within the coop or the coop has unreasonably rejected the protestant's objections to the new rate or rates. Therefore, a member should present his objections to the coop in writing and allow the coop a reasonable period to attempt a resolution of or otherwise respond to those objections. A period of seven (7) days after receipt of written objections will be deemed reasonable for the coop to provide a written response to the member, but a written response is not required if such time period extends beyond the date specified in Subsection A. above. The Commission expects the coop and its member to make a good faith effort to resolve the member's objections to the proposed rate or rates during that period of time.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.11 Form and Filing of Protest

A. Contents of Protest: Protests to the Commission must be in writing and shall be signed by the member or members submitting the protest or by their attorney. All protests shall contain the following:

(1) the name, mailing address, and phone number of each member protesting the proposed rate or rates, and the name, mailing address, and phone number of each member's attorney, if any;

(2) the name of the coop proposing the rate or rates and identification of the proposed rate or rates being protested;

(3) a clear and concise statement of the effect of the proposed rate or rates on the protestant;

(4) a clear and concise statement of the specific grounds upon which the protestant believes the proposed rate or rates are unjust, unreasonable, or otherwise unlawful;

(5) a brief description of the member's efforts to resolve his objections directly with the coop; and

(6) a clear and concise statement of the relief the protestant seeks from the Commission.

(7) All protests shall show the caption of the proceeding and the docket number and shall be titled "Protest." Whenever possible, protests shall be typed and double-spaced, shall be on paper 8 1/2 inches wide and 11 inches long, and fastened only on the left side.

B. Use of Commission Form: A protestant may, but is not required to, use the Commission's form for protests. The coop shall make copies of the Commission's form available to its members upon request.

C. Attachments Required: The protestant must attach to the protest copies of any written objections the protestant presented to the coop and any response made by the coop under NMPSC Rule 540.5(b) [Subsection B of 17.9.540.10 NMAC]. If the protestant did not present his objections to the coop before filing the protest or if the coop did not respond to objections presented to it, the protestant shall so state in the protest.

D. Additional Information Permitted: The protestant may, but is not required to, file with the protest any data, exhibits, illustrations, prepared testimony, or written argument which is pertinent to the grounds of the protest and which may aid the Commission in its consideration of the protest under NMPSC Rule 540.7 [17.9.540.12 NMAC].

E. Certificate of Service: The protestant shall serve copies of the protest and any accompanying documents on the coop whose proposed rate or rates are being protested either by first class U.S. mail or by hand delivery. A certificate of service stating the date and manner of mailing or delivery must be included in or attached to the protest at the time of filing with the Commission.

F. Number of Copies Required: At the time of filing the protestant shall provide the Commission with an original plus ten (10) copies of the protest and any accompanying documents unless the Commission directs otherwise.

G. Date of Filing: If a protest is submitted to the Commission before the coop has filed its proposed rate or rates, the protest shall be deemed filed as of the date of the coop's filing.

H. Response Not Permitted: No response to a protest filed with the Commission is permitted except by leave of the Commission or presiding officer. Notwithstanding the foregoing, if the protestant has not presented an objection to the coop in accordance with NMPSC Rule 540.5(b) [Subsection B of 17.9.540.10 NMAC] the coop may, and is encouraged to, initiate communications with the protestants to determine if there is a negotiated basis for withdrawal of the protest and may, with notice to the protestant, disclose such an effort and its results to the Commission or presiding officer.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.12 Commission Procedure Upon Receipt of a Protest

A. Upon receipt of a protest which is in substantial compliance with these procedural rules the Commission shall determine whether or not there is just cause for reviewing the proposed rate or rates on one or more of the grounds of the protest.

B. The Commission or the presiding officer in the cause may notice a pre-hearing conference in order to obtain further information from either the protestant or the coop in aid of the just cause determination.

C. If the Commission determines that just cause does not exist for reviewing the proposed rate or rates or that all protests have been withdrawn by the protestants, the Commission shall enter an order so stating and providing the basis for such determination. The Commission shall serve the order on the protestants and to the coop.

D. If a determination is made that there is just cause for review the Commission or presiding officer shall issue an order noticing the proposed rate or rates for hearing and stating the issue or issues to be heard. Either this order or subsequent orders shall prescribe:

(1) the manner of any further notice to ratepayers or the public, the cost of which shall be borne by the coop;

(2) a deadline for the filing of motions to intervene under the intervention provisions of NMPSC Rule 110 [17.1.2 NMAC];

(3) directions to the parties and, to the extent the Commission or presiding officer may deem helpful, to the Commission Staff to file written testimony and exhibits; and

(4) the time and place of the hearing.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.13 Notice to Customers Prior to Filing of Proposed Rates

A. At least thirty (30) days prior to filing a schedule proposing a new rate or rates a coop shall give, by mailing with billings or independently or by publication in the enchantment (in the case of coops subscribing thereto), written notice to affected customers. For this purpose all customers of the coop shall be considered to be affected customers unless the Commission, upon motion made by the coop, directs otherwise.

B. The notice shall include the following information:

(1) the amount of the increase requested in both dollar amounts and percentage increase;

(2) the customer classifications to which the new rate or rates apply;

(3) the present rates and the proposed rates for each customer class and the number of customers in each customer class to which those proposed rates would apply and, for residential customers without demand meters, the present rates, the proposed rates, and the percentage difference between the present bill and the anticipated bill for each of the following levels of consumption-0 kwh, 250 kwh, 500 kwh, 750 kwh, 1,000 kwh and 2,000 kwh;

(4) the date on which the coop intends to file with the Commission the schedule proposing the new rate or rates;

(5) a statement that the coop will promptly notify a member of the date on which it actually files the schedule proposing the new rate or rates if the member so requests;

(6) a statement that the new rate or rates will go into effect automatically and without hearing by the Commission unless one or more members of the coop file a protest with the Commission no later than twenty (20) days after the coop has filed the schedule proposing the new rate or rates and the Commission determines there is just cause for reviewing the proposed rate or rates on one or more of the grounds of the protest AND A STATEMENT IN ALL CAPITAL LETTERS THAT IF A HEARING IS HELD BY THE PUBLIC SERVICE COMMISSION [PUBLIC REGULATION COMMISSION] ANY COSTS INCURRED BY THE UTILITY MAY BE INCLUDED IN THE UTILITY’S FUTURE RATES, FOLLOWING THE UTILITY’S NEXT RATE CASE;

(7) a statement that the procedures for protesting a proposed rate or rates are set forth in NMPSC Rule 540 [17.9.540 NMAC], a copy of which can be obtained upon request from or inspected at either the main office of the coop or the offices of the Commission in Santa Fe, that forms for protests are available from either the coop or the Commission, and indicating the telephone numbers and addresses of both the coop and the Commission;

(8) a statement that before filing a protest a coop member should attempt to resolve any grievance within the coop by presenting his objections to the coop in writing and allowing the coop at least seven (7) days in which to attempt a resolution or otherwise respond;

(9) a statement that any interested person may examine the rate filings together with any exhibits and related papers that may be filed at any time at the main office of the coop or on or after the date of filing at the offices of the Commission in Santa Fe; and

(10) a statement that further information may be obtained by contacting the coop or the Commission.

C. The coop shall submit a copy of the form of notice to the Commission for approval at least fifteen (15) days prior to giving notice to customers. If the Commission does not disapprove the form of notice within five (5) working days of submission of the notice the form will be deemed approved.

D. Failure to comply with this section shall be deemed grounds for rejection of the filing proposing a new rate or rates.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.14 Review and Hearing of Proposed Rates

Any proceeding to review a coop's proposed rate or rates under NMPSC Rule 540.7(d) [Subsection D of 17.9.540.12 NMAC] shall be conducted in accordance with the Public Utility Act and NMPSC Rules 110.1 through 110.29 and NMPSC Rules 110.56 through 110.142 [17.1.2.7 NMAC through 17.1.2.12 NMAC and 17.1.2.26 NMAC through 17.1.2.40 NMAC].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.15 Status of Protestant During Proceeding

A. Unless the Commission or presiding officer directs otherwise the protestant or protestants who filed the protest shall be deemed parties to any proceeding to review the proposed rate or rates protested. Said protestants shall have the same status as intervenors and any reference to intervenors during the proceeding shall be deemed to include such protestants unless otherwise noted. These protestants need not file motions to intervene otherwise required by NMPSC Rule 110 [17.1.2 NMAC].

B. If more than one member filed the protest the Commission or the presiding officer may, to expedite the proceeding and avoid duplication, give intervenor status to fewer than all of the protestants and grant other intervenor status only upon a showing that their intervention will not be duplicative and will not unduly delay the proceeding.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.16 Debt Cost Adjustment Clause

A. A coop’s schedule of rates proposed pursuant to NMPSC Rule 540 [17.9.540 NMAC] may provide for the flow-through to customers of increases and decreases in the cost of debt capital incurred pursuant to securities, the issuance of which has been approved by the Commission, above or below debt cost utilized to establish the rates.

B. Unless the coop obtains the approval of the Commission or presiding officer for a different methodology, the clause in a rate containing such an adjustment shall provide at a minimum for the following:

(1) the Base Cost shall be the cost of Commission authorized debt capital as of the end of the test period upon which the rates were established, as annualized;

(2) the applicable debt cost expense shall be determined every calendar quarter by adding the actual changes in the Base Cost to or, as the case may be, subtracting these changes from the actual cost of new debt under securities approved by the Commission and incurred after the end of the period used to determine the Base Cost;

(3) a demand allocation factor shall be determined for each class of customers (the demand allocation factor shall be that upon which the cooperative’s current rates were established but may be adjusted by the cooperative with prior approval of the Commission Executive Director on the basis of a more recent cost of service study or known and measurable changes); and

(4) the Debt Cost Adjustment amount to be allocated to each class of customers for the next succeeding calendar quarter shall be the result of multiplying items (2) and (3) above. The distribution of the Debt Cost Adjustment amount among the customers within each class may be on the basis of projected kilowatt demand or projected kilowatt-hour sales, as the coop elects to designate in its schedule of rates.

C. The coop shall file with the Commission the data and calculations called for by Paragraphs (1), (2), (3) and (4) of Subsection B of this Section above a minimum of ten (10) days before an adjustment factor is to be applied to billings.

D. The coop shall establish a Balancing Account to compensate for under-collections and over-collections of revenue by increasing or decreasing the adjustment factor for the next following calendar quarter and shall file with the Commission one (1) year from the date of the first Debt Cost Adjustment filing and annually thereafter a reconciliation of Debt Cost Adjustment revenues and expenses and the operation of the Balancing Account. The Commission will examine this filing to insure that only the appropriate revenues are being recovered.

E. The adjustment factor expressed in either cents per kilowatt-hour or cents per kilowatt and the resultant billing period charge shall be shown on each bill as Debt Cost Adjustment.

F. Notwithstanding NMPSC Rule 540.11 [17.9.540.16 NMAC], an effective schedule of rates, or the filing of information with the Commission, the Commission reserves the authority to entertain complaints and undertake investigations of Debt Cost Adjustments as provided in the Public Utility Act and NMPSC Rule 110 [17.1.2 NMAC].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.540.17 Effective Date

NMPSC Rule 540 [17.9.540 NMAC] shall be effective for all filings made after the date of adoption of former General Order No. 46 and compliance thereof with the State Rules Act, NMSA 1978, Section 14-4-1 et seq. For all previous filings Interim General Order No. 46, adopted July 15, 1985, shall remain in effect.

17.9.540.18 [HISTORY: NMPSC Case No. 2086, order dated June 30, 1988, unless otherwise noted. Formerly NMPSC General Order No. 46, superseded for purposes of rule reorganization and codification.]

HISTORY OF 17.9.540 NMAC:

The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

General Order No. 46, In The Matter Of A General Order No. 46 Regarding Procedures For Review Of Rates Proposed By Rural Electric Cooperatives. 8/15/85

G.O. 46, Procedures For Review Of Rates Proposed By Rural Electric Cooperatives; 2/26/86

NMPSC Rule 540, Procedures For Review Of Rates Proposed By Rural Electric Cooperatives; 6/30/88.

History of Repealed Material: [RESERVED]

History

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Recompiled 12/30/01

Part 550 Fuel and Purchased Power Cost Adjustment Clauses for Electric Utilities

N.M. Admin. Code § 17.9.550.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.550.1 NMAC - Rp, NMPSC Rule 550, 12-30-10

N.M. Admin. Code § 17.9.550.2 Scope

NMPSC Rule 550, 17.9.550 NMAC shall apply to every electric utility and generation and transmission cooperative operating within the state of New Mexico and which is subject to the jurisdiction of the commission as provided by law.

History

17.9.550.2 NMAC - Rp, NMPSC Rule 550.1, 12-30-10

N.M. Admin. Code § 17.9.550.3 Statutory Authority

Sections 62-3-1, 62-3-2, 62-6-4, 62-8-1, 62-8-3 and 62-8-7(E) and (F), NMSA 1978.

History

17.9.550.3 NMAC - N, 12-30-10

N.M. Admin. Code § 17.9.550.4 Duration

Permanent.

History

17.9.550.4 NMAC - N, 12-30-10

N.M. Admin. Code § 17.9.550.5 Effective Date

December 30, 2010, unless a later date is cited at the end of a section.

History

17.9.550.5 NMAC - N, 12-30-10

N.M. Admin. Code § 17.9.550.6 Objective

The objective of this rule is to:

A. provide for adequate regulatory review of a utility's operations under a fuel and purchased power cost adjustment clause ("FPPCAC");

B. provide for the stability of utility earnings when electric fuel costs and purchased power costs are rising and permit prompt credits to customers when electric fuel costs and purchased power costs are declining; and

C. assure that utilities collect through the FPPCAC the amount actually expended for fuel and purchased power costs;

D. the objective of a FPPCAC is to flow through to the users of electricity the increases or decreases in applicable fuel and purchased power expense per kilowatt-hour of delivered energy above or below a base fuel and purchased power expense.

History

17.9.550.6 NMAC - Rp, NMPSC Rule 550.2, 12-30-10

N.M. Admin. Code § 17.9.550.7 Definitions

Unless otherwise specified, the following definitions will apply:

A. account (number) means such account as defined and in current use by the federal energy regulatory commission;

B. annual report means the report filed annually that summarizes and verifies all actual fuel and purchased power revenues and expenses during the twelve (12) months ended December 31 of each year; the annual report shall be verified under oath by an officer of the utility;

C. applicable fuel and purchased power expense means the fuel and/or purchased power expense that is to be collected through the FPPCAC in accordance with a utility’s commission-approved methodology and forms;

D. applicable kWh sales means the kilowatt-hour (“kWh”) sales associated with the applicable fuel and purchased power expense;

E. balancing account means the difference between the increased or decreased fuel and purchased power expenses in the second month preceding the current month and the actual fuel and purchased power cost adjustment revenue billed in the current month; the balancing account may also include other components granted by a 17.9.550 NMAC variance;

F. base fuel and purchased power expense means the cost of fuel and purchased power upon which the applicable rate schedule was based stated on a dollars per kWh basis;

G. billing month or effective month means the month during which the FPPCAC factor is applied to customers’ bills;

H. current month means the most recent month for which actual fuel and purchased power volumes and costs and kWh sales data are available;

I. fuel and purchased power cost adjustment clause or FPPCAC means that clause in a rate schedule that contains the parameters under which the fuel and purchased power cost adjustment factor is determined for customer monthly billing;

J. fuel and purchased power cost adjustment factor or factor means the monthly dollars per kWh charge to be applied to customers’ bills, and which represents the amount of increase or decrease in dollars per kWh to be added to or deducted from each bill; for monthly adjustable factors, the factor is the increased or decreased fuel and purchased power expense stated on a dollars per kWh basis by dividing the current month's increased or decreased fuel and purchased power expenses by the applicable kWh sales as set forth under 17.9.550.12 NMAC;

K. increased or decreased fuel and purchased power expense means the difference between the applicable fuel and purchased power expense and the base fuel and purchased power expense during the current month.

History

17.9.550.7 NMAC - Rp, NMPSC Rule 550.7, 12-30-10

N.M. Admin. Code § 17.9.550.8 Variances

Applications for a variance shall:

A. describe with particularity the reasons which prompted the filing of the variance application;

B. set out the effect of complying with 17.9.550 NMAC on the utility and its customers as a result of the condition;

C. identify the section(s) of 17.9.550 NMAC from which the variance is requested;

D. describe the result which the request will have if granted;

E. state how the variance will achieve the purposes of 17.9.550 NMAC as stated in 17.9.550.6 NMAC;

F. state why the proposed variance is a reasonable alternative to the requirements of this rule.

History

17.9.550.8 NMAC - Rp, NMPSC Rule 550.3, 12-30-10

N.M. Admin. Code § 17.9.550.9 Service of Applications

A utility filing an application for an initial or continued FPPCAC, or a variance, shall, contemporaneously with such filing, mail copies of such application by first class mail to the attorney general and the intervenors in the utility's most recent rate case.

History

17.9.550.9 NMAC - Rp, NMPSC Rule 550.4, 12-30-10

N.M. Admin. Code § 17.9.550.10 Hearings

A. Unless otherwise ordered by the commission, formal hearings will not be held prior to the effective date of any factor adjustment made in accordance with the provisions of 17.9.550 NMAC. The commission may, upon its own motion or upon the filing of a complaint, and after notice to the utility, public, attorney general, and intervenors of record in the utility's last filed rate case, suspend any adjustment pending hearing. However, the commission may allow the factor in effect immediately preceding the period in which the suspended adjustment otherwise would have become effective, to remain in effect, subject to refund or surcharge, during the interim time period in which an adjustment is suspended pending hearing. In the event that a suspended adjustment ultimately is approved, in whole or in part, following a hearing, interest charges computed at the statutory rate established under NMSA 1978, Section 62-13-13, or any amendment to it, and computed for the period commencing with the date the suspended adjustment actually becomes effective, shall, as provided by the commission, be added to the calculation resulting from the approved adjustment.

B. The matters which the commission might notice for hearing may include but are not limited to:

(1) any unusual or substantial increases in the cost for fuel and purchased power;

(2) the development of any dispute over the interpretation of contracts or laws concerning the pricing of any significant amount of power supply;

(3) any new or amended contractual arrangements for provision of services related to power supply; and

(4) any other matter that the commission determines requires a hearing.

History

17.9.550.10 NMAC - Rp, NMPSC Rule 550.5, 12-30-10

N.M. Admin. Code § 17.9.550.11 Effect of Rule

This rule shall in no way relieve any electric utility subject to the jurisdiction of the commission of any of its duties prescribed under the laws of New Mexico or the tariff regulations, orders and rules of the commission.

History

17.9.550.11 NMAC - Rp, NMPSC Rule 550.6, 12-30-10

N.M. Admin. Code § 17.9.550.12 Calculation of Fuel and Purchased Power Cost Adjustment Factor; Purpose of Balancing Account

A. Calculation of a factor shall be made using the methodology, required format and data calculations approved for the utility by the commission, and shall be submitted on commission-approved forms. A sample format is provided in 17.9.550.20 NMAC of this rule. A utility’s methodology for calculation of its factor shall be proposed in its initial tariff filing or continuation filing pursuant to 17.9.550.16 and 17 NMAC of this rule. A methodology approved by the commission may be based on monthly, rolling average, or fixed period calculations. Where applicable, a utility’s methodology shall take into consideration the utility’s multi-state and jurisdictional operations and shall identify any allocation factors applied by the utility. Costs associated with an investor-owned utility’s long term purchase power contracts with a term of two or more years may be recovered through the utility’s FPPCAC if consistent with all commission orders or rules regarding such contracts or with commission approval.

B. Unless otherwise ordered by the commission the methodology for calculating a monthly-adjustable factor shall employ the use of a balancing account. The purpose of the balancing account is to insure that only the appropriate revenue is recovered through the application of the factor. The balancing account shall compensate for under-collections and over-collections of revenue by increasing or decreasing the factor for the next following billing month. A utility may make additional adjustments to the factor to mitigate the effect on customers of monthly changes in the balancing account, and the adjusted factor shall go into effect unless suspended by the commission. Additional amounts may be applied to the balancing account as the commission may authorize or direct. These additional items may include such amounts as refunds received by the utility or extraordinary payments by the utility, provided that these payments have received written approval of the commission prior to inclusion in the balancing account.

History

17.9.550.12 NMAC - Rp, NMPSC Rule 550.8, 12-30-10

N.M. Admin. Code § 17.9.550.13 Information to Be Filed

A. Each electric utility that has a FPPCAC as a part of a filed rate schedule shall file each month all the data and calculations called for in 17.9.550.12 NMAC. The monthly data shall be submitted in electronic format to the director of the utility division or his designee on the earliest possible date after the end of each month, but in no event less than five (5) days before the factor becomes effective for customer billing. The utility shall also file its monthly data with the commission’s records bureau prior to the effective date of the factor. Where a utility has more than one base fuel and purchased power expense in various rate schedules, a separate calculation shall be filed for each base fuel and purchased power expense and a separate balancing account shall be maintained for each base fuel and purchased power expense.

B. An investor-owned utility shall provide the total charges that were incurred under purchased power contracts with a term of not less than fifteen days and entered into by the utility to replace normally available or scheduled power and energy from the utility’s generating resources that operate at annual capacity factors of 40 percent or more and that were unavailable due to an unplanned outage and included in each month’s FPPAC report. The utility shall make available each underlying purchased power contract to utility division staff upon request, in a manner consistent with any applicable confidentiality provisions in such contract. This reporting requirement shall not apply to economy energy transactions and transactions entered into for solely economic dispatch purposes.

C. Upon the utility division’s receipt of the factor, a review of the calculations will be conducted by utility division staff to ensure compliance with this rule. In the event a utility fails to timely file the calculations of its factor in accordance with this section, or if the data filed by the utility is incomplete or inaccurate, utility division staff may immediately petition the commission for the appropriate relief provided by law and these rules, including the suspension, or collection subject to refund, of the factor.

D. Whenever the utility or the commission has good reason to believe on the basis of factual data that the adjustment factor would result in a substantial under-collection or over-collection of revenue in the following billing month with the further result that adjustment factors for future billing months would fluctuate excessively, the utility may apply to the commission for permission to place into effect or the commission may direct the utility to place into effect a specified increase or decrease in the amount of the adjustment factor which is to remain in effect for such period of time as the commission may direct.

E. Each utility that has a FPPCAC shall file by April 30 of each year the annual report defined in Subsection B of 17.9.550.7 NMAC.

History

17.9.550.13 NMAC - Rp, NMPSC Rule 550.9, 12-30-10

N.M. Admin. Code § 17.9.550.14 Elimination or Imposition of Conditions

The commission may eliminate or impose conditions on a particular FPPCAC if it finds such action is consistent with the purposes of the Public Utility Act, including serving the goal of providing reasonable and proper service at fair, just and reasonable rates to all customer classes; provided however that no such elimination or imposition of conditions shall be ordered if to do so would place the affected utility at a competitive disadvantage. The commission may provide for separate examination of a utility's FPPCAC based upon that utility's particular operating characteristics.

History

17.9.550.14 NMAC - Rp, NMPSC Rule 550.10, 12-30-10

N.M. Admin. Code § 17.9.550.15 Rendition and Statement of Fuel and Purchased Power Cost Adjustment Factor

The factor shall be expressed in dollars per kWh, and the resultant monthly charge or credit shall be shown on each customer's monthly bill.

History

17.9.550.15 NMAC - Rp, NMPSC Rule 550.11, 12-30-10

N.M. Admin. Code § 17.9.550.16 Initial Tariff Filing

A. No utility shall have a FPPCAC included in its tariff unless it complies with the requirements of 17.9.550 NMAC in the design of its FPPCAC and tariff and files an application with the commission requesting approval of its use of a FPPCAC. The utility shall submit testimony along with its initial tariff filing and application under 17.9.550 NMAC showing that all of the objectives stated in 17.9.550.6 NMAC are met by its tariff and that:

(1) the costs of fuel and purchased power are a significant percentage of the total cost of service;

(2) the costs of fuel and purchased power periodically fluctuate and cannot be precisely determined in a rate case;

(3) the utility's fuel and purchased power policies and practices are designed to assure that electric power is generated and purchased at the lowest reasonable cost.

B. Sufficient financial and other necessary information and data shall be submitted to demonstrate that no amounts to be recovered under the operation of the FPPCAC are included in the base rates for service. The commission may approve all or part of the tariff filing and format with or without a formal hearing. All tariffs shall be deemed approved thirty (30) days after filing unless otherwise suspended by the commission.

History

17.9.550.16 NMAC - Rp, NMPSC Rule 550.12, 12-30-10

N.M. Admin. Code § 17.9.550.17 Continuation Filings

A. Each utility operating with a FPPCAC as part of its tariff shall file an application for continued use of its FPPCAC at intervals of no more than four (4) years from the date the FPPCAC is approved or continued by the commission. The application must address the considerations described in Paragraphs (1) through (4) of Subsection E of 62-8-7 NMSA 1978. A utility may elect to satisfy this requirement by submitting its continuation filing as part of a general rate proceeding that is subject to hearing by the commission or in a separate filing. Failure to file the application required in this paragraph by the prescribed time may, after notice and hearing, result in appropriate orders or sanction under the Public Utility Act, including termination of the utility's FPPCAC.

B. All applications required by this section shall be accompanied by a revenue and expense statement that shall contain, at minimum, an analysis of costs and revenues included in or affected by the operation of the utility's FPPCAC. In addition, the utility shall make the same showings required of an initial tariff filing set out in 17.9.550.16 NMAC.

C. A continuation filing shall be deemed approved thirty (30) days after filing unless suspended by the commission. Unless otherwise ordered by the commission, an existing FPPCAC shall remain in effect pending the outcome of a proceeding in which a request for continued use of an FPPCAC has been suspended.

History

17.9.550.17 NMAC - Rp, NMPSC Rule 550.13, 12-30-10

N.M. Admin. Code § 17.9.550.18 Refunds Right

The commission in its discretion may order refunds of charges collected under the provisions of 17.9.550 NMAC to the customers of an electric utility where the commission determines, after notice and hearing, that the utility's collection of such amounts is contrary to the provisions of 17.9.550 NMAC, the previously approved adjustment factor, or otherwise is unfair, unjust or unreasonable.

History

17.9.550.18 NMAC - Rp, NMPSC Rule 550.14, 12-30-10

N.M. Admin. Code § 17.9.550.19 Prudence Review

The commission in its discretion may order that a prudence review be conducted to assure that fuel and purchased power costs collected by a utility through its FPPCAC are prudently incurred. Any prudence review shall be conducted under such procedures as the commission may direct. Unless otherwise ordered by the commission for good cause shown, the costs of the prudence review shall be paid by the utility and the costs treated as a regulatory asset, which shall accrue carrying costs at a rate to be set by the commission in its order authorizing the prudence review, until included in base rates and recovered in the utility’s next general rate proceeding.

History

17.9.550.19 NMAC - N, 12-30-10

N.M. Admin. Code § 17.9.550.20 Nmprc Rule 550 Fppcac Sample Form

A utility shall submit a monthly report and calculation of its factor to the commission, using a standard format that is not inconsistent with the format and data requirements of this section. Supporting workpapers shall accompany the monthly report. FPPCAC Factor Sample Report Form:

NEW MEXICO PUBLIC REGULATION COMMISSION

NEW MEXICO JURISDICTION RETAIL FUEL AND PURCHASED POWER DATA

17.9.550 NMAC FPPCAC REPORT FORM

UTILITY NAME _________________________________

BILLING MONTH _________________________

CURRENT MONTH ________________________

I. SUMMARY FPPCAC FACTOR INFORMATION

Type of Factor (fixed, rolling average, monthly): ___________________
Effective Date of Factor: _____________
Billing Month’s System Factor: _____ /kWh
Per kWh Base Rate Cost of Fuel and Purchased Power (if applicable): ______ /kWh
Number of Months Factor is Applicable: ___________
Time Period of Data Used to Calculate Factor: _______________
Cumulative Over/Under Collection at end of Current Month: _______________
Applicable Case No(s). for FPPCAC Approvals: __________________
Supporting Workpapers (attached)

II. CURRENT MONTH (OR OTHER APPLICABLE PERIOD) JURISDICTIONAL FUEL AND PURCHASED POWER EXPENSES

FUEL EXPENSE (Investor-Owned Utilities)

(Attach supporting workpapers)

ACCOUNT 501 -FUEL EXPENSE

a) Coal $________

b) Natural Gas $________

c) Oil $________

TOTAL ACCOUNT 501 $__________

ACCOUNT 518 - NUCLEAR FUEL EXPENSE (Investor-Owned Utilities)

$__________

2.A. PURCHASED POWER EXPENSE (Investor-Owned Utilities)

(Attach supporting workpapers)

ACCOUNT 555-PURCHASES

a) Firm/Capacity $________

Capacity $________

Firm $________

Bank (Net) $________

Spinning Reserves $________

b) Contingent/Unit Commitment $________

c) Economy $________

TOTAL PURCHASED POWER EXPENSE $__________

LESS ACCOUNT 447-SALES FOR RESALE

a) Firm/Capacity $________

Capacity $________

Firm $________

Bank (Net) $________

Spinning Reserves $________

b) Contingent/Unit Commitment $________

c) Economy $________

d) Firm Surplus $__________

System Sales $________

Block Sales $________

Other Firm Sales $________

e). Other Adjustments

(Renewable Energy, Margin Sharing, Etc.) $__________

TOTAL SALES FOR RESALE $__________

NET PURCHASED POWER EXPENSE $___________

2.B PURCHASED POWER EXPENSE (Distribution Cooperatives)

(Attach supporting workpapers, with purchased power billing invoice to be provided as available)

a) Demand $_____________

b) Energy $_____________

c) Transmission $_____________

d) Misc Adjustments $_____________

e) Supplier Adjustments $_____________

f) Other Charges $_____________

TOTAL PURCHASED POWER EXPENSE $__________

BALANCING ACCOUNT OR CUMULATIVE OVER/UNDER COLLECTION (If

Applicable)

(Investor-Owned Utilities and Distribution Cooperatives)

(Attach supporting workpapers)

$__________

APPLICABLE TOTAL FUEL AND PURCHASED POWER EXPENSE

(Investor-Owned Utilities and Distribution Cooperatives)

$__________

III. CURRENT MONTH (OR OTHER APPLICABLE PERIOD) FUEL AND PURCHASED POWER

REVENUES

(Investor-Owned Utilities and Distribution Cooperatives)

APPLICABLE KWH SALES __________ kWh
FUEL AND PURCHASED POWER REVENUES

a) Base Rate Revenues: $_______/kWh times kWh Sales $___________

b) FPPCAC Revenues: $_______ /kWh times kWh Sales $___________

c) Revenue Adjustments $___________

TOTAL FUEL AND PURCHASED POWER REVENUES $__________

HISTORY OF 17.9.550 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the commission of public records-state records center and archives.

PSC-GO 28, (Case No. 1083) General Order No. 28, Rules Governing Fuel And Purchased Power Cost Adjustment Clause For Electric Utilities, filed 4/17/74.

NMPSC Rule 550, Fuel and Purchased Power Cost Adjustment Clauses for Electric Utilities, filed 6/30/88.

NMPSC Rule 550, Fuel and Purchased Power Cost Adjustment Clauses for Electric Utilities, filed 8/17/92.

NMPSC Rule 550, Fuel and Purchased Power Cost Adjustment Clauses for Electric Utilities, filed 8/25/92.

History of Repealed Material:

NMPSC Rule 550, Fuel and Purchased Power Cost Adjustment Clauses for Electric Utilities (promulgated by former NM Public Service Commission and filed 8/25/92), repealed 12/30/2010.

Other History:

NMPSC Rule 550, Fuel And Purchased Power Cost Adjustment Clauses For Electric Utilities (filed 8/25/92) was renumbered, reformatted and replaced by 17.9.550 NMAC, Fuel and Purchased Power Cost Adjustment Clauses For Electric Utilities, effective 12/30/2010.

History

17.9.550.20 NMAC - Rp, NMPSC Rule 550 Forms I & II, 12-30-10

Part 551 Prior Approval of Purchased Power Agreements

N.M. Admin. Code § 17.9.551.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.551.1 NMAC - N, 7/31/2012

N.M. Admin. Code § 17.9.551.2 Scope

This rule applies to the investor owned electric utilities operating within New Mexico that are subject to the jurisdiction of the New Mexico public regulation commission and to purchased power agreements entered into after the effective date of this rule. This rule shall not supersede or modify requirements pertaining to an electric utility’s purchased power agreements with its affiliates as set by New Mexico public regulation commission orders.

History

17.9.551.2 NMAC - N, 7/31/2012; A, 8/15/2023

N.M. Admin. Code § 17.9.551.3 Statutory Authority

Public Regulation Commission Act, Section 62-19-9 NMSA 1978, Public Utility Act, Sections 62-3-1, 62-6-4, and 62-6-19 NMSA 1978.

History

17.9.551.3 NMAC - N, 7/31/2012; A, 8/15/2023

N.M. Admin. Code § 17.9.551.4 Duration

Permanent.

History

17.9.551.4 NMAC - N, 7/31/2012

N.M. Admin. Code § 17.9.551.5 Effective Date

July 31, 2012, unless a later date is cited at the end of a section.

History

17.9.551.5 NMAC - N, 7/31/2012

N.M. Admin. Code § 17.9.551.6 Objective

To establish review and approval procedures for purchased power agreements.

History

17.9.551.6 NMAC - N, 7/31/2012

N.M. Admin. Code § 17.9.551.7 Definitions

A. “Capacity cost” means a charge separately identified and incurred under a purchased power agreement for capacity or the reservation of capacity.

B. “Commission” means the New Mexico public regulation commission.

C. “Electric utility” means an entity certified by the commission to provide retail electric service in New Mexico pursuant to the Public Utility Act Sections 62-13-1, et seq. NMSA 1978, but does not include rural electric cooperatives.

D. “Fixed cost” means a charge separately identified and incurred under a purchased power agreement that does not vary with changes in amount used, volume consumed, or units purchased. A fixed cost includes, but is not limited to, administrative fees, accounting fees, facilitation fees, minimum payment amounts, and similar charges.

E. “Long term purchased power agreement” or “LTPPA” means a purchased power agreement with a term of five years or more and for which an electric utility seeks or intends to seek rate recovery from its New Mexico retail customers. The term shall be inclusive of the base term and any automatic or option extensions.

F. “Purchased power agreement” means an agreement for the purchase of energy or capacity, or both, by an electric utility with a term of any length and for which an electric utility seeks or intends to seek rate recovery from its New Mexico retail customers, but does not include agreements to purchase renewable energy subject to commission review and approval under the Renewable Energy Act Sections 62-16-1, et seq. NMSA 1978, or agreements to purchase energy or capacity from a qualifying facility pursuant to Section 17.9.570 NMAC.

History

17.9.551.7 NMAC - N, 7/31/2012; A, 8/15/2023

N.M. Admin. Code § 17.9.551.8 General Requirements for Filing an Application for Approval of a Long-Term Purchased Power Agreement

A. No electric utility shall become irrevocably obligated under an LTPPA without first obtaining the commission’s written approval of the agreement.

B. An electric utility shall file at the commission within 30 days after the execution of a LTPPA an application for the commission’s review and approval of the LTPPA.

C. Copies of the application shall be served on commission staff, the New Mexico attorney general and parties in the electric utility’s most recent general rate case, in accordance with Subsection C of 1.2.2.10 NMAC.

D. An application for commission review and approval of an LTPPA shall be accompanied by supporting testimony and exhibits that provide:

(1) a copy of the LTPPA;

(2) an explanation of the key terms and conditions of the LTPPA containing:

(a) the term of the LTPPA including any options to extend the agreement;

(b) the size in MW of capacity and the amount of energy in MWh or kWh per month and any conditions regarding the minimum or maximum amount of energy or capacity made available or required to be purchased;

(c) the price or pricing formula under which the electric utility will pay for the power and energy contracted for, including identification of when charges begin to be incurred, any price reopeners and any price escalation provisions;

(d) obligations by the electric utility to pay for any fixed or variable administrative, transactional, or operation and maintenance costs incurred through the operation of the generation facility, including start-up costs, taxes, insurance, environmental or reclamation-related costs, fuel costs, and any other costs that the electric utility may incur; and

(e) provisions relating to non-performance by the counter-party and the remedies provided;

(3) a description of transmission costs the electric utility will incur or pay to receive the purchased power, which may include the costs of third-party transmission wheeling, or construction of transmission to facilitate purchases under the LTPPA or both;

(4) an explanation of how the electric utility proposes to recover from ratepayers the costs incurred and an estimate of the effect on rates to customers;

(5) a general description of:

(a) the generating facility or facilities that will generate the purchased power; or

(b) if the power is to be generated from one or more specific generating units to be constructed outside New Mexico, a description of the anticipated siting of the generating unit, expected construction time, and the expected commercial operation date; and

(c) if the power is to be generated from one or more specific generating units to be constructed within New Mexico, a description of:

(i) the approvals required to construct and operate the generating unit, including air quality and other environmental permits;

(ii) the expected construction time;

(iii) the expected commercial operation date;

(iv) the fuel type and supply sources; and

(v) other provisions addressing the electric utility’s ownership options for the generating unit during or after the term of the agreement;

(6) evidence that entering into the LTPPA is consistent with the provision of safe and reliable electric utility service at the lowest reasonable cost, considering both short and long-term costs and all other relevant factors;

(7) evidence of the LTPPA’s impact on the electric utility’s financial condition and financial metrics;

(8) evidence that the LTPPA is consistent with the electric utility’s most recent commission-accepted integrated resource plan unless material changes that would warrant a different course of action by the electric utility have occurred, in which case, the testimony shall include justification for deviation from the integrated resource plan;

(9) evidence addressing whether a utility-owned generation resource could have been constructed as an alternative to the LTPPA with greater benefit to ratepayers;

(10) evidence addressing the methodology and criteria by which the purchased power agreement was selected; and

(11) any other information or evidence that the electric utility believes will assist the commission in its review of the LTPPA.

E. The electric utility may, as set forth in Subsection D of 17.9.551.8 NMAC, submit any portion of its application and supporting documentation under seal, to the extent that the electric utility deems the specific information to be confidential. The electric utility shall seek a protective order under Subsection B of 1.2.2.8 NMAC for the information it considers confidential.

History

17.9.551.8 NMAC - N, 7/31/2012; A, 8/15/2023

N.M. Admin. Code § 17.9.551.9 Ratemaking Treatment for All Purchased Power Agreements

A. The following ratemaking treatment shall apply to all purchased power agreements unless otherwise expressly authorized by order of the commission:

(1) energy costs incurred under a purchased power agreement are recoverable through a fuel and purchased power cost adjustment clause (“FPPCAC”) according to the provisions of the FPPCAC approved for the electric utility; and

(2) capacity costs and fixed costs incurred under a purchased power agreement, as well as energy costs incurred by an electric utility without an approved FPPCAC, may be recoverable through base rates when the commission issues an order authorizing a change in base rates that includes recovery of the capacity costs and fixed costs, and energy costs in the case of an electric utility without an approved FPPCAC.

B. An electric utility may include in an application for approval of an LTPPA a request that the commission determine other ratemaking principles and treatment that will apply to the LTPPA.

C. If a request for a determination of other ratemaking principles and treatment is made, the commission shall determine the appropriate ratemaking treatment and principles that will apply to the LTPPA during its term and include that determination in the order granting approval of the LTPPA.

History

17.9.551.9 NMAC - N, 7/31/2012

N.M. Admin. Code § 17.9.551.10 Process for Approval of a Long-Term Purchased Power Agreement

A. The commission may approve an application for approval of an LTPPA without a formal hearing if no protest is filed within 60 days after the date that notice is given pursuant to a commission order.

B. The commission shall issue its final order acting on the application within six months after the date the application was filed. A final order denying an application shall be without prejudice. The electric utility may re-file a previously denied application at any time after that denial. If the commission does not issue its final order within six months after the date that the application was filed by the electric utility, the application shall be deemed to be approved.

History

17.9.551.10 NMAC - N, 7/31/2012; A, 8/15/2023

N.M. Admin. Code § 17.9.551.11 Informational Filing Requirements for a Purchased Power Agreement with a Term of Two Years or More But Less Than Five Years

A. An electric utility may, but is not required to, request approval or request ratemaking treatment other than as provided in Subsection A of 17.9.551.9 NMAC, for a purchased power agreement with a term of two years or more but less than five years, by filing the same type of application applicable to a LTPPA. The provisions in 17.9.551.10 NMAC shall apply to an application regarding a purchased power agreement with a term of two years or more but less than five years.

B. An electric utility entering into a purchased power agreement with a term of two years or more but less than five years for which the utility intends to seek rate recovery either in base rates or its fuel and purchased power cost adjustment clause, shall file with the commission a notice of purchased power agreement within 30 days of execution.

C. A notice of purchased power agreement shall include a copy of the agreement and:

(1) an explanation of the key terms and conditions of the agreement, including:

(a) its term;

(b) its size in MW of capacity and any conditions regarding the minimum or maximum amount of energy or capacity made available or required to be purchased;

(c) the price or pricing formula, including any escalation provisions, and, if applicable, any obligations of the utility to pay for any fixed or variable operation and maintenance costs incurred through the operation of any generation facility providing service under the agreement, including start-up costs, taxes, insurance, environmental or reclamation-related costs and fuel costs; and

(d) any other costs for which the public utility is obligated;

(2) a description of transmission costs the utility will incur or pay to receive the purchased power and any impact on the transmission system of the agreement, including any needed construction of transmission facilities to facilitate purchases under the agreement;

(3) an explanation of how the utility intends to recover costs incurred under the agreement from ratepayers;

(4) an explanation of the impact of the agreement on the electric utility’s financial condition or financial metrics;

(5) an explanation of how entering into the agreement is consistent with the provision of safe and reliable electric utility service at the lowest reasonable cost, considering both short- and long-term costs and all other relevant factors;

(6) an explanation of whether the agreement will result in the deferment or delay of any capacity addition by the public utility, and whether the agreement is consistent with the utility’s most recent commission-accepted integrated resource plan;

(7) evidence addressing the methodology and criteria by which the purchased power agreement was selected; and

(8) any information that the electric utility believes will assist the commission in its review of the agreement.

History

17.9.551.11 NMAC - N, 7/31/2012; A, 8/15/2023

N.M. Admin. Code § 17.9.551.12 Variances

A. An electric utility may file a request for a variance from the requirements of this rule with service of the request to the same parties on whom the application must be served; such request shall:

(1) identify the sections of this rule for which the variance is requested;

(2) describe the reasons for the variance;

(3) set out the effect of complying with this rule on the parties and the electric utility’s customers if the variance is not granted;

(4) describe the expected result that the request will have if granted; and

(5) state how the variance will aid in achieving the purposes of this rule.

B. The commission may grant a request for a procedural variance through an order issued by a single commissioner or a designated hearing examiner. Other variances shall be presented to the commission for its determination.

History of 17.9.551 NMAC: [RESERVED]

History

17.9.551.12 NMAC - N, 7/31/2012

Part 560 Service Standards for Electric Utilities

N.M. Admin. Code § 17.9.560.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.560.1 NMAC - Rp, 17.9.560.1 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.2 Scope

17.9.560 NMAC shall apply to every electric utility (investor-owned, rural electric cooperative, or municipal) operating within the state of New Mexico and which is subject to the jurisdiction of the New Mexico public regulation commission as provided by the public utility act.

History

17.9.560.2 NMAC - Rp, 17.9.560.2 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.3 Statutory Authority

Public Regulation Commission Act, Section 8-8-15 NMSA 1978.

History

17.9.560.3 NMAC - Rp, 17.9.560.3 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.4 Duration

Permanent.

History

17.9.560.4 NMAC - Rp, 17.9.560.4 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.5 Effective Date

November 10, 2020 unless a later date is cited at the end of a section.

History

17.9.560.5 NMAC - Rp, 17.9.560.5 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.6 Objective

17.9.560 NMAC is intended to promote safe and adequate service to the public, to provide standards for uniform and reasonable practices by utilities, and to establish a basis for determining the reasonableness of such demands as may be made by the public upon the utilities.

History

17.9.560.6 NMAC - Rp, 17.9.560.6 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.7 Definitions

When used in 17.9.560 NMAC unless otherwise specified the following definitions will apply:

A. “commission means” the New Mexico public regulation commission;

B. “customer means” any person, firm, association, or corporation, or any agency of the federal, state, or local government being supplied with and responsible for payment for electric services by an electric utility;

C. “electric plant means” all plant, property, or facilities owned, operated, leased, or controlled for the generation, transmission, or distribution of electricity;

D. “filed rule means” rules and regulations filed by a utility with the commission in compliance with 17.1.210 NMAC which has been made effective either through commission approval thereof or by operation of law;

E. “final notice means” personal communication with a non-residential customer by telephone, hand delivery or other electronic communications at least two days prior to the specific date of discontinuance of service or, if by mail, at least four days prior to the specific date of discontinuance of service, excluding Sundays and holidays observed by the utility, to remind the non-residential customer of the pending date of discontinuance of service.

F. “meter means”, unless otherwise qualified, a device that measures and registers the integral of an electrical quantity with respect to time;

G. “meter shop means” a shop where meters are inspected, repaired, and tested and may be at a fixed location or may be mobile and shall contain facilities for protected storage of secondary standards;

H. “meter standards laboratory means” a facility which is equipped and staffed to provide the calibration and certification of secondary standards by comparison with primary standards;

I. “premises means” a piece of land or real estate including buildings and other appurtenances thereon;

J. “primary standards means” those items of laboratory equipment from which the basic units of electricity and standard time interval can be obtained for use in a meter standards laboratory;

K. “protected storage means” an enclosed case or cabinet in a clean location free from excessive heat, moisture, and vibration for the storage and protection of secondary standards and which is accessible only to authorized personnel;

L. “secondary indicating ammeter standard means” an indicating ammeter standard which is in a semi-fixed installation in the protected storage of the meter shop and is used for calibrating the working ammeter standard; this standard remains in the protected storage at all times except when sent to a meter standards laboratory for standardization;

M. “secondary indicating voltmeter standard means” an indicating voltmeter standard which is in a semi-fixed installation in the protected storage of the meter shop and is used for calibrating the working voltmeter standard; this standard remains in the protected storage at all times except when sent to a meter standards laboratory for standardization;

N. “secondary instrument transformer standard means” an instrument transformer standard which is in a semi-fixed installation in the protected storage of the meter shop and is used for calibrating the working transformer standard; this standard remains in the protected storage at all times except when sent to a meter standards laboratory for standardization;

O. “secondary watt-hour standard means” an indicating watt-hour standard which is in a semi-fixed installation in the protected storage of the meter shop and is used for calibrating the working watt-hour standard; this standard remains in the protected storage at all times except when sent to a meter standards laboratory for standardization;

P. “special contract means” a written agreement between a utility and a customer to establish a rate or conditions of utility service, or both, that, due to size or load characteristics or both, differs from those established for general classes of service;

Q. “utility and electric utility” has the meaning given for “public utility" or "utility" in Section 62-3-3 NMSA 1978.

17.9.560.8 [RESERVED]

History

17.9.560.7 NMAC - Rp, 17.9.560.7 NMAC, 11/10/2020
17.9.560.8 NMAC - Rp, 17.9.560.8 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.9 Application of Rule

A. Modifications. If unreasonable hardship to a utility or to a customer results from the application of any provision herein prescribed, application may be made to the commission for the modification of the provision or for temporary or permanent exemption from its requirements.

B. Rule revisions. 17.9.560 NMAC establishes standards to be followed by every electric utility in providing service to customers who are not residential customers as defined in Subsection J of 17.5.410.7 NMAC of the commission's code of rules and regulations and in providing service to residential customers except to the extent inconsistent with 17.5.410 NMAC of the code; provided, however, that any electric utility may file rules inconsistent with the provisions herein established when permitted by the commission under the provisions of Subsection A of 17.9.560.9 NMAC above, or, for residential customers, to conform with the requirements of 17.5.410 NMAC and when so filed and approved by the commission such utility rules shall take precedence over the provisions herein established.

C. Adoption. The adoption of 17.9.560 NMAC will in no way preclude the commission from altering or amending it or from making such modifications with respect to its application as may be found necessary to meet exceptional conditions.

D. Duties. These regulations shall in no way relieve any utility from any of its duties under the laws of this state.

History

17.9.560.9 NMAC - Rp, 17.9.560.9 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.10 Records and Reports

A. Location of records. The location of records shall be as prescribed in Section 62-6-17 NMSA 1978.

B. Retention of records. Records shall be retained as prescribed in 17.3.310 NMAC.

C. Data to be filed with the commission. The utility shall maintain the following documents and information on a current basis. Upon commission request, the utility shall provide the following information to the commission within 10 working days:

(1) a copy of utility's drawings or rules, if any, published or furnished by the utility for the use of engineers, architects, electrical contractors, etc., covering meter and service installations;

(2) a map or series of maps showing the geographical location of the utility system outside the limits of an incorporated community together with a schematic drawing which shows:

(a) generating stations, with the individual unit nameplate kilowatt capability and total capability of all units shown;

(b) transmission lines, with operating and design voltages and types and sizes of conductors shown;

(d) utility-owned transmission and sub-transmission substations and switching stations, with the capacities and voltages shown;

(e) state boundary crossings of utility's lines, with sources of generation from other states shown;

(f) intrastate and interstate connections with other utilities, with metering points, names of other utilities, and nature of service furnished or taken shown;

(g) names of all incorporated communities served;

(3) the name, title, address, and telephone number of the person or persons who should be contacted by the commission in connection with:

(a) general management duties;

(b) customer relations (complaints);

(d) meter tests and repairs; and

(e) emergencies during non-office hours;

(4) a list of those items such as meters, meter sockets, instrument transformers, enclosures, and service entrances along with all other equipment which is furnished and maintained by the utility in its regular rates for service;

(5) report detailing the results of all meters (excluding new meters) tested during the year showing:

(a) total of meters tested;

(b) percentage of breakdown of reasons for tests;

(d) number of meters found to be more than two percent slow;

(6) a list detailing all genuine customer voltage complaints and investigations along with the corrective measures taken to correct high or low voltage system conditions;

(7) the location at which the utility keeps the various classes of records required by these rules;

(8) information regarding any generating units which are not available for service, either scheduled or nonscheduled, which may affect reliability, and the arrangements to maintain service:

(a) scheduled-by advance letter advice of scheduled maintenance by the owning utility, or if the utility is a member of any power pool the pool schedule should be furnished in advance; if a unit is not returned to service by the scheduled date, such supplemental notice as will enable the commission to be fully advised will be required;

(b) nonscheduled-by telegraph in the event a unit in not available for service for a period of 24 hours or longer due to any reason not covered by Subparagraph (a) above;

(9) A list detailing the continuity of service (short planned outages for routine maintenance, system improvements, etc., are not considered as a customer hours outage).

Continuity = Customer hours actually served x one hundred percent

Maximum customer hours possible to serve

History

17.9.560.10 NMAC - Rp, 17.9.560.10 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.11 Meter Requirements

A. Disposition of electricity:

(1) All electricity sold by a utility shall be on a basis of meter measurement except for service of installations where the load is constant and the consumption may be readily computed.

(2) Wherever practicable, consumption of electricity within the utility itself or by administrative units associated with it shall be metered.

B. Meter reading sheets, cards, or records: The meter reading sheets, cards, or records from which the customer's bills are prepared shall show:

(1) customer's name, address, and rate schedule;

(2) identification number or description of the meter(s);

(3) meter readings;

(4) if the reading has been estimated; and

(5) any applicable multiplier or constant.

C. Meter reading interval: The meter shall be read at monthly intervals as nearly as practicable except that authority may be obtained from the commission for reading the meters at other than monthly intervals. commission approval need not be obtained where deviation from monthly meter reading schedules occurs because of the seasonal nature of the customer. As nearly as practicable utilities shall avoid sending a customer two successive estimated bills.

D. Condition of meter: No meter shall be installed which is known to be mechanically or electrically defective or to have incorrect constants or which has not been tested and adjusted, if necessary, in accordance with Subsection H of 17.9.560.14 NMAC. The capacity of the meter and the index mechanism should be consistent with the requirements of the customer.

E. Meter charts: All charts taken from recording meters shall be marked with the date of the record, the meter number, the customer's name and location, and chart multiplier.

F. Meter multiplier: If it is necessary to apply a multiplier to the meter readings the multiplier must be marked on the face of the meter register.

G. Demand meter registration: When a demand meter is used for billing the installation should be designed so that the highest demand reading used for billing should appear in the upper half of the meter's range.

History

17.9.560.11 NMAC - Rp, 17.9.560.11 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.12 Customer Relations

A. Customer information: Each utility shall:

(1) maintain up-to-date maps, plans, or records of its entire transmission and distribution systems with such other information as may be necessary to enable the utility to advise prospective customers and others entitled to the information as to the facilities for serving any locality;

(2) assist the customer or prospective customer in selecting the most economical rate schedule appropriate for their class of service;

(3) notify customers affected by a change in rates or schedule classification;

(4) post a notice in a conspicuous place in each office of the utility where applications for service are received informing the public that copies of the rate schedules and rules relating to the service of the utility as filed with the commission are available for inspection;

(5) upon request inform its customers as to the method of reading meters; and

(6) furnish such additional information as the customer may reasonably request.

B. Customer deposits: Each utility may require from any customer or prospective customer a deposit intended to guarantee payment of bills for service.

(1) A utility may not require a security deposit or other guarantee of payment as a condition of new or continued service to a customer except in the case of service:

(a) to a customer that has not previously had utility service with the utility and that has not established an acceptable credit rating;

(b) to a customer that has on three or more occasions, within a 12-month period, received a final notice;

(d) to a customer that in an unauthorized manner has interfered with or diverted the service of the utility situated on or about or delivered to the customer’s premises.

(2) In determining whether a customer that has not previously had utility service with the utility has an acceptable credit rating, a utility shall consider the following:

(a) documentation that the customer has an adequate credit reference from a utility where the customer had prior utility service;

(b) documentation obtained by the utility from a commercial credit source; or

(3) A utility may give special consideration to a prospective or existing customer in determining if payment by an installment agreement is appropriate.

(4) If a utility requires a deposit, it shall have on file with the commission an approved rule setting forth the minimum and maximum deposit that may reasonably be required by the utility in cases involving all types of service. That rule shall conform to the following provisions:

(a) a deposit for a customer shall not exceed an amount equivalent to one-sixth of that non-residential customer's estimated annual billings; a utility shall base its deposit criteria upon the most recent available prior 12-month corresponding period at the same service location; or, if there is not a comparable period of service at the same service location, the deposit shall be based upon consumption of similar units in the same area;

(b) simple interest on deposits at a rate not less than the rate required by Section 62-13-13 NMSA 1978, shall accrue annually to the customer's credit for the time the deposit is held by the utility; by January 15 of each year the commission shall post on its website the minimum rate to be paid on any deposits required of a customer by any public utility; the deposit shall cease to draw interest on the date it is returned, on the date service is terminated, or on the date the refund is sent to the non-residential customer's last known address.

(5) Each customer that posts a security deposit shall receive in writing at the time of tender of deposit or with the first bill a receipt as evidence thereof. A utility shall provide the means whereby a depositor may establish its claim if its receipt is lost. The receipt shall contain the following minimum information:

(a) name of customer;

(b) date of payment;

(d) statement of the terms and conditions governing the payment, retention, interest, and return of deposits.

(6) Refunds: Any non-residential customer that has not received a final notice for the 12-month period from the date of deposit or guarantee shall promptly receive a credit or refund in the amount of the deposit together with accrued interest due or shall be permitted to terminate any guarantee. If the amount of the deposit exceeds the amount of the current bill, the customer may request a refund in the amount of the excess if such excess exceeds $25.00. If the customer fails to qualify for a refund of the deposit on the one year anniversary date of the deposit, that account shall be reviewed at least annually, and the amount of the deposit shall be credited if the customer has not received a final notice during the preceding 12 months. A customer may request a refund at any time after 12 months payment history, which refund shall promptly be paid if the customer has not received a final notice during the prior 12-month period or a utility may pay such refund in the absence of a request within a reasonable period of time.

(7) Each utility shall keep records to show:

(a) the name and address of each depositor;

(b) the amount and the date of the deposit; and

(8) A record of each unclaimed deposit shall be maintained for at least three years during which time the utility shall mail a check or a letter to the customer at their last known address in an effort to return the deposit.

(9) Unclaimed deposits together with accrued interest shall be credited to the appropriate account and shall be handled as required by the uniform disposition of unclaimed property act of the state of New Mexico.

C. Customer bill forms:

(1) The utility shall bill each customer as promptly as possible following the reading of their meter. The bill shall show:

(a) the reading of the meter at the end of the period for which the bill is rendered;

(b) the nominal date on which the meter was read;

(d) the applicable rate schedule or identification of the applicable rate schedules;

(e) the gross or net amount of the bill;

(f) the date by which the customer must pay the bill in order to benefit from any discount or to avoid any penalty;

(g) a distinct marking to identify an estimated bill;

(h) any conversions from meter reading units to billing units or any calculations to determine billing units from recording or other devices or any other factors, such as fuel clause adjustments, power factor adjustments, applicable primary discounts for customer-owned transformer, or billing units additions for secondary metering of primary services used in determining the bill; and

(i) a multiplier constant when used to determine billing will be shown on the bill whenever applicable.

(2) In lieu of information required under subparagraphs (c), (g), and (h) above, the utility may incorporate on the bill form a statement advising the customer that any additional information desired relative to the application of the rate schedule can be obtained by contacting one of the utility's offices.

D. Customer records: The utility shall retain records as may be necessary to effect compliance with 17.3.310 NMAC and with Subsection E of 17.9.560.12 NMAC and Subsection E of 17.9.560.14 NMAC, and shall show where applicable the following:

(1) KWH meter reading;

(2) KWH consumption;

(3) KW or KVA readings;

(4) KW or KVA measured demand;

(5) KW or KVA billing demand;

(6) primary discounts; and

(7) total amount of bill.

E. Adjustments of bills:

(1) General: An adjustment of bills for service shall be made for the following reasons, and may be made for reasons not listed below in order to achieve a reasonable, fair and just result:

(a) meter creep;

(b) kilowatt-hour registration in excess of two percent average error determined by meter test;

(c) demand registration in excess of one percent error in addition to errors allowed under accuracy of demand meters, Subsection H of 17.9.560.14 NMAC;

(d) failure of meter or equipment including automatic meter reading technology if such failure was not the result of a customer tampering with, damaging, replacing or deliberately destroying the equipment furnished and owned by the utility;

(e) improper installation, testing, or inspection of equipment;

(f) improper application of rate schedule;

(g) improper multiplier;

(h) improper application of a tax;

(i) failure of utility to bill a customer for services at the time the customer received the services; or

(j) failure of a customer to provide safe and reasonable access to utility equipment.

(2) The amount of the adjustment shall be calculated on the basis that the metering equipment should be one hundred percent accurate with respect to the testing equipment used to make the test. For watt-hour meters the average accuracy shall be the arithmetic average of the percent registration at light load and at heavy load, giving the light load registration a weight of one and the heavy load registration a weight of four.

(3) Determination of adjustments: Unless otherwise specified, the time periods established in Paragraph (8) of Subsection E of 17.560.12 NMAC shall apply to adjustments made under Paragraph (3) of Subsection E of 17.560.12 NMAC.

(a) Meter creep: The error in registration due to creep shall be calculated by timing the rate of creeping and assuming that this creeping affected the registration of the meter for twenty percent of the time since the meter was installed or since the last previous test, whichever is later.

(b) Meter with inaccuracy in excess of specified limits: If the date when the error in registration began can be determined, such date shall be the starting point for determination of the amount of adjustment. If the date when the error in registration began cannot be determined, it shall be assumed that the error has existed for a period equal to one-half the time elapsed since the meter was installed or one-half the time elapsed since the last previous test, whichever is later.

(c) Failure of meter or equipment: When the error in registration is caused by failure of part or all of the metering installation, it shall be permissible to use the registration of check metering installations, if any, or to estimate the kilowatt-hour consumption, demand, and other data required for billing based upon a period of similar operating conditions as agreed to between the customer and the utility.

(d) Improper installation, testing, or inspection of meter or equipment: When the error in registration is caused by improper installation, testing, or inspection of meter or equipment, the date of installation, date of test, or date of inspection shall be the starting point for determination of the amount of the adjustment.

(4) Refunds:

(a) If the recalculated bills indicate that a refund is due an existing customer or a person no longer a customer of the utility, the full amount of the calculated difference between the amount paid and the true amount shall be refunded in the applicable time period established in Paragraph (8) of Subsection E of 17.560.12 NMAC.

(b) The refund to an existing customer may be in cash or as credit on a bill. In the case of a previous customer who is no longer a customer of the utility, a notice of the amount due shall be mailed to such previous customer at their last known address and the utility shall, upon demand within three months thereafter, refund the amount due.

(5) Back-billing:

(a) If the recalculation of billing indicates that an amount is due the utility and such amount is in excess of any refund due the customer, the utility may bill the customer the true amount due in the applicable time period established in Paragraph (8) of Subsection E of 17.560.12 NMAC.

(b) Each utility may establish a minimum amount below which the utility will not back-bill the customer. When the amount of the back-billing is greater than the established minimum amount, the customer will be billed the true amount due the utility in the applicable time period established in Paragraph (8) of Subsection E of 17.560.12 NMAC.

(c) The customer shall be permitted to pay the amount of the back-billing in reasonable installments. A back-bill shall be accompanied by an offer of an installment agreement.

(d) The utility shall not charge the customer interest for any amount back-billed.

(6) A utility and its special contract customer may make their own agreements respecting adjustments for errors in measurement.

(7) The utility will assist the customer in selecting the rate schedule under which the customer is eligible to be billed. However, the utility will not be held responsible for refunding any overcharge caused by the customer's failure to select the appropriate rate schedule or by the customer's failure to notify the utility of a change in customer’s operations. If the utility improperly applies the rate schedule selected by the customer, any billing in excess of the true amount will be refunded to the customer and any billing less than the true amount when greater than the established minimum amount will be billed to the customer in the applicable time period established in Paragraph (8) of Subsection E of 17.560.12 NMAC.

(8) Time periods for adjustment of bills:

(a) Residential customer class (metered usage): Refunding of an overbilling is limited to 12 months. Back-billing of an under billing is limited to six months. Customers responsible for the back-billed under-bill shall be given, at a minimum, the same time period to pay the under billing as the length of time period of the under billing.

(b) Residential customer class (zero usage or no bill): Back-billing is limited to six months. Customers responsible for the back-billed under-bill shall be given, at a minimum, the same time period to pay the under billing as the length of time period of the under billing.

(c) Non-residential small commercial customer class, defined by tariff: Refunding of an overbilling is limited to six months. Back-billing of an under billing is limited to six months. Customers responsible for the back-billed under-bill shall be given, at a minimum, the same time period to pay the under billing as the length of time period of the under billing.

(d) All other non-residential customer class, such as medium, large or industrial as defined by tariff: Refunding of an overbilling is limited to 12 months. Back-billing is limited to 12 months. Customers responsible for the back-billed under-bill shall be given, at a minimum, the same time period to pay the under billing as the length of time period of the under billing.

(e) Back-billing customers is limited to 72 months for under billing that was caused by tampering or fraud by the customer.

(f) Notwithstanding the above time limits, the commission may determine a different time limit for back-billing or refunding in order to achieve a reasonable, fair, and just result.

F. Reasons for denying or discontinuing service: Service may be denied or discontinued for any of the reasons listed below unless prohibited under Paragraph (3) of Subsection G of 17.9.560.12 NMAC. Unless otherwise stated the customer shall be allowed a reasonable time in which to comply with the rule before service is discontinued except as provided in Paragraphs (1), (2), (3) and (4) below:

(1) without notice in the event of a condition determined by the utility to be hazardous;

(2) without notice in the event of customer use of equipment in such manner as to adversely affect the utility's equipment or the utility's service to others;

(3) without notice in the event that a customer tampers with, damages, or deliberately destroys the equipment furnished and owned by the utility;

(4) without notice in the event of unauthorized use;

(5) for violation of or noncompliance with the utility's rules on file with and approved by the commission;

(6) for failure of the customer to fulfill their contractual obligations for service or facilities subject to the regulations of the commission;

(7) for failure of the customer to permit the utility reasonable access to its equipment;

(8) for non-payment of bill provided the utility has given the customer final notice;

(9) for failure of the customer to provide the utility with a deposit as authorized by Subsection B of 17.9.560.12 NMAC except that a utility may not discontinue service to an existing customer solely for failure to pay deposit;

(10) for failure of the customer to furnish such service equipment, permits, certificates, or rights-of-way as shall have been specified by the utility as a condition for obtaining service or in the event such equipment or permissions are withdrawn or terminated; and

(11) for failure of the customer to pay for service of the same class at a previous metering point or points.

G. Reasons insufficient for denying or discontinuing service:

(1) The following shall not constitute sufficient cause for discontinuing service to a present customer:

(a) for failure to pay for merchandise purchased from the utility;

(b) for failure to pay for a different type or class of public utility service;

(d) for failure to pay for concurrent service of whatever class at a different metering point.

(2) The following shall not constitute sufficient cause for denying service to a prospective customer:

(a) for delinquency in payment for service by a previous occupant unless the previous occupant still resides at the premises;

(b) for failure to pay for merchandise purchased from the utility; or

(3) Irrespective of any conflict with 17.5.410 NMAC, the following rules regarding disconnection of residential utility service may be implemented on a temporary basis by order of the commission for a period of time, up to and including, the duration of any emergency executive order issued by the governor of New Mexico pertaining to a public health or other emergency condition under either the Public Health Emergency Response Act, Section 12-10A-1 NMSA 1978, and the All Hazards Emergency Management Act, Section 12-10-1 NMSA 1978:

(a) all utilities may be prohibited from discontinuing residential utility service for non-payment during the time period the emergency executive orders are in effect;

(b) any late fees on residential accounts that would be incurred during the time period of the effectiveness of the emergency executive orders may be required to be waived;

(c) utilities may be permitted to temporarily close in-person bill payment locations provided the utility provides notice to residential customers of such closures and identifies in such notice how payment made be made, including electronically or by mail. In the event of the closure of in-person bill payment locations, utilities shall be permitted to continue to collect credit card or bank fees in accordance with their own commission approved and filed tariffs;

(d) medical certificates set to expire shall not expire for the duration of the effectiveness of any emergency executive order and may be automatically be extended for 90 days from the end of any emergency executive order; and

(e) irrespective of this rule, public utilities are not prohibited from disconnecting service to residential customers due to:

(i) an emergency;

(ii) safety;

(iii) a request to disconnect from the residential customer.

H. Estimated demand: Upon request of the customer and provided the customer's demand is estimated for billing purposes, the utility shall measure the demand during the customer's normal operations and use the measured demand for billing.

I. Servicing utilization control equipment: Each utility shall service and maintain any equipment it owns and used on the customer's premises and shall correctly set and keep in proper adjustment any thermostats, clocks, relays, time switches, or other devices which control the customer's service in accordance with the provisions of the utility's rate schedules.

J. Customer complaints: Bona fide complaints concerning the charges, practices, or service of the utility shall be investigated promptly and thoroughly. The utility shall keep such records of customer complaints as will enable the utility to review and analyze its procedures and actions.

K. Temporary service: When the utility renders temporary service to a customer it may require that the customer bear all the cost of installation and removal of the service facilities in excess of any salvage realized.

L. Extension plan: Each utility shall develop a plan acceptable to the commission for the extension of facilities where they are in excess of those included in the regular rates for service and for which the customer shall be required to pay all or part of the cost.

History

17.9.560.12 NMAC - Rp, 17.9.560.12 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.13 Engineering

A. Requirement for good engineering practice: The electric plant of the utility shall be constructed, installed, maintained, and operated in accordance with accepted good engineering practice in the electric industry to assure, as far as reasonably possible, continuity of service, uniformity in the quality of service furnished, and the safety of persons and property.

B. Acceptable standards: Unless otherwise specified by the commission the utility shall use the applicable provisions in the latest edition of the publications listed below as standards of accepted good practice.

(1) National electric safety code as compiled by the national bureau of standards.

(2) National electrical code, NFPA No. 70, ANSI standard C-1.

(3) American standard code for electricity meters, ANSI standard C-12.

(4) American standard requirements, terminology and text code for instrument transformers, ANSI standard C-57.13.

(5) Preferred voltage ratings for A-C systems and equipment, EEI Pub. No. R-6, NEMA Pub. No. 117 ANSI standard C-84.1.

(6) Voltage levels on rural distribution system-REA bulletin 169-4.

(7) New Mexico state electrical code.

C. Adequacy of supply: The generating capacity of the utility's plant supplemented by the electric power regularly available from other sources must be sufficiently large so as to meet all normal demands for service and provide a reasonable reserve for emergencies.

D. Inspection of electric plant: Each utility must adopt a program of inspection of its electric plant in order to determine the necessity for replacement and repair. The frequency of the various inspections shall be based on the utility's experience and accepted good practice. Each utility shall keep sufficient and reasonable records to give evidence of compliance with its inspection program.

History

17.9.560.13 NMAC - Rp, 17.9.560.13 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.14 Inspection and Tests

A. Request tests: Upon request by a customer the utility shall test the meter serving that customer. The utility shall advise such customer that they may be present during the meter test. If the meter has been tested within the last 18 months the utility may charge the customer the applicable amount provided for in its filed rules, such charge to be refunded to the customer whenever the meter proves to be in excess of two percent in error.

(1) The customer or their representative may be present when their meter is tested if such customer's request to be present is made at the time of their request for the meter test. The utility shall give the customer reasonable advance notification as to the day, time, and place of the test.

(2) A report of the test results shall be made to the customer within a reasonable time after the completion of test, and a record of the report together with a complete record of each test shall be kept on file at the office of the utility for as long a period as prescribed in Subsection K of 17.9.560.14 NMAC.

B. Pre-installation inspections and tests:

(1) Every meter not certified by the manufacturer shall be inspected and tested in the utility's meter shop before being placed in service, and the accuracy of each of these meters shall be adjusted to be within the tolerances permitted by Subsection H of 17.9.560.14 NMAC.

(2) If a meter is physically removed from a customer's premises except for field testing and has not been tested during the preceding thirty-month period, it must be returned to the utility's meter shop and inspected and tested as above before it is again placed in service.

C. Post-installation inspections and tests: The utility shall employ such qualified personnel and shall conduct such post-installation inspections as may be necessary to insure an overall accuracy within two percent of the condition as prescribed in Paragraph (6) of Subsection H of 17.9.560.14 NMAC in the following installations:

(1) meters with associated instrument transformers and phase shifting transformers;

(2) kilovar-hour meters, if associated with instrument transformers;

(3) demand meters, if associated with instrument transformers; and

(4) direct current watt-hour meters;

(5) The commission may order inspections when in its opinion such inspections are necessary.

D. As-found tests: All meters shall be tested after they are physically removed from service if they have not been tested during the preceding thirty-month period. Excepted are those meters damaged beyond testing. Such tests shall be made before the meters are adjusted, repaired, and calibrated. It will not be mandatory to test meters scheduled for retirement unless there is cause to suspect that there will be a subsequent complaint involving the accuracy of the meter.

E. In-service performance tests:

(1) General: In-service performance tests must be made in accordance with Paragraph (2) of Subsection E of 17.9.560.14 NMAC. These tests may be made on the customer's premises or in the utility's meter shop. All self-contained single-phase meters and three-wire network meters on a utility's system must be tested in accordance with Subparagraphs (a) through (e) of Paragraph (2) below.

(2) Periodic test schedule: In the test intervals specified below the word "years" means calendar years and the word "months" means calendar months. The basic periodic test interval shall not be longer than provided for in the following schedule.

(a) Alternating current watt-hour meters:

(i) meters used with instrument transformers: polyphase meters - at least once in four years, and single-phase meters - at least once in eight years;

(ii) self-contained polyphase meters - at least once in six years;

(iii) self-contained single-phase meters - at least once in eight years.

(b) All self-contained single-phase meters and three-wire meters must be tested in accordance with any one of the following listed permissive test programs referred to in 8.1.8 of the standard code for electricity metering, ANSI standard C-12-1965:

(i) periodic interval program;

(ii) variable interval program;

(iii) statistical sampling program.

(c) Variable interval and statistical sampling programs can be used only when specifically approved by the commission and when in accordance with the specific program adopted by commission.

(d) Var-hour meters: same as the schedule for associated watt-hour meters.

(e) Demand meters:

(i) block-interval non-recording demand meters and registers - same as the schedule for associated watt-hour meters;

(ii) block-interval graphic watt-hour demand meters - two years;

(iii) block-interval pulse-operated recording demand meters - two years;

(iv) lagged-demand meters - same as the schedule for associated watt-hour meters.

(f) Secondary standards:

(i) portable rotating standard watt-hour meters - 12 months;

(ii) indicating voltmeters - 12 months;

(iii) instrument transformers - 10 years.

(g) working standards and instruments.

(i) portable rotating standard watt-hour meters - one month;

(ii) indicating voltmeters - six months;

(iii) instrument transformers - 10 years.

F. Instrument transformer tests: All instrument transformers shall be tested in accordance with the applicable procedures of American standard requirements, terminology and test code for instrument transformers, ANSI standard C-57.13:

(1) when first received except in cases where a certificate of test is furnished by the manufacturer;

(2) when removed from service if there is subsequently found to be visual evidence of damage;

(3) upon complaint;

(4) while still in service if there is visual evidence of damage; and

(5) whenever an approved check, such as the variable burden method in the case of current transformers, made whenever the meter was tested indicated that a quantitative test is required.

G. Generating station meter tests: Each generating utility may establish its own test procedures to insure the accuracy of its generating station output watt meter and watt-hour meters as per Subsection A of 17.9.560.13 and Subsection K of 17.9.560.14 NMAC.

H. Test procedures and accuracies: Meters shall be tested at the loads indicated below and adjusted as close as practicable to zero error when found to exceed the tolerances prescribed below. The test of any meter shall consist of a comparison of its accuracy with the accuracy of a standard. The commission will use the applicable provisions of the latest edition of the American standard code for electricity meters, ANSI standard C-12, as criteria of accepted good practice.

(1) Alternating current watt-hour meters:

(a) Shop tests: Test Load as Approximate Percentage of Test Current* Power Factor Tolerances 100 1.0 +1.0% 10 1.0 +1.0% 100 0.5 +1.5% (b) Field Tests: 100 1.0 +1.0% 10 1.0 +1.0% *For meters used with current transformers the current at heavy load shall be approximately one hundred percent of the secondary rating of the current transformers and at light load approximately ten percent of that rating.

(a) Shop tests:

Test Load as Approximate

Percentage of Test Current*

Power

Factor

Tolerances

100

1.0

+1.0%

1.0

+1.0%

100

0.5

+1.5%

(b) Field Tests:

100

1.0

+1.0%

1.0

+1.0%

*For meters used with current transformers the current at heavy load shall be approximately one hundred percent of the secondary rating of the current transformers and at light load approximately ten percent of that rating.

(2) Direct current watt-hour meters:

Test Load as Approximate Percentage of Test Current Power Factor Tolerances 100 +1.5% 10 +1.5%

Test Load as Approximate

Percentage of Test Current

Power

Factor

Tolerances

100

+1.5%

(3) Demand meters:

(a) Integrated (block interval) demand meters:

(i) Demand meters which are direct driven shall be tested at a load point no less than fifty percent of full scale. Tests shall be continuous for at least one demand interval and shall be started simultaneously with the demand interval of the demand meter.

(ii) Demand meters which are actuated by impulses shall be tested by transmitting enough impulses to cause the meter to register at a load point no less than fifty percent of full scale. If an impulse-actuated demand meter is equipped with a device which records the number of impulses received by the meter, and if there is frequent and accurate comparison of such record with the number of kilowatt hours registered on the associated watt-hour meter, then it is not necessary to make a periodic field test of the demand meter.

(iii) Demand meters shall be adjusted to indicate zero under no-load conditions and shall be checked to ascertain that the meter resets to zero.

(iv) Impulse devices associated with demand meters must be checked for proper operation.

(v) The demand meter shall have an accuracy of within two percent of full scale.

(vi) The time interval must be accurate within half a percent for synchronous motor timing elements and within two percent for mechanical clock timing elements.

(vii) Meters recording demand reading on a chart which provides a record of the time at which the demand occurs shall be accurate to within plus or minus four minutes in 24 hours.

(b) Lagged demand meters:

(i) Demand meters shall be tested at a load point no less than fifty percent of full scale.

(ii) Demand meters shall be adjusted to indicate zero under no-load conditions with potential applied.

(iii) The demand meter shall have an accuracy within three percent of full scale.

(iv) Meters recording demand readings on a chart which provides a record of the time at which the demand occurs shall be accurate to within plus or minus four minutes in 24 hours.

(4) Transformers:

(a) All current and potential transformers shall be tested in accordance with the applicable procedures prescribed in ANSI standard C-57.13.

(b) Any utility unable to perform the above tests due to a lack of proper equipment may have its instrument transformers tested by another utility or laboratory whose testing conforms to the requirements of the commission.

(c) In lieu of the utility testing of instrument transformers the commission will accept the certificate of test as furnished by the manufacturer.

(d) Current or potential transformers shall not be installed if their accuracy does not fall within the 0.6 accuracy class as described in ANSI standard C-57.13.

(5) Meters for measurement of purchased electricity: Utilities purchasing electricity from non-utilities or from utilities outside the state must see that the instruments and meters which are necessary to furnish complete and accurate information as to the energy purchased are installed and tested in accordance with the requirements of the commission.

(6) General:

(a) All meters when tested shall be adjusted as closely as practicable to the condition of zero error.

(b) All tolerances are to be interpreted as maximum permissible variations from the condition of zero error. In making adjustments no advantage of the prescribed tolerance limits shall be taken.

(c) Meters shall not "creep," i.e., there shall be no continuous rotation of the moving element of a meter at a speed in excess of one revolution in 10 minutes when the meter load wires have been removed and voltage is applied to the potential elements of the meter.

I. Facilities and equipment for meter testing: Each utility shall maintain a meter shop or shall have the services of a meter shop available to it for the purpose of inspecting, testing, and repairing meters. The shop shall be open for inspection by authorized representatives of the commission at all reasonable times, and the facilities and equipment as well as the methods of measurement and testing employed shall be subject to the approval of the commission. The meter shop used by a utility shall have adequate and sufficient testing equipment to comply with this rule and to conduct the tests and make repairs and adjustments in compliance with this rule.

(1) Each location at which the shop conducts tests of meters shall have a three-phase voltage supply, one phase of which shall be variable from zero volts to 270 volts.

(2) Standards: Extreme care shall be exercised in the handling of standards to assure that their accuracy is not disturbed. Each meter shop shall contain facilities for protected storage of the secondary standards which are accessible only to personnel specifically so assigned by the utility management.

(a) Secondary standards:

(i) Each shop shall have at least one indicating voltmeter with a stated accuracy within one-quarter percent of full scale. This instrument must be maintained within its stated accuracy.

(ii) Each shop shall have at least one portable rotating standard watt-hour meter with a correction of not more than one-half percent at commonly used loads. If the correction percentage varies between successive tests by more than one-quarter percent, a complete check must be made to determine the cause of such variation. If the cause of variation cannot be removed the use of the instrument should be discontinued.

(iii) Secondary standards shall be checked periodically (See Paragraph (2) of Subsection E of 17.9.560.14 NMAC) at the national bureau of standards or at a laboratory acceptable to the commission. Secondary standards otherwise shall be kept in the protected storage of the meter shop at all times.

(iv) Secondary standards shall be accompanied at all times by a certificate or calibration card, duly signed and dated, on which are recorded the corrections required to compensate for errors found at the customary test points at the time of the last previous test.

(b) Working standards: Each shop shall have at least one portable rotating standard watt-hour meter with a correction of not more than one-half percent at commonly used loads. If the correction percentage varies between successive tests by more than one-quarter percent, a complete check must be made to determine the cause of such variation. If the cause of variation cannot be removed the use of the instrument should be discontinued. Working standards shall be checked periodically (See Paragraph (2) of Subsection E of 17.9.560.14 NMAC) by comparison with a secondary standard from the protected storage of the meter shop.

J. Records of meters: Each utility shall maintain records of the following data, where applicable, for each meter until retirement:

(1) the complete identification (number, type, voltage, amperes, number of wires, disk constant (kh), demand interval, and ratio); and

(2) the dates of installation and removal from service together with the location.

K. Meter test records: Each utility shall keep meter test records until a superseding test has been made but not less than two years or as may be necessary to comply with service rules regarding refunds on inaccurate meters. Test records shall include the following:

(1) the date and reason for the test;

(2) the reading of the meter before making any test;

(3) the accuracy "as found" at light and heavy loads;

(4) the accuracy "as left" at light and heavy loads; and

(5) a statement of any repairs made.

History

17.9.560.14 NMAC - Rp, 17.9.560.14 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.15 Standards of Quality of Services

A. Standard frequency: The standard frequency for alternating current distribution systems shall be 60 cycles per second. The frequency shall be maintained within limits which will permit the satisfactory operation of customers' clocks connected to the system.

B. Voltage limits: Each utility shall adopt and file with the commission standard nominal service voltages and for each of the several areas into which its distribution system or systems may be divided.

(1) The variations of the voltage for the various classes of service, voltage spread, and extreme tolerable voltage limits shall be in accordance with the publication EEI No. R-6, NEMA No. 117, ANSI standard C-84.1, or voltage levels on rural distribution systems REA bulletin No. 169.4.

(2) For service rendered to public utilities and others for resale, the nominal voltage spread and extreme tolerable voltage limits shall be as mutually agreed upon by the parties concerned. These limitations do not apply to special contracts in which the customer specifically agrees to accept service with unregulated voltage.

(3) Exceptions to voltage requirements: Voltage outside the limits specified will not be considered a violation when the variations:

(a) arise from the action of the elements;

(b) are infrequent fluctuations not exceeding five minutes' duration;

(d) arise from temporary separation of parts of the system from the main system;

(e) are from causes beyond the control of the utility.

C. Voltage surveys and records:

(1) Each utility shall make a reasonable number of voltage measurements using recording voltmeters or minimum/maximum voltmeters to determine if voltages are in compliance with the requirements as stated in Subsection B of 17.9.560.15 NMAC.

(2) Voltage measurements shall be made at the customer's point of metering and at other pertinent locations on the utility system.

(3) All voltmeter records obtained under Paragraphs (1) and (2) above shall be retained by the utility in accordance with 17.3.310 NMAC and shall be available for inspection by the commission's representatives. Notations on each record shall indicate the following:

(a) the location where the voltage was taken;

(b) the time and date of the test; and

D. Equipment for voltage measurements:

(1) Working instruments:

(a) Each utility shall have at least two indicating voltmeters with a stated accuracy within plus three percent of full scale.

(b) Each utility shall have at least two portable recording voltmeters with a stated accuracy within plus three percent of full scale.

(2) Working instruments shall be checked periodically (see Paragraph (2) of Subsection E. of 17.9.560.14 NMAC) by comparison with a standard in a meter shop.

(3) Extreme care shall be exercised in the handling of instruments to assure that their accuracy is not disturbed.

E. Interruptions of service: Each utility shall make reasonable efforts to avoid interruptions of service, but when interruptions occur service shall be reestablished within the shortest time practicable consistent with safety.

(1) Each utility shall keep records of interruptions of service on its primary distribution circuits and shall make an analysis of the records for the purpose of determining steps to be taken to prevent recurrence of such interruptions. Such records should include the following information concerning the interruptions:

(a) cause;

(b) date and time; and

(2) The log for each unattended substation must show interruptions which require attention to restore service with the estimated time of interruption.

(3) Planned interruptions shall be made at a time that will not cause unreasonable inconvenience to customers and shall be preceded, if feasible, by adequate notice to those who will be affected.

(4) Each utility shall report the following information:

(a) A major interruption of service is defined as an unscheduled interruption of service of more than 30 minutes in duration, affecting:

(i) more than ten percent of a utility’s New Mexico jurisdictional load or more than 100 MW of its New Mexico jurisdictional load, whichever is less; or

(ii) substantially all of a New Mexico municipality or county; or

(iii) any of the utility’s customers of at least one MW (based on the most recent demand billing information on the date of the major interruption).

(b) Within two hours of the commencement of a major interruption of service (or no later than 9:00 AM the following business day for outages occurring after 4:00 PM or on a weekend), the utility division of the commission shall be notified telephonically, by facsimile or by e-mail of the occurrence with a brief description of the occurrence.

(c) Within three business days a written report shall be filed with the records division of the commission. The written report shall contain the pertinent information on the outage including, but not limited to, time of occurrence, duration, cause, facilities affected, MW of load lost, MWH of lost sales, estimated number of consumers affected, municipalities and counties wholly or partially interrupted, and actions taken by the utility to correct and prevent recurrence of the outage.

(d) Utilities that submit reports of an interruption to any coordinating council, regional transmission group or other industry review shall concurrently submit copies to the records division of the commission, including any engineering reports associated with an interruption. Each utility shall provide to commission staff all information requested by staff that is reasonably needed to assess the situation.

(5) Each utility shall identify critical customers, including facilities that require electricity to perform essential life-health-safety services, including other utility services such as natural gas compression, to establish priority of service and to minimize curtailments to these customers.

(6) Each utility shall identify an emergency coordinator to act as a single point of contact between designated emergency personnel in each community served by the utility in the event of a system emergency.

F. Curtailment of service plan: Each utility shall have in place a plan for curtailment of service that may need to be instituted to maintain system reliability and integrity. Each plan shall be consistent with applicable NERC and other reliability standards. The plan shall identify various levels of curtailment and conditions that an electric utility must experience for each level as well as specifying the type of actions the utility must undertake to contain or reverse a potential emergency. Each plan must also prescribe the minimum documentation required at each level. The plan must also include information dissemination to customers, the public and governmental entities. Each utility will periodically review and update the plan and will submit a copy of the most current plan version to the records division of the commission as a company rule pursuant to 17.9.210 NMAC.

History

17.9.560.15 NMAC - Rp, 17.9.560.15 NMAC, 11/10/2020

N.M. Admin. Code § 17.9.560.16 Safety

A. Protective measures:

(1) Each utility shall exercise reasonable care to protect its employees, its customers, and the general public from hazards to which they may be subjected.

(2) The utility shall give reasonable assistance to the commission in the investigation of the cause of accidents and in the determination of suitable means of preventing accidents.

(3) Each utility shall maintain a summary of each accident arising from its operations and make such summaries available to the commission upon request.

(4) A utility shall not connect a new electric service unless the utility has the three copies of the application for electrical inspection. This subsection is not applicable to federal installations for which a state or local inspection is not required.

B. Safety program: Each utility shall adopt and execute a safety program fitted to the size and type of its operations. As a minimum the safety program should:

(1) require employees to use suitable tools and equipment in order to perform their work in a safe manner;

(2) instruct employees in safe methods of performing their work; and

(3) instruct employees who in the course of their work are subject to the hazard of electrical shock or drowning in accepted methods of artificial respiration.

C. Grounding of secondary distribution system: Each utility shall comply with the applicable provisions in the national electrical safety code and the national electrical code for the grounding of secondary circuits and equipment.

HISTORY OF 17.9.560 NMAC:

Pre-NMAC History. The material in this part was derived from that previously filed with the commission of public records-state records center and archives.

PSC 77-1, (Case No. 1350) Amendments to Second Revised General Order No. 5 and Second Revised General Order No. 6: Applicability of Amendments to Water Utilities, filed 4/4/1977.

NMPSC Rule 560, Service Standards for Electric Utilities, filed 6/30/1988.

History of repealed material.

NMPSC Rule 560, Service Standards for Electric Utilities (filed 6/30/1988) repealed 6/15/2005.

17.9.560 NMAC - Service Standards for Electric Utilities (filed 3/8/2013) repealed 11/10/2020.

Other History:

NMPSC Rule 560, Service Standards for Electric Utilities (filed 6/30/1988) replaced by 17.9.560 NMAC, Service Standards for Electric Utilities, effective 6/15/2005.

17.9.560 NMAC - Service Standards for Electric Utilities (filed 3/8/2013) replaced by 17.9.560 NMAC - Service Standards for Electric Utilities, effective 11/10/2020.

History

17.9.560.16NMAC - Rp, 17.9.560.16 NMAC, 11/10/2020

Part 561 Carbon Dioxide Emissions Measurement and Compliance

N.M. Admin. Code § 17.9.561.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.561.1 NMAC - N, 11/19/2024

N.M. Admin. Code § 17.9.561.2 Scope

This rule applies to all qualifying utilities as that term is defined in the Energy Transition Act, Subsection T of Section 62-18-2 NMSA 1978, that receive approval of a financing order and issue sources of energy transition bonds.

History

17.9.561.2 NMAC - N, 11/19/2024

N.M. Admin. Code § 17.9.561.3 Statutory Authority

Subsection T of Section 62-18-2 NMSA 1978, Subsection D of Section 62-18-10 NMSA 1978, Paragraph (2) of Subsection B of Section 62-18-11 NMSA 1978, and Paragraph (5) of Subsection B of Section 62-19-9 NMSA 1978.

History

17.9.561.3 NMAC - N, 11/19/2024

N.M. Admin. Code § 17.9.561.4 Duration

Permanent.

History

17.9.561.4 NMAC - N, 11/19/2024

N.M. Admin. Code § 17.9.561.5 Effective Date

November 19, 2024, unless a later date is cited at the end of a section.

History

17.9.561.5 NMAC - N, 11/19/2024

N.M. Admin. Code § 17.9.561.6 Objective

The objective of this rule is to implement the requirements of, and to ensure compliance and consistency with, Subsection D of Section 62-18-10 NMSA 1978 of the Energy Transition Act.

History

17.9.561.6 NMAC - N, 11/19/2024

N.M. Admin. Code § 17.9.561.7 Definitions

Unless otherwise specified, as used in this rule:

A. Definitions beginning with “A”: [RESERVED]

B. Definitions beginning with “B”: [RESERVED]

C. Definitions beginning with “C”:

(1) “CO2” means carbon dioxide; and

(2) “compliance period” means the triennial period over which the commission measures a qualifying utility’s compliance with Subsection D of Section 62-18-10 NMSA 1978. The first compliance period is January 1, 2023 to December 31, 2025, and subsequent compliance periods follow thereafter in three-year intervals.

D. Definitions beginning with “D”: [RESERVED]

E. Definitions beginning with “E”: “emissions” means the production and discharge of CO2 from a qualifying utility’s fleet.

F. Definitions beginning with “F”: “fleet” means:

(1) the qualifying utility’s generation, and

(2) the qualifying utility’s sources of energy procured pursuant to power purchase agreements with terms of 24 months or longer, dedicated to serving the qualifying utility’s retail customers.

G. Definitions beginning with “G”: [RESERVED]

H. Definitions beginning with “H”: [RESERVED]

I. Definitions beginning with “I”: [RESERVED]

J. Definitions beginning with “J”: [RESERVED]

K. Definitions beginning with “K”: [RESERVED]

L. Definitions beginning with “L”: [RESERVED]

M. Definitions beginning with “M”: “MWh” means megawatt-hour(s).

N. Definitions beginning with “N”: [RESERVED]

O. Definitions beginning with “O”: [RESERVED]

P. Definitions beginning with “P”: [RESERVED]

Q. Definitions beginning with “Q”: [RESERVED]

R. Definitions beginning with “R”: [RESERVED]

S. Definitions beginning with “S”: [RESERVED]

T. Definitions beginning with “T”: [RESERVED]

U. Definitions beginning with “U”: [RESERVED]

V. Definitions beginning with “V”: [RESERVED]

W. Definitions beginning with “W”: [RESERVED]

X. Definitions beginning with “X”: [RESERVED]

Y. Definitions beginning with “Y”: [RESERVED]

Z. Definitions beginning with “Z”: [RESERVED]

A. By January 1, 2023, until December 31, 2031, a qualifying utility’s fleet shall not emit, on average over a compliance period, more than 400 pounds of CO2 per MWh.

B. By January 1, 2032, and for every subsequent compliance period, a qualifying utility’s fleet shall not emit, on average over a compliance period, more than 200 pounds of CO2 per MWh.

A. A qualifying utility shall file an annual report by March 15 for the preceding year’s data.

B. An annual report shall include the following data:

(1) all fleet CO2 emissions;

(2) all CO2 emissions resulting from bilateral wholesale market transactions and day-ahead and real-time regional market transactions, using the most specific data available when estimated;

(3) an explanation of the qualifying utility’s progress toward compliance with Subsection D of Section 62-18-10 NMSA 1978 of the Energy Transition Act based on the current three-year compliance period;

(4) sufficient detail for the Commission to verify the calculation of the CO2 emissions and energy required to be reported;

(5) average CO2 emissions per MWh for each fleet facility greater than 10 MW;

(6) calculations pursuant to Subsection B of 17.9.561.10 NMAC with and without off-system sales included; and

(7) sufficient detail for the commission’s measurement and verification of the fleet CO2 emissions rate.

C. An annual report shall include the following data for informational purposes only:

(1) all CO2 emissions and energy from sources of energy procured pursuant to power purchase agreements with terms of less than 24 months, including, but not limited to, all CO2 emissions from imported residual energy resulting from day-ahead and real-time regional market transactions;

(2) all CO2 emissions and energy associated with off-system sales, including, but not limited to, all CO2 emissions from bilateral wholesale market exports and exported residual energy resulting from real-time and day-ahead regional market transactions;

(3) forecasts of CO2 emissions and energy for the next three compliance periods; and

(4) any actions that the utility plans take to achieve compliance in subsequent years.

D. The requirements of 17.9.561.10 NMAC are separate and distinct from the procedures of 17.9.561.9 NMAC.

A. For each compliance period, the commission shall, upon the filing of the third annual report of the compliance period, measure and verify a qualifying utility’s compliance with the CO2 emissions standards over the compliance period.

(1) Utility division staff shall evaluate the annual reports filed by the qualifying utility for the compliance period and file a recommendation for commission action within 30 days of filing of the third annual report.

(2) The qualifying utility and intervenors may file responses to staff’s recommendation within 14 days.

B. In determining a qualifying utility’s compliance with the CO2 emissions standards, the commission, qualifying utility, intervenors, and staff shall utilize the following formula to measure the qualifying utility’s fleet CO2 emissions rate: fleet CO2 emissions rate equals total fleet CO2 emissions in pounds during the compliance period divided by total fleet energy in MWh during the compliance period.

C. The commission shall measure all energy and CO2 emissions associated with fleet on and off-system sales in the fleet CO2 emissions rate formula.

HISTORY OF 17.9.561 NMAC - [RESERVED]

History

17.9.561.7 NMAC - N, 11/19/2024
17.9.561.8 NMAC - N, 11/19/2024
17.9.561.10 NMAC - N, 11/19/2024
17.9.561.9 NMAC - N, 11/19/2024
17.9.561.11 NMAC - N, 11/19/2024

Part 568 Interconnection of Generating Facilities with a Rated Capacity Up to and Including 10 MW Connecting to a Utility System

N.M. Admin. Code § 17.9.568.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.568.1 NMAC - Rp, 17.9.568.1 NMAC, 02/14/2023

N.M. Admin. Code § 17.9.568.2 Scope

A. This rule, and the definitions, standards, procedures and screening processes described herein apply to every electric utility including rural electric cooperatives and investor-owned utilities operating within the state of New Mexico that are subject to the jurisdiction of the New Mexico public regulation commission. These standards and procedures apply to both qualifying and non-qualifying facilities.

B. The standards and procedures described in this rule (17.9.568 NMAC) apply only to the interconnection of generating facilities with a nameplate rated capacity up to and including 10 MW. The standards and procedures described in 17.9.569 NMAC apply to the interconnection of generating facilities with a rated capacity greater than 10 MW and are unchanged by this rule.

C. Interconnection requests are reviewed based on the combined nameplate ratings of systems accounting for their export capacity and energy storage operating mode. For purposes of review screens, only the capacity that is designed to inject electricity to the utility’s distribution or transmission system, other than inadvertent exports and fault contribution, will be used.

D. All interconnection contracts between a utility and an interconnection customer existing at the time 17.9.568 NMAC is revised and adopted shall automatically continue in full force and effect. Material modifications to existing facilities or operations require a new interconnection application and agreement and will be subject to review under the current conditions of the electric power system. Any changes made to existing interconnection agreements shall conform to the provisions of 17.9.568 NMAC in effect at the time modification is executed.

History

17.9.568.2 NMAC - Rp, 17.9.568.2 NMAC, 02/14/2023

N.M. Admin. Code § 17.9.568.3 Statutory Authority

This rule is adopted under the authority vested in this commission by the New Mexico Public Regulation Commission Act, Section 8-8-1 et seq. NMSA 1978, the Public Utility Act, Section 62-3-1 et seq. NMSA 1978; the Energy Transition Act, 62-18-1 et seq. NMSA 1978; the Grid Modernization Act, Section 62-8-13 NMSA 1978; and the Community Solar Act, Section 62-16B-1 NMSA 1978.

History

17.9.568.3 NMAC - Rp, 17.9.568.3 NMAC, 02/14/2023

N.M. Admin. Code § 17.9.568.4 Duration

Permanent.

History

17.9.568.4 NMAC - Rp, 17.9.568.4 NMAC, 02/14/2023

N.M. Admin. Code § 17.9.568.5 Effective Date

February 14, 2023, unless a later date is cited at the end of a section.

History

17.9.568.5 NMAC - Rp, 17.9.568.5 NMAC, 02/14/2023

N.M. Admin. Code § 17.9.568.6 Objective

The purpose of this rule is to set forth common interconnection requirements and a common interconnection process based on a standard screening process for utilities and interconnection customers to expeditiously interconnect generating facilities with a rated capacity up to and including 10 MW in a safe and reliable manner.

History

17.9.568.6 NMAC - Rp, 17.9.568.6 NMAC, 02/14/2023

N.M. Admin. Code § 17.9.568.7 Definitions

Terms used in rule 17.9.568 NMAC shall have the following meanings:

A. Definitions beginning with “A”:

(1) Applicant means a person or an entity that has filed an application to interconnect a generating facility to an electric power system. An applicant may include:

(a) A customer who applies for interconnection of a generating facility that will offset part or all of the load of a utility customer, the applicant is that customer, whether the customer owns the generating facility or a third party owns the generating facility.

(b) An owner of a generating facility that applies for interconnection of a generating facility that sells electric power to a utility.

(2) Area network means a section of an electric power system served by multiple transformers interconnected in an electrical network circuit, generally used in large, densely populated metropolitan areas, to provide high reliability of service. Area network has the same meaning as the term “grid network” as defined in IEEE Std 1547.6™. An area network is also referred to as a grid network or a street network.

(3) Auxiliary load means electrical power consumed by any equipment necessary to operate the generator or energy storage system. This is intended for in-front-of-the-meter systems.

B. Definitions beginning with “B”: Business day means Monday through Friday, excluding holidays observed by the utility.

C. Definitions beginning with “C”:

(1) Certified means equipment has been tested in accordance with the applicable requirements of IEEE Std 1547™-2018 and IEEE Std 1547.1™-2020 by any nationally recognized testing laboratory (NRTL) recognized by the United States occupational safety and health administration to test and certify equipment pursuant to the applicable standard and the equipment has been labeled and is publicly listed by such NRTL at the time of the interconnection application. Equipment installed prior to March 28, 2023 will also be considered certified if it has been tested in accordance with IEEE Std 1547™-2003 and 1547.1™-2005.

(2) Customer options meeting means a meeting designed to review the status of the interconnection application initial review results, or to determine next steps needed to permit safe and reliable interconnection.

D. Definitions beginning with “D”:

(1) Detailed study process means the procedure for evaluating an interconnection application that may include a scoping meeting, feasibility study, system impact study, or facilities study as described in 17.9.568.18 NMAC.

(2) Distributed energy resource (DER) means the equipment used by an interconnection customer to generate or store electricity that operates in parallel with the electric distribution system. DER may include, but is not limited to: an electric generator or energy storage system, a prime mover, or combination of technologies capable of injecting power and energy into the electric distribution system, which also includes the interconnection equipment necessary to safely interconnect with the distribution system. DER may not always be interconnected with the bulk power system. DERs may include distributed generation (DG) resources, distributed energy storage, demand response energy efficiency, and electric vehicles and chargers that are connected to the electric distribution power grid. DERs may be capable of exporting active power to an electric power system (EPS). The DER includes the customer’s interconnection facilities but shall not include the area EPS operator’s interconnection facilities.

(3) Distribution service means delivering energy over the electric power system pursuant to the approved tariffs of the utility other than services directly related to the interconnection of a generating facility under these interconnection procedures.

(4) Distribution system means the utility's facilities and equipment used to transmit electricity to ultimate usage points, known as premises, directly from nearby generators or from interchanges with higher voltage transmission networks which transport bulk power over longer distances. The voltage levels at which distribution systems operate differ among areas.

(5) Distribution upgrade means the additions, modifications, and upgrades to the utility's distribution system at or beyond the point of common coupling to facilitate interconnection of the generating facility and render the service necessary to effect the interconnection customer's operation of on-site generation. Distribution upgrades do not include interconnection facilities.

E. Definitions beginning with “E”:

(1) Electric power system (EPS) means the equipment operated and maintained by a utility (may include: independent system operators, transmission owner/operator, vertically integrated utilities, electric cooperatives, municipals, and distribution companies) to deliver electric service to end-users, including transmission and distribution lines, substations, transformers, spot networks and area networks.

(2) Energy storage system (ESS) means any commercially available, customer-sited system or utility-sited system, including batteries and batteries paired with on-site generation, that is capable of retaining, storing, and delivering electrical energy by chemical, thermal, mechanical, or other means. For the purposes of this rule, an energy storage system can be considered part of a DER or a DER in whole that operates in parallel with the distribution system.

(3) Export capacity means the amount of power that can be transferred from the generating facility to the distribution system. Export capacity is either the nameplate rating, or a lower amount if limited using and acceptable means identified in 17.9.568.12 NMAC.

F. Definitions beginning with “F”:

(1) Facilities study means a study that specifies and estimates the cost of the equipment, engineering, procurement, and construction work needed to implement the conclusions of the system impact study.

(2) Fast Track means the process for evaluating an interconnection application utilizing established screens as described in 17.9.568.16 NMAC.

(3) Fault current means the current produced during a short circuit on the electric power system measured in amperes.

(4) Feasibility study means a preliminary technical assessment of the proposed interconnection that identifies any potential adverse system impacts that would result from the interconnection of the generating facility.

G. Definitions beginning with “G”:

(1) Generating facility means the equipment used by an interconnection customer to generate, store, manage, interconnect and monitor electricity. A generating facility includes the interconnection equipment required to safely interconnect the facility with the distribution system. DERs are generating facilities.

(2) Grid network Grid network is also commonly referred to as area network or street network. For definition, refer to “Area Network”.

H. Definitions beginning with “H”: Host load means the electrical power, less the DER auxiliary load, consumed by the customer at the location where the generating facility is connected.

I. Definitions beginning with “I”:

(1) IEEE means the institute of electrical and electronic engineers.

(2) IEEE standards means the standards published by the IEEE, often in collaboration with American National Standards Institute (ANSI), National Institute of Standards and Technology (NIST), UL, International Electrotechnical Commission (IEC), CIGRE, and National Fire Protection Institute (NFPA), available at www.ieee.org.

(3) Inadvertent export means the unscheduled export of active power from a generating facility, exceeding a specified magnitude and for a limited duration generally due to fluctuations in load-following behavior.

(4) Interconnection agreement means a standard form agreement between an interconnection customer and a utility that governs the interconnection of a generating facility to a utility’s electric delivery system, as well as the ongoing operation of the generating facility after it is interconnected.

(5) Interconnection application means the request by an interconnection customer to interconnect a new generating facility, increase the capacity or make a material modification to the operating characteristics of an existing generating facility that is interconnected with the utility’s electric power system.

(6) Interconnection customer means any person who proposes to interconnect a generating facility with the utility's system.

(7) Interconnection facilities means the utility's interconnection facilities and the interconnection customer's interconnection facilities. Collectively, interconnection facilities include all facilities and equipment between the generating facility and the point of common coupling, including any modification, additions or upgrades that are necessary to physically and electrically interconnect the generating facility to the utility's electric power system in a safe and reliable manner. Interconnection facilities are sole use facilities and shall not include distribution upgrades.

(8) Interconnection upgrade cost sharing means the allocation of distribution upgrade costs among multiple generator facility projects that utilize the hosting capacity created by a distribution upgrade.

(9) Interconnection procedures means the procedures specified in 17.9.568.12 NMAC through 17.9.568.23 NMAC.

J. Definitions beginning with “J”: [RESERVED]

K. Definitions beginning with “K”: [RESERVED]

L. Definitions beginning with “L”:

(1) Limited export means the exporting capability of a DER whose generating capacity is limited by the use of any configuration or operating mode described in 17.9.568.12 NMAC.

(2) Line section means that portion of a utility’s electric power system connected to a customer that is bounded by automatic sectionalizing devices or the end of the distribution line.

M. Definitions beginning with “M”:

(1) Material modification means a modification to machine data, equipment configuration or to the interconnection site of the DER at any time after receiving notification by the utility of a complete interconnection application that has a material impact on the cost, timing, or design of any interconnection facilities or distribution upgrades, or a material impact on the cost, timing, or design of any interconnection application with a later queue priority date or material impact on the safety or reliability of the electric power system. A change to the point of interconnection would require either a new interconnection application or a change in queue position. A material modification does not include, for example;

(a) a change of ownership of a generating facility:

(b) a change or replacement of generating equipment that is a like-kind substitution in size, ratings, impedances, efficiencies, or capabilities of the equipment specified in the original interconnection application; or

(c) a reduction in the output of the generating facility of ten percent or less. Replacement of existing inverters with new inverters that conform to new standards after March 28, 2023, will not be considered a material modification, so long as the generating facilities output or export status does not change as a result.

(2) Minimum load means the lowest measured circuit/substation load regardless of time of day.

(3) Minor modification means any modification to a utility’s electric power system that involves limited work or low costs. Minor modifications include, but are not limited to, activities like changing the fuse in a fuse holder cut-out or changing the settings on a circuit recloser.

N. Definitions beginning with “N”:

(1) Nameplate rating means the sum total of maximum rated power output of a DER’s constituent generating units or ESS, as identified on the manufacturer’s nameplate, regardless of whether it is limited by any approved means.

(2) Network system means a collection of secondary networks, or combinations of such networks on a primary network feeder or primary network feeders that supply them. This may also consist of primary feeders networked to supply connected loads.

(3) Network transformer means a transformer designed for use in a vault to feed a variable capacity system of interconnected secondaries.

(4) Non-export or non-exporting means when the DER is sized and designed using any of the methods described in 17.9.568.12 NMAC, such that the output is used for host load only and no electrical energy (except for any inadvertent export) is transferred from the generating facility to the distribution system.

O. Definitions beginning with “O”: Operating mode means the mode of DER operational characteristics that determines the performance during normal and abnormal conditions. For example, an operating modes can include “export only,” “import only,” and “no exchange.”

P. Definitions beginning with “P”:

(1) Parallel Operation means the simultaneous operation of a generating facility with power delivered or received by the electric power system while interconnected. Parallel operation includes only those generating facilities that are interconnected with the electric power system for more than 60 cycles (one second).

(2) Parties means the applicant and the utility in a particular interconnection agreement. “Either party” refers to either the applicant or the utility.

(3) Person means, for purposes of this rule, an individual, firm, partnership, company, rural electric cooperative organized under Laws 1937, Chapter 100 or the rural electric cooperative act, corporation or lessee, trustee or receiver appointed by any court.

(4) Point of interconnection means the point where the interconnection facilities connect with the electric distribution system. Point of interconnection has the same meaning as the term “point of common coupling” as defined in IEEE 1547-2018.

(5) Power control system (PCS) means systems or devices which electronically limit or control steady state currents to a programmable limit.

(6) Primary network feeder means a feeder that supplies energy to a network system or the combination of a network system and other radial loads. Dedicated primary network feeders are feeders that supply only network transformers for the secondary network.

(7) Power conversion unit (PCU) means an inverter or AC generator, not including the energy source.

(8) Premise means a piece of land or real estate including buildings and other appurtenances thereon.

(9) Protective function means the equipment, hardware, or software in a generating facility (whether discrete or integrated with other functions) for the purpose of protecting against conditions that, if left uncorrected, could result in harm to personnel, damage to equipment, loss of safety or reliability, or operation outside pre-established parameters required by the interconnection agreement.

Q. Definitions beginning with “Q.”: [RESERVED]

R. Definitions beginning with “R”:

(1) Rated capacity means the total AC nameplate rating of the power conversion unit(s) at the point of common coupling.

(2) Reference point of applicability (RPA) means the location where the interconnection and interoperability performance requirements, as specified by IEEE 1547-2018, apply.

(3) Relevant minimum load means the lowest measured circuit or substation load coincident with the generating facility’s production. For solar-only facilities this shall be the daytime minimum load.

S. Definitions beginning with “S”:

(1) Secondary network means an AC distribution system where the secondaries of the distribution transformers are connected to a common network for supplying electricity directly to consumers.

(2) Simplified process means the procedure for evaluating an interconnection application for a small certified inverter-based DER described in 17.9.568.15 NMAC.

(3) Small utility means a utility that serves fewer than 50,000 customers.

(4) Supplemental review means additional engineering evaluation to determine if a generating facility can be interconnected following the (simplified or fast track) process without the need for detailed study as described in 7.9.568.17 NMAC.

(5) System emergency means a condition on a utility system that is likely to result in imminent significant disruption of service to customers or is imminently likely to endanger life or property.

(6) System impact study means a study that identifies and details the electric system impacts that would result if the proposed generating facility were interconnected without project modifications or electric system modifications, focusing on the adverse system impacts preliminarily identified in the feasibility study (if conducted), or to study potential impacts, including but not limited to those identified in the scoping meeting. A system impact study shall evaluate the impact of the proposed interconnection on the safety and reliability of the electric power system.

T. Definitions beginning with “T”: Technical Interconnection and Interoperability Requirements (TIIR) documents are public documents, often utility specific, which include requirements for interconnection, interoperability, capabilities, and their utilization (settings), and grid integration (e.g., protection coordination, telemetry).

U. Definitions beginning with “U”:

(1) UL means the company by that name which has established technical standards for safe operations of electrical devices, previously known as underwriter’s laboratory.

(2) UL 1741 CRD for PCS means the certification requirement decision for power control systems for the standard titled "inverters, converters, controllers and interconnection system equipment for use with distributed energy resources”. (March 8, 2019), Underwriters Laboratories Inc., 333 Pfingsten Road, Northbrook IL 60062-2096.

(3) Unintentional island means an unplanned island per IEEE 1547-2018.

(4) Utility means a utility or public utility, as defined in Subsection G of Section 62-3-3 NMSA 1978, serving electric customers subject to the jurisdiction of the commission.

V. Definitions beginning with “V”: [RESERVED]

W. Definitions beginning with “W”: [RESERVED]

X. Definitions beginning with “X”: [RESERVED]

Y. Definitions beginning with “Y”: [RESERVED]

Z. Definitions beginning with “Z”: [RESERVED]

History

17.9.568.7 NMAC - Rp, 17.9.568.7 NMAC, 02/14/2023

N.M. Admin. Code § 17.9.568.8 Applicability

All generating facilities that operate in parallel with the utility electric power system are required to have an interconnection review and an interconnection agreement to ensure safety, system reliability, and operational compatibility. These interconnection procedures are applicable to all state-jurisdictional interconnections of generating facilities with a rated capacity up to and including 10 megawatts (MW). Generating facilities with a rated capacity greater than 10 megawatts (MW) shall be conducted pursuant to 17.9.569 NMAC. Neither these procedures nor the requirements included hereunder apply to generating facilities interconnected or approved for interconnection prior to the effective date of these procedures.

History

17.9.568.8 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.9 Liberal Construction

If any part or application of this rule is held invalid, the remainder of its parts and any other applications of the rule shall not be affected.

History

17.9.568.9 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.10 Applicable Codes and Standards

A. The interconnection customer shall install, operate, and maintain the generating facility and the interconnection equipment in a safe manner in accordance with the rules for safety and reliability set forth in the latest editions of the national electrical code, other applicable local, state, and federal electrical codes, and prudent electrical practices.

B. In order to qualify for any interconnection procedures, each generating facility generator shall be in conformance with the following codes and standards (or their successors) as applicable, unless otherwise provided by law:

(1) IEEE Std 1547™, IEEE standard for interconnection and interoperability of distributed energy resources with associated electric power systems interfaces, as amended by IEEE 1547a™-2020, including use of IEEE 1547.1™-2020 testing protocols to establish conformity;

(2) IEEE Std 1547.1™-.2020™, standard conformance test procedures for equipment interconnecting distributed energy resources with electric power systems and associated interfaces;

(3) ANSI C84.1-2020, electric power systems and equipment - voltage ratings (60 Hertz);

(4) IEEE Std 1547.2™-2008™, application guide for IEEE 1547 standard for interconnecting distributed resources with electric power systems;

(5) IEEE Std 1547.6™-2011™, IEEE recommended practice for interconnecting distributed resources with electric power systems distribution secondary networks;

(6) IEEE Std 1547.7™-2013™, IEEE guide for conducting distribution impact studies for distributed resource interconnection;

(7) IEEE C62,92.6™-2017 IEEE Guide for Application of Neutral Grounding in Electrical Utility Systems, Part VI - Systems Supplied by Current Regulated Sources;

(8) UL 1741, Edition 3, September 28, 2021 Inverters, Converters, Controllers and Interconnection System Equipment for Use with Distributed Energy Resources;

(9) NFPA 70, current version, National Electrical Code, including any NM or local modifications;

(10) IEEE C2, current version, National Electrical Safety Code, including any NM or local modifications;

(11) UL 1741 Certification Requirement Decision for Power Control Systems, March 8, 2019, Inverters, Converters, Controllers and Interconnection System Equipment for Use With Distributed Energy Resources.

C. The interconnection equipment shall be considered certified for interconnected operation if the equipment package has been tested and listed by a nationally recognized testing and certification laboratory (NRTL) for continuous interactive operation with a utility grid.

History

17.9.568.10 NMAC - Rp, 17.9.568.8 NMAC, 02/14/2023

N.M. Admin. Code § 17.9.568.11 Ieee 1547-2018 Adoption

A. Beginning on March 28, 2023 (or another date set by commission order), generating facilities shall be required to comply with IEEE 1547-2018, and shall conform with the following minimum requirements.

(1) Abnormal performance requirements: Category III ride through capabilities must be supported for inverter-based generating facilities. Rotating generating facilities must meet category I ride-through capabilities.

(2) Normal performance requirements: Inverter-based generating facilities shall meet reactive power requirements with category B. Rotating generating facilities must meet category A.

B. Each utility shall post its preferred default settings in their public facing Technical Interconnection and Interoperability Requirements (TIIR) document. As applicable the following shall be identified in the TIIR documents:

(1) voltage and frequency trip settings;

(2) frequency droop settings;

(3) activated reactive power control function and default settings;

(4) voltage active power (volt-watt) mode activation and default settings;

(5) communication protocols and ports requirements.

C. TIIR documents shall be created through a technical advisory group process and submitted to the commission for approval. Subsequent changes to TIIR documents shall also be submitted to the commission for approval.

History

17.9.568.11 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.12 Determination of Export Capacity Status

A. Export Controls: If a DER uses any configuration or operating mode in subsection C to limit the export of electrical power across the point of interconnection, then the export capacity shall be only the amount of power capable of being exported (not including any inadvertent export). To prevent impacts on system safety and reliability, any inadvertent export from a DER must comply with the limits identified in this section. The export capacity specified by the interconnection customer in the interconnection application will be documented as the maximum allowed export capacity of the DER in the interconnection agreement.

B. An interconnection application proposing to use a configuration or operating mode to limit the export of electrical power across the point of interconnection shall include proposed control or protection settings.

C. Acceptable export control methods:

(1) Export control methods for non-exporting DER:

(a) Reverse power protection (Device 32R): To limit export of power across the point of interconnection, a reverse power protective function is implemented using a utility grade protective relay. The default setting for this protective function shall be one tenth percent (export) of the service transformer's nominal base nameplate rating, with a maximum two second time delay to limit inadvertent export.

(b) Minimum power protection (Device 32F): To limit export of power across the point of interconnection, a minimum import protective function is implemented utilizing a utility grade protective relay. The default setting for this protective function shall be five percent (import) of the generating unit's total nameplate capacity, with a maximum two second time delay to limit inadvertent export.

(c) Relative distributed energy resource rating: This option requires the DER facility's nameplate capacity to be no greater than fifty percent of the interconnection customer's verifiable minimum host load during DER operating hours over the past 12 months. This option is not available for interconnections to area networks or spot networks.

(2) Export control methods for limited export DER:

(a) Directional power protection (Device 32): To limit export of power across the point of interconnection, a directional power protective function is implemented using a utility grade protective relay. The default setting for this protective function shall be the export capacity value, with a maximum 2.0 second time delay to limit inadvertent export.

(b) Configured power rating: A reduced output power rating utilizing the power rating configuration setting may be used to ensure the DER does not generate power beyond a certain value lower than the nameplate capacity. The configuration setting corresponds to the active or apparent power ratings in Table 28 of IEEE Std 1547-2018, as described in subclause 10.4. A local DER communication interface is not required to utilize the configuration setting if it can be set by other certified means. The reduced power rating may be indicated by means of a nameplate rating replacement or, a supplemental adhesive de-rating tag to indicate the reduced power output capacity. The customer must also provide a signed attestation confirming the reduced power output capacity. This method must be certified to IEEE 1547.1-2020. Use of a configured power rating not applied to individual power conversion unit(s) shall require evaluation under mutually agreed-upon means.

(3) Export control methods for non-exporting DER or limited export DER:

(a) Certified power control systems: DER facilities may use certified power control systems to limit export. DER facilities utilizing this option must use a power control system and inverter certified per UL 1741 by a nationally recognized testing laboratory (NRTL) with a maximum open loop response time of no more than 30 seconds. NRTL testing to the UL power control system certification requirements decision shall be accepted until similar test procedures for power control systems are included in a standard. This option is not available for interconnections to area networks or spot networks.

(b) Agreed-upon means: DER facilities may be designed with other control systems or protective functions to limit export and inadvertent export if mutual agreement is reached with the distribution provider. The limits may be based on technical limitations of the interconnection customer's equipment or the electric distribution system equipment. To ensure inadvertent export remains within mutually agreed-upon limits, the interconnection customer may use an uncertified power control system, an internal transfer relay, energy management system, or other customer facility hardware or software if approved by the distribution provider.

History

17.9.568.12 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.13 Application Review Process

A. There are four interconnection review paths:

(1) Simplified process: For certified inverter-based generating facilities that have a nameplate rating that does not exceed 50 kilowatts (kW) and an export capacity that does not exceed 25 kilowatts (kW).

(2) Fast track process: For generating facilities that have a nameplate rating of up to 5 megawatts (MW), depending on the line capacity and distance from the substation. To qualify for fast track, the generating facility’s export capacity shall not exceed the limits identified in the table below, which vary according to the voltage of the line at the proposed point of interconnection. Generating facilities located within 2.5 miles of a substation and on a main distribution line with minimum 600-amp capacity are eligible for the fast track process under higher thresholds. For purposes of the table below, a mainline is the three-phase backbone of a circuit. It will typically constitute lines with wire sizes of 4/0 American wire gauge, 336.4 kcmil, 397.5 kcmil, 477 kcmil and 795 kcmil.

Line Voltage Export Capacity for Fast Track Eligibility Regardless of location On > 600 amp line and < 2.5 miles from substation 5 kV < 500 kW < 500 kW 5 kV - 14 kV < 2 MW < 3 MW 15 kV - 30 kV < 3 MW < 4 MW 31 kV - 69 kV < 4 MW < 5 MW

Line Voltage

Export Capacity for Fast Track Eligibility

Regardless of location

On > 600 amp line and < 2.5 miles from substation

5 kV

< 500 kW

5 kV - 14 kV

< 2 MW

< 3 MW

15 kV - 30 kV

< 3 MW

< 4 MW

31 kV - 69 kV

< 4 MW

< 5 MW

(3) Detailed study process: For all generating facilities with a rated capacity 10 megawatts (MW) or less that do not qualify, or pass through, the simplified or fast track processes or subsequent supplemental review.

(4) Case specific review process: Generating facilities with a rated capacity greater than 10 megawatts (MW) shall be reviewed pursuant to 17.9.569 NMAC.

B. Application submittal: The interconnection applicant shall submit an interconnection application (see Appendices 1A, 1B or 1C, as appropriate) to the utility, together with the applicable processing fee identified in 17.9.568.23 NMAC. The application shall be date and time-stamped upon receipt for the purposes of any timetable in these procedures.

C. Completeness review: Utility shall notify the interconnection applicant, via email or other means, that the interconnection application has been received within three business days of receipt of the interconnection application. Within 10 business days of receipt, the utility shall notify the applicant whether the interconnection application is deemed complete and valid. If the application is incomplete, the utility shall provide the applicant with a list of all information that the applicant must provide to complete the application. The applicant must provide the requested information within 10 business days, or the application will be deemed withdrawn.

D. Interconnection queue position and posting: The utility shall assign the interconnection application a queue position based on when it is received under Subsection C of 17.9.568.13 NMAC.

(1) The utility shall maintain a single queue, which may be sortable by geographic region (e.g., feeder or substation).

(2) The queue position of each interconnection application will be used to determine the cost responsibility for the upgrades necessary to accommodate the interconnection.

(3) The queue shall be publicly available on the utility’s website and shall be updated at least monthly.

(4) If an application fails the screening process under the simplified or fast track process, but the applicant decides to continue with review (including Supplemental review) under another level, the applicant shall retain its original queue position.

(5) If an interconnection application fails the screening process under the simplified or fast track process, but the applicant decides to continue with review (including supplemental review) under another level, the applicant shall retain its original queue position.

E. Modifications to generating facility:

(1) At any time after an interconnection application is deemed complete or an interconnection agreement has been signed, if the applicant wishes to make modifications to the planned generating facility it shall submit to the utility, in writing, all proposed modifications to any information provided in the interconnection application or in the interconnection agreement. Any modification to machine data, equipment configuration, or to the interconnection site of the generating facility not agreed to in writing by the utility and the interconnection customer may be deemed a withdrawal of the interconnection application.

(2) Within 10 business days of receipt of a proposed modification, the utility shall notify the applicant whether a proposed modification to either an interconnection application or an existing generating facility constitutes a material modification.

(a) If the utility determines the proposed modification is a material modification, then the utility shall notify the interconnection customer in writing that the customer may:

(i) withdraw the proposed modification; or

(ii) proceed with a new interconnection application for such modification. The interconnection customer shall provide its determination in writing to the utility within 10 business days after being provided the material modification determination results. If the interconnection customer does not provide its determination, the proposed modification shall be deemed withdrawn.

(b) If the proposed modification is determined not to be a material modification, then the utility shall notify the interconnection customer in writing that the modification has been accepted and that the customer shall retain its eligibility for interconnection, including its place in the interconnection queue. Existing generating facilities may make the modification without requiring a new interconnection application.

(3) Any dispute as to the utility’s determination that a modification constitutes a material modification shall proceed in accordance with the dispute resolution provisions in 17.9.568.26 NMAC.

(4) Any modification to machine data, equipment configuration, or to the interconnection site of the generating facility not agreed to in writing by the utility and the interconnection customer may be deemed a withdrawal of the interconnection application and may require submission of a new interconnection application, unless proper notifications of each party by the other as described in Paragraphs (1) and (2) of Subsection E of 17.9.568.13 NMAC.

F. Site Control: Documentation of site control must be submitted with the interconnection request. Site control may be demonstrated by:

(1) ownership of, or a leasehold interest in, or a right to develop a site for the purpose of constructing a generating facility;

(2) a fully executed option to purchase or acquire a leasehold site for such purpose; or

(3) a fully executed agreement demonstrating exclusivity or other business relationship between the interconnection applicant and the entity having the authority to grant the applicant the right to possess or occupy a site for such purpose.

History

17.9.568.13 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.14 Optional Pre-Application Report

Potential applicants may request this optional report for a specific site to get information about system conditions at their proposed point of interconnection without submitting a full interconnection application.

A. Potential applicants shall provide the following information to the utility to expedite its pre-application review:

(1) project contact information including name, address, phone number, and email address;

(2) project location (street address with nearby cross streets, and town/city);

(3) meter number, pole number, or other equivalent information (such as latitude and longitude coordinates) identifying the potential point of interconnection, if available;

(4) generator type (i.e., solar, wind, combined heat and power) and whether energy storage will be collocated with the generation;

(5) nameplate capacity (in alternating current kW);

(6) single or three phase generator configuration;

(7) stand-alone generator with no on-site load (yes or no?);

(8) whether new service is requested. If there is existing service, include the customer account number, site minimum and maximum existing or proposed maximum loads in kW and specify if the amount of any anticipated additional load is expected to change.

B. The pre-application report shall be completed by the utility per the schedule in Subsection F of this section and include the following information, if available:

(1) Total capacity (MW) of substation/area bus or bank and circuit likely to serve proposed site. If substation or circuit planned capacity limits are less than the total capacity the utility shall indicate the planned capacity limits.

(2) Aggregate existing export capacity (MW) interconnected to the substation/area bus or bank and circuit likely to serve proposed site.

(3) Aggregate queued export capacity (MW) proposing to interconnect to the substation/area bus or bank and circuit likely to serve proposed site.

(4) Available capacity (MW) of substation/area bus or bank and circuit likely to serve proposed site. Available capacity is the total capacity less the sum of existing and queued export capacity, accounting for all load served by existing and queued generators.

(5) Whether the proposed generating facility is located on an area, spot or radial network.

(6) Nominal distribution circuit voltage at the proposed site.

(7) Approximate circuit distance between the proposed site and the substation.

(8) Relevant line section(s) and substation actual or estimated peak load and minimum load data, when available.

(9) Manufacturer model number/type and rating of protective devices and number and type of voltage regulating devices between the proposed site and the substation/area.

(10) Whether or not three-phase power is available at the site or distance from three-phase service.

(11) Limiting conductor rating from proposed point of interconnection to distribution substation.

(12) Based on proposed point of interconnection, existing or known constraints such as, but not limited to, electrical dependencies at that location, short circuit interrupting capacity issues, power quality or stability issues on the circuit, capacity constraints, or secondary networks.

(13) Any other information the utility deems relevant to the interconnection application.

C. The pre-application report need only include pre-existing data. A pre-application report request does not obligate the utility to conduct a study or other analysis of the proposed project if that data is not available. If the utility cannot complete all or some of a pre-application report due to lack of available data, the utility will provide the potential applicant with a pre-application report that includes the information that is available and identify the information that is unavailable.

D. Notwithstanding any of the provisions of this section, the utility shall, in good faith, provide pre-application report data that represents the best available information at the time of reporting.

E. Costs of pre-application reports: The party requesting the pre-application report shall pay $300.00 for up to one MW system size, and $500.00 for over one MW. If a utility can provide documentation that the cost is higher, then the requesting party shall pay that additional amount.

F. Time frames for pre-application reports: Pre-application reports should be completed in 20 business days for system sizes up to one MW, and 30 business days for system sizes greater than one MW, from the receipt of the completed request form and payment of the fee. If it can be documented that a utility cannot meet this deadline due to circumstances beyond their control, then the utility will be given more time but must notify the applicant.

G. Length of time for accuracy of information: Due to the dynamic nature of the electric power system, accuracy cannot be guaranteed past the time of completion of a report. The pre-application report shall be non-binding on the utility and shall not confer any rights to the interconnection customer. The provided information does not guarantee that an interconnection may be completed.

History

17.9.568.14 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.15 Simplified Process

A. Application: An interconnection customer must submit an interconnection application, pursuant to Subsection B of 17.9.568.13 NMAC, using the standard simplified interconnection application form provided in Appendix 1A, which may be sent electronically to a recipient designated by the utility. The application fee specified in Subsection A of 17.9.568.23 NMAC shall be submitted along with the application. An interconnection customer executes the standard interconnection agreement for the simplified process by submitting a simplified process application.

B. Simplified screening: The utility shall evaluate the interconnection application using the following simplified screens.

(1) Screen 1: The generating facility must utilize a UL 1741 certified inverter.

(2) Screen 2: For interconnection of a proposed generating facility to the load side of network protectors, the proposed generating facility must utilize an inverter-based equipment package and, its nameplate rating, together with the nameplate rating of the aggregated other inverter-based generation, shall not exceed fifty percent of the secondary network's relevant minimum load.

(3) Screen 3: Until December 31, 2023, for interconnection of a proposed generating facility to a radial distribution circuit, the aggregate export capacity of the generating facilities connected to the distribution circuit, including the proposed generating facility, may not exceed one hundred percent of the relevant minimum load (or fifteen percent of maximum load if minimum load data is unavailable) normally supplied by the distribution circuit. After December 31, 2023, for interconnection of a proposed generating facility to a radial distribution circuit, the aggregate export capacity of the generating facilities connected to the distribution circuit, including the proposed generating facility, may not exceed one hundred percent of the relevant minimum load normally supplied by the distribution circuit.

(4) Screen 4: If the proposed generating facility is to be interconnected on a single-phase shared secondary, the aggregate export capacity generation capacity on the shared secondary, including the proposed generating facility, shall not exceed sixty-five percent of the transformer nameplate power rating.

(5) Screen 5: If the proposed generating facility is single-phase and is to be interconnected on a center tap neutral of a 120/240 volt service, its addition shall not create an imbalance between the two sides of the 240 volt service of more than twenty percent of the nameplate rating of the service transformer.

C. Simplified screening results: Within seven business days after the utility notifies the applicant that its interconnection application is complete, the utility shall notify the customer whether the generating facility meets the simplified process screens and include with the notification copies of the analysis and data underlying the utility’s determinations under the screens. Despite the failure of one or more screens, the utility, at its sole option, may approve the interconnection provided such approval is consistent with safety and reliability.

(1) Failed screens: If the utility cannot determine that the generating facility may nevertheless be interconnected consistent with safety, reliability, and power quality standards, the utility shall provide the applicant the screen results. If one or more screens are not passed, the utility shall provide, in writing, the specific screens that the interconnection application failed, including the technical reason for failure. The utility shall provide information and detail about the specific system threshold or limitation causing the interconnection application to fail the screen. In addition, the utility shall allow the customer to select one of the following, at the applicant’s option:

(a) undergo supplemental review in accordance with 17.9.568.17 NMAC; or

(b) continue evaluating the interconnection application under detailed study in accordance with 17.9.568.18 NMAC. The applicant must notify the utility of its selection within 10 business days or the interconnection application will be deemed withdrawn.

(2) Approval: If the proposed generating facility passes the screens, or the utility determines the proposed generating facility can be interconnected safely and reliably despite the failure of one or more screens, the interconnection application shall be approved. The utility shall return to the applicant an executed simplified process interconnection agreement at the same time it provides the applicant with the screen results. If the utility determines that the generating facility can be interconnected safely and reliably, but requires construction of interconnection facilities or distribution system modifications, the utility shall instead process the interconnection application according to the procedures for the fast track process starting at 17.9.568.16 NMAC.

D. Reference point of applicability review:

(1) The following process will occur concurrently with the simplified process screening in Subsections B and C of 17.9.568.15 NMAC. Within five business days after the utility notifies the applicant that the interconnection application is complete, the utility shall review the reference point of applicability denoted by the applicant and determine if it is appropriate.

(2) If it is determined that the reference point of applicability is appropriate, the utility will notify the applicant when it provides the simplified screen results and proceed according to Subsection C of 17.9.568.15 NMAC.

(3) If the utility determines the reference point of applicability is inappropriate, the utility will notify the applicant in writing, including an explanation as to why it requires correction. Applicant shall provide the utility with a corrected interconnection application with the proper reference point of applicability within five business days of notification. During this time the utility will proceed with applying the simplified screens. The utility shall review the revised interconnection request within five business days of receipt to determine if the revised reference point of applicability has been appropriately denoted. If correct, the utility will proceed according to Subsection C of 17.9.568.15 but be provided with a total of 12 business days to provide the simplified results. If the interconnection customer does not provide the appropriate reference point of applicability or a request for an extension of time within the deadline, the interconnection application will be deemed withdrawn.

History

17.9.568.15 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.16 Fast Track Process

A. Application: An interconnection customer must submit an interconnection application, pursuant to Subsection B of 17.9.568.13 NMAC, using the standard interconnection application form provided in Appendix 1B, which may be sent electronically to a recipient designated by the utility. The application fee specified in Subsection A of 17.9.568.23 NMAC shall be submitted along with the interconnection application.

B. Fast track screening: The utility shall evaluate the interconnection application using the following fast track initial review screens.

(1) Screen 1: For interconnection of a proposed generating facility to the load side of network protectors, the proposed generating facility must utilize a certified inverter-based equipment package and its nameplate rating, together with the nameplate rating of the aggregated other inverter-based generation, shall not exceed fifty percent of the secondary network's relevant minimum load.

(2) Screen 2: Until December 31, 2023, for interconnection of a proposed generating facility to a radial distribution circuit, the aggregate export capacity of the generating facilities connected to the distribution circuit, including the proposed generating facility, may not exceed one hundred percent of the relevant minimum load (or fifteen percent of maximum load if minimum load data is unavailable) normally supplied by the distribution circuit. After December 31, 2023, for interconnection of a proposed generating facility to a radial distribution circuit, the aggregate export capacity of the generating facilities connected to the distribution circuit, including the proposed generating facility, may not exceed one hundred percent of the relevant minimum load normally supplied by the distribution circuit.

(3) Screen 3: For interconnection of a proposed generating facility that can introduce inadvertent export, where the nameplate rating minus the export capacity is greater than 250 kW, the following inadvertent export screen limit is required. With a power change equal to the nameplate rating minus the export capacity, the change in voltage at the point on the medium voltage (primary) level nearest the point of interconnection does not exceed three percent. Voltage change will be estimated applying the following formula:

Formula (RSOURCE ) - (XSOURCE V2 Where: = (DER apparent power Nameplate Rating - Export Capacity) PF, (DER apparent power Nameplate Rating - Export Capacity) , RSOURCE is the grid resistance, XSOURCE is the grid reactance, V is the grid voltage, PF is the power factor

Formula

(RSOURCE ) - (XSOURCE

Where:

= (DER apparent power Nameplate Rating - Export Capacity) PF,

(DER apparent power Nameplate Rating - Export Capacity) ,

RSOURCE is the grid resistance, XSOURCE is the grid reactance,

V is the grid voltage, PF is the power factor

(4) Screen 4: If the proposed generating facility is to be interconnected on a single-phase shared secondary, the aggregate export capacity on the shared secondary, including the proposed generating facility, shall not exceed sixty-five percent of the transformer nameplate power rating.

(6) Screen 6: The starting voltage dip shall be less than five percent and the flicker requirements of IEEE 1547™-2018 must be met. This screen only applies to generating facilities that start by motoring the generator(s).

(7) Screen 7: When measured at the primary side (high side) of a dedicated distribution transformer serving a generating facility, the sum of the short circuit current contribution ratios of all generating facilities connected to utility’s distribution system circuit that serves the generating facility must be less than or equal to 0.1.

(8) Screen 8: The generating facility, aggregated with other generation on the distribution circuit, will not cause any distribution protective devices and equipment (including but not limited to substation breakers, fuse cutouts, and line reclosers), or utility customer equipment on the system, to exceed ninety percent of the short circuit interrupting capability; nor is the interconnection proposed for a circuit that already exceeds ninety percent of the short circuit interrupting capability.

(9) Screen 9: The generating facility complies with the applicable type of interconnection, based on the table below. This screen includes a review of the type of electrical service provided to the interconnecting customer, including line configuration and the transformer connection to limit the potential for creating over-voltages on the utility’s electric power system due to a loss of ground during the operating time of any anti-islanding function.

Primary Distribution Line Type Type of Interconnection to Primary Distribution Line Result/Criteria Three-phase, three-wire If ungrounded on primary or any type on secondary Pass screen Three-phase, four-wire Single-phase line-to-neutral Pass screen Three-phase, four-wire or mixed three-wire and four-wire All others Pass screen for inverter-based generation if the aggregate nameplate rating, including the nameplate rating of the proposed project, is · ≤ 100% feeder or line section minimum load, or · if minimum load data is not available: ≤ 30% feeder or line section peak load. Pass screen for rotating generation if the aggregate nameplate rating, including the nameplate rating of the proposed project, is: · ≤ 33% of feeder or line section minimum load, or · if minimum load data isn’t available: ≤ 10% of feeder or line section peak load.

Primary Distribution Line Type

Type of Interconnection to Primary Distribution Line

Result/Criteria

Three-phase, three-wire

If ungrounded on primary or any type on secondary

Pass screen

Three-phase, four-wire

Single-phase line-to-neutral

Pass screen

Three-phase, four-wire or mixed three-wire and four-wire

All others

Pass screen for inverter-based generation if the aggregate nameplate rating, including the nameplate rating of the proposed project, is

· ≤ 100% feeder or line section minimum load, or

· if minimum load data is not available: ≤ 30% feeder or line section peak load.

Pass screen for rotating generation if the aggregate nameplate rating, including the nameplate rating of the proposed project, is:

· ≤ 33% of feeder or line section minimum load, or

· if minimum load data isn’t available: ≤ 10% of feeder or line section peak load.

(10) Screen 10: If the generating facility’s point of interconnection is behind a line voltage regulator, the generating facility’s export capacity is less than 250 kW.

C. Fast track screening results: Within 15 business days after the utility notifies the applicant that the interconnection application is complete, the utility shall notify the applicant of the initial review results and include with the notification copies of the analysis and data underlying the utility’s determinations under the screens. If one or more screens are not passed, the utility shall provide, in writing, the specific screens that the interconnection application failed, including the technical reason for failure. The utility shall provide information and detail about the specific system threshold or limitation causing the interconnection application to fail the screen.

D. Approval: For all interconnection applications that pass initial review and do not require interconnection facilities or distribution upgrades, utility shall provide applicant with an interconnection agreement no later than 15 business days of providing notice of initial review results, except where a utility is required to provide notice to the transmission provider as outlined in Paragraph (1) of Subsection D of 17.9.568.16 NMAC. Despite the failure of one or more screens, the utility, at its sole option, may approve the interconnection provided such approval is consistent with safety and reliability. For interconnection applications that fail initial review but the utility determines the interconnection application can be approved with minor modifications, the utility shall provide the applicant with a non-binding cost estimate of the minor modifications and an interconnection agreement within 5 business days of providing notice of initial review results.

(1) If a utility’s transmission service agreement requires that it notify the transmission provider of interconnections (of any size or beyond a specific threshold as specified in the transmission service agreement), the utility shall provide the notice to the transmission provider immediately after it has applied the fast track screens. If the transmission provider determines that it does not need to conduct a further analysis of transmission system impacts, the utility shall provide the interconnection agreement to the customer within three business days of receiving the transmission provider’s determination. If the transmission provider does require further analysis, the utility shall coordinate with the interconnection applicant and the transmission provider to ensure such analysis is conducted in a timely manner.

(2) If the transmission provider determines that there are impacts that require upgrades, the utility shall follow the detailed study process in 17.9.568.18 NMAC for providing the customer with an interconnection agreement.

E. Failed screens: For interconnection applications that fail initial review, at the time it provides the screen results, the utility shall provide the applicant the option to either attend a customer options meeting or proceed directly to supplemental review. The applicant must notify the utility of its selection within 10 business days or the interconnection application will be deemed withdrawn.

F. The utility shall use the screens identified above to evaluate the interconnection application and shall not impose arbitrary limitations on interconnection (i.e., limiting interconnection to projects less than fifty percent of the circuit’s rated capacity) without a valid technical reason. that is provided to the applicant in writing with an explanation. In providing detail about the specific system threshold or limitation causing the interconnection applicant to fail the screen, the utility shall provide an estimate of the cost of and expected timeline for conducting necessary upgrades to accommodate the interconnection application.

G. Reference point of applicability review:

(1) The following process will occur concurrently with the fast track screening process in Subsection C of 17.9.568.16 NMAC. Within five business days after the utility notifies the applicant that the interconnection application is complete, the utility shall review the reference point of applicability denoted by the applicant and determine if it is appropriate.

(2) If it is determined that the reference point of applicability is appropriate, the utility will notify the applicant when it provides the fast track screen results and proceed according to Subsections C through F of 17.9.568.16.

(3) If the utility determines the reference point of applicability is inappropriate, the utility will notify the applicant in writing, including an explanation as to why it requires correction. Applicant shall provide the utility with a corrected interconnection application with the proper reference point of applicability within five business days of notification. During this time the utility will proceed with applying the fast track screens. The utility shall review the revised interconnection request within five business days of receipt to determine if the revised reference point of applicability has been appropriately denoted. If correct, the utility will proceed according to Subsections C through F of 17.9.568.16 NMAC. If the applicant does not provide the appropriate reference point of applicability or a request for an extension of time within the deadline, the interconnection application will be deemed withdrawn.

H. Customer options meeting: Within 10 business days of the utility's completion of its initial review, the utility shall offer to convene a customer options meeting with the applicant to review possible interconnection customer facility modifications or the screen analysis and related results to determine what further steps are needed to permit the generating facility to be connected safely and reliably. At the time of notification of the utility's determination, or at the customer options meeting, the utility shall:

(1) Offer to perform facility modifications or minor modifications to the utility's electric system (e.g., changing meters, fuses, relay settings) and provide a non-binding good faith estimate of the limited cost to make such modifications to the utility's electric system and offer to continue the screening process; or

(2) Offer to perform a supplemental review if the utility concludes that the supplemental review might determine that the generating facility could continue to qualify for interconnection pursuant to the fast track process, and provide a non-binding good faith estimate of the costs and time of such review; or

(3) Offer to continue evaluating the interconnection application under the full interconnection study process.

History

17.9.568.16 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.17 Supplemental Review

A, Agreeing to supplemental review: To accept the offer of a supplemental review, the applicant shall agree in writing and submit a $2,500 fee for the review, both within 15 business days of the offer. If the written agreement and deposit have not been received by the utility within that timeframe, the interconnection application shall continue to be evaluated under the detailed study process unless it is withdrawn by the applicant.

B. Supplemental review screens: The utility shall evaluate the interconnection application using the following supplemental review screens.

(1) Minimum gross load screen: Where 12 months of line section minimum load data (including onsite load but not station service load served by the proposed generating facility) are available, can be calculated, can be estimated from existing data, or determined from a power flow model, the aggregate export capacity on the line section is less than one hundred percent of the gross minimum load for all line sections bounded by automatic sectionalizing devices upstream of the proposed generating facility. If minimum load data is not available, or cannot be calculated, estimated or determined, the utility shall include the reason(s) that it is unable to calculate, estimate or determine minimum load in its supplemental review results notification. After December 31, 2023 utility should have minimum load data for all circuits.

(a) The type of generation used by the proposed generating facility will be taken into account when calculating, estimating, or determining circuit or line section minimum load relevant for the application of Subsection B of 17.9.568.17 NMAC. Solar photovoltaic (pv) generation systems with no battery storage use daytime minimum load (i.e. 10 a.m. to 4 p.m. for fixed panel systems and 8 a.m. to 6 p.m. for pv systems utilizing tracking systems), while all other generation uses absolute minimum load.

(b) When this screen is being applied to a generating facility that serves some station service load, only the net injection into the electric system will be considered as part of the aggregate export capacity.

(c) Utility will not consider as part of the aggregate export capacity generation for purposes of this screen generating facility export capacity known to be already reflected in the minimum load data

(2) Voltage and power quality screen: In aggregate with existing generation on the line section:

(a) the voltage regulation on the line section can be maintained in compliance with relevant requirements under all system conditions;

(b) the voltage fluctuation is within acceptable limits as defined by Institute of Electrical and Electronics Engineers (IEEE) Standard 1453, or utility practice similar to IEEE Standard 1453; and (3) the harmonic levels meet IEEE Standard 519 limits. If the generating facility limits export pursuant to 17.9.568.12 NMAC, the export capacity instead of nameplate rating must be utilized in any analysis including power flow simulations.

(3) Safety and reliability screen: The location of the proposed generating facility and the aggregate export capacity on the line section do not create impacts to safety or reliability that cannot be adequately addressed without application of the detailed study process. If the generating facility limits export pursuant to 17.9.568.12 NMAC, the export capacity must be included in any analysis including power flow simulations, except when assessing fault current contribution. To assess fault current contribution, the analysis must use the rated fault current; for example, the customer may provide manufacturer test data (pursuant to the fault current test described in IEEE 1547.1-2020 clause 5.18) showing that the fault current is independent of the nameplate rating. The utility shall give due consideration to the following and other factors in determining potential impacts to safety and reliability in applying this screen.

(a) whether the line section has significant minimum loading levels dominated by a small number of customers (e.g., several large commercial customers);

(b) whether the loading along the line section is uniform or even;

(c) whether the proposed generating facility is located in close proximity to the substation (i.e., less than 2.5 electrical circuit miles), and whether the line section from the substation to the point of interconnection is a mainline rated for normal and emergency ampacity;

(d) whether the proposed generating facility incorporates a time delay function to prevent reconnection of the generator to the system until system voltage and frequency are within normal limits for a prescribed time;

(e) whether operational flexibility is reduced by the proposed generating facility, such that transfer of the line section(s) of the generating facility to a neighboring distribution circuit/substation may trigger overloads or voltage issues;

(f) whether the proposed generating facility employs equipment or systems certified by a recognized standards organization to address technical issues such as, but not limited to, islanding, reverse power flow, or voltage quality.

C. Supplemental review screening results: Within 20 business days of an applicant’s election to undergo supplemental review, the utility shall perform supplemental review using the screens set forth above and notify the customer of the results.

(1) Failed screens and option to revise interconnection application: If the proposed interconnection fails any of the supplemental review screens, the utility shall specify which screens the interconnection application failed, including the technical reason for failure, and the data and the analysis supporting the supplemental review. The utility shall provide information and detail about the specific system threshold or limitation causing the interconnection application to fail the screen. If the applicant chooses to amend the interconnection application to address the specific failed screens, the applicant must submit an updated interconnection application demonstrating the redesign within 10 business days after receiving the screen results. The redesign shall only include changes to address the screen failures or identified upgrades (which could include, for example, the addition of DC-coupled or AC-coupled energy storage). Increases in export capacity or changes in point of interconnection are not permitted and shall require the interconnection application to be withdrawn and resubmitted. The utility will evaluate whether the redesign addresses the screen failure and notify the applicant of the results of this evaluation within 10 business days. This redesign option to mitigate impacts shall only be available one time during the supplemental review process. If the applicant does not amend or withdraw its interconnection application within 10 business days of receiving results, it shall continue to be evaluated under the detailed study process consistent with Subsection A of 17.9.568.18 NMAC below.

(2) Approval:

(a) If the proposed interconnection passes the supplemental screens above and does not require construction of facilities by the utility on its own system, the interconnection agreement shall be provided within 10 business days after the notification of the supplemental review results unless the provisions in Paragraph (2) of Subsection D of 17.9.568.17 NMAC apply.

(b) If interconnection facilities or minor modifications to the utility’s system are required for the proposed interconnection to pass the supplemental screens above, the interconnection agreement, along with a non-binding good faith estimate for the interconnection facilities or minor modifications, shall be provided to the applicant within 15 business days after receiving written notification of the supplemental review results.

(c) If the proposed interconnection would require more than interconnection facilities or minor modifications to the utility’s system to pass the supplemental screens above, the utility shall notify the applicant, at the same time it notifies the applicant with the supplemental review results, that the interconnection application shall be evaluated under the detailed study process unless the applicant withdraws its interconnection application.

(d) If a utility’s transmission service agreement requires that it notify the transmission provider of interconnections (of any size or beyond a specific threshold as specified in the transmission service agreement), the utility shall provide the notice to the transmission provider immediately after it has applied the supplemental review screens. If the transmission provider determines that it does not need to conduct a further analysis of transmission system impacts, the utility shall provide the interconnection agreement to the customer within three business days of receiving the transmission provider’s determination. If the transmission provider does require further analysis, the utility shall coordinate with the interconnection applicant and the transmission provider to ensure such analysis is conducted in a timely manner. If the transmission provider determines that there are impacts that require upgrades, the utility shall follow the detailed study process in 17.9.568.18 NMAC for providing the customer with an interconnection agreement.

History

17.9.568.17 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.18 Detailed Study Process

A, Application: An interconnection customer must submit an interconnection application, pursuant to Subsection B of 17.9.568.13 NMAC, using the interconnection application form for fast track and detailed study provided in Appendix 1C, which may be sent electronically to a recipient designated by the utility. The application fee specified in Subsection A of 17.9.568.23 NMAC shall be submitted along with the application. An applicant who was unable to proceed through the simplified or fast track process application due to failure of the screening process may request that the utility treat that existing interconnection application as a new detailed study application.

B. Scoping meeting:

(1) A scoping meeting will be held within 10 business days after the interconnection application is deemed complete., or the applicant agrees to proceed to detailed study after simplified or fast track review or as otherwise mutually agreed to by the parties. By mutual agreement of the parties, the scoping meeting, system impact study or facilities study may be waived. The utility and the applicant will bring to the meeting personnel, including system engineers and other resources as may be reasonably required to accomplish the purpose of the meeting.

(2) The purpose of the scoping meeting is to discuss the interconnection application, the reference point of applicability, and review existing studies relevant to the interconnection application. The parties shall further discuss whether the utility should perform a feasibility study (at the customer’s option) or proceed directly to a system impact study, or a facilities study, or an interconnection agreement. If the parties agree that a feasibility study should be performed, the utility shall provide the applicant, as soon as possible, but not later than five business days after the scoping meeting, a feasibility study agreement, provided by the utility, including an outline of the scope of the study and a non-binding, good- faith estimate of the cost to perform the study.

(a) the feasibility study will provide a preliminary review of short circuit currents, including contribution from the proposed generation facility, and coordination and potential overloading of distribution circuit protection devices. If the interconnection applicant agrees to the feasibility study, the interconnection applicant shall provide an executed agreement and a deposit for the estimated costs provided by the utility;

(b) the scope of the feasibility study can be modified by the parties upon mutual agreement.

(3) In order to remain in consideration for interconnection, an applicant who has requested a feasibility study must return the executed feasibility study agreement and any required deposit within 15 business days. If the parties agree not to perform a feasibility study, the utility shall provide the applicant, no later than five business days after the scoping meeting, a system impact study agreement provided by the utility including an outline of the scope of the study and a non-binding, good faith estimate of the cost to perform the study.

C. Feasibility study: A feasibility study shall identify any potential adverse system impacts that would result from interconnection of the generating facility.

(1) A deposit of the lesser of fifty percent of the good faith estimated feasibility study cost, or earnest money of $1,000.00 may be required by the utility.

(2) Once the feasibility study is completed, a feasibility study report shall be prepared and transmitted to the applicant. Barring unusual circumstances, the feasibility study must be completed and the feasibility study report transmitted within 30 business days of the applicant's agreement to conduct a feasibility study.

(3) If the feasibility study shows no potential for adverse system impacts, but facilities are required, the utility shall send the applicant a facilities study agreement, including an outline of the scope of the study and a non-binding, good faith estimate of the cost to perform the study.

(4) If no additional facilities are required, the utility shall provide the applicant an executable interconnection agreement within five business days.

D. System impact study: A system impact study shall identify and detail the electric system impacts that would result if the proposed generating facility were interconnected without project modifications or electric system modifications. A system impact study shall consist of a short circuit analysis, a stability analysis, a power flow analysis, voltage drop and flicker studies, protection and set point coordination studies, and grounding reviews, as necessary. A system impact study shall state the impact of assumptions upon which it is based, state the results of the analyses, and provide the requirement or potential impediments to providing the requested interconnection service, including a preliminary indication of the cost and length of time that would be necessary to correct any problems identified in those analyses and implement the interconnection. A system impact study shall provide a list of facilities that are required as a result of the interconnection application and non-binding good faith estimates of cost responsibility and time to construct. The system impact study must take into account the proposed generating facility's design and operating characteristics, including but not limited to the proposed operating profile, and study the generating facility according to how it is proposed to be operated. If the generating facility limits export pursuant to 17.9.568.12 NMAC, the system impact study must use export capacity instead of the nameplate rating, except when assessing fault current contribution. To assess fault current contribution, the system impact study must use the rated fault current; for example, the customer may provide manufacturer test data (pursuant to the fault current test described in IEEE 1547.1-2020 clause 5.18) showing that the fault current is independent of the nameplate rating.

(1) The utility shall provide the applicant a system impact study agreement within five business days if:

(a) a feasibility study is conducted and indicates adverse impacts on either the transmission system or the distribution system;

(b) the parties agree at the scoping meeting to proceed directly to a system impact study;

(d) the simplified process or fast track process has been completed and the applicant has elected to continue with the study process, and a system impact study is required.

(2) The system impact study agreement shall include an outline of the scope of the study and a non-binding good-faith estimate of the cost to perform the study. If applicable, the agreement shall list any additional and reasonable technical data on the generating facility needed to perform the system impact study. The scope of and cost responsibilities for a system impact study must be described in the system impact study agreement. A deposit of the good faith estimated costs for each system impact study shall be provided by the applicant when it returns the study agreements. The additional and reasonable technical data, if applicable, shall be returned with the system impact agreement. In order to remain under consideration for interconnection, the applicant must return the executed system impact study agreements and a deposit for the good-faith estimates of the studies within 20 business days.

(3) If the feasibility study shows no potential for adverse impacts on either the transmission or distribution systems, (or the parties agree to proceed straight to a facilities study), the utility shall send the applicant a facilities study agreement, including an outline of the scope of the study and a non-binding, good faith estimate of the cost to perform the study, or an executable interconnection agreement, as applicable.

(4) A system impact study shall be completed within 40 business days after the system impact study agreement is signed by the parties and delivered with deposit to the utility. The results and, if necessary, facilities study agreement shall be delivered to the applicant within five business days of completion of the system impact study. Upon request, the utility shall provide the applicant supporting documentation and workpapers developed in the preparation of the system impact study.

(5) In instances where the system impact study shows potential for transmission system adverse system impacts, within five business days following the identification of such impacts by the utility, the utility shall coordinate with the appropriate transmission provider to have the necessary studies completed to determine if the DER causes any adverse transmission impacts. If the utility’s transmission service agreement requires that the transmission provider be notified of an interconnection, it shall provide that notice, regardless of whether the system impact study shows potential for transmission system adverse system impacts, and coordinate with the transmission provider on any studies it may determine are necessary.

(6) In order to remain in consideration for interconnection, an applicant must return the executed transmission system impact study agreement within 15 business days of receipt of the agreement.

(7) A transmission system impact study, if required, shall be completed and the results transmitted to the applicant in as timely a manner as possible after the transmission system impact study agreement is signed by the parties. The utility shall be responsible for coordination with the transmission provider as needed. Affected systems shall participate in the study and provide all information necessary to prepare the study.

(8) A one-time modification of the interconnection application is allowed as a result of information from the system impact study report.

(a) if the applicant chooses to amend the interconnection application to address the specific system impacts, the applicant must submit an updated interconnection application demonstrating the redesign within 15 business days after receiving the system impact study results from the utility. The redesign shall only include changes designed to address the specific system impacts or identified upgrades (which could include, for example, the addition of DC-coupled or AC-coupled energy storage). This redesign option to mitigate impacts shall only be available one time during the detailed study process. Increases in export capacity or changes in point of interconnection are not permitted and shall require the interconnection application to be withdrawn and resubmitted;

(b) the utility shall notify the interconnecting customer within ten business days of receipt of the modified interconnection application if any additional information is needed. If additional information is needed or document corrections are required, the applicant shall provide the required information or corrections within 10 business days from receipt of the utility notice;

(c) the actual costs to the utility for any necessary restudies as a result of a modification described above shall be paid by the applicant. Such restudies should be limited to the impacts of the modification and shall be billed to the applicant at cost and not for work previously completed. The utility shall use reasonable efforts to limit the scope of such restudies to what is necessary. The revised impact study shall be completed within 15 business days.

E. Facilities study: Once the required system impact study/studies are completed, a system impact report shall be prepared and transmitted to the applicant along with a facilities study agreement within five business days.

(1) The report and agreement shall provide an outline and non-binding, good faith estimate of the cost of the facilities study.

(2) In order to remain under consideration for interconnection, the applicant must return the executed facilities agreement, and a deposit for the good-faith estimates of the studies, within 15 business days. The facilities study shall specify and estimate the cost of the equipment, engineering, procurement and construction work (including overheads) needed to implement the conclusions of the system impact study(s).

(3) Design for any required interconnection facilities or upgrades shall be performed under the facilities study agreement. The utility may contract with consultants to perform activities required under the study agreement.

(4) The applicant and the utility may agree to allow the applicant to arrange for the design of some of the interconnection facilities, but the proposed deign will be reviewed subject to modification by the utility prior to acceptance.

(5) In cases where upgrades are required, the facilities study must be completed within 45 business days of the receipt of the executed facilities study agreement and deposit. In cases where no upgrades are necessary, and the required facilities are limited to interconnection facilities, the facilities study must be completed within 30 business days of the receipt of the executed facilities study agreement and deposit.

(6) Once the facilities study is completed, a facilities study report shall be prepared and transmitted to the applicant. Upon request, the utility shall provide applicant supporting documentation and workpapers developed in the preparation of the interconnection facilities study.

(7) Upon completion of the facilities study, and with the agreement of the interconnection applicant to pay for interconnection facilities or upgrades identified in the study, the utility shall provide the interconnection applicant with an executable interconnection agreement within five business days.

F. Payment for study costs: For each of the studies conducted, any study fees shall be based on the utility’s actual costs and will be invoiced to the applicant after the study is completed and delivered and will include a summary of professional time. The applicant must pay any study costs that exceed the deposit without interest within 30 calendar days on receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced fees, the utility shall refund such excess within 30 calendar days of the invoice without interest.

History

17.9.568.18 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.19 Cost Sharing for Interconnection Upgrades

A. The cost of utility system modifications required pursuant to the fast track process or the full interconnection study process shall be borne by the applicant unless otherwise agreed to by the parties or following a determination by the commission that some or all of the costs constitute system benefits eligible for cost-sharing options:

(1) The commission may determine on a case-by-case basis whether the cost of distribution system upgrades necessary to interconnect one or more generating facilities may be eligible for some form of cost-sharing:

(a) among several developers using the same distribution facilities;

(b) among all ratepayers of the qualifying utility via rate base adjustments; or

(c) among ratepayers of the same rate class as subscribers to the community solar facility via a rate rider for that class.

(2) In making such a determination that there are public benefits to such a cost-sharing mechanism, the commission shall employ the same analysis as provided for cost-sharing or rate basing grid modernization projects as defined by Section 62-8-13 NMSA 1978 (Grid Modernization Act 2019, HB 233) to make a finding that the approved expenditures are:

(a) reasonably expected to improve the public utility’s electrical system efficiency, reliability, resilience and security; maintain reasonable operations, maintenance and ratepayer costs; and meet energy demands through a flexible, diversified and distributed energy portfolio;

(b) reasonably expected to increase access to, and use of, clean and renewable energy, with consideration given to increasing access to low-income subscribers and subscribers in underserved communities;

(3) Expenditures approved for such cost sharing of necessary interconnection upgrades shall not be considered a “subsidization” subject to the three percent limitations spelled out in this rule or in the Community Solar Act.

History

17.9.568.19 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.20 Interconnection Agreement

A. For simplified process interconnection projects, the applicant will sign a form interconnection agreement at the time it submits its interconnection application, and the utility will return a counter-signed interconnection agreement with the screen results.

B. For fast track and detailed study interconnection projects: after receiving an interconnection agreement from the utility, the applicant shall have 30 business days or another mutually agreeable timeframe to sign and return the interconnection agreement. If the applicant does not sign the interconnection agreement within 30 business days, the interconnection application shall be deemed withdrawn. After the interconnection agreement is signed by the parties, the interconnection of the generating facility shall proceed under the provisions of the interconnection agreement.

History

17.9.568.20 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.21 Permission to Operate

A. The interconnection customer may not commence operations until its interconnection application is deemed complete and the utility has issued a permission to operate (PTO). The interconnection customer shall provide the utility with at least 10 business days’ notice of the anticipated start date of the generating facility.

B. Within 10 business days of receiving the notice of the anticipated start date of the generating facility, the utility may conduct an inspection of the generating facility at a time mutually agreeable to the parties. The inspection may include verification that the facility complies with applicable codes and standards, the terms of the interconnection agreement, and may include a witness test. The utility may also schedule appropriate metering replacement or programming if necessary. If the generating facility passes the inspection, the utility shall provide written notice of the passage within three business days. If a Generating Facility initially fails a utility inspection, the utility shall offer to redo the inspection at the applicant’s expense at a time mutually agreeable to the parties. If the utility determines that the generating facility fails the inspection, the utility must provide the applicant with a written explanation detailing the reasons for the failure and any standards violated. If the utility determines no inspection is necessary, it shall notify the applicant within three business days of receiving the notice of the anticipated start date.

C. For simplified process and fast track generating facilities, utility approval for interconnection (i.e. permission to operate) shall normally be processed not later than 10 business days following the utility’s receipt of:

(1) a completed net energy metering interconnection application, if appropriate, including all supporting documents and required payments;

(2) a completed signed interconnection agreement, if appropriate; and

(3) evidence of the applicant’s final electric inspection clearance from the governmental authority having jurisdiction over the generating facility. If the 10-day period cannot be met, the utility shall notify the applicant.

D. A generating facility that has not been approved for parallel operation within one year of execution of the interconnection agreement is subject to withdrawal by utility; however, the utility may not deem the interconnection application withdrawn if:

(1) applicant provides reasonable evidence that the interconnection application is still active; or

(2) the delay is at no fault of applicant.

History

17.9.568.21 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.22 Interconnection Application Review Flow Chart

[RESERVED]

History

17.9.568.22 NMAC - Repealed, 02/14/2023

N.M. Admin. Code § 17.9.568.23 General Provisions Applicable to Interconnection Applications

A. An applicant shall pay the following application fee to the utility at the time it delivers its interconnection application to the utility:

(1) $150.00 if the proposed generating facilities will have a nameplate rating less than or equal to 25 kW;

(2) $300.00 if the proposed generating facilities will have a nameplate rating greater than 25 kW and less than or equal to 100 kW; or

(3) $300.00 + $1.00 per kW if the proposed generating facilities will have a nameplate rating greater than 100 kW;

(4) if the proposed generating facility is non-export only, it shall pay $150.00, if it has a nameplate rating below 100kW, or $300 if the nameplate rating is greater than 100 kW.

B. In addition to the fees authorized by this rule, a small utility may collect from the applicant the reasonable costs incurred to obtain necessary expertise from consultants to review interconnection applications for generating facilities with rated capacities greater than 10 kW. A small utility shall provide a good faith estimate of the costs of such consultants to an applicant within 10 business days of the date the interconnection application is delivered to the utility.

C. Commissioning tests of the interconnection customer's installed equipment shall be performed pursuant to applicable codes and standards, including IEEE 1547.1 “IEEE standard conformance test procedures for equipment interconnecting distributed energy resources with electric power systems.” A utility must be given at least five business days written notice of the tests, or as otherwise mutually agreed to by the parties, and may be present to witness the commissioning tests. An interconnection customer shall reimburse a utility for its costs associated with witnessing commissioning tests performed except that a utility may not charge a fee in addition to the interconnection application fee for the cost of witnessing commissioning tests for inverter-based generating facilities that have nameplate capacities that are less than or equal to 25 kW.

D. If an interconnection customer requests an increase in capacity for an existing generating facility, the interconnection application shall be evaluated on the basis of the new total capacity of the generating facility. If an interconnection customer requests interconnection of a generating facility that includes multiple energy production devices at a site for which the interconnection customer seeks a single point of common coupling, the interconnection application shall be evaluated on the basis of the aggregate capacity of the multiple devices.

E. Confidential information shall remain confidential unless otherwise ordered by the commission. Confidential information shall mean any confidential and proprietary information provided by one party to the other party that is clearly marked or otherwise designated “confidential”.

History

17.9.568.23 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.24 General Provisions Applicable to Utilities

A. A utility shall interconnect any interconnection customer that meets the interconnection criteria set forth in this rule. A utility shall make reasonable efforts to keep the applicant informed of the status and progress.

B. Utilities shall reasonably endeavor to aid and assist interconnection customers to ensure that a proposed generating facility's interconnection design, operation, and maintenance are appropriate for connection to the utility’s system. This may include consultations with the applicant and its engineer and other representatives.

C. Utilities shall make reasonable efforts to meet all time frames provided for in this rule unless a utility and an applicant agree to a different schedule. If a utility cannot meet a deadline provided herein, it shall notify the applicant in writing within one business day, explain the reason for its inability to meet the deadline, and provide an estimated time by which it will complete its activity. The utility shall keep the applicant updated of any changes in the expected completion date.

D. Utilities shall use the same reasonable efforts in processing and analyzing interconnection applications from all interconnection customers, whether the generating facility is owned or operated by the utility, its subsidiaries or affiliates, or others.

E. Utilities shall maintain records for three years of each interconnection application received, the times required to complete each interconnection application approval or disapproval, and justification for the utility’s disapproval of any interconnection application. Other reporting requirements are specified in 17.9.568.23 NMAC.

F. Utilities shall maintain current, clear, and concise information regarding this rule including the name, telephone number, and email address of contact persons. The information shall be easily accessible on the utility’s website beginning within one month of the effective date of this rule, or the information may be provided in bill inserts or separate mailings sent no later than one month after the effective date of this rule and no less often than once each year thereafter. Each utility shall maintain a copy of this rule at its principal office and make the same available for public inspection and copying during regular business hours.

G. A small utility that uses a consultant to review a proposal to interconnect a generating facility with the small utility's system may extend each of the time deadlines for review of the fast track process by a period not to exceed 20 business days provided that the small utility shall make a good faith effort to complete the review sooner.

H. Compliance with this interconnection process does not constitute a request for, nor provision of any transmission delivery service, or any local distribution delivery service. Interconnection under this rule does not constitute an agreement by the utility to purchase or pay for any energy, inadvertently or intentionally exported.

History

17.9.568.24 NMAC - N, NMAC, 02/14/2023

N.M. Admin. Code § 17.9.568.25 General Provisions Applicable to Interconnection Customers

A. An interconnection customer is responsible for the prudent maintenance and upkeep of its interconnection equipment.

B. Upon the petition of a utility, for good cause shown, the commission may require a customer with a generating facility with a rated capacity of 250 kW or less to obtain general liability insurance prior to connecting with a public utility. A utility may require that an applicant proposing to connect a generating facility with a rated capacity greater than 250 kW provide proof of insurance with reasonable limits not to exceed $1,000,000.00 or other reasonable evidence of financial responsibility.

History

17.9.568.25 NMAC - Rp, 17.9.568.14 NMAC, 02/14/2023

N.M. Admin. Code § 17.9.568.26 Extensions

A. The applicant may request in writing the extension of one timeline set by these rules. The requested extension may be for up to one-half of the time originally allotted (e.g., a 10 business day extension for a 20 business day timeframe). The utility shall not unreasonably refuse this request.

B. If further timeline extensions are necessary, the applicant may request an extension and the utility shall grant the extension so long as it does not unreasonably delay the processing of later queued interconnection applications.

History

17.9.568.26 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.27 Dispute Resolution

A. Each party agrees to attempt to resolve all disputes arising hereunder promptly, equitably and in a good faith manner.

B. In the event of a dispute, either party shall provide the other party with a written notice of dispute. Such notice shall describe in detail the nature of the dispute. The non-disputing party shall acknowledge the notice within three business days of its receipt and identify a representative with the authority to make decisions for the non-disputing party with respect to the dispute.

C. If the dispute has not been resolved in eight business days for timeline related disputes or 20 business days for all other disputes after the receipt of the notice, the parties may, upon mutual agreement:

(1) continue negotiations for an additional 10 business days; or

(2) seek resolution through the assistance of a dispute resolution service. The dispute resolution service will assist the parties in either resolving the dispute or in selecting an appropriate dispute resolution venue (e.g., mediation, settlement judge, early neutral evaluation, or qualified technical expert(s)) to assist the parties in resolving their dispute. Each party will be responsible for one-half of any costs paid to neutral third-parties.

D. For any technical disputes, both parties shall have a qualified technical representative present in the attempts to resolve the dispute.

E. If the dispute remains unresolved after 30 business days, either party may petition the commission to handle the dispute as a formal complaint or may exercise whatever rights and remedies it may have in equity or law.

F. If the dispute remains unresolved after 90 business days, a formal complaint to the commission has not been submitted, and the dispute is causing delays to other projects in the queue, the utility may adjust the queue position of the disputing project. The disputing party shall be responsible for any additional study costs that may result from the change in queue position.

History

17.9.568.27 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.28 Reporting Requirements

A. For each request for a pre-application report or interconnection application received, the utility shall collect and retain the following data, at a minimum:

(1) facility capacity;

(2) DER type (technology);

(3) number of pre-application reports requested and processed;

(4) date of interconnection application submittal;

(5) date interconnection application deemed complete;

(6) date and disposition at applicable milestones in the interconnection process, including which screens, if any, are failed in the applicable process:

(a) initial review, (under the simplified or fast track process);

(b) supplemental review;

(d) system impact study;

(e) facilities study;

(f) interconnection agreement; and

(g) permission to operate.

(7) interconnection fees and study costs assessed to the customer;

(8) interconnection facility and distribution upgrade costs assessed to the customer;

(9) number of times outside consultants were utilized and the range of fees assessed to the customer for the consultants services.

B. Twice annually each utility shall submit to the commission and make available to the public on its website an interconnection report with the following information. The report shall contain information in the following areas, including relevant totals for both the year.

(1) Pre-application reports: total pre-application reports requested, completed within the time limits (20 business days for system sizes up to one MW, and 30 business days for system sizes greater than one MW30), and number completed outside the specified time limits.

(2) Interconnection applications: total number received, (noting nameplate rating of proposed systems).

(3) Number of interconnection applications processed within specified timeframes and completed outside of specified time limits.

(4) Number of interconnection upgrades completed within negotiated timelines and outside of negotiated timelines, including a narrative on how much time it is taking to complete typical upgrades.

(5) Number of interconnection applications that required more than initial review: median number of days to complete such reviews.

(6) Number of interconnection applications withdrawn.

(7) Number of interconnection agreements executed.

(8) A table showing the range of fees charged for the feasibility study, system impact study, and facilities study.

(9) A table showing how many projects failed each of the interconnection screens in the simplified, fast track and supplemental review processes broken out by project size and type (i.e. solar, storage, solar+storage) in the following increments: up to 25 kW, 25-100 kW, 100-500 kW, 500 kW to 2 MW, 2 to 5 MW.

(10) A narrative of how the process is working and where there is potential for improvement by the utility or interconnection applicants.

History

17.9.568.28 NMAC - N, 02/14/2023

N.M. Admin. Code § 17.9.568.29 Safety Provisions

A. A DER project that operates outside of its approved export status or operational limits may be disconnected by the utility following notification of violation and a 30-day cure period.

B. An interconnection customer shall separate from the utility system in the event of any one or more of the following conditions:

(1) a fault on the generating facility's system; or

(2) a generating facility contribution to a utility system emergency; or

(3) abnormal frequency or voltage conditions on the utility’s system; or

(4) any occurrence or condition that will endanger utility employees or customers; or

(5) a generating facility condition that would otherwise interfere with a utility’s ability to provide safe and reliable electric service to other customers; or

(6) the sudden loss of the system power.

C. The utility may temporarily disconnect the generating facility upon the following conditions:

(1) for scheduled outages per notice requirements in the utility’s tariff or commission rules;

(2) for unscheduled outages or emergency conditions pursuant to Subsection B of 17.9.568.29 NMAC;

(3) if the generating facility does not operate in the manner consistent with these terms and conditions;

(4) the utility shall inform the customer in advance of any scheduled disconnection, or as is reasonable after an unscheduled disconnection.

D. A visible-open, load break disconnect switch between the generating facility and the utility system that is visibly marked "generating facility generation disconnect" and is accessible to and lockable by the utility is required for all generating facilities except for those generating facilities with a maximum capacity rating of 10 kW or less that use a certified inverter including a self-contained renewable energy certificate (REC) meter and either:

(1) a utility accessible AC load break disconnect; or

(2) a utility accessible DC load break disconnect where there is no other source of generated or stored energy connected to the system.

E. Interconnection customers shall post a permanent and weatherproof one-line electrical diagram of the generating facility located at the point of service connection to the utility. Generating facilities where the disconnect switch is not located in close proximity to the utility meter must post a permanent and weatherproof map showing the location of all major equipment including the utility meter point, the generating facility generation disconnect, and the generating facility generation breaker. Non-residential generating facilities larger than 10 kW shall include with or attached to the map the names and current telephone numbers of at least two persons authorized to provide access to the generating facility and who have authority to make decisions regarding the generating facility interconnection and operation.

F. If the generating facility interconnection equipment package is not certified or if a certified equipment package has been modified, the generating facility interconnection equipment package shall be reviewed and approved by a professional electrical engineer, registered in the state of New Mexico.

History

17.9.568.29 NMAC - Rp, 17.9.568.15 NMAC, 02/14/2023

N.M. Admin. Code § 17.9.568.30 Variances

A party may file a request for a variance from the requirements of this rule. Such application shall describe the reasons for the variance; set out the effect of complying with this rule on the parties and the utility’s customers if the variance is not granted; identify the section(s) of this rule for which the variance is requested; describe the expected result which the request will have if granted; and state how the variance will aid in achieving the purposes of this rule. The commission may grant a request for a procedural variance through an order issued by the chairman, a commissioner or a designated hearing examiner. Other variances shall be presented to the commission as a body for determination.

HISTORY OF 17.9.568 NMAC:

Pre-NMAC History: None.

History of Repealed Material:

17.9.568 NMAC, Interconnection of Generating Facilities with a Rated Capacity up to and Including 10 MW Connecting to a Utility System (filed 10/15/2008) repealed effective 02/14/2023.

Other History:

17.9.568 NMAC, Interconnection of Generating Facilities with a Rated Capacity up to and Including 10 MW Connecting to a Utility System (filed 10/15/2008) was replaced by 17.9.568 NMAC, Interconnection of Generating Facilities with a Rated Capacity up to and Including 10 MW Connecting to a Utility System, effective 02/14/2023.

History

17.9.568.30 NMAC - Rp, 17.9.568.16 NMAC, 02/14/2023

Part 569 Interconnection of Generating Facilities with a Rated Capacity Greater Than 10 MW Connecting to a Utility System

N.M. Admin. Code § 17.9.569.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.569.1 NMAC - N, 10/15/08

N.M. Admin. Code § 17.9.569.2 Scope

A. This rule applies to every electric utility including rural electric cooperatives and investor-owned utilities operating within the state of New Mexico that is subject to the jurisdiction of the New Mexico public regulation commission. These standards and procedures apply to both qualifying and non-qualifying facilities.

B. The standards and procedures described in this rule 17.9.569 NMAC apply only to the interconnection of generating facilities with a rated capacity greater than 10 MW. The standards and procedures described in 17.9.568 NMAC apply to the interconnection of generating facilities with a rated capacity up to and including 10 MW.

History

17.9.569.2 NMAC - N, 10/15/2008

N.M. Admin. Code § 17.9.569.3 Statutory Authority

This rule is adopted under the authority vested in this commission by the New Mexico Public Regulation Commission Act, NMSA 1978, Section 8-8-1 et seq. and the Public Utility Act, NMSA 1978, Section 62-3-1 et seq.

History

17.9.569.3 NMAC - N, 10/15/2008

N.M. Admin. Code § 17.9.569.4 Duration

Permanent.

History

17.9.569.4 NMAC - N, 10/15/2008

N.M. Admin. Code § 17.9.569.5 Effective Date

October 15, 2008. All interconnection contracts between a utility and an interconnection customer existing at the time 17.9.569 NMAC is adopted shall automatically continue in full force and effect. Any changes made to existing interconnection contracts shall conform to the provisions of 17.9.569 NMAC.

History

17.9.569.5 NMAC - N, 10/15/2008

N.M. Admin. Code § 17.9.569.6 Objective

The purpose of this rule is to set forth common interconnection requirements for the interconnection of generating facilities with a rated capacity greater than 10 MW in a safe and reliable manner.

History

17.9.569.6 NMAC - N, 10/15/2008

N.M. Admin. Code § 17.9.569.7 Definitions

Terms used in this rule 17.9.569 NMAC shall have the following meanings.

A. Business day means Monday through Friday, excluding holidays observed by the utility.

B. Generating facility means the interconnection customer’s device for the production of electricity identified in the interconnection application, including all generators, electrical wires, equipment, and other facilities owned or provided by the interconnection customer for the purpose of producing electric power.

C. Interconnection application means the request by an interconnection customer to interconnect a new generating facility, or to increase the capacity or make a material modification to the operating characteristics of an existing generating facility that is interconnected with the utility's system.

D. Interconnection customer means any person that proposes to interconnect its generating facility with the utility's system.

E. Party means the utility and the interconnection customer separately or in combination.

F. Person, for purposes of this rule, means an individual, firm, partnership, company, rural electric cooperative organized under Laws 1937, Chapter 100 or the Rural Electric Cooperative Act, corporation or lessee, trustee or receiver appointed by any court.

G. Point of common coupling (PCC) means the point where the interconnection facilities connect with the utility’s system.

H. Power conversion unit (PCU) means an inverter or AC generator, not including the energy source.

I. Qualifying facility means a cogeneration facility or a small power production facility which meets the criteria for qualification contained in 18 C.F.R. Section 292.203.

J. Rated capacity means the total AC nameplate rating of the power conversion unit(s) at the point of common coupling.

K. System means the facilities owned, controlled, or operated by the utility that are used to provide electric service under a utility’s tariff.

L. Utility means a utility or public utility as defined in NMSA 62-3-3 (G) serving electric customers subject to the jurisdiction of the commission.

History

17.9.569.7 NMAC - N, 10/15/2008

N.M. Admin. Code § 17.9.569.8 General Provisions for Interconnection Applications for Facilites with Rated Capacities Greater Than 10 Mw

A. A utility shall interconnect with any interconnection customer that:

(1) is in its service area;

(2) qualifies for the interconnection procedures in this rule 17.9.569 NMAC;

(3) files an interconnection application in accordance with Subsection B of 17.9.569.8 NMAC;

(4) meets the utility's system safety standards;

(5) has paid the estimated costs of interconnection (if applicable);

(6) has entered into a contract with the utility pursuant to 17.9.569 NMAC;

(7) has substantially completed a generating facility that is capable of operating safely and commencing the delivery of power into the utility system; and

(8) has provided a statement from a licensed professional electrical engineer certifying that the design of the generating facility and its interconnection equipment comply with utility requirements and with reasonable interconnection safety and design standards and prudent electrical practices.

B. An interconnection customer subject to this rule 17.9.569 NMAC shall make its application for interconnection to a utility using the interconnection application form provided in the interconnection manual and its exhibits, incorporated by reference in 17.9.568 NMAC.

C. Unless a longer period of time is agreed to in writing by the interconnection customer, within 30 business days of receipt of an interconnection application on the prescribed form, a utility shall furnish to the interconnection customer a good faith, detailed list of required interconnection equipment and an itemized estimate of the costs that the proposed interconnection customer will have to pay to the utility to complete the interconnection. The list of required interconnection equipment shall not change substantially other than in response to changes in design, location of equipment, and/or intended operation of the equipment of the generating facility.

D. If an interconnection application fails to comply with the requirements of this rule 17.9.569 NMAC or is otherwise insufficient, the utility shall attempt to obtain the required information to complete the interconnection application by telephone. If the utility cannot so obtain complete information, the utility shall within 15 business days of receipt of the interconnection application notify the interconnection customer specifying the deficiencies in the interconnection application.

E. If the interconnection customer disagrees with the utility's determination that the interconnection application is insufficient, it may within 15 business days of its receipt of the utility’s notification initiate a proceeding before the commission pursuant to the complaint process of 17.9.570 NMAC. In such a proceeding, the utility shall have the burden to establish that the rejection was justified.

F. The interconnection customer shall give the utility at least 60 days written advance notice to interconnect. Such notice shall specify the date the generating facility will be ready for interconnection, the date the generating facility will be able to commence testing, and the anticipated date of operation after testing. The interconnection customer shall pay the estimated costs of interconnection in full at the time the notice to interconnect is given. The utility shall pay an interconnection customer for any energy produced during testing of the generating facility at the appropriate energy rate pursuant to Subsection B of 17.9.570.11 NMAC.

G. If the utility determines that it cannot interconnect the generating facility within the time set in the notice to interconnect because adequate interconnection facilities are not available, it shall, within 15 business days of receipt of the notice to interconnect, notify the interconnection customer specifying the reasons it cannot interconnect as requested by the interconnection customer and specifying the date interconnection can be made. If the interconnection customer objects to the date for interconnection specified by the utility, objects to the utility's determination that adequate interconnection facilities are not available, or disputes the good faith efforts of the utility to interconnect, the interconnection customer may initiate a proceeding before the commission pursuant to the complaint process of 17.9.570 NMAC.

H. Payment for all costs of interconnection shall be the responsibility of the interconnection customer. If the utility incurs any of the costs of interconnection, the interconnection customer shall reimburse the utility for such costs. The estimated costs for interconnection described in this rule 17.9.569 NMAC shall be paid prior to interconnection. Upon completion of the interconnection the actual costs of interconnection shall be determined in a verifiable form by the utility, and any actual costs in excess of the estimated costs shall be paid by the interconnection customer to the utility within 30 days. If the estimated costs exceed actual costs the utility shall refund the difference to the interconnection customer within 30 days.

I. Each utility shall develop and file with the commission proposed general safety standards governing the installation, operation, and maintenance of the protective equipment required to integrate generating facilities subject to this rule 17.9.569 NMAC into the utility's electric system (if any such equipment is required). These general safety standards may contain reasonable provisions for case-by-case standards for certain generation facilities based on their size or location. These standards shall be reasonable and nondiscriminatory and shall be designed to assure system and personnel safety.

J. The generating facility’s output to the utility will meet the following interconnection standards.

(1) The voltage will be that voltage normally available on the utility system at the generator's site or such other standard voltage to which the parties may agree.

(2) The frequency will be 60 hertz.

(3) The number of phases of the produced voltage will be compatible with the phases available on the utility system at the generator site. Normally the number of phases shall be the same as those of the utility system.

(4) The protective devices connected between the output of the generating facility and the utility system must be rated for the maximum available fault current that the utility's system may be capable of developing at the point of interconnection. Such devices shall disconnect the generating facility’s generation from the utility's system in the event of a fault on the generating facility system in order to maintain continuity of service to other customers connected to the secondary of the distribution transformer or other portions of the utility's system.

(5) The generating facility’s output shall not affect the utility's distribution system. This includes but is not limited to:

(a) overload of distribution equipment;

(b) abnormal harmonic currents or voltages;

(d) electronic noise that would interfere with communications.

(6) The generating facility shall be capable of protecting itself from damage resulting from impact loading and/or overloading under both normal operating conditions and emergency conditions.

K. Interconnection and safety requirements shall include the ability to synchronize on connecting to the utility system to avoid voltage decay or out-of-phase connection. The generating facility’s controls shall be capable of disconnecting the generation output to the utility or otherwise limiting the generating facility’s input to avoid overload of any of the utility system components or undesirable transient voltage or frequency fluctuations in the event of a fault on the utility's system or under conditions of large motor start or capacitor switching operations on the utility system to which the generating facility is interconnected. These devices must be coordinated with the utility's protective system. The generating facility must meet the following safety standards.

(1) The generating facility’s interconnection must meet the requirements of the latest editions of the national electrical safety code, national electrical code, and the state of New Mexico electrical code.

(2) The generating facility’s interconnection must automatically disconnect from the utility's system if the utility service is interrupted. The generating facility will coordinate automatic reenergization in the utility’s system with the utility's standard protection practices. The utility may discontinue service to or from a generating facility if it has been determined that continuation of service would contribute to such emergency.

(3) There must be a three-phase load break disconnect between the generating facility’s interconnection and the utility that can be controlled and operated by the utility.

(a) Where the generating facility is a customer of the utility, the disconnect or disconnects shall disconnect the generating facility’s output without interrupting utility service to the customer’s other load unless otherwise agreed.

(b) The disconnect must provide a visible air gap which will assure disconnection of the generating facility before a utility employee does any work on the circuit or circuits to which the interconnection is made.

(c) The meter socket or secondary connection compartment or bus compartment may be provided by the utility or provision may be required of the interconnection customer as is presently provided for in the case of each component by the rules and regulations filed with the commission in the case of the specific utility.

(d) In any event the capacity and the connection arrangements of the specific device must be approved by the utility if the generating facility is required to provide the device.

L. A utility may require that an interconnection customer provide proof of insurance or other evidence of financial responsibility in an amount reasonably related to the risks involved.

History

17.9.569.8 NMAC - N, 10/15/2008

N.M. Admin. Code § 17.9.569.9 Variances

HISTORY OF 17.9.569 NMAC: [RESERVED]

History

17.9.569.9 NMAC - N, 10/15/2008

Part 570 Governing Cogeneration and Small Power Production

N.M. Admin. Code § 17.9.570.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.570.1 NMAC - Rp, 17.9.570.1 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.2 Scope

A. 17.9.570 NMAC applies to every electric utility (investor-owned, rural electric cooperative, municipal, or an entity providing wholesale rates and service) operating within the state of New Mexico that is subject to the jurisdiction of the New Mexico public regulation commission as provided by law.

B. It is intended that the obligations of utilities provided for in 17.9.570 NMAC shall extend to both production and consumption functions of qualifying facilities irrespective of whether the production and consumption functions are singly or separately owned. In situations where the production and consumption functions are separately owned, the qualifying facility or its operator may elect to enter into the contract with the utility.

C. All interconnection contracts between utilities and qualifying facilities existing at the time 17.9.570 NMAC is adopted shall automatically continue in full force and effect with no change in rates for the purchase of power from the qualifying facilities. Any changes made to the existing interconnection contracts shall be made by mutual agreement and shall conform to the provisions of 17.9.570 NMAC.

D. Variances which have been granted by the commission from earlier versions of general order no. 37 and under 17.9.570 NMAC shall continue in full force and effect unless the commission specifically rescinds any such variance.

History

17.9.570.2 NMAC - Rp, 17.9.570.2 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.3 Statutory Authority

Sections 8-8-15, 62-6-4, 62-6-19, 62-6-24, and 62-8-2 NMSA 1978; 16 USCA Section 2621.

History

17.9.570.3 NMAC - Rp, 17.9.570.3 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.4 Duration

Permanent.

History

17.9.570.4 NMAC - Rp, 17.9.570.4 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.5 Effective Date

May 24, 2022, unless a later date is cited at the end of a section. Applications filed prior to this effective date shall be governed by the specific orders related to those applications.

History

17.9.570.5 NMAC - Rp, 17.9.570.5 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.6 Objective

A. 17.9.570 NMAC is to govern the purchase of power from and sale of power to qualifying facilities by:

(1) enabling the development of a market for the power produced by qualifying facilities;

(2) establishing reasonable and objective criteria to determine when a legally enforceable obligation arises;

(3) establishing guidelines for the calculation of utilities' avoided costs, including the option to use market-based methods to calculate avoided energy and capacity costs; and

(4) providing meaningful access to critical cost information from utilities.

B. 17.9.570.14 NMAC is intended to simplify the metering procedures for qualifying facilities up to and including 10kW and encourage the use of small-scale customer-owned renewable or alternative energy resources in recognition of the beneficial effects the development of such resources will have on the environment of New Mexico.

C. 17.9.570 NMAC is intended to implement regulations of the federal energy regulatory commission, 18 C.F.R. Section 292, as amended, promulgated pursuant to the Public Utility Regulatory Policies Act of 1978, Pub. L. No. 95-617, 92 Stat. 3117 (codified as amended starting at 16 U.S.C. Section 824) and the New Mexico Public Utility Act, Sections 62-3-1 et. seq., NMSA 1978 as amended.

D. The standards and procedures for the interconnection of generating facilities with rated capacities up to and including 10 MW are set forth in 17.9.568 NMAC. The standards and procedures for the interconnection of generating facilities with rated capacities greater than 10 MW are set forth in 17.9.569 NMAC.

History

17.9.570.6 NMAC - Rp, 17.9.570.6 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.7 Definitions

Terms defined in the Public Utility Regulatory Policies Act of 1978 (PURPA) shall have the same meaning for purposes of this rule as they have under PURPA, unless further defined in 18 CFR 292.101. The following definitions apply for purposes of this rule:

A. Definitions beginning with “A”:

(1) avoided costs means the incremental costs to an electric utility of electric energy or capacity or both which, but for the purchase from the qualifying facility or qualifying facilities, such utility would generate itself or purchase from another source. Avoided costs shall exclude all costs that the utility would not have been incurred “but for” the sale by the qualifying facility. Costs that would not have been incurred “but for” the sale by the qualifying facility shall include, but are not limited to, settlement adjustment charges and costs associated with additional reserves, systems operation impacts, and curtailments;

(2) as available power means power that a qualifying facility may sell, but has no legal obligation to sell, to the utility.

B. Definitions beginning with “B”: back-up power means electric energy or capacity supplied by an electric utility to replace energy ordinarily generated by a facility's own generation equipment during an unscheduled outage of the qualifying facility;

C. Definitions beginning with “C”: commission means New Mexico public regulation commission.

D. Definitions beginning with “D”: design capacity means the total AC nameplate power rating of the power conversion unit(s) at the point of common coupling.

E. Definitions beginning with “E”: [RESERVED]

F. Definitions beginning with “F”: [RESERVED]

G. Definitions beginning with “G”: [RESERVED]

H. Definitions beginning with “H”: [RESERVED]

I. Definitions beginning with “I”:

(1) interconnection costs means the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions and administrative costs incurred by the electric utility directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with a qualifying facility, to the extent such costs are in excess of the corresponding costs which the electric utility would have incurred if it had not engaged in interconnected operations, but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources. Interconnection costs do not include any costs included in the calculation of avoided costs;

(2) interruptible power means electric energy or capacity supplied by an electric utility subject to interruption by the electric utility under specified conditions.

J. Definitions beginning with “J”: [RESERVED]

K. Definitions beginning with “K”: [RESERVED]

L. Definitions beginning with “L”:

(1) locational marginal price means the price for energy at a particular location as determined in the western energy imbalance market or in the “SPP energy markets” which means the real-time energy markets operated by southwest power pool, inc;

(2) legally enforceable obligation means a public utility’s obligation to purchase as-available energy from a qualified facility and is created when the criteria set forth in 17.9.570.9 NMAC are met and refers to the qualifying facility’s obligation to sell power to a utility for the term of the obligation, and to the utility’s corresponding obligation to purchase power from the qualifying facility for the term of the obligation.

M. Definitions beginning with “M”: maintenance power means electric energy or capacity supplied by an electric utility during scheduled outages of the qualifying facility.

N. Definitions beginning with “N”:

(1) net metering means the difference between the energy produced by the qualifying facility’s generation and the energy that would have otherwise been supplied by the utility to the qualifying facility absent the qualifying facility’s generation;

(2) new capacity addition:

(a) new capacity addition means the capacity added to a utility's resource mix after the effective date of 17.9.570 NMAC through normal utility resource procurement activities which shall include but not necessarily be limited to:

(i) construction of or participation in new generating facilities;

(ii) augmenting the capacity of or extending the life of existing generating facilities through capital improvements; or

(iii) entering into new contracts or exercising options in existing contracts which will result in additional capacity;

(b) new capacity addition does not include the following:

(i) renegotiation of existing contracts for anything other than increasing capacity in the resource mix;

(ii) renegotiation of existing full power requirements contract between a distribution cooperative and its full power requirements supplier; and

(iii) seasonal uprating in capacity achieved without any capital improvements to existing generating facilities.

O. Definitions beginning with “O”: [RESERVED]

P. Definitions beginning with “P”:

(1) point of common coupling (PCC) means the point where the interconnection facilities connect with the utility’s system;

(2) power means electric energy or capacity or both;

(3) power conversion unit (PCU) means an inverter or AC generator, not including the energy source;

(4) purchase means the purchase of electric energy or capacity or both from a qualifying facility by an electric utility.

Q. Definitions beginning with “Q”:

(1) qualifying facility means a cogeneration facility or a small power production facility that is a qualifying facility under Subpart B of 18 C.F.R. Part 292;

(a) A qualifying facility may include transmission lines and other equipment used for interconnection purposes (including transformers and switchyard equipment), if:

(i) Such lines and equipment are used to supply power output to directly and indirectly interconnected electric utilities, and to end users, including thermal hosts, in accordance with state law; or

(ii) Such lines and equipment are used to transmit supplementary, standby, maintenance and backup power to the qualifying facility, including its thermal host meeting the criteria set forth in Union Carbide Corporation, 48 FERC 61,130, reh'g denied, 49 FERC 61,209 (1989), aff'd sub nom., Gulf States Utilities Company v. FERC, 922 F.2d 873 (D.C. Cir. 1991); or

(iii) If such lines and equipment are used to transmit power from other qualifying facilities or to transmit standby, maintenance, supplementary and backup power to other qualifying facilities.

(b) The construction and ownership of such lines and equipment shall be subject to any applicable federal, state, and local siting and environmental requirements.

R. Definitions beginning with “R”: rate means any price, rate, charge, or classification made, demanded, observed or received with respect to the sale or purchase of electric energy or capacity, or any rule, regulation, or practice respecting any such rate, charge, or classification, and any contract pertaining to the sale or purchase of electric energy or capacity.

S. Definitions beginning with “S”:

(1) sale means the sale of electric energy or capacity or both by an electric utility to a qualifying facility;

(2) settlement adjustment charge means the sum of adjustments to the settlement interval by an energy market, such as the southwest power pool, to account for market charges or credits applicable to the qualifying facility resource.

(3) supplementary power means electric energy or capacity supplied by an electric utility, regularly used by a qualifying facility in addition to that which the facility generates itself;

(4) system emergency means a condition on a utility's system which is likely to result in imminent significant disruption of service to customers or is imminently likely to endanger life or property.

T. Definitions beginning with “T”: tariff means the document filed by a utility with the commission pursuant to 17.9.570 NMAC containing that utility's rules, rates, services and forms.

U. Definitions beginning with “U”: utility means a utility or public utility as defined in Section 62-3-3 NMSA 1978 serving electric customers subject to the jurisdiction of the commission.

V. Definitions beginning with “V”: [RESERVED]

W. Definitions beginning with “W”: western energy imbalance market (or western EIM) means the real-time energy imbalance market operated by the California independent system operator corporation.

X. Definitions beginning with “X”: [RESERVED]

Y. Definitions beginning with “Y”: [RESERVED]

Z. Definitions beginning with “Z”: [RESERVED]

17.9.570.8 [RESERVED]

History

17.9.570.7 NMAC - Rp, 17.9.570.7 NMAC, 5/24/2022
17.9.570.8 NMAC - Rp, 17.9.570.8 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.9 Obligation to Purchase

A. If a qualifying facility elects to sell power to the utility on an as-available basis, the utility shall purchase power from the qualifying facility from the date the qualifying facility begins providing as-available power to the utility.

B. If a qualifying facility elects to sell power to the utility in accordance with a legally enforceable obligation, the legally enforceable obligation arises on the date that the qualifying facility demonstrates compliance with all of the following prerequisites:

(1) The qualifying facility has filed an interconnection application with the appropriate entity and has tendered all required fees to that entity;

(2) The qualifying facility has taken meaningful steps to obtain site control to construct the entire qualifying facility, which the qualifying facility may demonstrate through the production of executed agreements and through similar measures;

(3) The qualifying facility has applied for all required federal, state, and local permits and licenses necessary to construct and operate the facility, and has tendered all required fees to the appropriate governmental authorities;

(4) The qualifying facility has completed all environmental studies and other actions necessary to support permit and license applications including but not limited to acquired and recorded in the appropriate governmental offices all real property rights necessary to construct and operate the facility, such as real property leases, rights of way, line locations approvals and easements;

(5) The qualifying facility has obtained or applied for financing of the proposed project, as evidenced by loan application documents or other types of financing applications;

(6) The qualifying facility has provided the utility with a construction plan and timeline for the construction of the facility, including construction cost quotes; and

(7) The qualifying facility has submitted a self-certification to the federal energy

regulatory commission that has not been revoked, has received an order from the federal energy regulatory commission certifying qualifying facility status, or has otherwise demonstrated that certification as a qualifying facility is not required under the Federal Energy Regulatory Commission’s regulations.

C. After receipt of a qualifying facility’s request that the utility acknowledge that a legally enforceable obligation to purchase from the qualifying facility has arisen, the utility shall provide a response to the qualifying facility within 30 calendar days. If the utility rejects the qualifying facility’s request or otherwise fails to acknowledge the request within 30 calendar days, the qualifying facility may file an application with the commission seeking a determination that the utility has a legally enforceable obligation to purchase power from the qualifying facility, with the date of such obligation to be fixed by the commission.

D. Regardless of when a legally enforceable obligation arises, the utility’s obligation to begin paying for power provided under a legally enforceable obligation begins on the date the qualifying facility begins delivering power to the utility.

E. An electric utility is obligated to purchase power from a qualifying facility at the utility's avoided cost, as calculated under 17.9.570.11 NMAC, regardless of whether the electric utility making such purchase is simultaneously selling power to the qualifying facility.

F. The qualifying facility shall give the utility at least 60 days written advance notice to interconnect. Such notice shall specify the date the qualifying facility will be ready for interconnection, the date the qualifying facility will be able to commence testing, and the anticipated date of operation after testing. The qualifying facility shall pay the estimated costs of interconnection in full at the time the notice to interconnect is given. The utility shall pay a qualifying facility for any energy produced during testing of the qualifying facility at the appropriate energy rate pursuant to Subsection B of 17.9.570.11 NMAC.

G. If the utility determines that it cannot interconnect the qualifying facility within the time set in the notice to interconnect because adequate interconnection facilities are not available, it shall, within 15 business days of receipt of the notice to interconnect, notify the qualifying facility specifying the reasons it cannot interconnect as requested by the qualifying facility and specifying the date interconnection can be made. If the qualifying facility objects to the date for interconnection specified by the utility, objects to the utility's determination that adequate interconnection facilities are not available, or disputes the good faith efforts of the utility to interconnect, the qualifying facility may initiate a proceeding before the commission pursuant to the complaint process of this 17.9.570 NMAC. If the commission finds that the utility's position on the time for interconnection or unavailability of interconnection facilities was not justified, the qualifying facility shall be deemed to have been interconnected and the qualifying facility shall be deemed to have otherwise complied with its contractual duties on the 60th day following the notice to interconnect and payments by the utility to the qualifying facility shall commence at the appropriate power rate which shall be applied to the amount of imputed or expected power as if the qualifying facility were producing, provided that the qualifying facility’s power was available.

History

17.9.570.9 NMAC - Rp, 17.9.570.9 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.10 Metering Options

A. General.

(1) A qualifying facility contracting to provide power may displace its own load. The utility may require appropriate metering. Billing for any power from the utility will be at the utility's approved rate applicable to the service provided to the qualifying facility in accordance with Subsections A-G of 17.9.570.12 NMAC.

(2) The tariff filed by each utility pursuant to Subsection H of 17.9.570.13 NMAC shall include the offer to any qualifying facility that has not contracted to receive capacity payments, the metering options in Subsections B, C and D of 17.9.570.10 NMAC.

(3) The options of Subsections B, C and D of 17.9.570.10 NMAC may involve time-of-day metering if the utility has in effect time-differentiated rates and metering for the class of customer to which the qualifying facility belongs or if the parties negotiate time-differentiated payments to the qualifying facility.

B. Load displacement option. If the qualifying facility wishes primarily to serve its own load, the utility shall agree to interconnect with a single meter or meter set measuring flow from the utility to the qualifying facility; billing for any power from the utility will be at the utility's approved tariff applicable to the service provided to the qualifying facility; there will be no additional customer charge and no payment by the utility for any excess energy which might be generated by the qualifying facility.

C. Net metering option.

(1) The utility shall install the metering necessary to determine the net energy delivered from the qualifying facility to the utility or from the utility to the qualifying facility for each time-of-use or single rate period, as applicable, during a billing period; the net energy delivered to either the qualifying facility or to the utility is the difference between the energy produced by the qualifying facility’s generation and the energy that would have otherwise been supplied by the utility to the qualifying facility absent the qualifying facility’s generation.

(2) The net energy delivered from the qualifying facility to the utility shall be purchased by the utility at the utility's applicable time-of-use or single period energy rate as described in Subsection B of 17.9.570.11 NMAC; the qualifying facility shall be billed for the net energy delivered from the utility in accordance with the tariffs that are applicable to the qualifying facility absent the qualifying facility’s generation; the qualifying facility shall also be billed for all demand and other charges in accordance with the applicable tariffs. At the end of the billing period the utility shall net all charges owed to the utility by the qualifying facility and all payments owed by the utility to the qualifying facility. If a net amount is owed to the qualifying facility for the billing period, and is less than $50, the payment amount may be carried over to the following billing period. If a net amount is owed to the qualifying facility and is $50 or more, the utility shall make payment to the qualifying facility prior to the end of the next billing period.

(3) If provision of the net metering option requires metering equipment and related facilities that are more costly than would otherwise be necessary absent the requirement for net metering, the qualifying facility shall pay all incremental costs associated with installing the more costly metering equipment and facilities. An additional customer charge to cover the added costs of billing and administration may be included in the tariff if supported with evidence of need for such charge.

D. Separate load metering (simultaneous buy/sell) option. The utility shall install the metering necessary to determine separately:

(1) all the energy produced by the qualifying facility’s generator; and

(2) all of the power consumed by the qualifying facility’s loads; the utility shall purchase all energy produced by the qualifying facility’s generator at the utility’s applicable time-of-use or single period energy rate as described in Subsection B of 17.9.570.11 NMAC. The qualifying facility shall purchase all power consumed at its normally applicable rate; an additional customer charge to cover the added costs of billing and administration may be included in the tariff if supported with evidence of need for such charge.

E. Metering configurations. Metering configurations used to implement the provisions of 17.9.570 NMAC shall be reasonable, nondiscriminatory, and shall not discourage cogeneration or small power production.

History

17.9.570.10 NMAC - Rp, 17.9.570.10 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.11 Determination of Rates for Purchases from Qualifying Facilities

A. General: A utility shall pay a qualifying facility avoided costs for energy or capacity purchased from the qualifying facility. Avoided costs are defined in Subsection A of 17.9.570.7 NMAC. The energy rate represents avoided energy costs for the purposes of 17.9.570 NMAC. The avoided energy or capacity rate determined as provided herein represents avoided energy or avoided capacity costs for the purposes of 17.9.570 NMAC.

B. Energy rate:

(1) Within one year of the approval of this rule, each utility subject to the commission’s jurisdiction shall apply for approval of a tariff that specifies a method for determining avoided energy costs as specified herein to establish the avoided energy cost rates paid by that utility to qualifying facilities.

(a) A utility participating in the Western EIM may establish the energy rate to be paid for power supplied by a qualifying facility by reference to the appropriate Western EIM locational marginal price determined on an hourly basis if such locational marginal price is representative of the utility’s avoided cost. To implement this option for the avoided cost energy rate, the utility must set forth in its current tariff on file with the commission the applicable Western EIM pricing location.

(b) A utility participating in the SPP may establish the energy rate to be paid for power supplied by a qualifying facility by reference to the appropriate SPP locational marginal price if such locational marginal price is representative of the utility’s avoided cost, as defined herein. To implement this option for the avoided cost energy rate, the utility must set forth in its current tariff on file with the commission the applicable SPP pricing location.

(c) Any utility that participates in a market has the flexibility to establish avoided energy cost rates based on the rule criteria. Any utility that does not participate in the Western EIM or the SPP may establish avoided energy cost rates based on:

(i) Locational marginal prices, if any are available;

(ii) Market hub prices;

(iii) Formulas based on natural gas prices;

(iv) Competitive solicitations; or

(v) Mutual agreement between the qualifying facility and the utility.

(2) In its application for approval of the tariff, each utility applying for approval of a method to calculate avoided energy cost rates for purchases shall specify the method to be used and explain why it results in an accurate approximation of the utility’s avoided energy costs.

(3) The avoided energy cost rates calculated in accordance with the method approved under Paragraph (1) of Subsection B of 17.9.570.11 NMAC shall be applied to both energy acquired on an as-available basis and energy acquired pursuant to a legally enforceable obligation.

(4) Until the commission approves a utility’s tariff under Paragraph (1) of Subsection B of 17.9.570.11 NMAC, the utility shall pay avoided cost rates calculated under Subsection C of 17.9.570.11 NMAC for both energy purchased on an as-available basis and energy purchased pursuant to a legally enforceable obligation. After the approval of the utility’s tariff under Paragraph (1) of Subsection B of 17.9.570.11 NMAC, the utility shall pay the avoided cost rates calculated under the approved tariff for both energy purchased on an as-available basis and energy purchased pursuant to a legally enforceable obligation.

C. Until approval of a utility’s tariff under Paragraph (1) of Subsection B 17.9.570.11 NMAC, the avoided cost rate to be paid for the energy supplied by a qualifying facility in any month shall be that respective month's rate from the utility's current schedule on file with the commission. Each utility shall file with the commission its schedule containing monthly energy rates that will be applicable to the next 12-month period. These monthly energy rates shall be listed for each voltage level of interconnection and shall be expressed in cents/kWh. Each month's energy rate contained in the schedule shall be the average of the economy energy purchases by the utility for the corresponding month of the immediately preceding 12-month period. In the event a utility does not engage in economy energy purchases in any given month, the energy rate to be included in its schedule for that month shall be either: the monthly average of hourly incremental energy costs including variable operation and maintenance expenses for generating utilities, or the energy charge of the highest energy cost contract as adjusted for appropriate retail fuel and purchase power pass through for non-generating utilities.

(1) As applicable, those utilities with retail time-of-use rates on file with the commission shall file schedules reflecting monthly energy rates calculated for peak periods only and off-peak periods only which shall be applied to qualifying facilities whose generation is limited to peak periods only or off- peak periods only. Peak and off-peak periods shall be as defined in the utility's retail tariffs on file with the commission.

(2) Within 60 days of the effective date of revised 17.9.570 NMAC each electric utility subject to the rule shall file with the commission the schedule containing rates to be offered along with detailed supporting workpapers showing the input data and calculations, if applicable. After the first submittal each utility shall update its filing within 30 days from the last day of its fiscal year.

(3) To the extent applicable, variable operation and maintenance rates used for the above computations shall be the basis for requested variable operation and maintenance rates in the utility's future rate cases.

(4) The energy rate contained in the schedules shall include the savings attributable to the avoidance of losses due to transmission, distribution, and transformation as applicable for different voltage levels of interconnection. These transmission, distribution, and transformation loss avoidance savings for different voltage levels of interconnection shall be obtained from the utility's filing in the last commission-decided rate case, and those figures shall be shown in the utility's submittal.

D. Negotiations. Notwithstanding the provisions of 17.9.570 NMAC, a utility and qualifying facility may at the qualifying facility's option negotiate rates for the power to be supplied by the qualifying facility. Such negotiated rates shall be filed with the commission within 30 days of the execution of the contract. The contract shall not contain any rate which is higher than the utility's avoided costs as defined in 17.9.570 NMAC.

History

17.9.570.11 NMAC - Rp, 17.9.570.11 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.12 Obligation to Sell

A. Rates to be offered. Utilities are required to provide supplementary power, backup power, maintenance power, and interruptible power to qualifying facilities irrespective of whether the production and consumption functions of the qualifying facility are singly or separately owned. The rates for supplementary power, backup power, maintenance power, and interruptible power shall be calculated as provided for in this section (17.9.570.12 NMAC) and included in the tariff for each utility to be filed pursuant to 17.9.570 NMAC. Utilities may charge a facilities fee for equipment dedicated to the customer pursuant to the utility's rate schedules and rules governing the utility's practices for recovering such costs. The computation of the facilities fee shall take into account the costs of facilities already paid for by the customer before installing a qualifying facility.

B. Supplementary power.

(1) Qualifying facilities shall be entitled to supplementary power under the same retail rate schedules that would be applicable to those retail customers having power requirements equal to the supplementary power requirements of the qualifying facility. Any ratchet enforced through the “billing demand” provisions of such retail schedules shall also apply.

(2) To determine the amount of supplementary power required, supplementary power shall be measured to each qualifying facility through appropriate metering devices which are adequate to determine whether supplementary or backup power is being utilized. The demand interval used shall be the same as that contained in the applicable retail rate schedule.

C. Backup power.

(1) Qualifying facilities shall be entitled to backup power for forced outages under the same retail rate which would be applicable absent its qualifying facility generation. Rates for sale of backup power shall not contain demand charges in time periods when demand charges are not applicable to such retail rate schedule. Rates for backup power shall not contain demand ratchets or power factor penalties. If the utility can demonstrate that a particular qualifying facility has caused either a demand ratchet or a power factor penalty clause between the utility and its power supplier(s) to be invoked because of the qualifying facility's operation, the utility may petition the commission to allow the allocable charges resulting from the demand ratchet or power f actor penalty which has been invoked to be included in the rates for that particular qualifying facility.

(2) In the months that backup power is not utilized by the qualifying facility the rates for backup power may contain a monthly reservation fee which shall not exceed ten percent of the monthly demand charge contained in the retail rate schedule which would be applicable to the consumer absent its qualifying facility generation. Such a reservation fee shall not be charged while a qualifying facility is taking backup power or while charges resulting from a power factor penalty or demand ratchet have been imposed pursuant to Paragraph (1) of Subsection C of 17.9.570.12 NMAC.

D. Maintenance power.

(1) Maintenance power shall be provided to qualifying facilities for periods of maintenance scheduled in advance with the concurrence of' the utility. A qualifying facility shall schedule such maintenance with the utility by giving the utility advance notice dependent on the length of the outage as follows:

Length of Outage* Advance Notice* 1 day 5 days 2 to 5 days 30 days 6 to 30 days 90 days *All days are calendar days.

Length of Outage*

Advance Notice*

1 day

5 days

2 to 5 days

30 days

6 to 30 days

90 days

*All days are calendar days.

(2) Maintenance power rates shall be the same as the retail rate which would be applicable to the qualifying facility absent its qualifying facility generation. The maintenance power demand charge shall be determined by multiplying the applicable retail demand charge by the ratio of the number of weekdays in which the maintenance power was taken to the number of weekdays in the month. No demand charge shall apply for maintenance power taken during off-peak hours as defined in the utility's retail tariffs. For those utilities which do not have time-of-use rates, off-peak hours are defined as 11:00 p.m. to 7:00 a.m. weekdays, 24 hours per day on weekends and holidays.

(3) Maintenance power shall be available to qualifying facilities for a minimum period of 30 days per year scheduled outside of the system peak period of the utility which is defined as the three-month period covering the peak month together with the preceding and succeeding months.

E. Interruptible power. All utilities shall file rates for interruptible power which shall be available to qualifying facilities. Rates for such interruptible power purchases shall reflect the lower costs, if any, which the utility incurs in order to provide interruptible power as opposed to what it would incur to provide firm power.

F. Customer charges. The customer charges from a utility for a qualifying facility shall be the same as the retail rate applicable to the customers in the same rate class absent its qualifying facility generation.

G. Exceptions. An electric utility shall not be required to provide supplementary power, backup power, maintenance power, or interruptible power to a qualifying facility if, after notice in the area served by the electric utility and after opportunity for public comment, the electric utility demonstrates and the commission finds that provision of such power would:

(1) impair the electric utility's ability to render adequate service to its customers; or

(2) place an undue burden on the utility.

History

17.9.570.10 NMAC - Rp, 17.9.570.10 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.13 Periods When Purchases and Sales Are Not Required and General Provisions

A. System emergencies.

(1) During any system emergency a utility may discontinue on a nondiscriminatory basis:

(a) purchases from a qualifying facility if such purchases would contribute to such emergency, and

(b) sales to a qualifying facility provided that such discontinuance is on a previously established nondiscriminatory basis.

(2) A qualifying facility shall be required to provide power to a utility during a system emergency only to the extent:

(a) provided by agreement between the qualifying facility and the utility; or

(b) ordered pursuant to the provisions of the Federal Power Act, 16 U.S.C. Section 824a(c).

B. Operational circumstances. The utility may discontinue purchases from the qualifying facility during any period in which, due to operational circumstances, purchases from qualifying facilities will result in costs greater than those which the utility would incur if it did not make such purchases but instead generated an equivalent amount of energy itself; a claim by an electric utility that such a period has occurred or will occur is subject to verification by the commission; the utility shall maintain and make available sufficient documentation to aid the commission with verification proceedings.

C. Notification requirements. Any utility which disconnects and thereby discontinues purchases or sales from a qualifying facility for the reasons cited in Subsections A and B of 17.9.570.13 NMAC above shall notify the qualifying facility or facilities prior to the system emergency or operational circumstance if reasonably possible. If prior notice is not reasonably possible the utility shall notify the qualifying facility by telephone or personal contact within 48 hours following the system emergency or operational circumstance followed by written communication if requested by the qualifying facility. Any notification shall include the specific reason for the system emergency or operational circumstance.

D. Penalty. Any utility which fails to comply with the notification requirements in Subsection C of 17.9.570.13 NMAC or fails to demonstrate the existence of a system emergency or operational circumstance which warrants the discontinuance of purchases shall pay for the qualifying facility's imputed or expected power at the applicable rate as if the system emergency or operational circumstance had not occurred. The utility may also be subject to a penalty under Section 62-12-4 NMSA 1978.

E. Wheeling of power. If the qualifying facility agrees, an electric utility which would otherwise be obligated to purchase power from the qualifying facility may transmit power to any other electric utility. Any electric utility to which power is transmitted shall purchase such power as if the qualifying facility were supplying power directly to such electric utility. The rate for purchase by the electric utility to which such power is transmitted shall be adjusted up or down to reflect line losses pursuant to 18 C.F.R. Section 292.304(e)(4) and shall not include any charges for transmission.

F. Distribution cooperatives.

(1) A distribution cooperative having a full power requirements contract with its supplier has the option of transferring the purchase obligation pursuant to 17.9.570.9 NMAC to its power supplier. The qualifying facility will be paid the capacity and energy payments, as applicable, by the supplier pursuant to 17.9.570.11 NMAC. A distribution cooperative that does not transfer the purchase obligation to its power supplier shall have the option to:

(a) pay qualifying facilities the energy and capacity charges including appropriate fuel and purchase power pass-throughs it pays to its power supplier, or

(b) pay the qualifying facility the energy and capacity charges which shall be determined in accordance with Section 17.9.570.11 NMAC.

(2) The obligation to interconnect and provide supplementary, backup, and maintenance power either on a firm or on an interruptible basis shall remain with the distribution cooperative.

(3) Any municipal electric utility that does not have generating capacity but is subject to the jurisdiction of the commission shall be considered a distribution cooperative for the purposes of 17.9.570 NMAC.

G. Requirements to file electric utility system data: not later than April 1 of each year each utility shall submit to the commission a report covering the previous calendar year which shall at a minimum provide:

(1) the name and address of each qualifying facility with which it is interconnected, with which it has a contract to interconnect, or with which it has concluded a wheeling agreement;

(2) annual purchases in kW and kWh from each qualifying facility with which it is interconnected and the amount of electricity wheeled on behalf of each qualifying facility;

(3) the price charged for any power wheeled on behalf of each qualifying facility;

(4) the methodology and assumptions used in the calculation of wheeling rates;

(5) amounts actually paid to each qualifying facility; and

(6) a list of all applications for interconnection which the utility has rejected or otherwise failed to approve together with the reasons therefor.

H. Filing of tariff.

(1) Within 60 days of the adoption of this rule, each utility shall develop and file any changes to its tariffs on file with the commission needed to comply with the requirements set forth herein; such changes shall comply with all tariff filing requirements of the commission; such tariffs shall conform to the requirements of 17.1.210 NMAC, and shall become effective 30 days after the filing thereof unless suspended by the commission pursuant to Section 62-8-7 NMSA 1978, or unless ordered effective at an earlier date by the commission.

(2) Within 60 days of the adoption of the amendments to this rule, each utility shall develop and file tariffs for metering and billing consistent with this rule for generating facilities with rated capacities up to and including 10 kW; such tariffs shall comply with all tariff filing requirements of the commission; such tariffs shall conform to the requirements 17.1.210 NMAC, and shall become effective 30 days after the filing thereof unless suspended by the commission pursuant to Section 62-8-7 NMSA 1978, or unless ordered effective at an earlier date by the commission.

I. Complaints and investigations. The procedures set forth in Sections 62-8-7 and 62-10-1 NMSA 1978 and the complaint provisions of 1.2.2 NMAC shall be applicable for the resolution of complaints and investigations arising out of the implementation and conduct of 17.9.570 NMAC.

J. Severability. If any part of 17.9.570 NMAC or any application thereof is held invalid, the remainder or the application thereof to other situations or persons shall not be affected.

K. Amendment. The adoption of 17.9.570 NMAC shall in no way preclude the commission, after notice and hearing, from altering or amending any provision hereof or from making any modification with respect to its application deemed necessary.

L. Exemption or variance.

(1) Any interested person may file an application for an exemption or a variance from the requirements of 17.9.570 NMAC. Such application shall:

(a) describe the situation which necessitates the exemption or variance;

(b) set out the effect of complying with 17.9.570 NMAC on the utility and its customers if the exemption or variance is not granted;

(d) define the result which the request will have if granted;

(e) state how the exemption or variance will promote the achievement of the purposes of 17.9.570 NMAC; and

(f) state why no other reasonable alternative is available.

(2) If the commission determines that the exemption or variance is consistent with the purposes of the rule as defined herein, the exemption or variance may be granted. The commission may at its option require an informal conference or formal evidentiary hearing prior to the granting of the variance.

M. Motion for stay pending amendment, exemption, or variance. An application for an amendment, exemption, or a variance may include a motion that the commission stay the application of the affected portion of 17.9.570 NMAC for the transaction specified in the motion.

History

17.9.570.13 NMAC - Rp, 17.9.570.13 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.14 Net Metering of Customer-Sited Qualifying Facilities with a Design Capacity Up to and Including 10kw

A. Relationship to other commission rules. The standards and procedures for the interconnection of qualifying facilities subject to this section (17.9.570.14 NMAC) are set forth in 17.9.568 NMAC.

B. Use of a single meter. When the customer is billed under a rate structure that does not include time-of-use energy pricing, a single energy meter shall be used to implement net metering of a qualifying facility unless an alternate metering arrangement is agreed to by the customer and utility. If either the utility or the customer requests an alternate form of metering or additional metering that is not required to accomplish net metering or is for the convenience of the party, the party requesting the change in metering shall pay for the alternate or additional metering arrangement. If the customer elects to take electric service under any rate structure, including time-of-use, that requires the use of metering apparatus or a metering arrangement that is more costly than would otherwise be necessary absent the requirement for net metering, the customer shall be required to pay the additional incremental cost of the required metering equipment. Within ten days of receiving notification from the customer of the intent to interconnect, the utility will notify the customer of any metering costs. Charges for special metering costs shall be paid by the customer, or arrangements for payment agreed to between the customer and utility, prior to the utility authorizing interconnected operation.

C. Net metering calculation. The utility shall calculate each customer’s bill for the billing period using net metering and with the following conditions:

(1) Customers shall be billed for service in accordance with the rate structure and monthly charges that the customer would be assigned if the customer had not interconnected a qualifying facility. Net energy produced or consumed on a monthly basis shall be measured in accordance with standard metering practices.

(2) If electricity supplied by the utility exceeds electricity generated by the customer during a billing period, the customer shall be billed for the net energy supplied by the utility under the applicable rates.

(3) If electricity generated by the customer exceeds the electricity supplied by the grid during a billing period, the utility shall credit the customer on the next bill for the excess kilowatt-hours generated, by:

(a) crediting or paying the customer for the net energy supplied to the utility at the utility's energy rate pursuant to this 17.9.570 NMAC; or

(b) crediting the customer for the net kilowatt-hours of energy supplied to the utility. Unused credits shall be carried forward from month to month; provided that if a utility opts to credit customers and the customer leaves the system, customer's unused credits for excess kilowatt-hours generated shall be paid to the customer at the utility's energy rate pursuant to this 17.9.570 NMAC.

History

17.9.570.14 NMAC - Rp, 17.9.570.14 NMAC, 5/24/2022

N.M. Admin. Code § 17.9.570.15 Standard Metering and Billing Agreement for Qualifying Facilities with a Design Capacity of Greater Than 10 Kw and Less Than or Equal to 10 Mw

This agreement is made as of the_____ day of , 20, by and between _________ ("customer") and___________ (“utility”) also referred to collectively as "parties" and singularly as "party." Customer receives electric service from utility at __________________ (location/address) under account __________________. Customer has located at these premises a qualifying facility ("QF") as defined by 17.9.570 NMAC, having an installed capacity of greater than 10 kilowatts and up to and including 10 megawatts, which is interconnected to utility pursuant to an interconnection agreement, attached as exhibit A. For good and valuable consideration, customer desires to sell or provide electricity to utility from the QF and utility desires to purchase or accept all the energy produced by the QF that is not consumed by customer, and the parties agree to the following terms and conditions:

A. DEFINITIONS. Whenever used in the agreement, the following words and phrases shall have the following meanings:

(1) agreement shall mean this agreement and all schedules, tariffs, attachments, exhibits, and appendices attached hereto and incorporated herein by reference;

(2) interconnection facilities shall mean all machinery, equipment, and fixtures required to be installed solely to interconnect and deliver power from the QF to the utility's system, including, but not limited to, connection, transformation, switching, metering, relaying, line and safety equipment and shall include all necessary additions to, and reinforcements of, the utility's system;

(3) prudent electrical practices shall mean those practices, methods and equipment, as changed from time to time, that are commonly used in prudent electrical engineering and operations to operate electric equipment lawfully, and with safety, dependability, efficiency and economy;

(4) qualifying facility (QF) means a cogeneration facility or a small power production facility which meets the criteria for qualification contained in 18 C.F.R. Section 292.203;

(5) point of delivery means the geographical and physical location described on exhibit B hereto; such exhibit depicts the location of the QF’s side of interconnection facilities where customer is to (sell and) deliver electric energy pursuant to this agreement or pursuant to a separate wheeling agreement;

(6) termination means termination of this agreement and the rights and obligations of the parties under this agreement, except as otherwise provided for in this agreement;

(7) suspension means suspension of the obligation of the utility to interconnect with and purchase electricity from the customer.

B. TERM OF AGREEMENT. The original term of this agreement shall be for a period of five years from the date of the execution of this agreement and shall continue thereafter from year to year until terminated as herein provided.

(1) Termination by customer. Termination of this agreement during and after the original term requires written notice to utility that this agreement will terminate in 90 days. Customer may terminate this agreement without showing good cause.

(2) Termination by utility. Termination of this agreement during and after the original term requires written notice to customer that this agreement will terminate in 90 days, unless otherwise provided. utility, in the exercise of this right, must show good cause for the termination.

(3) At any time the QF is sold, leased, assigned, or otherwise transferred, the seller or lessor of the QF shall notify utility and this agreement may be terminated at utility's option, for good cause, regardless of whether such transfer occurs during the original term or any renewal thereof. Such termination may be made with five days written notice by utility.

(4) Should the customer default in the performance of any of the customer's obligations hereunder, utility may suspend interconnection, purchases, or both and if the default continues for more than 90 days after written notice by utility to customer, utility may terminate this agreement. Termination or suspension shall not affect the obligation of utility to pay for energy already delivered or of customer to reimburse interconnection costs, or any cost then accrued. Upon termination, all amounts owed to the utility will become payable immediately.

C. METER INSTALLATION, TESTING AND ACCESS TO PREMISES. Customer will be metered by a meter or meters as determined by utility to which utility is granted reasonable access.

(1) Customer shall supply, at its own expense, a suitable location for all meters and associated equipment. Customer shall provide a clearly understandable sketch or one-line diagram showing the qualifying facility, the interconnection equipment, breaker panel(s), disconnect switches and metering, to be attached to this agreement. Such location must conform to utility’s meter location policy. The following metering options will be offered by utility: _________________. Customer shall provide and install a meter socket and any related interconnection equipment per utility's requirements.

(2) Customer shall deliver the as-available energy to utility at utility's meter.

(3) Utility shall furnish and install a standard kilowatt-hour meter. Utility may install, at its option and expense, magnetic tape recorders in order to obtain load research information. Utility may meter the customer's usage using two meters for measurement of energy flows in each direction at the point of delivery.

(4) If either utility or customer requests an alternate form of metering or additional metering that is not required to accomplish net metering or is for the convenience of the party, the party requesting the change in metering shall pay for the alternate or additional metering arrangement. If customer elects to take electric service under any rate structure, including time-of-use, that requires the use of metering apparatus or a metering arrangement that is more costly than would otherwise be necessary absent the requirement for net metering, customer shall be required to pay the additional incremental cost of the required metering equipment. Within 10 days of receiving notification from customer of the intent to interconnect, utility will notify the customer of any metering costs. Charges for special metering costs shall be paid by customer, or arrangements for payment agreed to between customer and utility, prior to utility authorizing interconnected operation.

(5) All meter standards and testing shall be in compliance with utility’s rules and regulations as approved by the NMPRC. The metering configuration shall be one of utility’s standard metering configurations as set out in Subsection D of 17.9.570.15 NMAC and mutually agreeable to the parties or any other metering configuration mutually agreeable to the parties. The agreed upon configuration is shown on exhibit B. (Service by the distribution cooperative to customer shall be in accordance with the distribution cooperative's articles, bylaws and regulations and in accordance with its tariffs filed with the NMPRC, the terms and conditions of which shall be unaffected by this agreement). If the interconnection facilities have been modified pursuant to the interconnection agreement, customer shall permit utility, at any time, to install or modify any equipment, facility or apparatus necessary to protect the safety of its employees or to assure the accuracy of its metering equipment, the cost of which shall be borne by customer. Utility shall have the right to disconnect the QF if it has been modified without utility’s authorization.

(6) Utility may enter customer's premises to inspect at all reasonable hours customer's protective devices and read or test meter; and pursuant to the interconnection agreement to disconnect, without notice, the interconnection facilities if utility reasonably believes a hazardous condition exists and such immediate action is necessary to protect persons, or utility's facilities, or property of others from damage or interference caused by customer's facilities, or lack of properly operating protective devices.

D. ENERGY PURCHASE PRICE AND METERING OPTION. All electric energy delivered and service rendered hereunder shall be delivered and rendered in accordance with the applicable rate schedules and tariffs. Customer has selected the __________ metering option defined in this section. It is understood and agreed, however, that said rates are expressly subject to change by any regulatory body having jurisdiction over the subject matter of this agreement. If a new rate schedule or tariff is approved by the proper regulatory body, the new rate schedule or tariff shall be applicable to this agreement upon the effective date of such rate schedule or tariff.

(1) Load displacement option: Utility will interconnect with the customer using a single meter which will be ratcheted and would only measure the flow of energy to the customer. Billing to customer will be at utility’s approved tariff rate applicable to the service provided to the QF. There will be no additional customer charge and no payment by utility for any excess power which might be generated by the QF.

(2) Net metering option.

(a) Utility shall install the metering necessary to determine the net energy delivered from customer to utility or the net energy delivered from utility to customer for each time-of-use or single rate period, as applicable, during a billing period. The net energy delivered to either the QF or to the utility is the difference between the energy produced by the QF generation and the energy that would have otherwise been supplied by the utility to the QF absent the QF generation.

(b) The net energy delivered from customer to utility shall be purchased by utility at utility’s applicable time-of-use or single period energy rate, as described in Subsection B of 17.9.570.11 NMAC, and filed with the NMPRC. Customer shall be billed for all net energy delivered from utility in accordance with the tariff that is applicable to customer absent the QF generation. An additional customer charge to cover the added costs of billing and administration may be included in the tariff. At the end of the billing period, utility shall net all charges owed to utility by customer and all payments owed by utility to customer. If a net amount is owed to customer for the billing period, and is less than $50, the payment amount may be carried over to the following billing period. If a net amount is owed to customer and is $50 or more, utility shall make payment to customer prior to the end of the next billing period.

(c) If provision of the net metering option requires metering equipment and related facilities that are more costly than would otherwise be necessary absent the requirement for net metering, customer shall pay all incremental costs associated with installing the more costly metering equipment and facilities.

(3) Simultaneous buy/sell option.

(a) Utility will install the metering necessary to determine separately 1) all of the energy produced by customer’s generator and 2) all of the power consumed by customer’s loads. Utility will purchase all energy produced at utility’s applicable time-of-use or single period energy rate, as described in Subsection B of 17.9.570.11 NMAC, for such purchases, and as filed with and approved by the NMPRC. Customer shall purchase all power consumed at its normally applicable tariff rate. An additional customer charge to cover the added costs of billing and administration may be included.

(b) If provision of the simultaneous buy/sell option requires metering equipment and related facilities that are more costly than would otherwise be necessary absent the requirement for simultaneous buy/sell metering, customer shall pay all incremental costs associated with installing the more costly metering equipment and facilities.

E. INTERRUPTION OR REDUCTION OF DELIVERIES.

(1) Utility shall not be obligated to accept or pay for and may require customer to interrupt or reduce deliveries of available energy under the following circumstances:

(a) it is necessary in order to construct, install, maintain, repair, replace, remove, investigate, or inspect any of its equipment or part of its system or if it reasonably determines that curtailment, interruption, or reduction is necessary because of emergencies, forced outages, force majeure, or compliance with prudent electrical practices; whenever possible, utility shall give customer reasonable notice of the possibility that interruption or reduction of deliveries may be required;

(b) there is evidence that customer's QF is interfering with service to other customers or interfering with the operation of utility’s equipment; customer may be reconnected by utility when customer makes the necessary changes to comply with the standards required by this agreement;

(c) it is necessary to assure safety of utility’s personnel; notwithstanding any other provision of this agreement, if at any time utility reasonably determines that the facility may endanger utility personnel or other persons or property or the continued operation of customer's facility may endanger the integrity or safety of utility's electric system, utility shall have the right to disconnect and lock out customer's facility from utility's electric system; customer's facility shall remain disconnected until such time as utility is reasonably satisfied that the conditions referenced in this section have been corrected;

(d) there is a failure of customer to adhere to this agreement;

(e) if suspension of service is otherwise necessary and allowed under utility’s rules and regulations as approved by the NMPRC.

(2) Customer shall cooperate with load management plans and techniques as ordered or approved by the NMPRC, and the service to be furnished by utility hereunder may be modified as required to conform thereto.

F. FORCE MAJEURE. Force majeure shall mean any cause beyond the control of the party affected, including, but not limited to, failure of or threat of failure of facilities, flood, earthquake, tornado, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, (labor dispute,) labor or material shortage, sabotage, restraint by court order or public authority, and action or nonaction, by or failure to obtain the necessary authorizations or approvals from any governmental agency or authority, which by exercise of due diligence such party could not reasonably have been expected to avoid and which by exercise of due diligence, it shall be unable to overcome. If either party, because of force majeure, is rendered wholly or partly unable to perform its obligations under this agreement, except for the obligation to make payments of money, that party shall be excused from whatever performance is affected by the force majeure to the extent so affected, provided that:

(1) the nonperforming party, within a reasonable time after the occurrence of the force majeure, gives the other party written notice describing the particulars of the occurrence;

(2) the suspension of performance is of no greater scope and of no longer duration than is required by the force majeure; and

(3) the nonperforming party uses its best efforts to remedy its inability to perform. This paragraph shall not require the settlement of any strike, walkout, lockout or other labor dispute on terms which, in the sole judgment of the party involved in the dispute, are contrary to its interest. It is understood and agreed that the settlement of strikes, walkouts, lockouts or other labor disputes shall be entirely within the discretion of the party involved in the disputes.

G. INDEMNITY. Each party shall indemnify the other from liability, loss, costs, and expenses on account of death or injury to persons or damage or destruction of property occasioned by the negligence of the indemnifying party or its agents, officers, employees, contractors, licensees or invitees, or any combination thereof, except to the extent that such death, injury, damage, or destruction resulted from the negligence of the other party or its agents, officers, employees, contractors, licensees or invitees, or any combination thereof. Provided, however, that:

(1) each party shall be solely responsible for the claims or any payments to any employee or agent for injuries occurring in connection with their employment or arising out of any workers compensation law or occupational disease disablement law;

(2) utility shall not be liable for any loss of earnings, revenues, indirect or consequential damages or injury which may occur to customer as a result of interruption or partial interruption (single-phasing) in delivery of service hereunder to customer or by failure to receive service from customer by reason of any cause whatsoever, including negligence; and

(3) the provisions of this subsection on indemnification shall not be construed so as to relieve any insurer of its obligation to pay any insurance proceeds in accordance with the terms and conditions of any valid insurance policy;

(4) the indemnifying party shall pay all costs and expenses incurred by the other party in enforcing the indemnity under this agreement including reasonable attorney fees.

H. DEDICATION. An undertaking by one party to another party under any provision of this agreement shall not constitute the dedication of such party's system or any portion thereof to the public or to the other party and any such undertaking shall cease upon termination of the party's obligations herein.

I. STATUS OF CUSTOMER. In performing under this agreement, customer shall operate as or have the status of an independent contractor and shall not act as or be an agent, servant, or employee of utility.

J. AMENDMENT, MODIFICATIONS OR WAIVER. Any amendments or modifications to this agreement shall be in writing and agreed to by both parties. The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same. No waiver by any party of the breach of any term or covenant contained in this agreement, whether by conduct or otherwise, shall be deemed to be construed as a further or continuing waiver of any such breach or a waiver of the breach of any other term or covenant unless such waiver is in writing.

K. ASSIGNMENT. This agreement and all provisions hereof shall inure to and be binding upon the respective parties hereto, their personal representatives, heirs, successors, and assigns. Customer shall not assign this agreement or any part hereof without the prior written consent of utility, otherwise this agreement may be terminated pursuant to Paragraph (3) of Subsection B of 17.9.570.15 NMAC

L. NOTICES. Any payments, notices, demands or requests required or authorized by this agreement shall be deemed properly given if personally delivered or mailed postage prepaid to:

Customer: ____________________________________________

Utility: ______________________________________________

The designation of the persons to be notified, or the address thereof, may be changed by notice in writing by one party to the other. Routine notices and notices during system emergency or operational circumstances may be made in person or by telephone. Customer’s notices to utility pursuant to this agreement shall refer to the customer's electric service account number set forth in this agreement.

M. MISCELLANEOUS. This agreement and any amendments thereto, including any tariffs made a part hereof, shall at all times be subject to such changes or modifications as shall be ordered from time to time by any regulatory body or court having jurisdiction to require such changes or modification. This agreement (and any tariffs incorporated herein) contains all the agreements and representations of the parties relating to the interconnection and purchases contemplated and no other agreement, warranties, understandings or representations relating thereto shall be binding unless set forth in writing as an amendment hereto.

N. GOVERNING LAW. This agreement shall be interpreted, governed, and construed under the laws of the state of New Mexico as if executed and to be performed wholly within the state of New Mexico.

O. ATTACHMENTS. This agreement includes the following exhibits as labeled and incorporated herein by reference:

(1) interconnection agreement;

(2) customer's sketch or one line diagram and site drawing, and generation and protection equipment specifications.

In witness thereof, the parties have executed this agreement on the date set forth herein above.

Date:__________

CUSTOMER__________By:__________.

Date: __________

UTILITY ________By:__________.

HISTORY OF 17.9.570 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the commission of public records-state records center and archives.

PSC-GO 37 (General Order 37), Rules And Regulations Governing Cogeneration And Small Power Production filed 4/1/1981.

First Revised General Order No. 37, Rules And Regulations Governing Cogeneration And Small Power Production filed 12/30/1982.

G.O. 37; General Order 37, Second Revised, Rules And Regulations Governing Cogeneration And Small Power Production filed 12/3/1986.

G.O. 37; General Order 37, Second Revised, Rules And Regulations Governing Cogeneration And Small Power Production filed 1/5/1987.

G.O. 37; Second Revised General Order 37, Governing Cogeneration And Small Power Production filed 3/3/1987.

G.O. 37; Third Revised General Order 37, Governing Cogeneration And Small Power Production filed 3/11/1988.

NMSPC Rule 570, Governing Cogeneration And Small Power Production filed 6/30/1988.

History of Repealed Material:

NMPSC Rule 570, Governing Cogeneration and Small Power Production (filed 6/30/1988) repealed 3/30/2007.

17 NMAC 10.571, Net Metering of Customer-Owned Qualifying Facilities of 10kW or Smaller (filed 9/17/1999) repealed 10/15/2008.

17.9.570 NMAC, Governing Cogeneration and Small Power Production (filed 3/6/2007) repealed 10/15/2008.

17.9.570 NMAC, Governing Cogeneration and Small Power Production (filed 10/1/2008) repealed 5/24/2022.

Other History:

NMPSC Rule 570, Governing Cogeneration and Small Power Production (filed 6/30/1988) was renumbered, reformatted and replaced by 17.9.570 NMAC, Governing Cogeneration and Small Power Production, effective 3/30/2007.

Only those applicable portions of 17 NMAC 10.571, Net Metering of Customer-Owned Qualifying Facilities of 10kW or Smaller (filed 09/17/1999) and 17.9.570 NMAC, Governing Cogeneration and Small Power Production (filed 3/16/2007) were replaced by 17.9.570 NMAC, Governing Cogeneration and Small Power Production, effective 10/15/2008.

History

17.9.570.15 NMAC - Rp, 17.9.570.15 NMAC, 5/24/2022

Part 571 Renewable Energy for Rural Electric Cooperatives

N.M. Admin. Code § 17.9.571.1 Issuing Agency

New Mexico public regulation commission.

History

17.9.571.1 NMAC - N, 6/24/2025

N.M. Admin. Code § 17.9.571.2 Scope

This rule applies to all cooperatives, rural electric cooperatives, distribution cooperatives, and generation and transmission cooperatives under the commission’s jurisdiction.

History

17.9.571.2 NMAC - N, 6/24/2025

N.M. Admin. Code § 17.9.571.3 Statutory Authority

Sections 62-15-1 to -37 NMSA 1978 of the Rural Electric Cooperative Act, and Section 62-16-8 NMSA 1978 of the Renewable Energy Act.

History

17.9.571.3 NMAC - N, 6/24/2025

N.M. Admin. Code § 17.9.571.4 Duration

Permanent.

History

17.9.571.4 NMAC - N, 6/24/2025

N.M. Admin. Code § 17.9.571.5 Effective Date

June 24, 2025, unless a later date is cited at the end of a section.

17.9571.6 OBJECTIVE: The objective of this rule is to implement the renewable energy provisions of the Rural Electric Cooperative Act, the voluntary tariff provisions of the Renewable Energy Act, and to bring significant economic development and environmental benefits to New Mexico.

17.9. 571.7 DEFINITIONS: Unless otherwise specified, as used in this rule:

A. Definitions beginning with “A”: [RESERVED]

B. Definitions beginning with “B”: [RESERVED]

C. Definitions beginning with “C”: “cooperative” means an electric utility that is organized under the Rural Electric Cooperative Act or the laws of another state as a cooperative nonprofit membership corporation; cooperative is synonymous with rural electric cooperative.

D. Definitions beginning with “D”: “distribution cooperative” means an electric utility, with distribution facilities, that purchases wholesale power and delivers it to consumers in New Mexico and that is organized as a cooperative under the Rural Electric Cooperative Act or the laws of another state; a distribution cooperative is a rural electric cooperative, and may have generation facilities, transmission facilities, or both, but it is not a generation and transmission cooperative.

E. Definitions beginning with “E”: [RESERVED]

F. Definitions beginning with “F”: [RESERVED]

G. Definitions beginning with “G”: “generation and transmission cooperative” means an electric utility, with generation facilities, transmission facilities, or both, but without distribution facilities, that sells electric power to member cooperatives in New Mexico and that is organized as a rural electric cooperative under the Rural Electric Cooperative Act or the laws of another state; a generation and transmission cooperative is a cooperative, but it is not a distribution cooperative.

H. Definitions beginning with “H”: [RESERVED]

I. Definitions beginning with “I”: [RESERVED]

J. Definitions beginning with “J”: [RESERVED]

K. Definitions beginning with “K”: [RESERVED]

L. Definitions beginning with “L”: [RESERVED]

M. Definitions beginning with “M”: [RESERVED]

N. Definitions beginning with “N”: [RESERVED]

O. Definitions beginning with “O”: [RESERVED]

P. Definitions beginning with “P”: plan year” means the calendar year for which approval is sought.

Q. Definitions beginning with “Q.”: [RESERVED]

R. Definitions beginning with “R”:

(1) “renewable energy certificate” or “REC” is as that term is defined in Section 62-15-37 NMSA 1978;

(2) “renewable portfolio standard” or “RPS” means the minimum percentage of retail sales of renewable energy by a distribution cooperative to customers in New Mexico that is required by the Rural Electric Cooperative Act; and

(3) “rural electric cooperative” means an electric utility that is organized under the Rural Electric Cooperative Act or the laws of another state as a cooperative nonprofit membership corporation; rural electric cooperative is synonymous with cooperative.

S. Definitions beginning with “S”: [RESERVED]

T. Definitions beginning with “T”: [RESERVED]

U. Definitions beginning with “U”: [RESERVED]

V. Definitions beginning with “V”: [RESERVED]

W. Definitions beginning with “W”: WREGIS” means the western renewable energy generation information system.

X. Definitions beginning with “X”: [RESERVED]

Y. Definitions beginning with “Y”: [RESERVED]

Z. Definitions beginning with “Z”: [RESERVED]

History

17.9.571.5 NMAC - N, 6/24/2025
17.9.571.6 NMAC - N, 6/24/2025
17.9.571.7 NMAC - N, 6/24/2025

N.M. Admin. Code § 17.9.571.8 Renewable Portfolio Standard

A. A distribution cooperative shall meet the RPS to include renewable energy in its electric energy supply portfolio as demonstrated by the retirement of RECs.

B. No later than January 1, 2025, renewable energy shall comprise no less than forty percent of a distribution cooperative’s total retail sales in New Mexico.

C. No later than January 1, 2030, renewable energy shall comprise no less than fifty percent of a distribution cooperative’s total retail sales in New Mexico.

D. No later than January 1, 2050, a distribution cooperative shall provide New Mexico retail customers with electricity generated from at least eighty percent renewable energy resources, provided that:

(1) achieving the eighty percent RPS is technically feasible;

(2) the distribution cooperative is able to provide reliable electric service while implementing the eighty percent RPS; and

(3) implementing the eighty percent RPS shall not cause electric service to become unaffordable.

E. Renewable energy resources that are in a distribution cooperative’s energy supply portfolio on January 1, 2008, shall be counted in determining compliance with Section 62-15-34 NMSA 1978 and this rule.

F. Demonstration of compliance:

(1) A distribution cooperative shall demonstrate compliance with the RPS by retiring RECs associated with renewable energy assigned to the distribution cooperative.

(2) A generation and transmission cooperative shall be responsible for meeting the RPS for all energy it supplies to its member distribution cooperatives in New Mexico.

(3) Energy from renewable energy resources that a generation and transmission cooperative supplies in compliance with the RPS shall be verified at the point where the generation and transmission cooperative produces or takes delivery of the energy on behalf of the member distribution cooperatives that the generation and transmission cooperative serves.

History

17.9.571.8 NMAC - N, 6/24/2025

N.M. Admin. Code § 17.9.571.9 Zero Carbon Resource Standard

A. No later than January 1, 2050, a distribution cooperative shall provide New Mexico retail customers with electricity generated from one hundred percent zero carbon resources, provided that:

(1) achieving the one hundred percent standard is technically feasible;

(2) the distribution cooperative is able to provide reliable electric service while implementing the one hundred percent standard; and

(3) implementing the one hundred percent standard shall not cause electric service to become unaffordable.

B. A generation and transmission cooperative shall be responsible for meeting the zero carbon resource standard for all energy it supplies to its member distribution cooperatives in New Mexico.

C. Energy from zero carbon resources that a generation and transmission cooperative supplies in compliance with the zero carbon resource standard shall be verified at the point where the generation and transmission cooperative produces or takes delivery of the energy on behalf of the member distribution cooperatives that the generation and transmission cooperative serves.

History

17.9.571.9 NMAC - N, 6/24/2025

N.M. Admin. Code § 17.9.571.10 Reasonable Cost Threshold

A. If, in any given year, a distribution cooperative determines that the average annual levelized cost of renewable energy that would need to be procured or generated for purposes of compliance with the RPS would be greater than $60.00 per megawatt-hour at the point of interconnection of the renewable energy resource with the transmission system, the distribution cooperative shall not be required to incur that excess cost.

(1) The reasonable cost threshold of $60.00 per megawatt-hour shall be adjusted for inflation after 2020.

(2) Excused performance pursuant to the reasonable cost threshold in any given year shall not operate to delay compliance with the RPS in subsequent years.

B. The provisions of this subsection do not preclude a distribution cooperative from accepting a project with a cost that would exceed the inflation-adjusted reasonable cost threshold.

History

17.9.571.10 NMAC - N, 6/24/2025

N.M. Admin. Code § 17.9.571.11 Renewable Energy Certificates

A. Renewable energy certificates:

(1) are owned by the generator of the renewable energy unless:

(a) the RECs are transferred to the purchaser of the energy through specific agreement with the generator;

(b) the generator is a qualifying facility, as defined by the federal Public Utility Regulatory Policies Act of 1978, in which case the RECs are owned by the distribution cooperative purchaser of the renewable energy unless retained by the generator through specific agreement with the distribution cooperative purchaser of the energy;

(c) a contract for the purchase of renewable energy is in effect prior to January 1, 2004, in which case the purchaser of the energy owns the RECs for the term of such contract; or

(d) the generator is a community solar facility, excluding a native community solar project, as those terms are defined in the Community Solar Act, in which case the RECs are owned by the distribution cooperative to whose electric distribution system the community solar facility is interconnected;

(2) may be traded, sold, or otherwise transferred by their owner to any other party; such transfers and use of the certificate by a distribution cooperative for compliance with the renewable energy portfolio standard do not require physical delivery of the electric energy represented by the certificate to a distribution cooperative, so long as the electric energy represented by the certificate was contracted for delivery in New Mexico, or consumed or generated by an end-use customer of the distribution cooperative in New Mexico, unless the commission determines that there is an active regional market for trading renewable energy and RECs in any region in which the distribution cooperative is located;

(3) that are used once by a distribution cooperative to satisfy the RPS and are retired, or that are traded, sold, or otherwise transferred by the distribution cooperative, shall not be further used by the distribution cooperative; and

(4) that are not used by a distribution cooperative to satisfy the RPS, or that are not traded, sold, or otherwise transferred by the distribution cooperative, may be carried forward for up to four years from the date of creation and, if not used by that time, shall be retired by the distribution cooperative.

B. A distribution cooperative is responsible for demonstrating that a REC used for compliance with the RPS is derived from eligible renewable energy resources and has not been retired, traded, sold, or otherwise transferred to another party.

C. A distribution cooperative shall maintain records sufficient to meet the requirements of 17.9.571.13 NMAC. A distribution cooperative shall maintain such records for a minimum of 10 years.

D. The acquisition, sale or transfer, and retirement of any RECs used to meet the RPS shall be registered with WREGIS or its direct successor(s), except as provided in Subsection E of 17.9.571.13 NMAC. Certificates whose retirement has been registered by a distribution cooperative with WREGIS shall be deemed to meet the requirements of Subsection B of 17.9.571.13 NMAC.

E. A REC representing electricity delivered to New Mexico and registered with a tracking system other than WREGIS may be used to meet the RPS so long as WREGIS lacks the capability to import the REC from the other tracking system.

F. The requirement for registration and trading of RECs through WREGIS shall not constitute a finding by the commission that a regional renewable energy market is generally available.

G. Until such time as the commission has determined that there is a regional market for exchanging renewable energy and RECs that is generally available for all distribution cooperatives in the state, a distribution cooperative may seek approval from the commission to meet some or all of its RPS using individual RECs that represent energy generated by a renewable energy resource within a regional renewable energy market or trading system in any region where the distribution cooperative is located.

H. Any state having a mandatory RPS that accepts RECs for energy produced and delivered in New Mexico on a non-discriminatory basis for compliance with the state’s RPS shall be deemed to be part of an active regional market for distribution cooperatives for the purposes of Paragraph (2) of Subsection A of 17.9.571.13 NMAC.

I. A non-WREGIS registered REC shall contain the following information:

(1) the name and contact information of the renewable energy generating facility owner or operator;

(2) the name and contact information of the distribution cooperative purchasing the REC;

(3) the type of generator technology and fuel type;

(4) the generating facility's physical location, nameplate capacity in MW, location and ID number of revenue meter, and date of commencement of commercial generation;

(5) the distribution cooperative to which the generating facility is interconnected;

(6) the control area operator for the generating facility; and

(7) the quantity in kWh and the date of the REC creation.

History

17.9.571.11 NMAC - N, 6/24/2025

N.M. Admin. Code § 17.9.571.12 Voluntary Renewable Tariffs

A. A distribution cooperative may offer its retail customers a voluntary program for purchasing renewable energy under rates and terms that are approved by the commission.

B. A distribution cooperative that offers its retail customers a voluntary program for purchasing renewable energy shall:

(1) report to the commission by April 30 of each year the demand for renewable energy pursuant to the voluntary program concerning the availability of renewable energy to the rural electric cooperative and the annual demand for renewable energy pursuant to their voluntary tariff; and

(2) comply with all requirements for the procurement of renewable energy set forth in the Rural Electric Cooperative Act.

History

17.9.571.12 NMAC - N, 6/24/2025

N.M. Admin. Code § 17.9.571.13 Annual Renewable Energy Portfolio Report

A. By April 30 of each year, a distribution cooperative shall file with the commission a report on its purchases and generation of renewable energy during the preceding calendar year.

B. The report shall include:

(1) an executive summary;

(2) the cost of the renewable energy resources purchased and generated by the distribution cooperative to meet the RPS;

(3) an explanation of steps taken to minimize costs, including competitive procurement and comparison of the price of electricity from renewable energy resources in the bids received by the distribution cooperative to recent prices for such electricity elsewhere in the southwestern United States;

(4) an annual compliance plan for meeting the RPS for the following three years;

(5) all renewable energy generation or REC purchases and sales itemized by source;

(6) where applicable, a reconciliation of any banking of RECs by providing a beginning REC balance, the REC activity affecting the beginning REC balance, and an ending REC balance;

(7) where applicable, the impact of any existing multipliers on the number of available RECs, including any documentation regarding the regulatory approval of such multipliers;

(8) an attestation that, to the best of the distribution cooperative’s knowledge, no RECs used for RPS compliance have been double-counted;

(9) a list of all RECs, including acquired, issued, or retired certificates;

(10) information, from WREGIS or its successor, on RECs acquired, sold, retired, transferred, or expired; and the information shall include reports from WREGIS or its successor which allow the commission to determine, by fuel type, the number of RECs in each calendar year:

(a) acquired;

(b) sold;

(d) transferred; and

(e) expired;

(11) a table with the following data:

(a) total amount of RECs;

(b) total retail sales in megawatt-hours; and

(12) the report to the distribution cooperative’s membership including a summary of its purchases and generation of renewable energy during the preceding calendar year required by Subsection D of Section 62-15-34 NMSA 1978; and

(13) renewable energy and conservation fee information, pursuant to 17.9.571.16 NMAC, if applicable.

C. A distribution cooperative that is a member of a generation and transmission cooperative may file its annual report as part of a group filing package by the generation and transmission cooperative, provided that the distribution cooperative’s filing requirements shall be identified separately from other cooperatives in the group.

D. Staff may request additional information or clarification from a distribution cooperative.

E. A distribution cooperative, or a generation and transmission cooperative filing on behalf of a distribution cooperative, shall serve its annual report on the commissioners, commissioners’ advisors, office of general counsel, and staff.

History

17.9.571.13 NMAC - N, 6/24/2025

N.M. Admin. Code § 17.9.571.14 Renewable Energy and Conservation Fee

A. A distribution cooperative may collect from its customers a renewable energy and conservation fee of no more than one percent of a customer’s bill.

(1) In no event shall a distribution cooperative annually collect more than $75,000 from any single customer.

(2) Money collected through the renewable energy and conservation fee shall be segregated in a separate renewable energy and conservation account from other distribution cooperative funds, and it shall be expended only on programs or projects to promote the use of renewable energy, load management, or energy efficiency.

B. Each distribution cooperative that collects a renewable energy and conservation fee from its customers shall deduct from the fees paid to the state pursuant to Section 62-8-8 NMSA 1978 an amount equal to fifty percent of the amount of money collected through the renewable energy and conservation fee during the preceding calendar year. The money shall be included in the account with other money from the renewable energy and conservation fee and expended only on programs or projects to promote the use of renewable energy, load management, or energy efficiency.

C. In its annual report to the public regulation commission by April 30 pursuant to 17.9.571.15 NMAC, a distribution cooperative that collects a renewable energy and conservation fee from its customers shall include the information described below for the preceding calendar year:

(1) the total amount of money collected by the distribution cooperative from its customers during the preceding calendar year through the assessment of a renewable energy and conservation fee and the balance of funds in the distribution cooperative’s renewable energy and conservation fund, as of January 1 and December 31 of the preceding calendar year;

(2) the amount of money withheld by the distribution cooperative from the inspection and supervision fees due to the state that was placed in the renewable energy and conservation fund as a partial match of the renewable energy and conservation fees collected during the preceding calendar year;

(3) the amount of money received by the distribution cooperative from any third party that was placed in the renewable energy and conservation fund;

(4) whether and to what extent the distribution cooperative will assess its customers for a renewable energy and conservation fee in the succeeding calendar year; and

(5) a summary of each renewable energy project, energy efficiency program, or load management program upon which money from the renewable energy and conservation fund was expended during the preceding calendar year, which includes:

(a) a description of the anticipated benefits to the distribution cooperative’s members from each project or program;

(b) the amount of money spent on each project or program; and

HISTORY OF 17.9.571 NMAC: [RESERVED]

History

17.9.571.14 NMAC - N, 6/24/2025

Part 572 Renewable Energy for Electric Utilities (note: Equation in Subsection A of 17.9.572.7 NMAC viewable in PDF only)

N.M. Admin. Code § 17.9.572.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.572.1 NMAC - Rp. 17.9.572.1 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.2 Scope

This rule applies to all electric investor-owned public utilities under the commission’s jurisdiction.

History

17.9.572.2 NMAC - Rp, 17.9.572.2 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.3 Statutory Authority

Sections 62-13-13.1 NMSA 1978 and 62-16-1 to 62-16-10 NMSA 1978.

History

17.9.572.3 NMAC - Rp, 17.9.572.3 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.4 Duration

Permanent.

History

17.9.572.4 NMAC - Rp, 17.9.572.4 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.5 Effective Date

February 28, 2023, unless a later date is cited at the end of a section.

History

17.9.572.5 NMAC - Rp, 17.9.572.5 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.6 Objective

The purpose of this rule is to implement the Renewable Energy Act, Sections 62-16-1 to 62-16-10 NMSA 1978, and to bring significant economic development and environmental benefits to New Mexico.

History

17.9.572.6 NMAC - Rp, 17.9.572.6 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.7 Definitions

Unless otherwise specified, as used in this rule:

A. Definitions beginning with “A”: “average annual levelized cost” means a calculation to produce the present value of the total cost of building and operating a new resource over an assumed lifetime, assuming equal unit costs each year over the life of the resource. Average annual levelized cost is calculated by dividing the present value of the assumed lifetime total cost of a new resource by the present value of the assumed lifetime generation production of that new resource. The equation for calculating average annual levelized cost is as follows:

where, It equals investment expenditures in year t (including financing) in nominal dollars; Mt equals operations and maintenance expenditures in year t in nominal dollars, including but not limited to return, depreciation, property taxes, and income taxes, net of tax credits that are passed on to customers; Ft equals fuel expenditures and variable operations and maintenance in year t in nominal dollars; Et equals electricity generated in year t including any degradation; r equals a discount rate equal to the utility’s after-tax weighted average cost of capital as authorized in the utility’s most recent rate case; and n equals the assumed lifetime of the new resource. Fuel expenditures would not be applicable for determining the levelized cost of renewable resources but may be applicable for determining the levelized cost of proposed zero-carbon resources.

B. Definitions beginning with “B”: [RESERVED]

C. Definitions beginning with “C”: [RESERVED]

D. Definitions beginning with “D”: [RESERVED]

E. Definitions beginning with “E”: “emissions” means all emissions regulated by state or federal authorities, including but not limited to: all criteria pollutants and hazardous air pollutants, methane, mercury, and carbon dioxide.

F. Definitions beginning with “F”: “financial incentive” means money or additional earnings that a public utility is authorized to collect from ratepayers by the commission or capital investment opportunities to encourage certain behaviors or actions that would not otherwise have occurred in order to further the outcomes described in Section 62-16-4 NMSA 1978. The financial incentive, or monetary benefit, motivates certain behaviors or actions.

G. Definitions beginning with “G”: “greenhouse gas emissions” means emissions of gases including carbon dioxide, methane, nitrous oxide, fluorinated gases, or other gases that trap heat in the atmosphere.

H. Definitions beginning with “H”: [RESERVED]

I. Definitions beginning with “I”: “IRP” means integrated resource plan.

J. Definitions beginning with “J”: [RESERVED]

K. Definitions beginning with “K”: [RESERVED]

L. Definitions beginning with “L”: [RESERVED]

M. Definitions beginning with “M”: [RESERVED]

N. Definitions beginning with “N”: [RESERVED]

O. Definitions beginning with “O”: [RESERVED]

P. Definitions beginning with “P”:

(1) “plan year” means the calendar year for which approval is sought;

(2) “plan year total retail energy sales” means retail energy sales in kilowatt-hours projected for the plan year adjusted for projected energy efficiency reductions based on approved energy efficiency and load management programs in effect at the time of the filing, less energy sales to voluntary program participants under Section 62-16-7 NMSA 1978;

(3) “political subdivision of the state” means a division of the state made by proper authorities thereof, acting within their constitutional powers, for purpose of carrying out a portion of those functions of the state which, by long usage and inherent necessities of government, have always been regarded as public;

(4) “procure or procurement” means a competitive process conducted by an investor-owned electric utility for soliciting and evaluating purchased power, facility self-build, or facility build-transfer options as proposals for any new, additional, or amended renewable energy resource, including but not limited to, instructions to bidders, bid specifications, conditions, forms, or other requirements included in a request for proposals, and all methods, practices, and assumptions used by an investor-owned electric utility to model or evaluate such proposals or to negotiate with bidders, in order to generate or purchase any renewable energy resource or to commit to generate or purchase any renewable energy resource, but does not include agreements to purchase energy or capacity from a qualifying facility pursuant to 17.9.570 NMAC;

(5) “public utility” means investor-owned electric utility certified by the commission to provide retail electric service in New Mexico pursuant to the Public Utility Act and does not include rural electric cooperatives or municipalities.

Q. Definitions beginning with “Q.”: [RESERVED]

R. Definitions beginning with “R”:

(1) “reasonable cost threshold” (RCT) means an average annual levelized cost of $60.00 per megawatt-hour at the point of interconnection of the renewable energy resource with the transmission systems, adjusted for inflation after 2020. The reasonable cost threshold is a customer protection mechanism that limits the customer bill impact resulting from annual Renewable Energy Act plans;

(2) “renewable energy” means electric energy generated by use of renewable energy resources and delivered to a public utility;

(3) “renewable energy certificate” (REC) means a certificate or other record, in a format approved by the commission, that represents all the environmental attributes from one megawatt-hour of electricity generated from renewable energy delivered to a public utility and assigned to its New Mexico customers;

(4) “renewable energy resource” means the following energy resources with or without energy storage:

(a) solar, wind, and geothermal;

(b) hydropower facilities brought in service on or after July 1, 2007;

(c) biomass resources, limited to agriculture of animal waste, small diameter timber not to exceed eight inches, salt cedar, and other phreatophyte or woody vegetation removed from river basins or watersheds in New Mexico, provided that these resources are from facilities certified by the energy, minerals and natural resources department to:

(i) be of appropriate scale to have sustainable feedstock in the near vicinity;

(ii) have zero life cycle carbon emissions; and

(iii) meet scientifically determined restoration, sustainability and soil nutrient principles;

(d) fuel cells that do not use fossil fuels to create electricity; and

(e) landfill gas and anaerobically digested waste biogas.

(5) “renewable portfolio standard” (RPS) means the minimum percentage of retail sales of electricity by a public utility to electric consumers in New Mexico that is required by the Renewable Energy Act to be from renewable energy;

(6) “renewable purchased power agreement” means an agreement that binds an entity generating power from renewable energy resources to provide power at a specified price, for a specified term, and binds the purchaser to that price.

S. Definitions beginning with “S”: [RESERVED]

T. Definitions beginning with “T”: [RESERVED]

U. Definitions beginning with “U”: [RESERVED]

V. Definitions beginning with “V”: [RESERVED]

W. Definitions beginning with “W”: “WREGIS” means the western renewable energy generation information system.

X. Definitions beginning with “X”: [RESERVED]

Y. Definitions beginning with “Y”: [RESERVED]

Z. Definitions beginning with “Z”:

(1) “zero carbon resource” means an electricity generation resource that emits no carbon dioxide into the atmosphere, or that reduces methane emitted into the atmosphere in an amount equal to no less than one-tenth of the tons of carbon dioxide emitted into the atmosphere, as a result of electricity production;

(2) “zero carbon resource standard” means providing New Mexico public utility customers with electricity generated from one hundred percent zero carbon resources.

History

17.9.572.7 NMAC - Rp, 17.9.572.7 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.8 Liberal Construction

This rule shall be liberally construed to carry out its intended purposes. If any provision of this rule, or the application thereof to any person or circumstance, is held invalid, the remainder of the rule, or the application of such provision to other persons or circumstances, shall not be affected thereby.

History

17.9.572.8 NMAC - Rp, 17.9.572.8 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.9 Relationship to Other Commission Rules

Unless otherwise specified, this rule does not supersede any other rule of the commission but supplements rules applying to public utilities.

History

17.9.572.9 NMAC - Rp, 17.9.572.9 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.10 Renewable Portfolio Standard

A. Each public utility shall develop an annual Renewable Energy Act plan to comply with the renewable portfolio standard during the plan year. The plan shall demonstrate reasonable and consistent progress toward meeting the renewable portfolio standard to be effective following the end of the plan year. Renewable energy resources that are in a public utility’s electric energy supply portfolio on July 1, 2004 shall be counted in determining compliance with this rule. However, renewable energy sold to customers through a voluntary renewable energy program tariff approved by the commission shall not be counted in determining compliance with this rule. Other factors being equal, preference shall be given to renewable energy generated in New Mexico.

B. Renewable portfolio standards: For public utilities other than rural electric cooperatives and municipalities, requirements of the renewable portfolio standard are:

(1) no later than January 1, 2015, renewable energy shall comprise no less than fifteen percent of each public utility’s total retail sales to New Mexico customers;

(2) no later than January 1, 2020, renewable energy shall comprise no less than twenty percent of each public total retail sales to New Mexico customers;

(3) no later than January 1, 2025, renewable energy shall comprise no less than forty percent of each public utility’s total retail sales to New Mexico customers;

(4) no later than January 1, 2030, renewable energy shall comprise no less than fifty percent of each public utility’s total retail sales to New Mexico customers;

(5) no later than January 1, 2040, renewable energy resources shall supply no less than eighty percent of all retail sales of electricity in New Mexico, provided that compliance with this standard until December 31, 2047 shall not require the public utility to displace zero carbon resources in the utility’s generation portfolio as of June 14, 2019; and

(6) no later than January 1, 2045, zero carbon resources shall supply one hundred percent of all retail sales of electricity in New Mexico. Reasonable and consistent progress shall be made over time toward this requirement.

C. Demonstration of compliance: In accordance with Section 62-16-5 NMSA 1978:

(1) compliance with the renewable portfolio standard shall be demonstrated by the retirement of renewable energy certificates, provided that the associated renewable energy is delivered to the public utility and assigned to the public utility’s New Mexico customers;

(2) a public utility shall not retire renewable energy certificates associated with renewable energy from generation resources for which it has traded, sold, or transferred the associated renewable energy certificate for purposes of compliance with the renewable portfolio standard; and

(3) for any REC that a public utility claims to own pursuant to the exceptions stated in Subparagraphs (a), (b), and (c) of Paragraph (1) of Subsection B of Section 62-16-5 NMSA 1978, the public utility shall have purchased the associated renewable energy. In the case of qualifying facilities that are net metered pursuant to 17.9.570.10 NMAC, only the excess net energy delivered from the qualifying facility to the utility shall be deemed to be purchased by the utility for the purposes of this rule, unless a different purchasing scheme is permitted in a specific agreement or contract pursuant to Subparagraphs (a) and (c) of Paragraph (1) of Subsection B of Section 62-16-5 NMSA 1978.

History

17.9.572.10 NMAC - Rp, 17.9.572.10 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.11 Commission Administration of Rps and Zero Carbon Standards

After consultation with the department of environment, the commission may not approve a public utility’s annual Renewable Energy Act plan that results in material increases to greenhouse gas emissions from entities not subject to commission oversight and regulation.

History

17.9.572.11 NMAC - Rp, 17.9.572.11 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.12 Reasonable Cost Threshold

A. The reasonable cost threshold in any plan year is adjusted for inflation starting in 2021 by the amount of the cumulative increase change in the consumer price index, urban, all items, published by the bureau of labor statistics between January 1 of the year prior to the procurement plan year and January 1 of the procurement plan year. Each public utility shall include in its annual Renewable Energy Act plan a reasonable cost threshold analysis by proposed procurement for the plan year for which it seeks commission approval. This analysis shall show how each procurement compares for that plan year with the inflation adjusted reasonable cost threshold.

B. If, in any given year, a public utility determines that the average annual levelized cost of renewable energy that would need to be procured or generated for purposes of compliance with the renewable portfolio standard would be greater than the reasonable cost threshold, the public utility shall not be required to incur that excess cost; provided that the existence of this condition excusing performance under the renewable portfolio standard in any given year shall not operate to delay compliance with the renewable portfolio standard in subsequent years. The provisions of this rule do not preclude a public utility from accepting a project with a cost that would exceed the reasonable cost threshold. When a public utility can generate or procure renewable energy resources at or below the reasonable cost threshold, it shall be required to do so to the extent necessary to meet the applicable renewable portfolio standard. To the extent a procurement is greater than the reasonable cost threshold and results in excess costs, the public utility shall explain in detail why the public utility cannot procure renewable energy resources at a cost less than or equal to the reasonable cost threshold along with a demonstration of the public utility’s efforts to procure renewable energy resources at or below the reasonable cost threshold.

C. A public utility that believes its procurement will exceed the reasonable cost threshold may file with the commission a request for waiver of the renewable portfolio standard for the applicable plan year. The waiver request shall:

(1) explain in detail why the public utility cannot procure resources at a cost less than the reasonable cost threshold;

(2) include an explanation and evidence of all efforts the public utility undertook to procure resources at a cost within the reasonable cost threshold; and

(3) be deemed granted if not acted upon within sixty days of the date the waiver request was filed.

History

17.9.572.12 NMAC - Rp, 17.9.572.12 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.13 Resource Selection

The utility shall select resources to satisfy the renewable portfolio standard through a competitive resource selection process that includes opportunities for bidders to propose purchased power, facility self-build or facility build-transfer options. The utility shall determine all commercially available resources available through a competitive procurement process that are necessary to make reasonable and consistent progress toward the renewable portfolio standards and the zero-carbon standard. The utility shall, at a minimum, use the net present value methodology to identify the costs of a proposed new renewable energy resource necessary to satisfy the renewable portfolio standard. The utility may propose additional methodologies to identify the costs of a proposed new renewable energy resource.

History

17.9.572.13 NMAC - Rp, 17.9.572.13 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.14 Annual Renewable Energy Act Plan

A. An annual Renewable Energy Act plan shall include plan year and next plan year data. The plan year shall be presented for commission approval and the next plan year shall be presented for informational purposes.

B. On or before July 1 of each year, each public utility shall file with the commission an annual Renewable Energy Act plan. The filing schedule shall be staggered, as follows, with each of the investor-owned utility filings occurring one month apart, the last filing to be made July 1 of each year. The utilities shall file alphabetically each year (el paso electric company shall file on May 1; public service company of New Mexico shall file on June 1; and southwestern public service company shall file on July 1 each year).

C. The annual Renewable Energy Act plan shall include:

(1) testimony and exhibits providing a full explanation of the utility’s determination of the plan year and next plan year renewable portfolio standard and reasonable cost threshold;

(2) the cost of procurement in the plan year and the next plan year for all new renewable energy resources required to comply with the renewable portfolio standard selected by the utility pursuant to 17.9.572.10 NMAC;

(3) the amount of renewable energy the public utility plans to provide in the plan year and the next plan year required to comply with the renewable portfolio standard;

(4) testimony and exhibits demonstrating how the cost and amount specified in Paragraphs (2) and (3) of this subsection were determined;

(5) testimony and exhibits demonstrating the plan year and next plan year procurement amounts and costs expected to be recovered by the utility;

(6) the capital, operating, and fuel costs on a per-megawatt-hour basis during the preceding calendar year of each nonrenewable generation resource rate-based by the utility, or dedicated to the utility through a power purchase agreement of one year or longer, and the nonrenewable generation resources’ carbon dioxide emissions on a per-megawatt-hour basis during that same year;

(7) testimony and exhibits demonstrating the plan year and next plan year procurement amounts and costs expected to be recovered by the utility if limited by the reasonable cost threshold;

(8) testimony demonstrating that the cost of the proposed procurement is reasonable compared with the price of electricity from renewable resources in the bids received by the public utility to recent prices for comparable energy resources elsewhere in the southwestern united states;

(9) testimony regarding strategies used to minimize costs of renewable energy integration, including location, diversity, balancing area activity, demand-side management, rate design, and load management;

(10) testimony demonstrating that the portfolio procurement plan is consistent with the integrated resource plan and explaining any material differences;

(11) testimony demonstrating that acceptable system reliability will be maintained with the proposed new renewable resource additions;

(12) information, including exhibits, as applicable, that demonstrates that the proposed procurement was the result of a competitive procurement that included opportunities for bidders to propose purchased power, facility self-build, or facility build–transfer options;

(13) demonstration that the plan is otherwise in the public interest, considering factors such as overall cost and economic development opportunities;

(14) a mechanism, with supporting testimony, to prevent the public utility’s voluntary program customers from being subject to charges by the public utility to recover RPS compliance costs pursuant to Subsection B of Section 62-16-7 NMSA 1978; and

(15) any other information the commission may deem necessary.

D. In addition to electronically filing and serving in accordance with 1.2.2 NMAC, a public utility shall serve notice and a copy of its annual renewable energy plan filing by first class mail on renewable resource providers requesting such notice from the commission, the New Mexico attorney general, and the intervenors in the public utility’s most recent rate case. A public utility shall also post on its website the most recent and the pending annual Renewable Energy Act plans.

History

17.9.572.14 NMAC - Rp, 17.9.572.14 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.15 Cost Recovery for Renewable Energy and Emissions Reductions

A. A public utility shall recover the reasonable costs of complying with this rule through the rate making process, including its reasonable interconnection and transmission costs, costs to comply with electric industry reliability standards, and other costs attributable to acquisition and delivery of renewable energy and zero carbon energy to retail New Mexico customers.

B. Costs that are consistent with commission-approved annual Renewable Energy Act plans are deemed to be reasonable.

C. A public utility that is permitted to defer the recovery of renewable energy costs pursuant to commission order may, through the ratemaking process, recover from customers that are not subject to the rate impact limitations of Subsection C of Section 62-16-4 NMSA 1978 the cumulative sum of those deferred amounts, plus a carrying charge on those amounts.

D. Any financial benefits resulting to customers qualified pursuant Subsection C of Section 62-16-4 NMSA 1978 shall accrue to the customer immediately as of June 14, 2019 and shall be reflected in customer bills each month, subject to annual true-up and reconciliation.

E. The financial incentive established pursuant to 17.9.572.22 NMAC shall be recovered or credited through a separate rider during the calendar year following the determination of the financial incentive, and subject to reconciliation for under- or over-recovery in a subsequent calendar year.

F. Any renewable energy procurement costs recovered through the utility’s fuel clause shall be separately identified in its monthly and annual fuel and purchased power clause adjustment filings and its continuation filings.

G. The commission shall not disallow the cost associated with any expired renewable energy certificate.

H. If a public utility has been granted a certificate of public convenience and necessity prior to January 1, 2015 to construct or operate an electric generation facility and the investment in that facility has been allowed recovery as part of the utility’s rate-base, the commission may require the facility to discontinue serving customers within New Mexico if the replacement has less or zero carbon dioxide emissions into the atmosphere; provided that no order of the commission shall disallow recovery of any undepreciated investments or decommissioning costs associated with the facility.

History

17.9.572.15 NMAC - Rp, 17.9.572.15 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.16 Customers Qualified Pursuant to Subsection C of Section 62-16-4 Nmsa 1978

A. Any customer that is a political subdivision of the state, or any educational institution designated in Article 12, Section 11 of the Constitution of New Mexico with an enrollment of twenty thousand students or more during the fall semester on its main campus, with consumption exceeding twenty million kilowatt-hours per year at any single location or facility, and that owns renewable energy generation or hosts such facilities through a renewable purchased power agreement, shall not be charged by the utility for power purchases of one year or less or fuel on the amount of electricity purchased from the utility equal to the amount of renewable energy produced or hosted by the customer. The customer shall annually certify to the state auditor and notify the commission and the customer's serving electric utility of the amount of renewable energy produced at the customer-owned or customer-hosted facilities that generate renewable energy. The customer shall also certify to the state auditor and notify the commission that the customer will retire all renewable energy certificates associated with the renewable energy produced by those facilities. Any financial benefits as a result of the provisions of this subsection shall accrue to the customer immediately upon June 14, 2019, and shall be reflected in customer bills each month subject to annual true-up and reconciliation. The provisions of this rule shall not prevent the utility from recovering all of its reasonable and prudent fuel and purchased power costs. That customer shall also certify that it will retire all renewable energy certificates associated with the energy produced by those facilities.

B. The notice to the commission and the customer’s serving utility shall:

(1) be timely;

(2) state the plan year during which the renewable energy is expected to be produced or hosted;

(3) quantify the amount of renewable energy expected to be produced or hosted; and

(4) shall include a copy of the customer’s certification to the state auditor.

C. Rule 17.9.572.16 NMAC only exempts customers from charges for power purchases of one year or less or fuel on the amount of electricity purchased from the utility equal to the amount of renewable energy produced or hosted by the customer. Rule 17.9.572.16 NMAC shall not prevent the utility from recovering all of its reasonable and prudent fuel and purchased power costs.

D. A public utility shall not retire any RECs retired per the certification of a customer made pursuant to Subsection C of Section 62-16-4 NMSA 1978 for the renewable portfolio standard or voluntary renewable energy program compliance.

History

17.9.572.16 NMAC - Rp, 17.9.572.16 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.17 Renewable Energy Certificates

A. Each public utility shall annually establish its compliance with the renewable portfolio standard through the filing of an annual report, as provided in 17.9.572.19 NMAC, documenting the retirement of renewable energy certificates.

B. Non-WREGIS registered RECs shall contain the following information:

(1) the name and contact information of the renewable energy generating facility owner or operator;

(2) the name and contact information of the public utility or rural electric distribution cooperative purchasing the renewable energy certificate;

(3) the type of generator technology and fuel type;

(4) the generating facility’s physical location, nameplate capacity in megawatts, location and ID number of revenue meter and date of commencement of commercial generation;

(5) the public utility to which the generating facility is interconnected;

(6) the control area operator for the generating facility; and

(7) the quantity in kilowatt-hours and the date of the renewable energy certificate creation.

C. Renewable energy certificates:

(1) shall be owned by the generator of the renewable energy unless:

(a) the renewable energy certificates are transferred to the purchaser of the energy through specific agreement with the generator;

(b) the generator is a qualifying facility, as defined by the federal Public Utility Regulatory Policies Act of 1978, in which case the renewable energy certificates are owned by the public utility purchaser of the renewable energy unless retained by the generator through specific agreement with the public utility purchaser of the energy; or

(c) a contract for the purchase of renewable energy is in effect prior to January 1, 2019, in which case the purchaser of the energy owns the renewable energy certificates for the term of such contract; and

(2) may be traded, sold or otherwise transferred by their owner, unless the certificates are from a rate-based public utility plant, in which case the entirety of the renewable energy certificates from that plant shall be retired by the utility on behalf of itself or its customers. Any contract to purchase renewable energy entered into by a public utility on or after July 1, 2019 shall include conveyance to the purchasing utility of all renewable energy certificates, and the entirety of those certificates shall be retired by that utility on behalf of itself or its customers or subsequently transferred to a retail customer for retirement under a voluntary program for purchasing renewable energy approved by the commission;

(3) that are used once by a public utility to satisfy the renewable portfolio standard and are retired shall not be further used by the public utility; and

(4) that are not used by a public utility to satisfy the renewable portfolio standard may be carried forward for up to four years from the date of creation and, if not used by that time, shall be retired by the public utility.

D. Public utilities shall be responsible for demonstrating that a renewable energy certificate used for compliance with the renewable portfolio standard is derived from eligible renewable energy resources and has not been retired, traded, sold or otherwise transferred to another party. Public utilities shall maintain records sufficient to meet the demonstration requirement of this subsection.

E. The acquisition, sale or transfer, and retirement of any renewable energy certificates used to meet renewable portfolio standards on or after January 1, 2008 shall be registered with the WREGIS or its direct successor(s), except as provided in Subsection F of 17.9.572.17 NMAC. Certificates whose retirement has been registered by the public utility with WREGIS shall be deemed to meet the requirements of Subsection D of 17.9.572.17 NMAC.

F. Renewable energy certificates representing electricity delivered to the public utility and assigned to the public utility’s New Mexico customers and registered with a tracking system other than WREGIS may be used to meet renewable portfolio standards so long as WREGIS lacks the capability to import certificates from that other tracking system.

History

17.9.572.17 NMAC - Rp, 17.9.572.17 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.18 Voluntary Renewable Tariffs

A. The commission may require that a public utility offer its retail customers a voluntary program for purchasing renewable energy that is in addition to electricity provided by the public utility pursuant to the renewable portfolio standard, under rates and terms that are approved by the commission.

B. The voluntary renewable tariff may also include provisions to enable consumers to purchase renewable energy within certain energy blocks and by source of renewable energy. Additionally, each public utility shall develop an educational program on the benefits and availability of its voluntary renewable energy program. The tariff, along with the details of the consumer education program, shall be on file with the commission.

C. All renewable energy purchased by a retail customer through an approved voluntary program shall:

(1) have all associated renewable energy certificates retired by the retail customer, or on that customer’s behalf, by the public utility, and the certificates shall not be used to meet the public utility’s renewable portfolio standard requirements pursuant to Subsection A of Section 62-16-4 NMSA 1978;

(2) be excluded from the total retail sales to New Mexico customers used to determine the renewable portfolio standard requirements pursuant to Subsection A of Section 62-16-4 NMSA 1978; and

(3) not be subject to charges by the public utility to recover costs of complying with the renewable portfolio standard requirements pursuant to Subsection A of Section 62-16-4 NMSA 1978.

History

17.9.572.18 NMAC - Rp, 17.9.572.18 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.19 Annual Renewable Energy Portfolio Report

A. Concurrent with the filing of an annual renewable energy plan, each public utility shall file with the commission a report on its renewable energy generation or purchases of renewable energy during the prior plan year. This report shall:

(1) itemize all renewable energy generation or renewable energy certificate purchases and sales;

(2) list, and include copies of, all renewable energy certificates, including acquired, issued or retired certificates;

(3) document from WREGIS or its successor the renewable energy certificates acquired, sold, retired, transferred, or expired; such documentation shall include reports from WREGIS or its successor which allow the commission to determine, by fuel type, the number of RECs in each calendar year:

(a) acquired;

(b) sold;

(d) transferred; and

(e) expired;

(4) describe the retirements made to meet renewable portfolio standard compliance based on actual retail sales and procurement costs, for the most recent reporting period including, the reductions, if any, to the RPS for:

(a) purchases by retail customers through an approved voluntary program; or

(b) due to the reasonable cost threshold;

(d) quantity of renewable energy certificates banked for future compliance use;

(5) describe and quantify the implementation of the voluntary renewable tariff requirements in 17.9.572.18 NMAC;

(6) present a full explanation of approved recovery mechanisms for approved annual renewable energy plan costs and a complete accounting of all collected and deferred amounts; and

(7) describe and tabulate the utility's compliance with its renewable portfolio standard for a given report year and describe how the compliance relates to the first year a new renewable portfolio standard becomes effective as established in Subsection A of Section 62-16-4 NMSA 1978 and Subsection A of 17.9.572.10 NMAC and describe how the compliance relates the first year of the next new renewable portfolio standard.

B. The report shall include the following to demonstrate compliance with the renewable portfolio standard:

(1) report year total utility renewable portfolio standard requirement in megawatt-hours;

(2) report year total utility renewable portfolio standard compliance in megawatt-hours;

(3) report year total utility renewable portfolio standard provided by eligible renewable energy resources in megawatt-hours listed by resource and totaled;

(4) percentage of report year total utility renewable portfolio standard megawatt-hours provided by eligible renewable energy resources; and

(5) report year kilowatt-hour generation by facility from coal-fired generating facilities allocated to New Mexico retail customers.

History

17.9.572.19 NMAC - Rp, 17.9.572.19 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.20 Review by Commission

A. Interested parties wishing to protest an annual Renewable Energy Act plan shall do so by stating the bases for the protest within 30 days after the filing of the utility’s annual renewable energy plan.

B. The commission shall approve or modify annual Renewable Energy Act plans within 90 days and may approve such plans without a hearing, unless a protest is filed that demonstrates to the commission’s reasonable satisfaction that a hearing is necessary.

C. The commission may modify a plan after notice and hearing, and may, for good cause, extend the time to approve an annual Renewable Energy Act plan for an additional 90 days.

D. If the commission does not act within the 90-day period, a plan is deemed approved.

E. The commission may reject a plan, within 40 days of filing, if the commission finds that the plan does not contain the required information; upon such rejection the public utility’s obligation to procure additional resources will be suspended for the time necessary to file a revised plan. In such instances, the total amount of renewable energy to be procured by the public utility will not change.

History

17.9.572.20 NMAC - Rp, 17.9.572.20 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.21 Exemption and Variance

A. The commission, upon its own motion, may issue, or any interested person may file an application for, an exemption or a variance from the requirements of this rule.

B. Such motion or application shall:

(1) identify the section of this rule for which the exemption or variance is requested;

(2) describe the situation that necessitates the exemption or variance;

(3) set out the effect of complying with this rule on the public utility and its customers if the exemption or variance is not granted;

(4) define the result the request will have if granted;

(5) state how the exemption or variance will be consistent with the purposes of this rule;

(6) state why no other reasonable alternative is preferable; and

(7) state why the proposed alternative is in the public interest.

History

17.9.572.21 NMAC - Rp, 17.9.572.21 NMAC, 2/28/2023

N.M. Admin. Code § 17.9.572.22 Financial Incentive

A. In accordance with Subsection D of Section 62-16-4 NMSA 1978, a public utility or any other person may, by motion or application, request that the commission develop and provide the public utility with financial or other incentives to encourage the public utility to produce or acquire renewable energy that:

(1) exceeds the applicable annual renewable portfolio standard set forth in Section 62-16-4 NMSA 1978;

(2) results in reductions in carbon dioxide emissions earlier than required by Subsection A of Section 62-16-4 NMSA 1978; or

(3) causes a reduction in the generation of electricity by coal-fired generating facilities, including coal-fired generating facilities located outside of New Mexico.

B. A financial or other incentive proposed under 17.9.572.22 NMAC shall be to encourage the public utility to produce or to acquire renewable energy to accomplish, in the future, at least one of the following purposes:

(1) exceeding the public utility’s annual RPS requirements;

(2) reducing carbon dioxide emissions earlier than required by Subsection A of Section 62-16-4 NMSA 1978; or

(3) reducing the generation of electricity by coal-fired generating facilities, including coal-fired generating facilities located outside of New Mexico that serve the utility’s customers.

C. A public utility shall not be eligible to receive financial or other incentives for renewable energy that was produced or acquired prior to the date that the commission approves the public utility’s application for a financial or other incentive for the specific renewable energy investments.

D. The public utility or other person requesting a financial or other incentive shall have the burden to prove by a preponderance of evidence that the terms and duration of the proposed incentive meet the requirements of this rule and are just and reasonable in light of the utility’s costs, its authorized return, and the magnitude of any other incentives that have been authorized by the commission. Any application or motion requesting a financial or other incentive shall be supported by written testimony and exhibits.

E. No incentive shall be awarded under 17.9.572.22 NMAC with respect to a particular investment if the cost of that investment exceeds the demonstrable value of the corresponding reduction in carbon dioxide or other emissions. A utility requesting a financial or other incentive under this rule shall establish that the benefits of achieving the goals set out in Subsection B of 17.9.572.22 NMAC above are not exceeded by the costs it incurred to achieve them. To establish this, the utility shall provide detailed analysis for each applicable period, including but not limited to:

(1) the utility’s total carbon dioxide emissions;

(2) the reduction in the utility’s carbon dioxide emissions attributable to the measures described in Subsection B of 17.9.572.22 NMAC;

(3) the estimated value of the reduction in carbon dioxide emissions described in Paragraph (2) of this subsection based on an analysis of relevant carbon dioxide markets;

(4) the cost of the measures implemented by the utility that resulted in the lower carbon dioxide emissions identified in Paragraph (2) of this subsection and the dates when each measure was implemented; and

(5) any other costs necessary to implement each of the measures identified in Subsection B of 17.9.572.22 NMAC.

F. The total financial incentive authorized for recovery in rates pursuant to 17.9.572.22 NMAC shall not exceed the product (expressed in dollars) of:

(1) the utility’s annual weighted average cost of capital (expressed as a percent); and

(2) the cost of the measures described in Subsection B of 17.9.572.22 NMAC.

G. A financial incentive shall only be granted to encourage a public utility to produce or to acquire renewable energy to accomplish the requirements of Subsection D of Section 62-16-4 NMSA 1978, and it shall not be granted to incentivize only an abandonment or closure of a carbon dioxide emitting generating resource.

H. Public utilities shall file any motion or application under 17.9.572.22 NMAC concurrently with their annual Renewable Energy Act plan.

HISTORY OF 17.9.572 NMAC:

Pre-NMAC History: None.

History of Repealed Material:

17 NMAC 10.572, Renewable Energy Development Program (filed 11/30/1998) repealed 7/1/2003.

17.9.572 NMAC, Renewable Energy as a Source of Electricity (filed 6/16/2003) repealed 1/14/2005.

17.9.572 NMAC, Renewable Energy for Electric Utilities (filed 12/29/2004) repealed 8/30/2007.

17.9.572 NMAC, Renewable Energy for Electric Utilities (filed 8/15/2007) repealed 5/31/2013.

17.9.572 NMAC, Renewable Energy for Electric Utilities (filed 5/10/2013) repealed 5/4/2021.

17.9.572 NMAC, Renewable Energy for Electric Utilities (filed 4/21/2021) repealed 2/28/2023.

Other History:

17 NMAC 10.572, Renewable Energy Development Program (filed 11-30-98) replaced by 17.9.572 NMAC, Renewable Energy as a Source of Electricity, effective 7/1/2003, 17.9.572 NMAC, Renewable Energy as a Source of Electricity (filed 6/16/2003) replaced by 17.9.572, Renewable Energy for Electric Utilities, effective 1/14/2005. 17.9.572 NMAC, Renewable Energy for Electric Utilities (filed 12/29/2004) replaced by 17.9.572 NMAC, Renewable Energy for Electric Utilities (filed 8/15/2007) replaced by 17.9.572 NMAC, Renewable Energy for Electric Utilities effective 5/31/2013.

Renewable Energy for Electric Utilities (filed 5/10/2013) replaced by 17.9.572 NMAC, Renewable Energy for Electric Utilities effective 5/4/2021.

Renewable Energy for Electric Utilities (filed 4/21/2021) replaced by 17.9.572 NMAC, Renewable Energy for Electric Utilities effective 2/28/2023.

History

17.9.572.22 NMAC - Rp, 17.9.572.22 NMAC, 2/28/2023

Part 573 Community Solar

N.M. Admin. Code § 17.9.573.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.573.1 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.2 Scope

This rule applies to investor-owned electric utilities subject to the commission’s jurisdiction and to rural electric distribution cooperatives that opt into the community solar program. This rule also applies to subscriber organizations and subscribers as defined in the Community Solar Act, Subsections M and N of Section 62-16B-2 NMSA 1978.

History

17.9.573.2 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.3 Statutory Authority

Paragraph (10) of Subsection B of Section 62-19-9 and Section 62-16B-7 NMSA 1978.

History

17.9.573.3 NMAC - N, 07/12/2022; A, 10/22/2024

N.M. Admin. Code § 17.9.573.4 Duration

Permanent, unless otherwise indicated.

History

17.9.573.4 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.5 Effective Date

July 12, 2022, unless a later date is cited at the end of a section.

History

17.9.573.5 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.6 Objectives

The objectives of this rule are to implement the Community Solar Act, Section 62-16B-1 et seq. NMSA 1978, and to reasonably allow for the creation, financing and accessibility of community solar facilities.

History

17.9.573.6 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.7 Definitions

[RESERVED]

History

17.9.573.7 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.8 Liberal Construction

If any part or application of this rule is held invalid, the remainder of its parts and any other applications of the rule shall not be affected.

History

17.9.573.8 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.9 Utility Filings for Implementation of Program

Utilities shall file all tariffs, agreements and forms necessary for implementation of the community solar program with the commission within 60 days of the effective date of this rule.

History

17.9.573.9 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.10 Community Solar Facility Requirements

A. A community solar facility, excepting any native community solar project, shall:

(1) have a nameplate capacity rating of five megawatts alternating current or less;

(2) be located in the service territory of the qualifying utility and be interconnected to the electric distribution system of that qualifying utility;

(3) have at least ten subscribers;

(4) have the option to be co-located with other energy resources, but shall not be co-located with other community solar facilities;

(5) not allow a single subscriber to be allocated more than forty percent of the generating capacity of the facility; and

(6) make at least forty percent of the total generating capacity of a community solar facility available in subscriptions of 25 kilowatts or less.

B. At least thirty percent of electricity produced from each community solar facility shall be reserved for low-income subscribers and low-income service organizations. The commission will issue guidelines to ensure the carve-out is achieved each year and develop a list of low-income service organizations and programs that may pre-qualify low-income customers.

History

17.9.573.10 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.11 Statewide Capacity Program Caps

A. The statewide capacity program cap, effective November 1, 2024, is 300 megawatts alternating current. This cap does not apply to applications and projects that have been processed in the commission’s initial application selection process as such applications and projects remain subject to the initial cap of 200 megawatts. The 300-megawatt cap will apply to the first selection process to be conducted after November 1, 2024, and will be in addition to the 200-megawatt cap applied to the initial selection process, resulting in a total cap of 500 megawatts. The 300-megawatt cap is allocated among the service territories of the three qualifying utilities according to addressable market estimations, subject to further refinement, as follows:

(1) public service company of New Mexico (PNM), 185 MW;

(2) southwestern public service company (SPS), 70 MW; and

(3) El Paso electric company (EPE), 45 MW.

B. The commission may, at its discretion, reallocate the capacity cap among the territories of the utilities to avoid a significant shortfall of the capacity actually used vis-à-vis the capacity cap.

C. The commission will review the cap on an annual basis.

History

17.9.573.11 NMAC - N, 07/12/2022; A, 10/22/2024

N.M. Admin. Code § 17.9.573.12 Process for Selection of Community Solar Facilities

A. The commission will engage a third-party administrator to manage an unbiased and nondiscriminatory process for selection of proposed projects for building and operating community solar facilities. The commission will have no involvement in the process except to the extent that the administrator or any participant in the process may raise before the commission an issue that is not fully addressed in this rule and that the commission finds, in its discretion, that it should address.

B. Community solar facility projects shall be selected through a competitive solicitation process, with each bid meeting the following minimum requirements for eligibility:

(1) the bidder’s legally binding site control;

(2) the bidder’s commitment to meeting statutory subscriber minimums and not exceeding statutory maximums;

(3) the bidder’s completion of a utility pre-application report or an equivalent report by the utility;

(4) the bidder’s proof of access to collateral for the applicable project deposit; and

(5) the bidder’s payment of a $1000 non-refundable bid application fee to the commission.

C. The program administrator shall limit consideration of bids by any one bidder to a maximum total for such bids of twenty percent of the statewide capacity cap allocated to the applicable utility.

D. No utility shall use any information provided in the interconnection application process or any information to which the utility has superior access to gain an unfair advantage for itself or any utility-affiliated bidder in the project selection process.

E. Eligible bids shall be scored using a set of non-price factors, with each factor weighted by the number of points awarded to the factor, as follows:

(1) each bid shall be awarded to one of the following categories pertaining to permitting status, each with its own point weighting:

(a) a bid for which all necessary non-ministerial permits and approvals have been secured, based upon a permitting plan signed by a licensed engineering firm, shall be categorized as fully permitted and shall be awarded 15 points:

(b) a bid for which applications are pending for all necessary non-ministerial permits, or for which one or more permits have been granted and applications are pending for the remainder, based upon permitting plan signed by a licensed engineering firm, shall be categorized as permits known and pending and shall be awarded 10 points;

(c) a bid for which the necessary non-ministerial permits have been identified based upon a permitting plan signed by a licensed engineering firm, but not all such permits have been applied for, shall be categorized as permits known and shall be awarded five points; or

(d) a bid for which the necessary non-ministerial permits have not been identified, based upon a permitting plan signed by a licensed engineering firm, shall be categorized as no permitting activity and shall be awarded no points.

(2) each bid shall be awarded points for having any, some, or all of the following attributes concerning the bidder’s experience in developing and managing community solar projects, with the attributes being additive, not exclusive, for a range of zero to 10 potential points per bid:

(a) a bid made by a bidder composed of partners or principals having experience with subscriber recruiting and subscription management shall be awarded three points;

(b) a bid made by a bidder composed of partners or principals having experience building and operating facilities shall be awarded three points; and

(c) a bid made by a bidder composed of partners or principals having experience working directly with low-income communities shall be awarded four points.

(3) each bid shall be assigned to one of the following categories pertaining to financing status, each with its own point weighting:

(a) a bid for which financing has been secured, whether in the form of an executed commitment letter from the project financier(s) or in the form of written confirmation of executive-level approval for internal financing, shall be categorized as financing secured and shall be awarded 10 points;

(b) a bid for which financing has not been secured but for which a detailed and feasible financing plan has been prepared shall be categorized as financing planned and shall be awarded four points; or

(c) a bid for which financing has not been secured and for which no detailed and feasible financing plan has been prepared shall be categorized as financing unplanned and shall be awarded no points.

(4) each bid shall be awarded points for having one or both of the following attributes concerning the proposed project site’s viability for interconnection, with the attributes being additive, not exclusive, for a range of zero to five potential points per bid:

(a) a bid for which the proposed project site’s distance to the utility’s nearest three-phase line is less than one mile, as demonstrated by the utility’s pre-application report or convincing alternative evidence presented by the bidder, shall be awarded two points; and

(b) a bid for which the proposed project would interconnect to a line of voltage 12 kV or higher, as demonstrated by the utility’s pre-application report, shall be awarded three points.

(5) each bid shall be awarded points for including any, some, or all the following commitments beyond what is required by the statute, with the commitments being additive, not exclusive, for a range of zero to 25 potential points per bid:

(a) a bid including a commitment to exceed the statutory thirty-percent minimum level of subscription of low-income subscribers shall be awarded two points for each additional five-percent commitment above the thirty-percent minimum, up to a maximum of eight points for a commitment to a fifty-percent low-income subscription level for the proposed project;

(b) a bid including a commitment to serve a specific percentage of direct-billed low-income customers shall be awarded two points for a ten-percent commitment and two additional points for each additional ten-percent commitment, up to a maximum of eight points for a commitment to a forty-percent subscription level of direct-billed, low-income subscribers for the proposed project;

(c) a bid including a commitment to refrain from imposing upon any potential low-income subscriber any up-front costs of subscribing, a commitment to refrain from imposing upon any potential low-income subscriber any early termination fee, and a commitment to refrain from requiring or ordering any credit check or credit report for any low-income subscriber, shall be awarded two points; and

(d) a bid including a commitment to supplement the community solar bill credit for any low-income subscriber, for a minimum period of five years, by including, in addition to the credit as calculated and provided by the utility, a credit from the subscriber organization to the subscriber in the amount of an additional twenty to thirty percent of the utility solar bill credit, shall be awarded four points for a commitment of twenty percent up to and including twenty-two percent, five points for a commitment above twenty-two percent up to and including twenty-five percent, six points for a commitment above twenty-five percent up to and including twenty-seven percent, or seven points for a commitment above twenty-seven percent up to and including thirty percent.

(6) each bid shall be awarded points for having any, some, or all of the following attributes concerning benefits to local communities, to disproportionately impacted communities, or to disadvantaged groups, with the attributes being additive, not exclusive, for a range of zero to 20 potential points per bid:

(a) a bid including a commitment to offer workforce training or educational opportunities to disproportionately impacted communities shall be awarded six points;

(b) a bid including a commitment to contract for materials, supplies, or services only with businesses owned or operated locally or owned or operated by members of racial minorities, women, veterans, or Native Americans, shall be awarded six points;

(c) a bid including a commitment to ownership of the proposed facility by members of the local community shall be awarded two points; and

(d) a bid including evidence of and a description of an existing and continuing partnership with a tribe, pueblo, local community, or non-profit community organization shall be awarded six points.

(7) each bid shall be awarded points for having any, some, or all of the following attributes concerning the proposed project site, with the attributes being additive, not exclusive, for a range of zero to five potential points per bid:

(a) a bid for a project to be sited on a brownfield, built environment, or rooftop shall be awarded two points;

(b) a bid for a project to be sited on municipal, county, or state land shall be awarded one point; and

(c) a bid for a project that has received a favorable analysis from the department of cultural affairs or a qualified independent expert shall be awarded two points.

(8) each bid shall be categorized according to the provisions of Section 13-1-21 NMSA 1978, and shall be awarded points accordingly.

(9) The program administrator may award an additional five points to any bid that, as determined by the administrator in its discretion, includes an innovative commitment or provision beneficial to the local community, to potential subscribers, or to the program overall.

F. The program administrator shall select projects based upon these qualifications and selection criteria within each qualifying utility’s territory until the allocated capacity cap for each utility has been reached.

G. For each bid selected to proceed further by the program administrator, the bidder shall pay to the commission an application fee in the amount of $2500 for each megawatt of nameplate capacity the proposed facility is expected to have.

H. The program administrator shall identify sets of proposed projects to comprise utility-specific wait lists of proposed projects that would be eligible and able to participate in the program should a project or multiple projects be withdrawn after being selected to go forward. The wait lists shall be comprised of projects that received total scores immediately below the scores of the projects that were selected. The program administrator shall maintain a wait list for each qualifying utility, including projects with combined capacities for each utility equal to the utility’s allocated capacity cap. Each bidder proposing a wait-listed project shall pay the $2500/MW application fee within 30 days of moving from the wait list into the queue of selected projects.

I. A utility must consider interconnection applications for community solar projects that have been selected by the administrator and any projects from the wait list that replace any selected projects and need not consider interconnection applications for community solar projects that have not been selected or have not replaced selected projects. Among the group of interconnection applications for community solar projects that have been selected by the administrator or have replaced selected projects, a utility must prioritize consideration of applications in the order of ranking by points awarded to each project in the selection process. A utility shall not apply any preference for interconnection applications for community solar projects as opposed to other types of interconnection applications, and vice-versa, regarding prioritization in the interconnection queue.

History

17.9.573.12 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.13 Interconnection and Administrative Costs

A. The commission may determine on a case-by-case basis whether the cost of distribution system upgrades necessary to interconnect one or more community solar facilities may be eligible for some form of cost-sharing:

(1) among subscriber organizations using the same distribution facilities;

(2) among all ratepayers of the qualifying utility via rate base adjustments; or

(3) among ratepayers of the same rate class as subscribers to the community solar facility via a rate rider for that class.

B. In making a determination that there are public benefits to such a cost-sharing mechanism, the commission will employ the analysis that the commission employs when considering cost sharing or rate basing grid modernization projects as defined by 71-3 NMSA 1978, the Grid Modernization Act, to make a finding that the approved expenditures are:

(1) reasonably expected to improve the utility’s electrical system efficiency, reliability, resilience and security;

(2) reasonably expected to maintain reasonable operations, maintenance and ratepayer costs;

(3) reasonably expected to meet energy demands through a flexible, diversified and distributed energy portfolio;

(4) reasonably expected to increase access to and use of clean and renewable energy, with consideration given to increasing access to low-income subscribers and subscribers in underserved communities; or

(5) designed to contribute to the reduction of air pollution, including greenhouse gases.

C. The commission will consider approving sharing of interconnection costs with nonsubscribing ratepayers only to the extent that the costs borne by such ratepayers are matched or exceeded by demonstrable benefits to such ratepayers, so that there will be no subsidization of interconnection costs by nonsubscribing ratepayers.in appropriate cases.

D. A utility may recover administrative costs of carrying out its responsibilities concerning the community solar program through a rate rider from which nonsubscribing ratepayers are exempt. A utility may apply to the commission to establish such a rider.

History

17.9.573.13 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.14 Registration of Subscriber Organizations

A. The commission will issue a registration form that each subscriber organization shall file with the commission, that includes ownership and contact information, non-profit registration, or proof of certification to operate in New Mexico, and a general description of the project(s) proposed by the subscriber organization.

B. Each subscriber organization’s ongoing authorization to operate community solar facilities shall be dependent upon the organization’s compliance with the statutory thirty-percent low-income subscription minimum for each facility operated by the subscriber organization. Each subscriber organization shall report to the program administrator on a monthly basis upon the organization’s progress toward meeting the requirement. Subscriber organizations that have reached the required level shall report on a quarterly basis to verify that the requirement continues to be met. Subscriber organizations that fail to reach the required level within one year of project selection may be subject, at the commission’s discretion, to penalties up to and including suspension or revocation of the subscriber organization’s authorization to operate.

History

17.9.573.14 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.15 Special Subscriber Provisions

A Low-income customers who are eligible to meet the thirty percent carve out of Paragraph (3) of Subsection B of Section 62-16B-7 NMSA 1978 may be pre-qualified based on participation in any of the following programs:

(1) medicaid;

(2) Supplemental Nutrition Assistance Program (SNAP);

(3) Low-Income Home Energy Assistance Program (LIHEAP);

(4) first-time homeowner programs and housing rehabilitation programs;

(5) living in a low-income/affordable housing facility; or

(6) state and federal income tax credit programs.

B. An entire multi-family affordable housing project may prequalify its entire load as a low-income subscriber.

C. A customer who does not qualify under subpart A may qualify as a low-income subscriber by signing a self-attestation that the customer’s income and household size qualify the customer as a low-income subscriber.

D. Low-income service organizations need only fit the special definition of this term provided in the community solar act, Subsection H of Section 62-16-2 NMSA 1978.

E. For the initial period of the program, the commission shall contract with an experienced service provider to partner with community organizations and to manage an outreach program to attract low-income subscribers to the program.

History

17.9.573.15 NMAC - N, 07/12/2022; A, 10/22/2024

N.M. Admin. Code § 17.9.573.16 Subscriber Protections

A. The commission has adopted a uniform disclosure form, identifying the information to be provided by subscriber organizations to potential subscribers, in both English and Spanish, and when appropriate, native or indigenous languages, to ensure fair disclosure of future costs and benefits of subscriptions, key contract terms, security interests and other relevant but reasonable information pertaining to the subscription, as well as grievance and enforcement procedures. The key contract terms to be disclosed on the form are subscription size (kw dc), estimated contract effective date, contract term (months or years), option to renew y/n?, enrollment costs/subscription fees, payment terms, rate discount, estimated total one year payments, early termination fees or cancellation terms, and subscription portability or transferability. The subscriber organization shall provide the form to a potential subscriber and allow them a reasonable time to review the form’s disclosures and sign the form before entering into a subscription agreement. The subscriber organization shall maintain in its files a signed form for each subscriber for the duration of the subscriber’s subscription, plus one year, and shall make the form available to the commission upon the commission’s request.

B. The subscriber organization must maintain a minimum level of general liability insurance coverage for each facility that it operates, with the minimum level dependent upon the nameplate capacity of the facility, according to the following schedule: one million dollars per occurrence for a facility with a capacity greater than 250 kW, five hundred thousand dollars per occurrence for a facility with a capacity in the range of 40 kW - 250kW, and three hundred thousand dollars per occurrence for a facility with a capacity below 40 kW.

History

17.9.573.16 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.17 Subscription Agreements

Each subscriber organization shall develop and implement a written subscriber agreement containing the organization’s terms and conditions for subscribing to its project.

A. The subscriber agreement must include the following terms, at a minimum:

(1) general project information;

(2) the effective date and term of the agreement;

(3) identification of all charges and fees;

(4) payment details;

(5) information about the bill credit mechanism;

(6) a comparison of the subscriber’s net bill with and without the subscription;

(7) the terms and conditions of service;

(8) the process for customer notification if the community solar facility is out of service;

(9) the customer protections provided;

(10) contact information for questions and complaints; and

(11) the subscriber organization’s commitment to notify the subscriber of changes that could impact the subscriber.

B. The commission may consider additional required terms in a future proceeding.

C. Complaints by subscribers against subscriber organizations may be submitted to the commission’s consumer relations division for informal resolution. The commission may, in its discretion, refer serious issues to the attorney general to pursue enforcement proceedings.

History

17.9.573.17 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.18 Co-Location of Community Solar Facilities

As long as a community solar facility is not located on the same parcel as another community solar facility, it shall not be considered co-located with another community solar facility. For any parcel that has been subdivided in the two years prior to a community solar project bid, all subdivided parcels shall be considered a single parcel for the purposes of this

rule. The commission will consider, on a case-by-case basis, allowing more than one community solar facility to be located on the same parcel.

History

17.9.573.18 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.19 Production Data

A. The subscriber organization shall pay for a production meter to be used to measure the amount of electricity and renewable energy certificates generated by each community solar facility, whether installed by the utility or the subscriber organization. A net meter may serve as the production meter if the utility determines that there is no material onsite load at the facility.

B. The subscriber organization shall provide real-time reporting of production as specified by the utility. For a community solar facility with production capacity greater than 250 kW AC, the subscriber organization shall provide real-time electronic access to production and system operation data to the utility.

C. Production from the facility shall be reported to the subscribers by the subscriber organization on at least a monthly basis. Subscriber organizations are encouraged to provide website access to subscribers showing real-time output from the facility, if practicable, as well as historic production data.

History

17.9.573.19 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.20 Community Solar Bill Credit Rate

A. In calculating the solar bill credit rate, the utility shall calculate the total aggregate retail rate on a per-customer-class basis, less the commission-approved distribution cost components, and identify all proposed rules, fees and other charges converted to a kilowatt-hour rate, including fuel and power cost adjustments, the value of renewable energy attributes and other charges of a qualifying utility's effective rate schedule applicable to a given customer rate class, but does not include charges described on a qualifying utility's rate schedule as minimum monthly charges, including customer or service availability charges, energy efficiency program riders or other charges not related to a qualifying utility's power production, transmission or distribution functions, as approved by the commission, franchise fees and tax charges on utility bills;

B. The total aggregate retail rate is the total amount of a qualifying utility's demand, energy and other charges converted to a kilowatt-hour rate, including fuel and power cost adjustments, the value of renewable energy attributes and other charges of a qualifying utility's effective rate schedule applicable to a given customer rate class, but does not include charges described on a qualifying utility's rate schedule as minimum monthly charges, including customer or service availability charges, energy efficiency program riders or other charges not related to a qualifying utility's power production, transmission or distribution functions, as approved by the commission, franchise fees and tax charges on utility bills. The utility’s tariff for the bill credit shall include a table specifying the components of the total aggregate retail rate, the value of the renewable energy attributes and the distribution costs to be subtracted.

C. The utility shall base its distribution cost calculation upon its most recently commission-approved cost-of-service study indexed to current value.

D. The utility shall not subtract any costs of transmission from the solar bill credit rate calculation.

E. The utility shall initially value the environmental attributes of renewable energy certificates (RECs) at the utility’s average cost of meeting its renewable portfolio standard requirement. During the utility’s next base rate case, the Commission will consider whether to adopt a replacement methodology to determine the net present value of the environmental attributes of RECs necessary to reach the mandated eighty-percent renewable portfolio standard by 2040, including full environmental and distribution benefits.

History

17.9.573.20 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.21 Unsubscribed Energy

A. If a community solar facility is not fully subscribed in a given month, the unsubscribed energy may be rolled forward on the community solar facility account for up to one year from its month of generation and allocated by the subscriber organization to subscribers at any time during that period. At the end of that period, any undistributed bill credit shall be removed, and the unsubscribed energy shall be purchased by the qualifying utility at its applicable avoided cost of energy rate as approved by the commission.

B. The utility shall document any payments made for unsubscribed energy, including documentation of the utility’s calculation of avoided cost and make such documentation available to the commission upon request. The utility may request recovery of such payments in its next base rate case.

History

17.9.573.21 NMAC - N, 07/12/2022

N.M. Admin. Code § 17.9.573.22 Report to Legislature

On April 1, 2023 and April 1, 2024, qualifying utilities and subscriber organizations shall provide information to the commission relevant to the report to the legislature due on November 1, 2024. The commission will issue specific information requests no later than 45 days before each April deadline.

HISTORY OF 17.9.570 NMAC: [RESERVED]

History

17.9.573.22 NMAC - N, 07/12/2022

Part 574 Applications to Expand Transportation Electrification

N.M. Admin. Code § 17.9.574.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.574.1 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.2 Scope

This rule applies to all investor-owned electric utilities under the commission’s jurisdiction.

History

17.9.574.2 NMAC N, 2/14/2023

N.M. Admin. Code § 17.9.574.3 Statutory Authority

Paragraph (10) of Subsection B of Section 62-19-9 NMSA 1978 and Section 62-8-12 NMSA 1978.

History

17.9.574.5 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.4 Duration

Permanent.

History

17.9.574.6 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.5 Effective Date

February 14, 2023, unless a later date is cited at the end of a section.

History

17.9.574.7 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.6 Objective

The purpose of this rule is to implement Section 62-8-12 NMSA 1978, applications to expand transportation electrification, and to bring to New Mexico the economic development and environmental benefits of expanded electrification of the State’s transportation modalities and transportation infrastructure.

History

17.9.574.8 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.7 Definitions

Unless otherwise specified, as used in this rule:

A. Definitions beginning with “A”: [RESERVED]

B. Definitions beginning with “B”: [RESERVED]

C. Definitions beginning with “C”: “charging station” means any publicly available infrastructure that delivers electricity from a source outside an electric vehicle into one or more electric vehicles.

D. Definitions beginning with “D”: [RESERVED]

E. Definitions beginning with “E”: “electric vehicle” or “EV” means a passenger automobile, truck, bus, train, boat, or other equipment that transports goods or people that is powered in part or in whole by the use of electricity from external sources.

F. Definitions beginning with “F”: [RESERVED]

G. Definitions beginning with “G”: [RESERVED]

H. Definitions beginning with “H”: [RESERVED]

I. Definitions beginning with “I”: “investment” means utility incurred expenditures on an asset, on a program or a project, or on research and development, associated with the expansion and facilitation of transportation electrification.

J. Definitions beginning with “J”: [RESERVED]

K. Definitions beginning with “K”: [RESERVED]

L. Definitions beginning with “L”: [RESERVED]

M. Definitions beginning with “M”: “measure” means an investment, incentive, program, rate design, or expenditure in a transportation electrification plan that is reasonably expected to achieve the goals of Section 62-8-12 NMSA 1978.

N. Definitions beginning with “N”: [RESERVED]

O. Definitions beginning with “O”:

(1) “off-peak hours” means hours not included in the on-peak period as set forth in a public utility’s commission approved tariff;

(2) “on-peak hours” means hours included in the on-peak period as set forth in a public utility’s commission approved tariff.

P. Definitions beginning with “P”:

(1) “planning horizon” means the two calendar years immediately following the plan years;

(2) “plan years” means the three calendar years for which TEP approval is sought;

(3) “public utility” or “utility” means an investor-owned electric utility certified by the commission to provide retail electric service in New Mexico pursuant to the Public Utility Act and does not include rural electric cooperatives or municipalities.

Q. Definitions beginning with “Q.”: [RESERVED]

R. Definitions beginning with “R”: [RESERVED]

S. Definitions beginning with “S”: [RESERVED]

T. Definitions beginning with “T”: “transportation electrification plan” or “TEP” means a plan to expand transportation electrification in a utility’s service territory over the three plan years, which additionally contains the informational outlook for the planning horizon.

U. Definitions beginning with “U”: [RESERVED]

V. Definitions beginning with “V”: [RESERVED]

W. Definitions beginning with “W”: [RESERVED]

X. Definitions beginning with “X”: [RESERVED]

Y. Definitions beginning with “Y”: [RESERVED]

Z. Definitions beginning with “Z”: [RESERVED]

History

17.9.574.9 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.8 Impact on Other Rules

Except as specifically provided herein, this rule does not supersede any other rule of the commission but is to be construed as a supplement to such rules.

History

17.9.574.8 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.9 Severability

If any part or application of this rule is held invalid, the remainder of its application shall not be affected.

History

17.9.574.9 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.10 Liberal Construction

This rule shall be liberally construed to carry out its intended purposes.

History

17.9.574.10 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.11 Applications to Expand Transportation Electrification

A. In accordance with the filing schedule provided in 17.9.574.12 NMAC, a public utility shall file with the commission an application for approval of a proposed three-year plan to expand transportation electrification in the utility’s service area. The three-year plan may include planned investments, incentives, programs, rate designs, and expenditures that are reasonably expected to achieve the goals of Section 62-8-12 NMSA 1978 during the plan years.

B. A public utility’s proposed three-year plan shall include, at minimum:

(1) strategies and measures for expanding transportation electrification among low-income customers and underserved communities, including but not limited to:

(a) a percentage budgetary carveout for measures aimed at increasing EV awareness and adoption among low-income customers and in underserved communities;

(b) outreach and marketing strategies and measures for expanding transportation electrification among low-income customers and in underserved communities; and

(c) strategies and measures for mass transit operations, ride-sharing programs, and multi-family dwelling units in the utility’s service area that serve low-income customers and underserved communities;

(2) strategies and measures for expanding transportation electrification across multiple EV classes, including but not limited to personal and commercial light-duty, medium-duty, and heavy-duty EVs, and electric bicycles;

(3) expected customer participation estimates and the methods used to derive such estimates;

(4) strategies and measures for servicing multiple market segments, including but not limited to commercial businesses, multi-family dwelling units, single-family homes, and ride-sharing and public transit programs;

(5) strategies and measures for coordinating with State or federal EV infrastructure planning;

(6) strategies and measures for coordinating with existing business locations that sell and dispense transportation fuel to the public; and

(7) identification of key performance indicators for program success and how these indicators are utilized to further the success of the program.

C. Strategies and measures for low-income customers shall permit self-certification of eligibility and shall be provided with public-facing materials in English and Spanish, and any incentives shall be made available prior to or at the time of purchase.

D. In addition to the proposed three-year plan, the TEP shall include a planning outlook addressing the two-year period beyond the three-year plan. The two-year planning outlook shall be presented for informational purposes to inform the commission of the utility’s vision for the transportation electrification sector during the planning horizon. Planning outlooks shall include:

(1) the public utility’s outlook for projected transportation electrification in its service territory, including estimates of the expected numbers of EVs operating in its service territory, listed by light-duty, medium-duty, and heavy-duty EV classes;

(2) expected lead times for coordinating with State and federal EV infrastructure planning, EV charging station operators, existing business locations that sell and dispense transportation fuel to the public, and other stakeholders, and for planned construction or planned deployments, including estimated or expected new or upgraded infrastructure needs;

(3) anticipated requests for regulatory approvals to effectuate a future TEP in the planning horizon, to carry out the three-year plan, to support the transition between TEPs, and to coordinate with State or federal EV infrastructure planning;

(4) planned or potential integration with neighboring public utility transportation electrification planning and possible strategies for coordinating with rural electric cooperatives, tribes, and pueblos, if any;

(5) anticipated grid management requirements and projected peak load requirements to reliably accommodate expanded transportation electrification in the public utility’s service territory, and how these requirements may be reduced by improved distribution planning, rate design, or other solutions;

(6) forecasted potential for meeting new load growth associated with EV charging infrastructure with renewable energy; and

(7) any expected or potential policy or statutory issues that could impact expanded infrastructure or network upgrades required by expanded transportation electrification in the public utility’s service territory.

E. The application shall include:

(1) testimony and exhibits providing a full explanation of the public utility’s determination of the plan years’ transportation electrification expansion measures to be undertaken and their corresponding budgets;

(2) the costs of transportation electrification measures in the plan years;

(3) whether the public utility intends to recover costs through a tariff rider, base rates, or both;

(4) testimony and exhibits demonstrating how the cost and amount specified in Paragraphs (2) and (3) of this Subsection were determined;

(5) testimony demonstrating that the proposed transportation electrification plan is reasonably and prudently designed and expected to accomplish any or all of the goals of the TEP pursuant to Paragraphs (1) through (6) of Subsection B of Section 62-8-12 NMSA 1978 and 17.9.574 NMAC.

History

17.9.574.12 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.12 Application Filing, Service, and Review

A. Public service company of New Mexico shall file its application by June 1, 2023, and every three years thereafter following by the same date. El paso electric company shall file its application by July 1, 2023, and every three years thereafter following by the same date. Southwestern public service company shall file its application by April 1, 2024, and every three years thereafter following by the same date.

B. A public utility shall electronically file and serve its application pursuant to 1.2.2 NMAC. A public utility shall electronically serve a copy of its application on intervenors in the public utility’s most recent TEP docket, the New Mexico attorney general, and the intervenors in the public utility’s most recent rate case. The public utility shall also post on its website its most recently approved TEP and any proposed TEP pending before the commission.

C. The commission shall complete its review and approval of a public utility’s TEP application pursuant to 17.9.574.11 NMAC no later than six months after filing of the application, unless the commission finds that a longer time will be required, in which case the commission may extend the period for an additional three months.

D. The commission’s final order on a public utility’s TEP application shall address the utility’s proposed cost recovery for TEP costs.

History

17.9.574.13 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.13 Annual Progress Report

A. Each public utility shall file an annual progress report of its progress in meeting the requirements and goals of its TEP. Public service company of New Mexico shall file its first annual progress report by June 1, 2024, and shall file annually thereafter by June 1st. El paso electric company shall file its first annual progress report by July 1, 2024, and shall file annually thereafter by July 1st. Southwestern public service company shall file its first annual progress report by April 1, 2025, and shall file annually thereafter by April 1st.

B. In addition to any service territory specific reporting requirements carried over from a public utility’s previously approved transportation electrification plan, the annual progress report shall include for a utility’s service territory:

(1) an estimate of EV adoption, including estimated changes in EV adoption since the utility’s most recently approved TEP;

(2) an estimate of the number and type of TEP-funded EV charging stations and ports and an estimate of required maintenance, frequency of repairs, and station outages;

(3) the number of participants in TEP programs, including:

(a) estimated low-income customer participation; and

(b) participation by customer rate class.

(4) an estimate of usage or of the amount of energy sold to program participants during off-peak and on-peak hours, as well as the change in usage since the last annual progress report;

(5) TEP spending by measure;

(6) estimated electricity consumption by participating EV charging stations in kWh;

(7) estimated load from incentivized EV charging infrastructure in kW;

(8) geographical distribution of participants and infrastructure investments;

(9) descriptions of average load data and load profiles of TEP programs;

(10) a listing and summary of all customer outreach activities, the cost of those activities, an estimate of the number of customers reached, and an assessment of the effectiveness of each activity; and

(11) readily available data that may inform future measures to help better understand the impact of EV charging on the electric grid.

History

17.9.574.14 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.14 Budget Flexibility

A. A public utility shall be granted budget flexibility between programs in its TEP to shift up to twenty percent of a program’s budget to another program.

(1) Inter-program budget flexibility may not be used to shift funding from a dedicated low-income program to:

(a) a program for standard customers; or

(b) any customer outreach and education program.

(2) Inter-program budget flexibility between different low-income programs, or into low-income programs from other programs, including low-income programs, is permissible.

B. Should a public utility exceed ninety percent of its allocated spending for a program in its current TEP at any point during the plan period, the utility is authorized to exceed that program’s original budget by up to ten percent to supplement funding for that program. This budget flexibility mechanism does not apply to:

(1) a pilot program with participation caps;

(2) a program for which that program’s budget was reduced pursuant to Subsection A of 17.9.574.14 NMAC; or

(3) any customer outreach and education program.

C. A public utility may request additional budget flexibility funding in its TEP application or at any other time after approval of its current TEP.

D. The commission reserves the authority to stipulate additional circumstances when budget flexibility shall not be applicable.

History

17.9.574.14 NMAC - N, 2/14/2023

N.M. Admin. Code § 17.9.574.15 Exemption and Variance

A. The commission, upon its own motion, may issue, or any interested person, may file an application for, an exemption or a variance from the requirements of this rule.

B. An exemption or variance motion or application shall:

(1) identify the section of this rule for which the exemption or variance is requested;

(2) describe the situation that necessitates the exemption or variance;

(3) set out the effect of complying with this rule on the public utility and its customers if the exemption or variance is not granted;

(4) define the result the request will have if granted;

(5) state how the exemption or variance will be consistent with the purposes of this rule;

(6) state why no other reasonable alternative is preferable; and

(7) state why the proposed alternative is in the public interest.

HISTORY of 17.9.574 NMAC: [RESERVED]

History

17.9.574.15 NMAC - N, 2/14/2023

Part 588 Grid Modernization Grant Program

N.M. Admin. Code § 17.9.588.1 Issuing Agency

Energy, Minerals and Natural Resources Department.

History

17.9.588.1 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.2 Scope

17.9.588 NMAC applies to all eligible entities applying for a grant from the grid modernization grant program.

History

17.9.588.2 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.3 Statutory Authority

17.9.588 NMAC is authorized pursuant to Subsection B through E of Section 71-11-1, and Section 71-11-2 NMSA 1978.

History

17.9.588.3 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.4 Duration

Permanent.

History

17.9.588.4 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.5 Effective Date

April 11, 2023, unless a later date is cited at the end of a section.

History

17.9.588.5 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.6 Objective

The objective is to establish requirements and procedures for applying for a grid modernization grant program grant.

History

17.9.588.6 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.7 Definitions

A. “Applicant” means one or more representatives of an eligible entity making an application for a grid modernization grant.

B. “Applicant category” means, for the purposes of evaluating applications an Indian nation, tribe or pueblo, a rural community served by a rural electric cooperative, a rural community served by an investor-owned public utility, an urban or semi-urban municipality or county, or an institution of higher education.

C. “Department” means the energy, minerals and natural resources department.

D. “Division” means the energy conservation and management division of the department.

E. “Fund” means the grid modernization grant fund established by the legislature in Section 71-11-2, NMSA 1978.

F. “Eligible entity” means an organization that may apply for a grid modernization grant and includes only the following: municipalities and county governments, state agencies, state universities, public schools, post-secondary educational institutions and Indian nations, tribes and pueblos.

G. “In-kind” means non-monetary contributions to a project made by an applicant and demonstrated in the applicant’s budget justification.

H. “Non-responsive” means an application that does not meet all the application requirements for the specific project type.

I. “Program” means the grid modernization grant program of the department established by Section 71-11-1, NMSA 1978.

J. “Project” means an activity defined by the applicant that supports the goals of grid modernization and falls within the three specified types.

History

17.9.588.7 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.8 Eligibility

Grid modernization grants shall only be awarded to eligible entities for projects that occur within the state of New Mexico.

History

17.9.588.8 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.9 Project Types

Grid modernization projects may be one of three project types.

A. Type 1. Original research that advances the state’s understanding and appreciation of grid function, reliability, resilience, security and operation as it relates to the integration of renewable and zero-carbon resources, including impacts on customer behavior, operations and maintenance costs or the value of specific grid technologies.

B. Type 2. Pre-construction and design work to support grid modernization construction/installation projects.

C. Type 3. Construction, installation, operation and verification of a grid modernization technology at a project site.

History

17.9.588.9 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.10 Application Submission Cycle

The division will request applications on an annual cycle that aligns with the state’s fiscal year if funds are available. The division may elect to review draft applications submitted voluntarily by March 1 and provide feedback within 30 days. Review is provided as a courtesy and does not guarantee a place in the funding queue. All final applications will be due by June 1 of every year the department requests applications to be considered for funding in the following fiscal year. Application packages will be accepted by e-mail or by mail.

History

17.9.588.10 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.11 Application Requirements for Type 1 Projects

Applications for type 1 research projects made for grid modernization grant program funding shall describe a scope of work that includes:

A. the proposed research question and methodology;

B. a deliverables-based summary of the overall plan for the research; and

C. results of any previous or preliminary research or expected results.

History

17.9.588.11 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.12 Application Requirements for Type 2 Projects

Applications for type 2 pre-construction design projects shall describe a scope of work that includes:

A. a deliverables-based summary of the plan for the design project, including proposed operational goals for the project;

B. the proposed site with maps, diagrams or images;

C. plans for achieving compliance with federal, state and local construction requirements; and

D. plan to obtaining funding to complete project construction and installation.

History

17.9.588.12 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.13 Application Requirements for Type 3 Projects

Applications for type 3 construction projects shall describe a scope of work that includes

A. a deliverables-based summary of the plan for the grid modernization installation project;

B. a description of the grid modernization technology being deployed;

C. a completed engineering/design study; and

D. proof of compliance with applicable federal, state and local construction requirements.

History

17.9.588.13 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.14 Additional Application Requirements for All Projects

A. Applicant contact information. Applicants shall include the name, title, telephone number and e-mail address for the person or persons authorized to negotiate a contract on applicant’s behalf in the application. Applicants shall also include the names, titles, telephone numbers and e-mail addresses of persons to be contacted for clarification related to the contents of an application.

B. Alignment with the state’s goals. Applicants shall describe in their application how the research will advance grid modernization in New Mexico by

(1) helping to improve electrical system efficiency, reliability, resilience and security; lowering operations and maintenance costs; and meeting energy demands through a flexible, diversified and distributed energy portfolio consistent with New Mexico’s energy goals;

(2) incorporating a new technology or a new or innovative application of an existing technology that will provide useful information to the state, utilities, and the general public related to grid modernization

(3) having broad applicability to the state or other utility service territories within New Mexico;

(4) fostering the public’s, students’, industry’s or a specific government or industry sector’s overall understanding and appreciation of grid modernization;

(5) demonstrating the ability to stimulate in-state economic development, including the creation of jobs and apprenticeships and

(6) the extent to which the project complements or coordinates with the resource planning of a public utility as required by the Public Utility Act, Section 62-13-1, NMSA 1978.

C. Utility support. Applicants shall include a letter of support from the utility or utilities providing service to the area(s) in which the project will take place. Applicants shall coordinate with the electric provider to ensure that the program does not adversely impact electrical system efficiency, reliability, resilience and security.

D. Ability to complete project. Applications shall include

(1) a deliverables-based budget showing how work will be compensated, including a list of non-program funding or in-kind resources, and how these resources will be applied to the project, if applicable;

(2) a deliverables-based timeline showing how the project will be completed, including major milestones; and

(3) resumes/curriculum vitae and other documentation showing that the applicants and designated sub-contractors are qualified to complete the project.

History

17.9.588.14 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.15 Application Evaluation Criteria

The department will score all applications based on the following criteria.

A. Application completeness. The department will review the entire application to see that it satisfies all application requirements for the specific project type. The department will deny and deem non-responsive an incomplete application without further review.

B. Capability to meet the scope of work described. The department will consider the project timeline, appropriateness of deliverables, qualifications of project team members including subcontractors and the ability to complete the project financially if the total budget exceeds the grant amount requested.

C. Alignment with state grid modernization goals. The department will consider the extent to which a proposed project will advance grid reliability, resilience, security and cost effectiveness, and enable a flexible, diversified and distributed energy portfolio, through the adoption of a new technology or innovative application of an existing technology.

D. Replicability and broader impact. For type 1 projects, the department will consider the extent to which research findings are broadly applicable to statewide grid modernization or energy distribution or diversification goals. For type 2 and 3 projects, the department will consider the extent to which the project will lead to widespread adoption of a grid modernization technology.

E. Economic impact. The department will consider the extent to which the project will stimulate in-state economic development, workforce development or further development of a commercial market for grid modernization technology services.

F. Educational value. The department will consider the extent to which the project will foster the public’s, students’ or the industry’s overall understanding of a new technology or an innovative application of an existing technology and will provide useful information to the state, utilities, and the general public related to grid modernization.

G. Competitive awards.

(1) Funding match. The department will prioritize projects for which the applicant has committed non-state resources to the project, including in-kind contributions.

(2) Priority applicant categories. The department will seek to fund applicants in each of these categories in any given year to the extent there are available funds and project proposals:

(a) an Indian nation, tribe or pueblo;

(b) a rural community served by a rural electric cooperative;

(d) an urban or semi-urban municipality or county; and

(e) an institution of higher education.

H. Request relative to available funding. The department will consider available funding at the time of review.

History

17.9.588.15 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.16 Funding Queue

After scoring the applications received for a given fiscal year based on the application criteria, the department will rank the applications from highest to lowest score in the funding queue. The department will then pursue agreements with the highest scoring applicants first until funding for the applicable fiscal year have been depleted.

History

17.9.588.16 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.17 Funding Sources

The department may apply, at its sole discretion and subject to applicable requirements, a mix of federal and state funding to support grid modernization projects depending on available balances in the fund. The department will notify applicants of the funding source or sources applied to their projects and the associated reporting and compliance requirements.

History

17.9.588.17 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.18 Funding Uses and Limitations

A. Eligible project costs for reimbursement may include:

(1) project development,

(2) engineering design,

(3) environmental and regulatory assessments,

(4) equipment and supplies,

(5) construction, and

(6) inspection.

B. Ineligible project costs for reimbursement include:

(1) water rights,

(2) land easements,

(3) right-of-way acquisition, and

(4) legal fees.

History

17.9.588.18 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.19 Record Keeping and Reporting

Successful applicants receiving grid modernization grant funding shall submit progress and expenditure reports, including a final report, in accordance with the requirements of their respective agreement. The department reserves the right to structure reporting requirements on a project-specific basis.

History

17.9.588.19 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.20 Environmental and Cultural Resources Compliance for Projects Anticipating Ground Disturbance

Successful applicants receiving grid modernization grant funding shall provide a statement to demonstrate acknowledgement of compliance with all applicable federal, state and local environmental and cultural resources compliance laws.

History

17.9.588.20 NMAC – N, 4/11/2023

N.M. Admin. Code § 17.9.588.21 Maintenance and Inspection of Public Records Act; Confidential Information

All information obtained regarding the project, including pre-applications, applications for funding and reports are subject to disclosure, in response to requests received under provisions of the Inspection of Public Records Act, Sections 14-2-1 to 14-2-12, NMSA 1978. Information that could reasonably be considered proprietary, privileged or confidential commercial or financial information must be identified as such. The department will maintain the confidentiality of that information only to the extent permitted by law.

History of 17.9.588 NMAC: [RESERVED]

History

17.9.588.21 NMAC – N, 4/11/2023

Part 589 Reliability Metrics Reporting

N.M. Admin. Code § 17.9.589.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.589.1 NMAC - N, 9/24/2024

N.M. Admin. Code § 17.9.589.2 Scope

This rule applies to all investor-owned electric public utilities subject to the jurisdiction of the commission.

History

17.9.589.2 NMAC - N, 9/24/2024

N.M. Admin. Code § 17.9.589.3 Statutory Authority

Section 62-6-25 NMSA 1978; Paragraph (1) of Subsection B of Section 62-8-13 NMSA 1978; Paragraph (3) of Subsection D of Section 62-9-1 NMSA 1978; Subsection E of Section 62-9-3 NMSA 1978; Paragraph (2) of Subsection B of Section 62-16-4 NMSA 1978; and Subsection B of Section 62-16-6 NMSA 1978.

History

17.9.589.3 NMAC - N, 9/24/2024

N.M. Admin. Code § 17.9.589.4 Duration

Permanent.

History

17.9.589.4 NMAC - N, 9/24/2024

N.M. Admin. Code § 17.9.589.5 Effective Date

September 24, 2024, unless a later date is cited at the end of a section.

History

17.9.589.5 NMAC - N, 9/24/2024

N.M. Admin. Code § 17.9.589.6 Objective

This rule is intended to promote electric service reliability by requiring investor-owned electric utilities to report a variety of reliability metrics to the commission on an annual basis with the goal of identifying, prioritizing, and meeting reliability needs.

History

17.9.589.6 NMAC - N, 9/24/2024

N.M. Admin. Code § 17.9.589.7 Definitions

Unless otherwise specified, as used in this rule:

A. Definitions beginning with “A”: “average service availability index” (ASAI) means the fraction of time (commonly converted to a percentage) that a customer has received power during the defined reporting period, as given in the following equation: customer hours service availability divided by customer hours service demand. This definition incorporates the definition from IEEE-1366-2022.

B. Definitions beginning with “B”: [RESERVED]

C. Definitions beginning with “C”:

(1) “commission” means the New Mexico public regulation commission;

(2) “customer average interruption duration index” (CAIDI) means the average time required to restore service, as given in the following equation: total customer minutes of interruption divided by total number of customers interrupted. This definition incorporates the definition from IEEE-1366-2022; and

(3) “customers experiencing long interruption durations” (CELID) means the ratio of individual customers that experience interruptions with durations longer than or equal to a given time. That time is either the duration of a single interruption, or the total amount of time that a customer has been interrupted during the reporting period. This definition incorporates the definition from IEEE-1366-2022.

D. Definitions beginning with “D”: [RESERVED]

E. Definitions beginning with “E”: [RESERVED]

F. Definitions beginning with “F”: “feeder SAIFI” means the average number of times that a customer on a specific circuit is interrupted during the year, as given in the following equation: total number of customers interrupted on the circuit during the year divided by average number of customers served on the circuit during the year.

G. Definitions beginning with “G”: [RESERVED]

H. Definitions beginning with “H”: [RESERVED]

I. Definitions beginning with “I”:

(1) “IEEE” means the institute of electrical and electronics engineers; and

(2) “interruption” means the total loss of electric power on one or more normally energized conductors to one or more customers connected to the distribution portion of the system. Interruption does not include any power quality issues such as sags, swells, impulses, or harmonics. This definition incorporates the definition from IEEE-1366-2022; and

(3) “interruption cause code categories” incorporates the categories and sub-categories defined in IEEE-1782-2022 and additionally means the following categories used in reliability reports to be filed by utilities in accordance with this Rule:

(a) equipment,

(b) lightning,

(d) power supply (transmission),

(e) public,

(f) vegetation,

(g) weather (other than lightning),

(h) wildlife,

(i) unknown, and

(j) other (please specify).

J. Definitions beginning with “J”: [RESERVED]

K. Definitions beginning with “K”: [RESERVED]

L. Definitions beginning with “L”: [RESERVED]

M. Definitions beginning with “M”: [RESERVED]

(1) “major events” means an event that exceeds reasonable design or operational limits of the electric power system. A major event includes at least one major event day. This definition incorporates the definition from IEEE-1366-2022;

(2) “major event day” (MED) means a day in which the daily system average interruption duration index (SAIDI) exceeds a MED threshold value. For the purposes of calculating daily SAIDI, any interruption that spans multiple calendar days is accrued to the day on which the interruption began. Statistically, days having a daily system SAIDI greater than the MED threshold are days on which the energy delivery system experienced stresses beyond that normally expected (such as during severe weather). This definition incorporates the definition from IEEE-1366-2022; and

(3) “momentary average interruption frequency index” (MAIFI) means the average frequency of momentary interruptions. This definition incorporates the definition from IEEE-1366-2022.

N. Definitions beginning with “N”: [RESERVED]

O. Definitions beginning with “O”: [RESERVED]

P. Definitions beginning with “P”: “planned interruption” means the loss of electric power to one or more customers as a result of a planned interruption. Planned interruptions derive from transmission and distribution applications and do not apply to generation interruptions. The key test to determine if an interruption should be classified as a planned or unplanned interruption is as follows: if it is possible to defer the interruption, then the interruption is a planned interruption; otherwise, the interruption is an unplanned interruption. This definition incorporates the definition from IEEE-1366-2022.

Q. Definitions beginning with “Q”: [RESERVED]

R. Definitions beginning with “R”: [RESERVED]

S. Definitions beginning with “S”:

(1) “system average interruption duration index” (SAIDI) means the total duration of interruption for the average customer during a specified period of time, measured in minutes of interruption, as given in the following equation: total customer minutes of interruption divided by total number of customers served. This definition incorporates the definition from IEEE-1366-2022;

(2) “system average interruption frequency index” (SAIFI) means how often the average customer experiences a sustained interruption over a predefined period of time, as given in the following equation: total number of customers interrupted divided by total number of customers served. This definition incorporates the definition from IEEE-1366-2022; and

(3) “sustained interruptions” means an interruption that lasts more than five minutes. This definition incorporates the definition from IEEE-1366-2022.

T. Definitions beginning with “T”: [RESERVED]

U. Definitions beginning with “U”: “utility” means an investor-owned electric public utility subject to the requirements of this Rule.

V. Definitions beginning with “V”: [RESERVED]

W. Definitions beginning with “W”: [RESERVED]

X. Definitions beginning with “X”: [RESERVED]

Y. Definitions beginning with “Y”: [RESERVED]

Z. Definitions beginning with “Z”: [RESERVED]

17.9.589.7 NMAC - N, 9/24/2024]

N.M. Admin. Code § 17.9.589.8 General Reliability Metrics Reporting Requirements

A. A utility shall file, no later than March 15 of each year, a report in the commission’s reliability reporting compliance docket pursuant to the report outline provided in Appendix A.

B. The report shall contain an affidavit with an attestation made by the employee of the utility who prepared the report.

C. The utility shall serve the report upon the commissioners, the commissioners’ advisors, utility division staff, and all persons and entities listed on the certificate of service for the utility’s last base rate case.

D. Utility division staff shall file, within 45 days of a report’s filing, staff’s assessment of the report. Staff’s assessment shall include a statement of compliance with this rule, detailing areas of non-compliance.

E. After the utility’s second annual filing, the report shall include an analysis of trends, a comparison of previous years, and a recommendation for future distribution investments.

F. The utility shall present, no later than June 1 of each year, its report to the commission at an open meeting, which shall include all requirements contained in Appendix A plus a linkage between the reliability metrics and the utility’s distribution planning.

History

17.9.589.8 NMAC - N, 9/24/2024

N.M. Admin. Code § 17.9.589.9 Specific Reliability Metrics Reporting Requirements

A. MAIFI is not required to be reported unless the utility has installed the necessary technology and has usage data for at least six months across eighty percent of its electric system.

B. Activities that occur on MEDs should be separately analyzed and reported.

C. A utility that provides electric service in more than one state may:

(1) identify major events based on the reliability events experienced by the combined service territories; and

(2) illustrate the effect of identifying major events based on reliability events experienced only in the New Mexico service territory.

D. A utility may categorize interruptions into more detailed interruption cause categories that are subsets of the defined interruption cause code categories. The utility shall:

(1) list sub-causes when weather is the primary interruption cause code;

(2) list sub-equipment components when using the equipment interruption cause code;

(3) include planned interruptions; and

(4) include the utility’s methodology of how it classifies interruptions.

NMAC History: [RESERVED]

APPENDIX A

Required Sections of Annual Reliability Metric Report Filed Pursuant to Sections 8 and 9 of 17.9.589 NMAC

Executive Summary:

Please provide a narrative to illustrate the current state of distribution reliability and major trends.

How the Utility Measures Reliability:

Please provide a narrative that describes, in general terms, how the utility’s measures and documents reliability matters, including examples of metrics that are most useful.

The Utility’s Service Territory Map with Districts:

Maps should show how the utility operations are divided into geographic regional/divisions. Color coding may be useful to identify districts with above or below average reliability outcomes.

Reliability Indices IEEE 1366 for the Last 10 years (Excluding Planned Interruptions):

Tables are required. Charts to illustrate the data would be helpful. Distribution includes distribution lines; substation includes distribution substations; and transmission includes transmission substations and lines.

Table 4.1: Prior Calendar Year Reliability Data

System Including MEDs Excluding MEDs SAIDI SAIFI CAIDI MAIFI SAIDI SAIFI CAIDI MAIFI Distribution Substation Transmission Total

System

Including MEDs

Excluding MEDs

SAIDI

SAIFI

CAIDI

MAIFI

SAIDI

SAIFI

CAIDI

MAIFI

Distribution

Substation

Transmission

Total

Table 4.2: 10 Year History of SAIDI

Including MEDs

SAIDI YR-9 YR-8 YR-7 YR-6 YR-5 YR-4 YR-3 YR-2 YR-1 YEAR Distribution Substation Transmission Total

SAIDI

YR-9

YR-8

YR-7

YR-6

YR-5

YR-4

YR-3

YR-2

YR-1

YEAR

Distribution

Substation

Transmission

Total

*“YEAR” means the prior calendar year. “YR-1” to “YR-9” means the nine incremental years prior to YEAR.

Excluding MEDs

SAIDI YR-9 YR-8 YR-7 YR-6 YR-5 YR-4 YR-3 YR-2 YR-1 YEAR Distribution Substation Transmission Total

SAIDI

YR-9

YR-8

YR-7

YR-6

YR-5

YR-4

YR-3

YR-2

YR-1

YEAR

Distribution

Substation

Transmission

Total

Table 4.3: 10 Year History of SAIFI

Including MEDs

SAIFI YR-9 YR-8 YR-7 YR-6 YR-5 YR-4 YR-3 YR-2 YR-1 YEAR Distribution Substation Transmission Total

SAIFI

YR-9

YR-8

YR-7

YR-6

YR-5

YR-4

YR-3

YR-2

YR-1

YEAR

Distribution

Substation

Transmission

Total

Excluding MEDs

SAIFI YR-9 YR-8 YR-7 YR-6 YR-5 YR-4 YR-3 YR-2 YR-1 YEAR Distribution Substation Transmission Total

SAIFI

YR-9

YR-8

YR-7

YR-6

YR-5

YR-4

YR-3

YR-2

YR-1

YEAR

Distribution

Substation

Transmission

Total

Table 4.4: 10 Year History of CAIDI

Including MEDs

CAIDI YR-9 YR-8 YR-7 YR-6 YR-5 YR-4 YR-3 YR-2 YR-1 YEAR Distribution Substation Transmission Total

CAIDI

YR-9

YR-8

YR-7

YR-6

YR-5

YR-4

YR-3

YR-2

YR-1

YEAR

Distribution

Substation

Transmission

Total

Excluding MEDs

CAIDI YR-9 YR-8 YR-7 YR-6 YR-5 YR-4 YR-3 YR-2 YR-1 YEAR Distribution Substation Transmission Total

CAIDI

YR-9

YR-8

YR-7

YR-6

YR-5

YR-4

YR-3

YR-2

YR-1

YEAR

Distribution

Substation

Transmission

Total

Table 4.5: 10 Year History of MAIFI

Including MEDs

MAIFI YR-9 YR-8 YR-7 YR-6 YR-5 YR-4 YR-3 YR-2 YR-1 YEAR Distribution Substation Transmission Total

MAIFI

YR-9

YR-8

YR-7

YR-6

YR-5

YR-4

YR-3

YR-2

YR-1

YEAR

Distribution

Substation

Transmission

Total

Excluding MEDs

MAIFI YR-9 YR-8 YR-7 YR-6 YR-5 YR-4 YR-3 YR-2 YR-1 YEAR Distribution Substation Transmission Total

MAIFI

YR-9

YR-8

YR-7

YR-6

YR-5

YR-4

YR-3

YR-2

YR-1

YEAR

Distribution

Substation

Transmission

Total

Table 4.6: Summary YEAR System Reliability for Each District

By Districts Including MEDs Excluding MEDs SAIDI SAIFI CAIDI ASAI MAIFI SAIDI SAIFI CAIDI ASAI MAIFI District 1 District 2 District 3 District 4 District 5 District 6 District 7 Add as needed

By Districts

Including MEDs

Excluding MEDs

SAIDI

SAIFI

CAIDI

ASAI

MAIFI

SAIDI

SAIFI

CAIDI

ASAI

MAIFI

District 1

District 2

District 3

District 4

District 5

District 6

District 7

Add as needed

Table 4.7: Individual Tables of Reliability Measures for Each Utility District with 10 Year History (where available)

District 1 YR-9 YR-8 YR-7 YR-6 YR-5 YR-4 YR-3 YR-2 YR-1 YEAR Including MEDs SAIDI SAIFI CAIDI MAIFI Excluding MEDs SAIDI SAIFI CAIDI MAIFI

District 1

YR-9

YR-8

YR-7

YR-6

YR-5

YR-4

YR-3

YR-2

YR-1

YEAR

Including MEDs

SAIDI

SAIFI

CAIDI

MAIFI

Excluding MEDs

SAIDI

SAIFI

CAIDI

MAIFI

Repeat table above for subsequent districts

Worst Performing Feeders:

Threshold based on Feeder SAIDI or Feeder SAIFI >= Distribution System SAIDI or SAIFI + 300%. Highlighted feeders over threshold for two consecutive years. Minimum 10 customers on feeder.

Table 5.1: YEAR Feeders Above SAIDI Threshold

YEAR Distribution system SAIDI: x Feeder SAIDI threshold: y Total Feeders: z

YEAR SAIDI Ranking YR-1 SAIDI Ranking Substation Feeder ID Location Customers on Feeder YEAR SAIDI Value Reason Above Threshold

YEAR SAIDI Ranking

YR-1 SAIDI Ranking

Substation

Feeder ID

Location

Customers on Feeder

YEAR SAIDI Value

Reason Above Threshold

Table 5.2: YR-1 Feeders Above SAIDI Threshold

YR-1 Distribution system SAIDI: x Feeder SAIDI threshold: y Total Feeders: z

YR-1 SAIDI Ranking YR-2 SAIDI Ranking Substation Feeder ID Location Customers on Feeder YR-1 SAIDI Value Reason Above Threshold

YR-1 SAIDI Ranking

YR-2 SAIDI Ranking

Substation

Feeder ID

Location

Customers on Feeder

YR-1 SAIDI Value

Reason Above Threshold

Table 5.3: YR-2 Feeders Above SAIDI Threshold

Please use Table 5.2 as a template for creating Table 5.3, which will focus on [YR-2] feeders above SAIDI threshold, while showing the SAIDI ranking of those same feeders the previous year.

Table 5.4: YR-3 Feeders Above SAIDI Threshold

Please use Table 5.2 as a template for creating Table 5.4, which will focus on [YR-3] feeders above SAIDI threshold, while showing the SAIDI ranking of those same feeders the previous year.

Table 5.5: YR-4 Feeders Above SAIDI Threshold

Please use Table 5.2 as a template for creating Table 5.5, which will focus on [YR-4] feeders above SAIDI threshold, while showing the SAIDI ranking of those same feeders the previous year.

Table 5.6: YEAR Feeders Above SAIFI Threshold

YEAR Distribution system SAIFI: x Feeder SAIFI threshold: y Total Feeders: z

YEAR SAIFI Ranking YR-1 SAIFI Ranking Substation Feeder ID Location Customers on Feeder YEAR SAIFI Value Reason Above Threshold

YEAR SAIFI Ranking

YR-1 SAIFI Ranking

Substation

Feeder ID

Location

Customers on Feeder

YEAR SAIFI Value

Reason Above Threshold

Table 5.7: YR-1 Feeders Above SAIFI Threshold

YR-1 Distribution system SAIFI: x Feeder SAIFI threshold: y Total Feeders: z

YR-1 SAIFI Ranking YR-2 SAIFI Ranking Substation Feeder ID Location Customers on Feeder YR-1 SAIFI Value Reason Above Threshold

YR-1 SAIFI Ranking

YR-2 SAIFI Ranking

Substation

Feeder ID

Location

Customers on Feeder

YR-1 SAIFI Value

Reason Above Threshold

Table 5.8: YR-2 Feeders Above SAIFI Threshold

Please use Table 5.7 as a template for creating Table 5.8, which will focus on YR-2 feeders above SAIFI threshold, while showing the SAIFI ranking of those same feeders the previous year.

Table 5.9: YR-3 Feeders Above SAIFI Threshold

Please use Table 5.7 as a template for creating Table 5.9, which will focus on YR-3 feeders above SAIFI threshold, while showing the SAIFI ranking of those same feeders the previous year.

Table 5.10: YR-4 Feeders Above SAIFI Threshold

Please use Table 5.7 as a template for creating Table 5.10, which will focus on YR-4 feeders above SAIFI threshold, while showing the SAIFI ranking of those same feeders the previous year.

Top Five Causes of Interruptions (Interruption Cause Code Categories):

Table 6.1: Five Year Trend of Top Causes by SAIDI Minutes (interruption codes)

Cause YR-4 SAIDI #1 cause #2 cause #3 cause #4 cause #5 cause

Cause

YR-4 SAIDI

#1 cause

#2 cause

#3 cause

#4 cause

#5 cause

Cause YR-1 SAIDI #1 cause #2 cause #3 cause #4 cause #5 cause

Cause

YR-1 SAIDI

#1 cause

#2 cause

#3 cause

#4 cause

#5 cause

Cause YR-3 SAIDI #1 cause #2 cause #3 cause #4 cause #5 cause

Cause

YR-3 SAIDI

#1 cause

#2 cause

#3 cause

#4 cause

#5 cause

Cause YEAR SAIDI #1 cause #2 cause #3 cause #4 cause #5 cause

Cause

YEAR SAIDI

#1 cause

#2 cause

#3 cause

#4 cause

#5 cause

Cause YR-2 SAIDI #1 cause #2 cause #3 cause #4 cause #5 cause

Cause

YR-2 SAIDI

#1 cause

#2 cause

#3 cause

#4 cause

#5 cause

Figure 6.1: Five Year Trend of Top Causes by SAIDI Minutes (present the data from Table 6.1 in graphic form)

Please provide a narrative pertaining to top causes of interruptions.

Table of Major Events (MED) and Top 5 Non-MED Events:

Table 7.1: Major Events

Index Contribution Start Time Customers Affected % Customers Restored in 24 hours Time All Customers Restored Cause Brief Event Narrative SAIDI SAIFI CAIDI

Index Contribution

Start Time

Customers Affected

% Customers Restored in 24 hours

Time All Customers Restored

Cause

Brief Event Narrative

SAIDI

SAIFI

CAIDI

Table 7.2: Top 5 Non-MED Events

Index Contribution Start Time Customers Affected % Customers Restored in 24 hours Time All Customers Restored Cause Brief Event Narrative SAIDI SAIFI CAIDI

Index Contribution

Start Time

Customers Affected

% Customers Restored in 24 hours

Time All Customers Restored

Cause

Brief Event Narrative

SAIDI

SAIFI

CAIDI

Please provide a narrative pertaining to MED and non-MED events.

Customers Experiencing Extended Interruptions:

Table 8.1: CELID 12 and 24 Hours Including and Excluding MEDs

YEAR Customers Experiencing Long Interruption Duration (CELID)

CELID-12 (>= 12 hrs) CELID-24 (>= 24 hrs) No. of Customers % of all Customers No. of Customers % of all Customers Including MEDs Excluding MEDs

CELID-12 (>= 12 hrs)

CELID-24 (>= 24 hrs)

No. of Customers

% of all Customers

No. of Customers

% of all Customers

Including MEDs

Excluding MEDs

Please provide a narrative pertaining to customers experiencing extended interruptions.

Narrative on Customer Complaints to the Utility About Interruptions:

The narrative shall provide the total number of customer complaints received by the utility about interruptions, as well as an overview of the types of those complaints. Reporting regarding the complaints shall be disaggregated by customer class or voltage level (large customers, residential, etc.) to the extent possible while not identifying individual customer data or disclosing confidential customer information. The narrative is not required to discuss individual customer complaints and what was done to resolve them; however, the utility may choose to include this information for illustrative purposes.

Trends of Investment in Transmission and Distribution System (CapEx and O&M) Over 10 Years of Spending on Reliability Improvements:

Please clarify whether all of your transmission is considered part of the bulk electric system as defined by the Federal Energy Regulatory Commission. If a portion of your transmission system is not considered a part of the bulk electric system, expenditures for each portion of the transmission system should be reported separately.

Table 10.1: Total Transmission O&M and Capital Expenditures

Transmission Expenditures YR-9 YR-8 YR-7 YR-6 YR-5 YR-4 YR-3 YR-2 YR-1 YEAR Capex - (000) USD O&M - (000) USD

Transmission Expenditures

YR-9

YR-8

YR-7

YR-6

YR-5

YR-4

YR-3

YR-2

YR-1

YEAR

Capex - (000) USD

O&M - (000) USD

Table 10.2: Total Distribution O&M and Capital Expenditures

Distribution YR-9 YR-8 YR-7 YR-6 YR-5 YR-4 YR-3 YR-2 YR-1 YEAR Capex spend - (000) USD O&M spend - (000) USD Dist. line miles at year end Dist. customers at year end

Distribution

YR-9

YR-8

YR-7

YR-6

YR-5

YR-4

YR-3

YR-2

YR-1

YEAR

Capex spend - (000) USD

O&M spend - (000) USD

Dist. line miles at year end

Dist. customers at year end

Table 10.3 Major Event and Storm Restoration Expenditures in Prior Year for Events Listed in Section 7.

Inspections and Replacements

Table 11.1: Distribution Pole Inspections/Replacement

Year Total Poles Poles Inspected Poles Replaced YEAR YR-1 YR-2 YR-3 YR-4

Year

Total Poles

Poles Inspected

Poles Replaced

YEAR

YR-1

YR-2

YR-3

YR-4

Table 11.2: Underground Circuits

Year Total Miles Total Miles evaluated Total Repaired/Replaced YEAR YR-1 YR-2 YR-3 YR-4

Year

Total Miles

Total Miles evaluated

Total Repaired/Replaced

YEAR

YR-1

YR-2

YR-3

YR-4

Table 11.3: Vegetation Management (add activities as needed)

Year Total Overhead Line Length (miles) Length of Overhead Line Cleared (miles) Total Cost to Clear (USD) Other YEAR YR-1 YR-2 YR-3 YR-4

Year

Total Overhead Line Length (miles)

Length of Overhead Line Cleared (miles)

Total Cost to Clear (USD)

Other

YEAR

YR-1

YR-2

YR-3

YR-4

Narrative on Other Work Planned to Improve Reliability:

Please provide a general narrative.

Summary of Planned and Unplanned Electric Interruptions Due to Wildfire Risk:

Please provide a narrative with selected charts/graphs to illustrate any planned interruptions or de-energization due to wildfire risk including the interruption area, number of customers impacted (identified by customer class or voltage level), duration of the interruption, and the utility’s efforts and plans to notify customers of the interruption.

History

17.9.589.9 NMAC - N, 9/24/2024

Part 590 Economic Development Rates

N.M. Admin. Code § 17.9.590.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission.]

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.2 Scope

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.3 Statutory Authority

This Rule is adopted under the authority vested in the Commission pursuant to NMSA 1978, Sections 62-3-1, 62-6-1, 62-6-4, 62-8-6, and 1989 N.M. Laws, ch. 5.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.4 Duration

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.5 Effective Date

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.6 Objective

This Rule permits electric utilities to provide economic development rates from excess capacity to qualified customers in their service area. Providing utilities with the option of reducing rates to customers in certain rate classes who qualify under the criteria set out in the Rule would:

A. Encourage a greater utilization of utility resources which would result in increased system load and improved system efficiency;

B. Spread utilities' fixed costs over a larger base thus permitting lower average rates to all customers;

C. Permit utilities to market their excess capacity at reduced rates within their service area rather than to sell this excess capacity to industries in other states at reduced rates;

D. Encourage new industry to locate in the state;

E. Promote expansion and greater production by existing industry; and

F. Assure the protection of nonparticipating customers.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.7 Definitions

A. "Approved" or "Approval" includes, but is not limited to, affirmative action by the Commission and a filing with the Commission which becomes effective by operation of law.

B. "Commission" is the New Mexico Public Service Commission [New Mexico Public Regulation Commission].

C. "Economic development rate" is a rate set at a level lower than the corresponding service rate for which a participating customer would otherwise qualify.

D. "Excess capacity" is the amount of generating and purchased capacity available to the supplier or to the utility which is greater than its peak load plus some fixed percentage reserve margin. The reserve margin used to determine excess capacity will be filed on an individual basis for each supplier or utility. When the utility purchases its total requirements, its excess capacity shall be that of its supplier, unless the Commission determines otherwise.

E. "Incremental load" is the amount of load above some established base level for an individual customer. Incremental load shall include the total load for new customers or the additional firm load for existing customers.

F. "Investment unit" is a certain percentage increase in employment or a certain dollar increase in capital investment by a customer necessary to qualify for an economic development rate. Investment units will be filed on an individual basis for each utility and may differ between urban and rural areas. Utilities served by a common supplier may coordinate their programs and if the supplier's rates to those utilities are regulated by the Commission, investment units shall be determined in accordance with such requirements as may be established by the supplier and approved by the Commission.

G. "Non-participating customer" is a customer of a utility who is being charged the service rate approved by the Commission.

H. "Participating customer" is a customer of a utility who otherwise qualifies for one of the utility's service rates, but who also qualifies for and has signed an agreement for an economic development rate for his incremental load.

I. "Supplier", whether itself a utility or a person subject to the Commission's jurisdiction under NMSA 1978, Section 62-6-4(B), or subject to the exclusive regulation of the Federal Energy Regulatory Commission, is the person supplying wholesale service to a utility to meet all or substantially all of its requirements.

J. "Utility" is every person defined as a public utility by NMSA 1978, Section 62-3-3(G).

17.9.590.8 [TABLE OF CONTENTS:]

A. Purpose: [17.9.590.6 NMAC]

B. Authority: [17.9.590.3 NMAC]

C. Definitions: [17.9.590.7 NMAC]

D. Availability: [17.9.590.9 NMAC]

E. Eligibility: [17.9.590.10 NMAC]

F. Rate Flexibility [17.9.590.11 NMAC]

G. Rate Schedule [17.9.590.12 NMAC]

H. Protection of Nonparticipating Customers [17.9.590.13 NMAC]

I. Applicability to Other Rates and Service [17.9.590.14 NMAC]

J. Exemptions or Variances [17.9.590.15 NMAC]

History

Recompiled 12/30/01
Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.9 Availability

A. The use of economic development rates is not mandatory for utilities. Utilities may use economic development rates as a part of their marketing program and as a management tool in dealing with excess capacity on a voluntary basis.

B. A utility may sign agreements with eligible customers for economic development rates only so long as the utility or its supplier reasonably projects in advance that it will possess excess capacity for the time period covered by the agreement, and pursuant to a tariff approved in accordance with the Public Utility Act.

C. A utility which chooses to use economic development rates as a marketing tool to deal with excess capacity shall first use excess capacity which is in rate base for said sales.

D. Agreements between a utility and a participating customer to provide service under economic development rates shall be limited to a maximum period of 5 years.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.10 Eligibility

A. Economic development rates shall apply only to a participating customer's incremental load.

B. A participating customer shall qualify for service under economic development rates only if the customer meets the minimum investment units established by the utility providing it service and approved by the Public Service Commission [Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.11 Rate Flexibility

A. The most recent rate schedule approved by the Commission for a customer class is the maximum rate a utility is permitted to charge that customer class.

B. A utility may provide an economic development rate lower than the rate schedule approved by the Commission for a customer class. The economic development rate shall be designed so as to recover at least the incremental cost of providing electric utility service to that customer. The utility shall file the variable cost of providing electric utility service to the customer classes for which economic development rates are being offered. The variable cost of the supplier's wholesale service for resale to that customer shall be used to determine the variable cost in circumstances where the utility purchases its requirements.

C. If the utility decides to provide economic development rates, it must provide the economic development rates to all participating customers pursuant to NMSA 1978, Section 62-8-6.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.12 Rate Schedule

A. A utility or a person subject to the Commission's regulation pursuant to NMSA 1978, Section 62-6-4(B), shall not provide, and a customer or a utility which receives wholesale service the charges for which are regulated pursuant to NMSA 1978, Section 62-6-4(B), shall not accept, service under an economic development rate until the utility or such person has filed an economic development rate schedule and the rate schedule shall have become effective in accordance with the Public Utility Act. Wholesale economic development rates which are subject to the Commission's regulation shall not make or grant any unreasonable preference or advantage to a purchasing utility within any classification, or subject any purchasing utility within any classification to any unreasonable prejudice or disadvantage.

B. The rates charged under any service agreements involving economic development rates that are executed on or after the effective date of this Rule shall be as set forth in the economic development rate schedule on file with the Commission.

C. The fuel and purchased power adjustment charge in any economic development rate schedule shall be the same as those in the rate schedule that would be otherwise applicable to the participating customer.

D. Economic development rates shall be filed with the Commission for approval. In addition to an explanation of the operations of the tariff and the situations for which it applies, the applicant shall show that the tariff complies fully with the requirements of its filing for tariffs as described in this rule. Since economic development rates represent a decrease from tariffs currently on file with the Commission, the requirements of NMPSC Rule 530 [17.5.530 NMAC] shall not apply to economic development rate tariffs. The economic development tariff shall become effective after 30 days unless the Commission suspends the filing pursuant to NMSA 1978, Section 62-8-7. In the event the Commission suspends the filing, the utility shall have the option within ten days of the suspension date to withdraw the suspended filing without prejudice.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.13 Protection of Nonparticipating Customers

The regulatory rate treatment of sales made under economic development rates established by this Rule is designed to protect nonparticipating customers because power sold by utilities to participating customers under an economic development rate schedule is from excess capacity and applies only to the incremental load of the participating customer. Excess capacity is typically sold on the economy energy market. Revenues derived from economy energy sales are used to offset or reduce the revenue requirement in rate cases. Since the economic development rate will almost always be higher than the economy energy rate, sales made under economic development rates will result in a larger reduction in revenue requirements for utilities than would otherwise be the case and thus will benefit all classes of ratepayers.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.14 Applicability to Other Rates and Service

This Rule does not apply to rates for interruptible or non-firm, peak and similar kinds of service. It does not prohibit rates which otherwise comply with the Public Utility Act, but which become effective in accordance with that Act and which are not the subject matter of this Rule.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.9.590.15 Exemptions or Variances

Any interested person may file an application for a variance or an exemption from the requirements of this Rule. Such application may include a motion that the Commission stay the affected portion of this Rule for the transaction specified in the motion. Such application shall:

A. describe the situation which necessitates the exemption or variance;

B. set out the effect of complying with this Rule on the person or utility and its customers if the exemption or variance is not granted;

C. identify the section(s) of this Rule for which the exemption or variance is requested;

D. define the result which the request will have if granted; and

E. state how the exemption or variance will promote the achievement of the purposes of this Rule.

F. The Commission may, at its discretion, require an informal conference or formal evidentiary hearing prior to making its determination.

17.9.590.16 [HISTORY: Amended by NMPSC Case No. 2225 (Remand), order dated June 19, 1989, unless otherwise noted; Adopted in Case No. 2225, Order dated November 21, 1988.]

HISTORY OF 17.9.590 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

NMPSC Rule 590, Economic Development Rates, 11/22/88.

History of Repealed Material: [RESERVED]

History

Recompiled 12/30/01
Recompiled 12/30/01

Part 591 Standard Offer Service Under the Restructuring Act [Repealed]

N.M. Admin. Code pt. 17.9.591 591 Standard Offer Service Under the Restructuring Act

[This part was repealed effective October 15, 2008.]

HISTORY OF 17.9.591 NMAC:

History of Repealed Material:

The New Mexico Public Regulation Commission, repeals its rule17.9.591 NMAC (filed May 15, 2000) and entitled Standard Offer Service Under the Restructuring Act, effective October 15, 2008.

Part 592 Location of Large Capacity Plants and Transmission Lines

N.M. Admin. Code § 17.9.592.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.9.592.1 NMAC - N, 5/1/2004

N.M. Admin. Code § 17.9.592.2 Scope

This rule applies to all persons seeking to construct a large capacity plant, whether or not owned or operated by a person that is a public utility subject to regulation by the commission, or transmission lines in connection with such a plant, on a location within New Mexico.

History

17.9.592.2 NMAC - N, 5/1/2004; A, 12/27/2022

N.M. Admin. Code § 17.9.592.3 Statutory Authority

Section 8-8-4 NMSA 1978 and Section 62-9-3 NMSA 1978.

History

17.9.592.3 NMAC - N, 5/1/2004; A, 12/27/2022

N.M. Admin. Code § 17.9.592.4 Duration

Permanent.

History

17.9.592.4 NMAC - N, 5/1/2004

N.M. Admin. Code § 17.9.592.5 Effective Date

May 1, 2004, unless a later date is cited at the end of a section.

History

17.9.592.5 NMAC - N, 5/1/2004

N.M. Admin. Code § 17.9.592.6 Objective

The purpose of this rule is to specify the contents of an application for approval of the location of a large capacity plant or transmission line pursuant to Section 62-9-3 NMSA 1978.

History

17.9.592.6 NMAC - N, 5/1/2004; A, 12/27/2022

N.M. Admin. Code § 17.9.592.7 Definitions

In addition to the definitions in Section 62-3-3 NMSA 1978, as used in this rule:

A. “large capacity plant” means an electric generating plant in a location within New Mexico designed for, or capable of, operation at a capacity of 300 megawatts or more, for the generation of electricity for sale to the public within or without New Mexico;

B. “NEPA” means the National Environmental Policy Act, 42 U.S.C. Section 4321 et seq.; and

C. “transmission line” means any electric transmission line, including its interconnection facilities and associated facilities, designed for, or capable of, operations at a nominal voltage of 230 kilovolts or more, to be constructed in connection with, and to transmit electricity from, a large capacity plant constructed after June 18, 1971.

History

17.9.592.7 NMAC - N, 5/1/2004; A, 12/27/2022

N.M. Admin. Code § 17.9.592.8 Prior Approval Required

No person shall begin construction of a large capacity plant or transmission line without obtaining prior approval from the commission.

History

17.9.592.8 NMAC - N, 5/1/2004

N.M. Admin. Code § 17.9.592.9 Contents of Application for Location Approval of Large Capacity Plant

A person seeking to construct a large capacity plant shall file with the commission an application for approval of location, supported by written direct testimony and supporting exhibits, which shall contain:

A. a description of the large capacity plant, including, but not limited to:

(1) a legal description of the property upon which the large capacity plant will be located;

(2) the size of the large capacity plant;

(3) fuel specifications including, but not limited to, the type of fuel to be used, if applicable, and any secondary fuel capability, if applicable; and

(4) a map showing the location of the large capacity plant;

B. identification of all applicable land use statutes and administrative regulations, and proof of compliance or a statement of noncompliance with each;

C. identification of all applicable air and water pollution control standards and regulations, and proof of compliance or a statement of noncompliance with each;

D. all written air and water quality authorizations necessary to begin construction, and necessary to begin operation, of the large capacity plant; if any such authorization cannot be obtained until after construction of the large capacity plant, proof of application for such authorization;

E. the expected date that the large capacity plant will be online;

F. proof that the application has been served on all local authorities in each county and township where the large capacity plant will be located, the New Mexico attorney general, the New Mexico environment department, and the New Mexico state engineer; and

G. any other information, including photographs, which the applicant wishes to submit in support of the application.

History

17.9.592.9 NMAC - N, 5/1/2004; A, 12/27/2022

N.M. Admin. Code § 17.9.592.10 Contents of Application for Location Approval of Transmission Line

A person seeking to construct a transmission line shall file with the commission an application for approval of location, supported by written direct testimony and supporting exhibits, which shall contain:

A. a description of the transmission line including, but not limited to:

(1) the location of the transmission line and a map depicting the location in electronic format and physical format with a scale not to exceed one inch equals five miles;

(2) identification of the ownership of the land (such as private, bureau of land management, U.S. forest service, state trust, etc.) the transmission line will cross, and the number of feet the transmission line will cross over each owner’s land;

(3) the total length of each transmission line in feet;

(4) a description of interconnection facilities; and

(5) a schematic diagram showing the transmission line and the interconnection of the transmission line to the transmission grid;

B. identification of all applicable land use statutes and administrative regulations, and proof of compliance or statement of noncompliance with each;

C. if required under NEPA, an environmental assessment prepared in connection with the transmission line;

D. if required under NEPA, an environmental impact statement and record of decision, or a finding of no significant impact, prepared in connection with the transmission line;

E. if preparation of a federal environmental assessment or environmental impact statement is not required under NEPA in connection with the transmission line, then a report, comparable to an environmental impact statement, in the format prescribed in 40 C.F.R. Section 1502.10;

F. all written federal, state, and local environmental authorizations necessary to begin construction, and necessary to begin operation, of the transmission line; if any such authorization cannot be obtained until after construction of the transmission line, proof of application for such authorization;

G. testimony demonstrating that the transmission line will not unduly impair important environmental values; important environmental values include, but are not limited to:

(1) preservation of air quality and water quality;

(2) preservation of land uses, soils, flora, and fauna; and

(3) preservation of water resources, mineral resources, socioeconomic resources, cultural resources, historic resources, religious resources, visual resources, geologic resources, and geographic resources.

H. the expected date that the transmission line will be online;

I. proof that the application has been served on all local authorities in each county and township where the transmission line will be located, the New Mexico attorney general, the New Mexico environment department, and the New Mexico state engineer; and

J. any other information, including photographs, which the applicant wishes to submit in support of the application.

History

17.9.592.10 NMAC - N, 5/1/2004; A, 12/27/2022

N.M. Admin. Code § 17.9.592.11 Additional Information

Upon request from the commission or commission staff, a person seeking approval from the commission of the location of a large capacity plant or transmission line shall, within 13 days of the date that the request is mailed, submit any additional information the commission or commission staff believes is required to approve or deny the application. The commission and commission staff’s authority to request additional information does not preclude or restrict interveners from exercising their discovery rights.

History

17.9.592.11 NMAC - N, 5/1/2004; A, 12/27/2022

N.M. Admin. Code § 17.9.592.12 Incomplete Filings

To be complete, an application shall meet all applicable requirements of this rule. If the commission determines that an application is incomplete, the commission shall advise the applicant of the deficiency in the application within 30 days of its receipt. The commission shall commence its review of an application, and the statutory deadline in Section 62-9-3 NMSA 1978 shall commence once the commission receives all the information and supporting documentation required by this rule.

History

17.9.592.12 NMAC - N, 5/1/2004; A, 12/27/2022

N.M. Admin. Code § 17.9.592.13 Availability of Application

At a minimum, the applicant shall make its application available in the county seat of each county in which the large capacity plant or transmission line is located. If available, the applicant shall deposit the application in a public library of a county seat. Additionally, the applicant shall post its application on the applicant’s website.

History

17.9.592.13 NMAC - N, 5/1/2004

N.M. Admin. Code § 17.9.592.14 Variance

A. An applicant may request a variance from any of the requirements of this rule.

B. A petition for variance shall be supported by an affidavit signed by an officer of the applicant or someone with authority to sign for the applicant.

C. The commission may, at its discretion, require an informal conference or formal evidentiary hearing prior to making its determination.

D. A petition for variance shall:

(1) identify the section of this rule for which the variance is requested;

(2) describe the situation that necessitates the variance;

(3) describe the effect of complying with this rule on the applicant if the variance is not granted; and

(4) describe the result the variance will have if granted.

E. The six-month review period under Section 62-9-3 NMSA 1978 shall be stayed, beginning the date that a request for variance is filed, and ending the date that a variance petition is granted, or, if the variance petition is denied, the date that the applicant submits the information for which the applicant sought a variance.

History

17.9.592.14 NMAC - N, 5/1/2004; A, 12/27/2022

N.M. Admin. Code § 17.9.592.15 Safe Harbor

A. The following shall be considered additions to, or modifications of, an existing plant or transmission line for which, under Subsection D of Section 62-9-3 NMSA 1978, no location approval is required. The “existing right-of-way” shall relate to the existing plant’s or existing transmission line’s existing right-of-way and shall be in place at the time that the safe harbor claim is made.

(1) Maintenance, repairs, and rebuilding, such as phase raising, installation of clearance improvements, replacement or reframing of structures, or line reconductoring entirely within the existing right-of-way.

(2) Addition of circuits or placement of additional structures; for transmission lines these shall be entirely within the existing right-of-way or entirely within 1,200 feet of the existing right-of-way not adjacent to a developed residential, commercial, or industrial area.

(3) Voltage upgrades to a transmission line for which location approval at the upgraded voltage level has already been granted, or voltage upgrades to a transmission line for which the commission by written order has determined that location approval is not required.

(4) Emergency construction due to facilities being out of service or where a failure of a facility is imminent, so long as construction remains entirely within the existing right-of-way or entirely within 1,200 feet of the existing right-of-way not adjacent to a developed residential, commercial, or industrial area.

(5) Construction of a tap line to a new terminus, both of which are entirely within the existing right-of-way or entirely within 1,200 feet of the existing right-of-way not adjacent to a developed residential, commercial, or industrial area.

(6) Replacements to transmission-related electrical stations located entirely within the existing right-of-way or entirely within 1,200 feet of such electrical stations not adjacent to a developed residential, commercial, or industrial area.

(7) Erection of temporary facilities for 12 months or less entirely within the existing right-of-way or entirely within 1,200 feet of the existing right-of-way not adjacent to a developed residential, commercial, or industrial area.

B. Notwithstanding the foregoing provisions, if new or replacement conductors, or new or replacement structures will extend for a distance of over one mile in length for a transmission line, the following requirements shall apply so long as they can be accomplished at reasonable additional cost:

(1) to the extent commercially available, non-specular conductors shall be used in any developed or trafficked areas, unless they pose a significant threat to avian populations; and

(2) structures shall be consistent with, and minimize visual impacts to, the landscape of the area in which the structure is constructed: rural, urban, or industrial.

C. Prior to any person constructing, modifying, or adding to plants, facilities, or transmission lines that require location control under Section 62-9-3 NMSA 1978 on land owned or controlled by a federally recognized American Indian tribe, or on land contiguous to such tribal land, that person shall consult with the tribe that owns or controls that land regarding the location of the construction. This required consultation is in addition to meeting the requirements of both Section 62-9-3 NMSA 1978 and this rule.

D. At least 120 days before a person commences any activity or installation not listed in Paragraphs (1) to (7) of Subsection A of Section 15 of 17.9.592 NMAC above, that person (the petitioner) shall file with the commission a petition requesting that the commission determine whether location approval is required. The petitioner shall serve a copy of the petition on:

(1) all landowners whose land is adjacent to, or encompassed by, the location of the proposed activity or installation; and

(2) all parties in the public utility’s last rate case, if the petitioner is a public utility.

E. Public utilities that claim safe harbor for any extensions, system improvements, repairs or replacements, or additions, pursuant to Paragraphs (1) to (7) of Subsection A of Section 15 of 17.9.592 NMAC above, that has an estimated cost to the utility under the uniform system of accounts of $1,000,000 or more on a total company basis and for which the utility intends to seek rate recovery from its New Mexico customers, regardless of the location, shall file a “440 report” with the commission pursuant to Subparagraph (e) of Paragraph (1) of Subsection A of 17.5.440.8 NMAC.

F. Commission staff shall, and any interested party who files a motion to intervene may, file a response to the petition within 45 days of its filing with the commission. If the commission does not act on the petition within 100 days from the date the petition was filed with the commission, the facilities that are the subject of the petition shall be deemed to be additions to, or modifications of, an existing plant or transmission line for the purposes of Subsection D of Section 62-9-3 NMSA 1978, for which location approval shall not be required. The commission's lack of action on a petition within the 100 day period shall not affect any requirement to obtain a certificate of public convenience and necessity pursuant to Section 62-9-1 NMSA 1978.

History of 17.9.592 NMAC: [RESERVED]

History

17.9.592.15 NMAC - N, 8/31/2011; A, 12/27/2022

Part 594 Code of Conduct for Public Utilities and Affiliates Under the Restructuring Act [Repealed]

N.M. Admin. Code pt. 17.9.594 594 Code of Conduct for Public Utilities and Affiliates Under the

RESTRUCTURING ACT

[This part was repealed effective October 15, 2008.]

HISTORY OF 17.9.594 NMAC:

The New Mexico Public Regulation Commission, repeals its rule 17.9.594 NMAC (filed April 17, 2000) and entitled Code of Conduct for Public Utilities and Affiliates Under the Restructuring Act, effective October 15, 2008.

Chapter 10 Gas Services

Part 2 Propane Customer Protection

N.M. Admin. Code § 17.10.2.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.10.2.1 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.2 Scope

A. This rule applies to propane dealers operating within New Mexico subject to the jurisdiction of the New Mexico public regulation commission.

B. Nothing in this rule shall supersede a federal or New Mexico law, rule, code or regulation designed to protect customer safety or public safety with respect to propane. If there is a conflict with this rule, such law, rule, code or regulation shall take precedence to the extent of that conflict.

C. All proceedings conducted by the commission under this rule shall be governed by the commission’s rules of procedure, 1.2.2.2 NMAC through 1.2.2.40 NMAC.

History

17.10.2.2 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.3 Statutory Authority

Sections 8-8-4, 8-8-4.1 and 8-8-15 NMSA 1978.

History

17.10.2.3 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.4 Duration

Permanent.

History

17.10.2.4 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.5 Effective Date

December 15, 2010; unless a later date is cited at the end of a section.

History

17.10.2.5 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.6 Objective

The purpose of this rule is to establish a uniform set of standards defining the rights and responsibilities of propane customers and dealers. The purpose of this rule is also to ensure that dealers provide customers with transparent, accurate and timely information. This rule establishes a process within the commission for the resolution of customers’ complaints.

History

17.10.2.6 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.7 Definitions

Unless otherwise specified, as used in this rule:

A. "budget billing plan" means an agreement between a customer and a dealer intended to levelize or average the monthly billing for propane and propane services;

B. "customer" means a purchaser of propane who purchases propane from a dealer to heat the interior of a dwelling or structure or to heat water, is legally liable for the payment of those purchases and does not purchase propane for resale;

C. "customer rate variation" means a variation of prices charged by a propane dealer to customers;

D. "dealer" means a retail distributor of propane who delivers propane to customers’ premises and fills propane tanks at those premises;

E. "delinquent" means the status of a bill rendered to a customer for propane service which remains unpaid after the due date of the bill;

F. "important Information for New Mexico propane consumers (IINMPC)" means a document in Spanish and English for residential customers created and updated by the commission and posted on its website that shall contain at a minimum:

(1) the toll-free telephone number of the commission’s consumer relations division;

(2) information regarding LIHEAP application forms, qualification requirements, application procedures and locations at which residential customers may submit LIHEAP applications;

(3) information regarding New Mexico energy$mart application forms, qualification requirements, application procedures and locations at which residential delivery customers may submit energy$mart applications; and

(4) other information as may be specified by the commission from time to time such as:

(a) tips for new and existing consumers;

(b) a description of propane;

(d) service termination rights and obligations as set forth in this rule;

(e) tips for budget billing plans; and

(f) payment plans and payments;

G. "LIHEAP" means the low-income home energy assistance program administered by the New Mexico human services department or a tribe’s or pueblo’s low-income home energy assistance program administered under Section 27-6-18.1 NMSA 1978;

H. "New Mexico energy$mart" means the low-income weatherization assistance program administered by the New Mexico finance authority;

I. "payment agreement" means an agreement between a dealer and a customer in which the customer makes a series of payments scheduled over a period of more than forty-five (45) days to pay the customer’s past due balances;

J. "propane" means liquefied petroleum gas and LP gas;

K. "residential customer" means a person who purchases propane from a dealer to heat the interior of a dwelling house or other structure used as a residence, who is legally liable for the payment of those purchases and who does not purchase propane for resale;

L. "service" means the provision of propane by a dealer to a customer to heat the interior of a dwelling or other structure or to heat water;

M. "schedule of charges" means the documentation provided by the dealer to the customer identifying and serving as notice of all relevant charges and fees and prices related to propane services.

History

17.10.2.7 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.8 Variance

Dealers or customers seeking a variance from this rule shall follow the commission’s procedure in 1.2.2.40 NMAC.

History

17.10.2.8 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.9 Tank Rental, Ownership and Removal

A. Rentals: a dealer shall disclose to customers, in writing, upon initiation of service and upon request, all annual tank rental fees, including fees for tank removal, propane pump-out, minimum fills and partial fills.

B. Ownership: a customer may use his own tank and regulator.

C. Removal of rental tank: a customer may change propane dealers for any reason, absent a contractual agreement to the contrary. When a customer who rents a tank from a dealer lawfully changes dealers, the first dealer shall remove its rental tank from the customer’s property within thirty (30) days after receiving written notice of the change and shall issue a refund within thirty (30) days for the unused propane and tank rental balances due under terms of the tank rental agreement.

History

17.10.2.9 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.10 Budget Billing Plans

A. A dealer should offer reasonable budget billing plans to its residential customers. The offer of budget billing plans shall not be unreasonably withheld.

B. Budget billing plans shall be binding contracts under New Mexico law and shall be in writing. The pricing and time period language shall be printed in no less than 12-point boldface type of uniform font.

C. Budget billing plans may include a requirement for a deposit sufficient to ensure full payment to the dealer.

D. A budget billing plan shall provide that if a credit remains at the end of the budget billing plan term, that credit, including any deposit, shall be reimbursed to the residential customer not later than thirty (30) days after the end date of the plan, unless the dealer and residential customer agree otherwise.

History

17.10.2.10 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.11 Payments and Payment Agreements

A. A dealer shall make a reasonable effort to enter into a payment agreement with a residential customer with a delinquent or past due account.

B. Payment agreements shall be binding contracts under New Mexico law and shall be in writing. The pricing and time period language shall be printed in no less than 12-point boldface type of uniform font.

C. A dealer shall make reasonable efforts to provide service to a residential customer who offers cash payments.

D. A dealer shall make reasonable efforts to incorporate LIHEAP payments, if applicable, into payments and payment plans.

History

17.10.2.11 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.12 Contents of Bills and Metered Fuel Tickets

A. Bills for propane goods, services and equipment shall include:

(1) the number of gallons metered;

(2) the date the bill is due;

(3) the amount due for, and explanation of, special services and fees including but not limited to, hazardous materials and environmental fuel surcharges;

(4) the total amount due for a previous balance separately presented from the current charges;

(5) gross receipts taxes and any other taxes, if not part of the base rate;

(6) the address and phone number of the dealer designating where the customer may initiate an inquiry or complaint regarding the bill as rendered of the service provided;

(7) the toll-free number of the consumer relations division of the commission, together with a statement advising customers that they may contact the commission if they are unable to resolve a billing dispute with the dealer; and

(8) a current copy in English and Spanish of the document IINMPC to be provided upon initiation of service for new customers, and annually in October for existing customers.

B. Metered fuel tickets:

(1) for those customers who receive metered fuel tickets, if the information in Paragraphs (1)-(7) of Subsection A of this section (above) is omitted from the ticket, dealers shall provide it on a document either attached to the ticket or mailed to the customer within thirty (30) days of delivery;

(2) the document IINMPC shall be provided upon initiation of service for new customers, and annually in October for existing customers.

History

17.10.2.12 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.13 Public Notice of Customer Rights

A dealer shall display a current copy of the IINMPC document in English and Spanish at all of its retail locations and on its website if applicable, and shall make this information available to the general public upon request. The document shall contain the telephone number for filing a complaint with the consumer relations division of the commission.

History

17.10.2.13 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.14 Notice, Availability and Public Access to Schedule of Charges

A dealer shall keep for at least ninety (90) days and provide public access to, its current charges for service, including the current price of propane and pricing categories used to establish customer rate variations. This information shall be available to customers and potential customers upon request. The dealer shall make this information available in writing to new customers before an agreement is entered to commence propane service and to existing customers with the next propane delivery after the effective date of this rule. A dealer is not required to disclose prices under special agreements.

History

17.10.2.14 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.15 Reports to the Commission

A dealer shall report the information required by Section 17.10.2.14 NMAC within ten (10) business days upon commission request.

History

17.10.2.15 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.16 Quoted Prices and Charges

When a customer places a valid order for propane, the dealer shall honor the quoted price for the requested delivery, even if the actual delivery is at some other date for reasons not caused by the customer.

History

17.10.2.16 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.17 Minimum Quantity Requirement

Prior to delivery, a dealer shall notify customers of the minimum quantity of propane required for their tank size, and of the charges for that minimal fill and for partial fills below the minimal amount. A dealer shall use reasonable efforts to help a customer maintain an adequate supply of propane. A dealer shall not require a customer to make a minimum purchase of more than 100 gallons at a time or more than the total capacity of the customer’s existing tank, whichever is less, unless the customer and the dealer have entered into a budget billing plan. This applies to all deliveries, including the initial installation.

History

17.10.2.17 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.18 Customer Records

A. Upon request, a dealer shall furnish to the customer copies of the customer’s records for the prior twelve months. A dealer may charge a reasonable fee for copying these records.

B. A dealer shall furnish copies of a customer’s records relevant to a matter in dispute to anyone authorized in writing by the customer to receive these records.

C. A dealer shall correct any non-disputed mistakes in a customer’s payment history that are brought to its attention.

History

17.10.2.18 NMAC - N, 12-15-10

N.M. Admin. Code § 17.10.2.19 Complaints

A. A dealer shall fully and promptly investigate and respond to all oral and written complaints made directly to the dealer by customers or prospective customers. The dealer shall make a good faith attempt to resolve the complaint and shall promptly notify the customer of its proposed disposition of the complaint, but no later than thirty (30) business days after the complaint was made. The dealer shall send written confirmation of its proposed disposition of the complaint to the customer.

B. If a dealer cannot resolve a complaint to a customer’s satisfaction, the dealer shall provide the complainant with the name, address and current local or toll-free telephone number of the consumer relations division of the commission.

C. At any time, a customer may file an informal complaint against a dealer by contacting the consumer relations division or may file a formal complaint with the commission, as stated in 1.2.2.13 NMAC through 1.2.2.15 NMAC. For Native Americans requesting help with translation, commission staff should contact the appropriate tribal or pueblo official for assistance.

D. Nothing in this rule shall bar customers or the attorney general from pursuing remedies for complaints under the Unfair Practices Act, Sections 57-12-1 through 57-12-26 NMSA 1978. Nothing in this rule shall bar customers from pursuing remedies for disputes in New Mexico courts.

HISTORY OF 17.10.2 NMAC: [RESERVED]

History

17.10.2.19 NMAC - N, 12-15-10

Part 620 Retirement Units of Property for Gas Utilities

N.M. Admin. Code § 17.10.620.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.620.2 Scope

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.620.3 Statutory Authority

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.620.4 Duration

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.620.5 Effective Date

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.620.6 Objective

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.620.7 Definitions

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.620.8 List of Retirement Units of Property for Gas Utilities

All gas utilities subject to the Commission's jurisdiction shall use and comply with the National Association of Railroad and Utilities Commissioners' LIST OF RETIREMENT UNITS OF PROPERTY FOR GAS UTILITIES, 1961, with any subsequent revisions by the National Association of Regulatory Utility Commissioners.

17.10.620.9 [HISTORY: NMPSC Case No. 2086, order dated June 30, 1988, unless otherwise stated. Formerly First Revised NMPSC General Order No. 13, superseded for purposes of rule reorganization and codification.]

HISTORY OF 17.10.620 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

PSC 68-1, Statutes, General Orders, 1/16/68.

PSC 70-1, Statutes and General Orders, 7/9/70.

NMPSC Rule 620, Retirement Units Of Property For Gas Utilities, 6/30/88.

History of Repealed Material: [RESERVED]

History

Recompiled 12/30/01
Recompiled 12/30/01

Part 630 Filing Requirements in Support of Rate Schedules for Investor-Owned Natural Gas Utilities

N.M. Admin. Code § 17.10.630.1 Issuing Agency

New Mexico Public Service Commission [New Mexico Public Regulation Commission].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.630.2 Scope

The data requirements specified in Appendix A shall apply to the investor-owned natural gas utilities doing business in New Mexico.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.630.3 Statutory Authority

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.630.4 Duration

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.630.5 Effective Date

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.630.6 Objective

The adoption by the New Mexico Public Service Commission [New Mexico Public Regulation Commission] of the minimum data requirements specified in Appendix A to NMPSC Rule 630 [17.10.630 NMAC], incorporated herein by reference, is pursuant to the authority conferred upon the Commission by the Public Utility Act, NMSA 1978, Section 62-3-1 et seq., and NMPSC Rules 110 and 210 [17.1.2 NMAC and 17.1.210 NMAC] and is for the purpose of defining and specifying the minimum data requirements to be filed in support for a tendered new rate schedule or rate schedule which will supersede, supplement, or otherwise change the provision of a rate schedule required to be on file with this Commission.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.630.7 Definitions

When used in Appendix A unless otherwise specified the following definitions will apply:

A. "Accounting Method" means the uniform system of accounting prescribed by the Commission for natural gas utilities.

(1) "Functional Accounting" means the grouping of plant and expense accounts according to the specified function or purpose which the plant or expense performs in rendering the utility service; for example, intangible, gas production and gathering, products extraction, storage, transmission, distribution, and general.

(2) "Primary Account" means the grouping of plant and expenditures by balance sheet account number; for example, accounts 101, 102, 103, etc.

(3) "Detailed Account" means the breakdown of plant and expenditures into subaccounts, that is, gas plant accounts; for example: accounts 301, 302, 303, etc.

B. Accounting Period:

(1) "Calendar Year" means a consecutive twelve-month accounting period beginning with January 1 and ending with December 31; and

(2) "Fiscal Year" means a consecutive twelve-month accounting period.

C. "Adjustment" means a calculation made with reasonable accuracy to the book balance of accounts to reflect an annualization, a known and measurable change, or an estimate based on projection for the full twelve-month period of the Test Year. "Pro Forma Adjustment" means a computation made to develop the effect of an annualization, a known and measurable change, or an estimate based on projection on the financial statements presented for Test Year purposes in a rate case.

D. "Allocation" means the process by which the total cost of service is separated into the major functions of plant, such as intangible, gas production and gathering, products extraction, storage, transmission, distribution, general; classified into the types of services provided, such as demand, commodity, customer; and assigned to the various classes of customers served within a regulatory jurisdiction or among regulatory jurisdictions.

E. "Annualization" means a computation made to reflect a full twelve-month effect of an item of income or expense which is recorded in the utility's financial statements for only a portion of a year.

F. "Base Period" means the applicant utility's twelve (12) consecutive months of actual experience as reflected on the book balance of accounts, the last day of which shall not be more than one hundred fifty (150) days prior to the date of tender for filing.

G. "Book Balance Amounts" means the amounts actually recorded by the applicant utility on its books of account. Whenever property and/or services are acquired for other than cash the basis for valuation for book purposes shall be explained.

H. "Classification" means the separation of plant and expenses into the principal categories of the services rendered such as demand related, commodity related, customer related, etc.

I. "Cost of Service" means the total annual cost of rendering the utility service expressed in monetary value including a return on invested capital and operational and administrative costs and expenses.

J. "Department" or "Division" means a responsibility center within the corporate structure of a public utility enterprise where revenues and expenses are accumulated as a result of a commodity or service rendered.

K. "Depreciated Original Cost" means the cost of property to the person first devoting it to the public service less the accrued depreciation reserve. Depreciated original cost shall not include the cost of reproduction as a going concern and other elements of value.

L. "Filing" means notification to the Commission by means of a tendered change in rate schedules by a public utility enterprise of its intent to initiate proceedings regarding such change pursuant to the provisions of the Commission's Administrative Code.

(1) The "Filing Date" shall occur on the date on which the tendered change in rate schedules is completed by receipt at the offices of the Commission.

(2) The "Effective Date" shall occur on the date that such tendered change in rate schedules is to become effective by the Commission pursuant to the provisions of the Commission's Administrative Code, thirty (30) days after the filing date, or on such other date as may be ordered by the Commission.

M. "Functionalization" means the separation of costs according to major function or purpose which the plant or expense performs in rendering the utility service; for example, intangible, gas production and gathering, products extraction, storage, transmission, distribution, general, etc.

N. "Lead-Lag Study" is a method sometimes employed in developing the amount of cash working capital to be included in a Rate Base determination for a utility company. The study seeks to measure and quantify the lag (delay) in receipt of revenues from customers from the time service is rendered offset by the lead, that is, the period the utility company has from the time it incurs an expense until cash is actually disbursed in payment for the expense.

O. "Litigation" means all contested matters before regulatory commissions, administrative bodies, and state or federal courts. Litigation also includes arbitration proceedings and other similar dispute resolution proceedings. Uncontested regulatory filings, contract drafting, negotiation and management, routine legal advice and other similar legal matters which are not in dispute are not considered litigation for the purposes of this rule.

P. "Rate Base" means the net investment value upon which the applicant utility shall be permitted to earn a specified return. Generally, the Rate Base represents the value of utility property used and useful in rendering the public utility service and may contain elements of value reflecting the cost of the utility property to the person first devoting it to the public service and other items such as cash working capital, materials, supplies, and prepayments. In accordance with existing New Mexico Statutes [NMSA 1978] the applicant's Rate Base may also reflect the cost of reproduction as a going concern and other elements of value. "Reproduction Cost" means the estimated cost to reproduce an item or property or other asset currently owned at current prevailing prices.

Q. "Rate Class" means a group of the applicant utility's customers which exhibit similar use characteristics and which are grouped together for cost allocation and rate design purposes.

R. "Test Year Period."

(1) Nothing herein shall preclude an applicant utility from adopting either an Historical Test Year Period or a Future Test Year Period, as defined below, as the basis for the determination by the Commission of the applicant utility's total revenue requirements.

(a) "Historical Test Year Period" means the Base Period after all proper adjustments such as for annualizations and known and measurable changes for which period the applicant utility's total revenue requirements shall be determined.

(b) "Future Test Year Period" means the twelve (12) consecutive months immediately following the last day of the applicant utility's twelve (12) months of actual experience [otherwise the Base Period] adjusted for known and measurable changes and/or estimates based on projections for which period the applicant utility's total revenue requirements shall be determined.

(2) The Test Year Period prescribed in the individual data request schedules shall incorporate the necessary adjustments in conformance with the definition given above for the type of Test Year Period selected by the applicant utility.

17.10.630.8 [TABLE OF CONTENTS]

A. Purpose: [17.10.630.6 NMAC]

B. Applicability: [17.10.630.2 NMAC]

C. Definitions: [17.10.630.7 NMAC

D. Letter of Transmittal: [17.10.630.9 NMAC]

E. Failure to Comply: [17.10.630.10 NMAC]

F. Variances: [17.10.630.11 NMAC]

G. Appendix A: Minimum Data Standard Filing Requirements: [17.10.630.12 and 17.10.630.13 NMAC]

History

Recompiled 12/30/01
Recompiled 12/30/01

N.M. Admin. Code § 17.10.630.9 Letter of Transmittal

In the letter of transmittal the applicant shall:

A. notify the New Mexico Public Service Commission [New Mexico Public Regulation Commission] of the tendered rate schedules which will supersede, supplement, or otherwise change any provision of a rate schedule required to be on file with the Commission;

B. include copies of each tendered rate schedule which will supersede, supplement, or otherwise change the provision of a rate schedule required to be on file with the Commission;

C. state the date on which the applicant proposes to make the changes in service, rate, rule, or practice effective;

D. state a brief description of the proposed changes in service and/or rate, the reason for the proposed change, and shall show that all the requisite agreements to the proposed change, including any contract embodied therein, have in fact been obtained;

E. state that notice has been given or will be given as required by the Rules of the New Mexico Public Service Commission [New Mexico Public Regulation Commission];

F. list the documents submitted in support of the proposed changes.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.630.10 Failure to Comply

The failure of the applicant to fulfill the minimum data requirements specified herein shall constitute sufficient cause for the Commission to reject the applicant's filing pursuant to NMPSC Rule 210 [17.1.210 NMAC].

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.630.11 Variances

A. Pursuant to NMPSC Rules 110 and 210 [17.1.2 NMAC and 17.1.210 NMAC] an applicant utility unable to comply fully with any data request contained herein due to good and sufficient cause should give notice in writing to the Commission of the applicant utility's inability to comply with the provisions of such data request at least thirty (30) days prior to the actual filing of the Minimum Data Requirements Filing Package.

B. Upon receipt of such notification and after consideration by the Commission of the applicant utility's stated reasons for failure to comply fully with the provisions of the data request, the Commission shall within fifteen (15) days notify the applicant utility in writing of its decision concerning the applicant utility's notice of its inability to comply with the Commission's Data Filing Requirements.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.630.12 Appendix a

MINIMUM DATA STANDARD REQUIREMENTS: [CONTENTS]:

A. Schedule A Series: Summaries of the proposed cost of service:

(1) Sch. A-1: Summary of the overall cost of service and the claimed revenue deficiency. Base Period; Test Year Period.

(2) Sch. A-2: Summary of the revenue increase or decrease at the proposed rates by rate classes. Test Year Period.

(3) Sch. A-3: Summary of the cost of service adjustments by functional classification. Test Year Period.

(4) Sch. A-4: Summary of Rate Base. Base Period; Test Year Period; Test Year Period RCND - -OPTIONAL.

(5) Sch. A-5: Summary of total capitalization and the weighted average cost of capital. Base Period; Test Year Period; Test Year Period RCND - - OPTIONAL.

B. Schedule B Series: Original cost of plant in service:

(1) Sch. B-1: Original cost of plant in service by primary account. Base Period; Test Year Period.

(2) Sch. B-2: Original cost of plant in service by detail account. Base Period; Test Year Period.

(3) Sch. B-3: Original cost of plant in service by monthly balances. Base Period; Test Year Period.

(4) Sch. B-4: Natural gas production and gathering plant. Base Period; Test Year Period.

(5) Sch. B-5: Products extraction and purification plant. Base Period; Test Year Period.

(6) Sch. B-6: Gas storage projects owned. Base Period; Test Year Period.

(7) Sch. B-7: Gas plant leased to others. Base Period; Test Year Period.

(8) Sch. B-8: Plant held for future use. Base Period; Test Year Period.

(9) Sch. B-9: Construction work in progress. Base Period; Test Year Period.

(10) Sch. B-10: Allowance for funds used during construction generated and transferred to plant in service. Base Period; Test Year Period.

C. Schedule C Series: Accumulated provision for depreciation, depletion, amortization, and abandonment:

(1) Sch. C-1: Accumulated provision for depreciation, depletion, amortization, and abandonment by functional classification and detailed plant account. Base Period; Test Year Period.

(2) Sch. C-2: Depreciation rate study. Base Period; Test Year Period.

(3) Sch. C-3: Depreciation and amortization methods.

D. Schedule D Series: Original cost of plant in service adjusted to the cost of reproduction as a going concern and other elements of value - - OPTIONAL:

(1) Sch. D-1: Original cost of plant in service adjusted to the cost of reproduction as a going concern and other elements of value - - OPTIONAL. Base Period; Test Year Period.

(2) Sch. D-2: Cost of reproduction as a going concern and other elements of value adjusted for age and condition - -OPTIONAL. Base Period; Test Year Period.

E. Schedule E Series: Working capital allowance:

(1) Sch. E-1: Cash working capital allowance. Base Period; Test Year Period.

(2) Sch. E-2: Materials and supplies, prepayments, and deferred charges. Base Period; Test Year Period.

(3) Sch. E-3: Purchased gas cost account. Base Period; Test Year Period.

(4) Sch. E-4: Inventories of natural gas in storage. Base Period; Test Year Period.

(5) Sch. E-5: Amounts of working capital items charged to operating and maintenance expenses. Base Period; Test Year Period.

F. Schedule F Series: Other property and investments:

(1) Sch. F-1: Other property and investments. Base Period; Test Year Period.

(2) [Reserved]

G. Schedule G Series: Capitalization, the cost of capital, and the overall rate of return:

(1) Sch. G-1: Capitalization, the cost of capital, and the overall rate of return in conformance with an original cost Rate Base. Base Period; Test Year Period.

(3) Sch. G-3: Embedded cost of borrowed capital with term of maturity in excess of one year from date of issue. Base Period; Test Year Period.

(4) Sch. G-4: Cost of short-term borrowed capital including revolving credit agreements and other notes payable. Base Period; Test Year Period.

(5) Sch. G-5: Embedded Cost of preferred stock capital. Base Period; Test Year Period.

(6) Sch. G-6: Ratio of earnings to fixed charges. Base Period; Test Year Period.

(7) Sch. G-7: Issuance restrictions on borrowed and preferred stock capital. Base Period; Test Year Period.

(8) Sch. G-8: Common stock equity capital. Base Period; Test Year Period.

(9) Sch. G-9: Historical activity in common stock, paid-in capital, and retained earnings. Base Period; Test Year Period.

(10) Sch. G-10: Summary of applicant's support for the claimed rate of return on common stock equity capital.

H. Schedule H Series: Expenses of operation.

(1) Sch. H-1: Operation and maintenance expenses. Base Period; Test Year Period.

(2) Sch. H-2: Cost of purchased gas. Base Period; Test Year Period.

(3) Sch. H-3: Reconciliation of revenues generated through the purchased gas adjustment clause with purchased gas cost. Base Period; Test Year Period.

(4) Sch. H-4: Payroll distribution and associated payroll taxes, employee benefits and pensions, and other compensations. Base Period; Test Year Period.

(5) Sch. H-5: Expenses associated with advertising, contributions, donations, lobbying and political activities, memberships, and outside services. Base Period; Test Year Period.

(6) Sch. H-6: Other Administrative and General Expenses. Base Period; Test Year Period.

(7) Sch. H-7: Depreciation, depletion, amortization, and abandonment expense. Base Period; Test Year Period.

(8) Sch. H-8: Taxes other than income taxes. Base Period; Test Year Period.

(9) Sch. H-9: Federal and state income taxes. Base Period; Test Year Period.

(10) Sch. H-10: Reconciliation of net income per books to net income for income tax purposes. Base Period; Test Year Period.

(11) Sch. H-11: Income tax effect as result of applicant joining in a consolidated federal income tax return. Base Period; Test Year Period.

(12) Sch. H-12: Accumulated tax deferrals. Base Period; Test Year Period.

(13) Sch. H-13: Investment tax credits. Base Period; Test Year Period.

(14) Sch. H-14: Expenses associated with affiliated interests. Base Period; Test Year Period.

(15) Sch. H-15: Expenses associated with nonutility services. Base Period; Test Year Period.

(16) Sch. H-16: Explanation of the adjustments to expenses of operation.

I. Schedule I Series: Balance sheet, income statement, statement of changes in financial position.

(1) Sch. I-1: Balance Sheet. Base Period; Test Year Period.

(2) Sch. I-2: Income Statement. Base Period; Test Year Period.

(3) Sch. I-3: Statement of changes in financial position. Base Period; Test Year Period.

J. Schedule J Series: Construction program and sources of construction funds.

(1) Sch. J-1: Construction program. Base Year and Projected.

(2) Sch. J-2: Sources of construction funds. Base Year and Projected.

K. Schedule K Series: Gas operating revenues and sales volumes:

(1) Sch. K-1: Gas operating revenues and sales volumes. Base Period; Test Year Period.

(2) Sch. K-2: Revenues from sales of products extracted from natural gas and from gas processed by others. Base Period; Test Year Period.

L. Schedule L Series: Fully allocated cost of service study:

(1) Sch. L-1: Allocation of Rate Base - - jurisdictional. Base Period; Test Year Period.

(2) Sch. L-2: Allocation of Rate Base - - functional Classification. Base Period; Test Year Period.

(3) Sch. L-3: Allocation of Rate Base - - demand, commodity, and customer. Base Period; Test Year Period.

(4) Sch. L-4: Allocation of Rate Base to rate classes. Base Period; Test Year Period.

(5) Sch. L-5: Allocation of total expenses - - jurisdictional. Base Period; Test Year Period.

(6) Sch. L-6: Allocation of total expenses - - functional classification. Base Period; Test Year Period.

(7) Sch. L-7: Allocation of total expenses - - demand, commodity, and customer. Base Period; Test Year Period.

(8) Sch. L-8: Allocation of total expenses to rate classes. Base Period; Test Year Period.

(9) Sch. L-9: Allocation of total revenue - - jurisdictional. Base Period; Test Year Period.

(10) Sch. L-10: Allocation of total revenue - - demand, commodity, and customer. Base Period; Test Year Period.

(11) Sch. L-11: Allocation of total revenue to rate classes. Base Period; Test Year Period.

M. Schedule M Series: Allocated cost of service per billing unit of demand, commodity, and customer by rate classification:

(1) Sch. M-1: Allocated cost per billing unit of demand, commodity, and customer. Base Period; Test Year Period.

(2) [Reserved]

N. Schedule N Series: Allocation factors:

(1) Sch. N-1: Allocation factors used to assign items of plant and expenses to the various rate classes. Base Period; Test Year Period.

(2) Sch. N-2: Classification factors used to assign items of plant and expenses to demand, commodity, and customer components. Base Period; Test Year Period.

(3) Sch. N-3: Demand and commodity loss factors. Base Period; Test Year Period.

O. Schedule O Series: Rate of return by rate classes:

(1) Sch. O-1: Rate of return by rate classes. Base Period; Test Year Period.

(2) [Reserved]

P. Schedule P Series: Rate design:

(1) Sch. P-1: Total revenue requirements by rate classes. Base Period;

Test Year Period.

(2) Sch. P-2: Proof of revenue analysis. Test Year Period.

(3) Sch. P-3: Comparison of rates for service under the present and proposed schedules.

(4) Sch. P-4: Explanation of proposed changes to existing rate schedules.

Q. Schedule Q Series: Key operating statistics:

(1) Sch. Q-1: Peak demand information.

(2) Sch. Q-2: Plant in service information.

(3) Sch. Q-3: Property retirements and property investments information.

(4) Sch. Q-4: Operation and maintenance expense information.

(5) Sch. Q-5: Customer information.

(6) Sch. Q-6: Weather data.

(7) Sch. Q-7: Scheduled maintenance information.

(8) Sch. Q-8: Customer service interruption information.

R. Schedule R Series: Required reports:

(1) Sch. R-1: Natural gas receipts and deliveries.

(2) Sch. R-2: Load research and conservation plan.

(3) Sch. R-3: Description of company.

(4) Sch. R-4: Annual report to stockholders.

(5) Sch. R-5: Reports to the Securities and Exchange Commission.

(6) Sch. R-6: Form 2 reports.

(7) Sch. R-7: Opinion of independent public accountants.

S. Schedule S Series: Testimony and exhibits.

History

Recompiled 12/30/01

N.M. Admin. Code § 17.10.630.13 Appendix a

MINIMUM DATA STANDARD REQUIREMENTS: [NARRATIVE:]

A. Schedule A Series: Summaries of the proposed cost of service: In this series of schedules the applicant shall show the New Mexico jurisdictional total cost of service in summary form for the Base Period and for the Test Year Period, as appropriate, and the proposed total cost of service in summary form for the Proposed Test Year Period as developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package. The summaries of the proposed cost of service shall be provided as specified in the following schedules.

(1) Schedule A-1: Sunmary of the overall cost of service and the claimed revenue deficiency.

(a) [Base Period]: In this schedule the applicant shall show the cost of service for the Base Period on an unadjusted basis including, but not limited to: revenues, operation and maintenance expenses, depreciation expense, taxes on other than income, taxes on income, and the resulting return.

(2) Schedule A-2: Summary of the revenue increase or decrease at the proposed rates by rate classes.

(a) [Base Period]: Not required.

(b) [Test Year Period]: In this schedule the applicant shall show by rate class the gas service revenues, showing separately revenues from purchased gas, gas processing by others, product extractions and sales, transportation of gas, and other gas revenues as applicable as of the end of the Base Period. The applicant shall also show all adjustments thereto and revenues as proposed for the Test Year Period including the total revenue and the dollar amount of increase or decrease and this amount expressed as a percent.

(c) The revenue increase shall be the total revenue from the proposed rates less the total revenue from the existing rates for the Test Year Period.

(d) A full explanation of each of the adjustments made to the balances shown at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant's filing package.

(3) Schedule A-3: Summary of the cost of service adjustments by functional classification.

(a) [Base Period]: Not required.

(4) Schedule A-4: Summary of Rate Base.

(a) [Base Period]: In this schedule the applicant shall show the Rate Base components on an original cost basis for the Base Period on an unadjusted basis.

(c) [Test Year Period - - Optional]: At the option of the applicant the Rate Base components as adjusted for the Test Year Period may be adjusted further to reflect the cost of reproduction as a going concern and other elements of value. The information required in this schedule will be supplied when the applicant claims cost of reproduction as a going concern and other elements of value to support its proposed rate adjustment.

(5) Schedule A-5: Summary of total capitalization and the weighted average cost of capital.

(a) [Base Period]: In this schedule the applicant shall show the total claimed capitalization and the weighted average cost of capital for the Base Period on an unadjusted basis.

(b) [Test Year Period]: In this schedule the applicant shall show the total claimed capitalization and the weighted average cost of capital as of the end of the Base Period, the adjustments made thereto, and the total claimed capitalization and the weighted average cost of capital for the Test Year Period.

(c) [Test Year Period - - Optional]: At the option of the applicant the total claimed capitalization and weighted average cost of capital as adjusted for the Test Year Period may be adjusted further to reflect the cost of reproduction as a going concern and other elements of value. The information required in this schedule will be supplied when the applicant claims cost of reproduction as a going concern and other elements of value to support its proposed rate adjustment.

B. Schedule B Series: Original cost of plant in service. In this series of schedules the applicant shall show the amounts of utility plant under the various classifications for the Base Period and for the Test Year Period, as appropriate, and as developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package.

(1) Schedule B-1: Original cost of plant in service by primary account.

(a) [Base Period]: In this schedule the applicant shall show the utility plant book balances by primary account at the beginning of the Base Period; the book balances for additions, retirements, and transfers made thereto during the Base Period; and the book balances at the end of the Base including totals for the original cost of plant in service.

(2) Schedule B-2: Original cost of plant in service by detail account.

(3) Schedule B-3: Original cost of plant in service by monthly balances.

(4) Schedule B-4: Natural gas production and gathering plant.

(a) [Base Period]: In this schedule the applicant shall show with sufficient detail the book balances for natural gas production, including gas reserves owned and acquired, and gathering plant by producing area and type of plant for the Base Period including subtotals and totals by producing areas and type of plant.

(b) [Test Year Period]: In this schedule the applicant shall show with sufficient detail the book balances for natural gas production, including gas reserves owned and acquired, and gathering plant by producing area and type of plant as of the end of the Base Period; all adjustments made thereto; and the balances at the end of the Test Year Period including subtotals and totals by producing area and type of plant.

(5) Schedule B-5: Products extraction and purification plant.

(a) [Base Period]: In this schedule the applicant shall show with sufficient detail the book balances for the product extraction and purification plant by area of location for the Base Period including subtotals and totals by area and type of plant.

(b) [Test Year Period]: In this schedule the applicant shall show with sufficient detail the book balances for the product extraction and purification plant by area of location as of the end of the Base Period; all adjustments made thereto; and the balances at the end of the Test Year Period including subtotals and totals by area and type of plant.

(6) Schedule B-6: Gas storage projects.

(a) [Base Period]: In this schedule the applicant shall show with sufficient detail the book balances for gas storage projects by area of location for the Base Period including subtotals and totals by storage plant and area of location.

(b) [Test Year Period]: In this schedule the applicant shall show with sufficient detail the book balances for gas storage projects by area of location as of the end of the Base Period; all adjustments made thereto; and the balances at the end of the Test Year Period including subtotals and totals by storage plant and area of location.

(7) Schedule B-7: Gas plant leased to others.

(a) [Base Period]: In this schedule the applicant shall show the gas plant leased to others by functional classification and detailed plant account for the Base Period including subtotals and totals by functional classification.

(b) [Test Year Period]: In this schedule the applicant shall show the gas plant leased to others by functional classification and detailed plant account as of the end of the Base Period; all adjustments thereto; and the balances as of the end of the Test Year Period including subtotals and totals by functional classification.

(8) Schedule B-8: Plant held for future use.

(a) [Base Period]: In this schedule the applicant shall show a list of plant held for future use as of the end of the Base Period, including a proper description, date of purchase, anticipated use, anticipated date that property will be placed in service, and the book balance of each item of plant at the end of the Base Period including a total of these balances of plant held for future use.

(b) [Test Year Period]: In this schedule the applicant shall show a list of plant held for future use as of the end of the Test Year Period, including a proper description, date of purchase, anticipated use, anticipated date that property will be placed in service, adjustments made to the Base Period balances for the Test Year Period, and the balance of each item of plant at the end of the Test Year Period including a total of these balances of plant held for future use as adjusted.

(9) Schedule B-9: Construction work in progress. [Report only those items for which $25,000 or more have been expended by the end of the Base Period.]

(a) [Base Period]: In this schedule the applicant shall show the items included in construction work in progress for the Base Period by functional classification. The applicant shall include a proper description of the project, work order number, estimated cost of the project, expenditures at the end of the Base Period, and the total book balance for construction work in progress at the end of the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the items included in construction work in progress for the Test Year Period by functional classification. The applicant shall include a proper description of the project, work order number, estimated completion date, total estimated cost of the project, adjustments made thereto for the Test Year Period expenditures, and the total balance for construction work in progress at the end of the Test Year Period as adjusted. The information required in this schedule shall be supplied when the applicant claims construction work in progress to support a rate increase adjustment.

(10) Schedule B-10: Allowance for funds used during construction generated and transferred to plant in service.

(b) In addition the applicant shall include a complete explanation of the methods, procedures, and calculations used in computing the amount of funds generated and transferred to plant in service.

(c) [Test Year Period]: In this schedule the applicant shall show the amounts of allowance for funds used during construction as adjusted from the Base Period along with an explanation of the methods, procedures, and calculations used in computing the amount of funds generated and transferred to plant in service.

C. Schedule C Series: Accumulated provision for depreciation, depletion, amortization, and abandonment. In this series of schedules the applicant shall show information concerning the accumulated provision for depreciation, depletion, amortization, and abandonment for the Base Period and for the Test Year Period, as appropriate, and as developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package.

(1) Schedule C-1: Accumulated provision for depreciation, depletion, amortization, and abandonment by functional classification and detailed plant account.

(2) Schedule C-2: Depreciation rate study.

(b) In addition the applicant shall include for any changes made to the book depreciation rates during the Base Period reference to the appropriate supporting study, schedules, or workpapers which shall constitute a part of the applicant's filing package. This information will be in accordance with NMPSC Rule 340 [17.3.340 NMAC].

(c) [Test Year Period]: In this schedule the applicant shall show by functional classification and detailed plant account any changes proposed to the Base Period approved book depreciation rates, the property service lives, or the net service value of properties included in the Base Period.

(d) A full explanation of each of the adjustments made to the Base Period book depreciation rates shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant's filing package. This information will be in accordance with NMPSC Rule 340 [17.3.340 NMAC].

(3) Schedule C-3: Depreciation and amortization methods: In this schedule the applicant shall show a full description of the methods, formulae, and procedures used to determine book depreciation and amortization of the applicant's utility plant in service as applicable to either the Base Period or to the Test Year Period. This schedule shall only be required of those utilities requesting a change in depreciation methods, formulae, or procedures. Otherwise reference to the utility's applicable NMPSC Rule 340 [17.3.340 NMAC] report shall constitute compliance with this schedule.

D. Schedule D Series: Original cost of plant in service adjusted to the cost of reproduction as a going concern and other elements of value - - Optional. In this series of schedules the applicant shall show the original cost of plant in service adjusted to the cost of reproduction as a going concern and other elements of value. The information required in this series shall be supplied when the applicant claims cost of reproduction as a going concern and other elements of value to support a rate increase adjustment.

(1) Schedule D-1: Original cost of plant in service adjusted to the cost of reproduction as a going concern and other elements of value - - Optional.

(a) [Base Period]: In this schedule the applicant shall show the original cost of plant in service by functional classification and detailed account at the end of the Base Period adjusted to the cost of reproduction as a going concern and other elements of value as of the end of the Base Period and shall include therein subtotals and the total for the adjusted value of the original cost of plant in service.

(b) In addition the applicant shall state herein the rationale, methods, formulae, and calculations used to adjust the original cost of plant in service.

(c) [Test Year Period]: In this schedule the applicant shall show the original cost of plant in service by functional classification and detailed account as adjusted for the Test Year Period and as adjusted to the cost of reproduction as a going concern and other elements of value and shall include therein subtotals and the total for the adjusted value of the original cost of plant in service.

(d) In addition the applicant shall state herein the rationale, methods, formulae, and calculations used to adjust the original cost of plant in service.

(e) A full explanation of each of the adjustments made to the balances shown at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant's filing package.

(2) Schedule D-2: Cost of reproduction as a going concern and other elements of value adjusted

for age and condition - - Optional.

(b) In addition the applicant shall state therein the rationale, methods, formulae, and calculations used to arrive at the value for age and condition of the cost of reproduction as a going concern.

(c) [Test Year Period]: In this schedule the applicant shall show the adjustment for age and condition of the Test Year Period cost of reproduction as a going concern and other elements of value by functional classification and detail account and shall include therein the subtotal and the total for the cost of reproduction as a going concern value.

(d) In addition the applicant shall state therein the rationale, methods, formulae, and calculations used to arrive at the value for age and condition of the cost of reproduction as a going concern.

E. Schedule E Series: Working capital allowance. In this series of schedules the applicant shall show the amounts claimed for working capital for the Base Period and for the Test Year Period as developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package.

(1) Schedule E-1: Cash working capital allowance.

(a) [Base Period]: In this schedule the applicant shall show the computation for the allowance of cash working capital for the Base Period on an unadjusted basis. At the applicant's option a lead-lag study may be supplied to satisfy the requirements of this data request.

(b) [Test Year Period]: In this schedule the applicant shall show the computation for the allowance of cash working capital as of the end of the Base Period, the adjustments made thereto, and the total claimed cash allowance for the Test Year Period. At the applicant's option a lead-lag study may be supplied to satisfy the requirements of this data request.

(2) Schedule E-2: Materials and supplies, prepayments, and deferred charges.

(a) [Base Period]: In this schedule the applicant shall show for each month of the Base Period the beginning monthly book balances and the end-of-period balance for materials and supplies, prepayments, and deferred charges on an unadjusted basis and shall include therein subtotals, totals, and the average of the thirteen (13) balances for the Base Period.

(3) Schedule E-3: Purchased gas cost account.

(a) [Base Period]: In this schedule the applicant shall show for each month of the Base Period and for the two (2) years immediately preceding the Base Period the monthly balances for advances made for purchased gas on an unadjusted basis and shall include therein subtotals, totals, and the average balance for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show for each month of the Test Year Period the monthly book balances for advances made for purchased gas after all adjustment thereto and shall include therein subtotals, totals, and the average balance for the Test Year Period.

(c) A full explanation of each of the adjustments made to the balances as of the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant's filing package.

(4) Schedule E-4: Inventories of natural gas in storage.

(a) [Base Period]: In this schedule the applicant shall show for each month of the Base Period on an unadjusted basis the MCF quantities of natural gas in storage by storage facility, the monthly injections and withdrawals made thereto, and the total balance remaining as of the end of the Base Period.

(b) In addition the applicant shall show herein with sufficient detail by storage facility the method of pricing the MCF unit injected and withdrawn and for the quantities remaining in storage.

(c) [Test Year Period]: In this schedule the applicant shall show for each month of the Test Year Period the MCF quantities of natural gas in storage by storage facility as of the end of the Base Period, the estimated or projected monthly injections and withdrawals anticipated thereto, and the total balance remaining as of the end of the Test Year Period.

(d) In addition the applicant shall show herein with sufficient detail the method of pricing the MCF unit injected and withdrawn and for the quantities remaining in storage by storage facility.

(e) A full explanation of each of the adjustments made to the balances as of the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant's filing package.

(5) Schedule E-5: Amounts of working capital items charged to operating and maintenance expenses.

(a) [Base Period]: In this schedule the applicant shall show for each month of the Bass Period the monthly amounts of working capital items charged to operating and maintenance expense on an unadjusted basis and shall include totals for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show for each month of the Test Year Period the monthly amounts of working capital items charged to operating and maintenance expense, all adjustments thereto, and the totals for the Test Year Period.

(c) A full explanation of each of the adjustments made to the balances of working capital items charged to operating and maintenance expense as of the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant's filing package.

F. Schedule F Series: Other property and investments. In this series of schedules the applicant shall show the information requested on investments in other-than-utility property for the Base Period and for the Test Year Period as developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package. To the extent that the information required herein has been supplied and is currently on file with the New Mexico Public Service Commission [New Mexico Public Regulation Commission] pursuant to the provisions of NMPSC Rule 450 [17.6.450 NMAC], notice herein that such filing has been made will fulfill the requirements for this series of schedules.

(1) Schedule F-1: Other property and Investments.

(b) In addition, if regulatory approval was required for any security acquired or advancement made in connection with such property or investment, the applicant shall state the name of the Commission, the date authorization was granted, and the case or docket number.

(c) [Test Year Period]: In this schedule the applicant shall show its investments in other than utility property as of the end of the Base Period; all adjustments made thereto for the Test Year Period; the balance at the end of the Test Year Period including therein a description of the property or investment; the amounts invested; the types of securities owned, loaned, pledged, and/or advanced; the applicable cost rates; the equity in the undistributed earnings since date of acquisition; and the interest and/or dividend income received from such property or investment.

(d) In addition, if regulatory approval was required for any security acquired or advancement made in connection with such property or investment, the applicant shall state the name of the Commission, the date authorization was granted, and the case or docket number.

(e) A full explanation for each of the adjustments made to the balances shown at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant's filing package.

(1) Schedule G-1: Capitalization, the cost of capital, and the overall rate of return in conformance with an original cost Rate Base.

(a) [Base Period]: In this schedule the applicant shall show the claimed capitalization, the cost of capital thereon, and the overall claimed rate of return as of the end of the Base Period on an actual basis; a description of the various classes of capital; the capital structure ratios; the effective embedded cost rates; and the weighted cost rate for each class of capital.

(b) [Test Year Period]: In this schedule the applicant shall show the capitalization; the cost of capital; the dollar amounts outstanding at the end of the Test Year Period; the capital and the overall claimed rate of return as of the end of the Base Period; all adjustments thereto; a description of the various classes of capital; the dollar amounts outstanding at the end of the Test Year Period; the capital structure ratios; the estimated cost rates; and the weighted cost rate for each class of capital.

(2) Schedule G-2: Capitalization, the cost of capital, and the overall rate of return in conformance with a cost of reproduction as a going concern and other elements of value Rate Base - - Optional.

(a) [Base Period]: In this schedule the applicant shall show the claimed capitalization, the cost of capital thereon, and the overall claimed rate of return as of the end of the Base Period on an actual basis; the adjustment thereto for the cost of reproduction as a going concern value; a description of the various classes of capital; the dollar amounts outstanding at the end of the Base Period as adjusted; the capital structure ratios; the effective embedded cost rates; and the weighted cost rate for each class of capital.

(b) The information required in this schedule will be supplied when the applicant claims cost of reproduction as a going concern and other elements of value to support its proposed rate adjustment.

(c) [Test Year Period]: In this schedule the applicant shall show the capitalization, the cost of capital, and the overall claimed rate of return as of the end of the Test Year Period as adjusted further to the cost of reproduction as a going concern value; a description of the various classes of capital; the dollar amounts outstanding at the end of the Test Year Period as adjusted; the capital structure ratios; the estimated cost rates; and the weighted cost rate for each class of capital.

(d) The information required in this schedule will be supplied when the applicant claims cost of reproduction as a going concern and other elements of value to support its proposed rate adjustment.

(e) A full explanation of each of the adjustments made to the balances and cost rates of capital shown at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant's filing package.

(3) Schedule G-3: Embedded cost of borrowed capital with term of maturity in excess of one year from date of issue.

(a) [Base Period]: In this schedule the applicant shall show the embedded cost of borrowed capital based on the actual principal amounts outstanding at the end of the Base Period.

(b) In addition the applicant shall show the following particulars for each class and series of borrowed capital outstanding:

(i) description of issue;

(ii) date of issuance;

(iii) date of maturity;

(iv) coupon or nominal interest rate;

(v) principal amount of issue at offering;

(vi) price at offering;

(vii) gross proceeds;

(viii) underwriter's commission, discount, or premium;

(ix) expense of issue;

(x) net proceeds: amount; per unit;

(xi) effective yield to maturity [by reference to any generally acceptable table of bond yields or computer computation];

(xii) principal amount outstanding at end of Base Period;

(xiii) annual interest requirements;

(xiv) weighted effective cost rate;

(xv) if issue is owned by an affiliate, state name and relationship of owner to applicant; and

(xvi) if issue is convertible, state terms of conversion.

(c) [Test Year Period]: In this schedule the applicant shall show the cost of borrowed capital [particulars a through p] [(i) through xvi)] after all adjustments to the actual balances and cost rates at the end of the Base Period.

(d) A full explanation of each of the adjustments made to the balances and cost rates of capital shown at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant's filing package.

(4) Schedule G-4: Cost of short-term borrowed capital including revolving credit agreements and other notes payable.

(a) [Base Period]: In this schedule the applicant shall show the cost of short-term borrowed capital based on the actual principal amounts outstanding at the end of the Base Period.

(b) In addition the applicant shall show the following particulars for each class and series of short-term borrowed capital outstanding:

(i) description of issue;

(ii) date of issuance;

(iii) date of maturity;

(iv) coupon or nominal interest rate;

(v) principal amount of issue at offering;

(vi) annual interest requirements;

(vii) average principal balance outstanding monthly during the period;

(viii) average weighted interest cost rate on average principal balance outstanding monthly during the period; and

(ix) if issue is owned by an affiliate, state name and relationship of owner to applicant.

(c) [Test Year Period]: In this schedule the applicant shall show the cost of short-term borrowed capital [particulars a through i] [(i) through (ix)] after all adjustments to the actual balances and cost rates at the end of the Base Period.

(5) Schedule G-5: Embedded cost of preferred stock capital.

(a) [Base Period]: In this schedule the applicant shall show the embedded cost of preferred stock capital based on the actual principal amounts outstanding at the end of the Base Period.

(b) In addition the applicant shall show the following particulars for each class and series of preferred stock outstanding:

(i) description of issue [including number of shares offered];

(ii) date of issuance;

(iii) dividend rate;

(iv) price at offering;

(v) gross proceeds;

(vi) underwriter's commission, discount, or premium;

(vii) issuance expense;

(viii) net proceeds: amount, per unit;

(ix) effective dividend cost rate;

(x) principal amount outstanding at end of period;

(xi) annual dividend requirements;

(xii) weighted effective cost rate:

(xiii) if issue is owned by an affiliate, state name and relationship; and

(xiv) if issue is convertible, state terms of conversion.

(c) [Test Year Period]: In this schedule the applicant shall show the cost of preferred stock capital [particulars a through n] [(i) through (xiv)] after all adjustments to the actual balances and cost rates at the end of the Base Period.

(6) Schedule G-6: Ratio of earnings to fixed charges.

(b) Fixed charges, as defined by the Securities and Exchange Commission:

(i) Interest on Long-term Debt;

(ii) Amortization of Debt Premium, Discount, and Expense;

(iii) Interest on Short-term Debt;

(iv) Other Interest;

(v) Estimated Interest Factor of Lease Rental Charges Total Fixed Charges.

(i) Net Earnings;

(ii) Add Fixed Charges, as above.

(d) Earnings Available for Fixed Charges After Provision for Income Taxes: Add Income Taxes:

(i) Federal;

(ii) Deferred-net;

(iii) Investment Tax Credit Adjustment;

(iv) Investment Tax Credit;

(v) State.

(e) Earnings Available for Fixed Charges Before Provision for Income Taxes.

(f) Ratio of Earnings to Fixed Charges After Provision for Income Taxes.

(g) Ratio of Earnings to Fixed Charges Before Provision for Income Taxes.

(h) [Test Year Period]: In this schedule the applicant shall show the computation of the ratio of earnings to fixed charges for the Test Year Period after adjustments made to the Base Period balances using the same format as prescribed for the Base Period.

(i) A full explanation of each of the adjustments made to the balances shown at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpapers which shall constitute a part of the applicant's filing package.

(7) Schedule G-7: Issuance restrictions on borrowed and preferred stock capital. In this schedule the applicant will show a brief summary of the most current restrictions imposed on the applicant in the issuance of borrowed and preferred stock capital.

(8) Schedule G-8: Comon stock equity capital.

(i) year-end number of shares outstanding;

(ii) year-end book value per share;

(iii) annual earning per share;

(iv) year-end market-to-book value ratio;

(v) annual cash dividend per share;

(vi) annual stock dividends per share;

(vii) dividend yield per share;

(viii) average monthly high/low market price;

(ix) stock splits and/or changes in par value;

(x) sales of common stock;

(xi) date of sale;

(xii) number of shares sold;

(xiii) gross proceeds;

(xiv) underwriter's commission, discount, or premium;

(xv) issuance expense; and

(xvi) type of offering.

(b) [Test Year Period]: In this schedule the applicant shall show the common stock activity as of the end of the Base Period, all adjustments made to the particulars a through p [(i) through (xvi)] prescribed for the Base Period, and the results as of the end of the Test Year Period.

(9) Schedule G-9: Historical activity in common stock, paid-in capital, and retained earnings.

(10) Schedule G-10: Summary of applicant's support for the claimed rate of return on common stock equity capital. In this schedule the applicant shall state briefly the analyses, methods, and conclusions on which the applicant depends for its support of the claimed rate of return on common stock equity capital.

H. Schedule H Series: Expenses of operation. In this series of schedules the applicant shall show information concerning its expenses of operation by each account of the Uniform System of Accounts prescribed by the New Mexico Public Service Commission [New Mexico Public Regulation Commission] for the Base Period and for the Test Year Period as developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package.

(1) Schedule H-1: Operation and maintenance expenses.

(a) [Base Period]: In this schedule the applicant shall show operation and maintenance expenses by functional classification and detailed account on an unadjusted basis by month for the Base Period and shall include therein subtotals and totals by functional classification and detailed account. Amounts included in Account 920, Administrative & General Salaries; Account 923, Outside Services Employed; and Account 928, Regulatory Commission Expenses, shall be further separated to identify those amounts which are litigation expenses as defined by NMSA 1978, Section 62-13-3 and those amounts which are not litigation expenses. Amounts included in any other detailed account which are litigation expenses as defined by Section 62-13-3 shall also be separately identified.

(2) Schedule H-2: Cost of purchased gas.

(a) [Base Period]: In this schedule the applicant shall show the cost of purchased gas and related MCF volumes by supplier and by month for each month of the Base Period on an unadjusted basis and shall include therein subtotals, totals, and the total system weighted average unit cost.

(b) If the applicant purchases and sells gas under an exchange agreement, sufficient detail shall be shown regarding the total gross MCF volumes exchanged, the related dollar amounts, the parties involved, and the applicant's method for accounting for such transactions.

(c) [Test Year Period]: In this schedule the applicant shall show the cost of purchased gas and related MCF volumes by supplier and by month for each month of the Test Year Period regarding estimates and projections of the total gross MCF volumes exchanged, the related dollar amounts, the parties involved, and the applicant's method for accounting for such transactions.

(3) Schedule H-3: Reconciliation of revenues generated through the purchased gas adjustment clause with purchased gas cost.

(a) [Base Period]: In this schedule the applicant shall show an analysis of the reconciliation of the cost of purchased gas expense with the revenues generated from the purchased gas adjustment clause in effect based on the book balances for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show an analysis of the reconciliation of the cost of purchased gas expense with the revenues generated from the purchased gas adjustment clause reflecting all adjustments made to the Base Period balances.

(4) Schedule H-4: Payroll distribution, associated payroll taxes, employee benefits and pensions, and other compensations.

(a) [Base Period]: In this schedule the applicant shall show the payroll distribution, associated payroll taxes, employee benefits and pensions, and other compensation separately included in operating expenses on an unadjusted basis for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the payroll distribution, associated payroll taxes, employee benefits and pensions, and other compensation separately included in operating expenses after all adjustments thereto and the balances for the Test Year Period.

(5) Schedule H-5: Expenses associated with advertising, contributions, donations, lobbying and political activities, memberships, and outside services.

(6) Schedule H-6: Other administrative and general expenses.

(7) Schedule H-7: Depreciation, depletion, amortization, and abandonment expense.

(a) [Base Period]: In this schedule the applicant shall show the depreciation, depletion, amortization, and abandonment expense by functional classification and detailed plant account on an unadjusted basis for the Base Period; the book depreciation rate; and the annual expense accrual. The applicant shall include therein subtotals and totals by functional classification and detailed plant account.

(b) [Test Year Period]: In this schedule the applicant shall show the depreciation, depletion, amortization, and abandonment expense by functional classification and detailed plant account for the Base Period; all adjustments thereto; and the annual expense accrual for the Test Year Period. The applicant shall include therein subtotals and totals by functional classification and detailed plant account.

(8) Schedule H-8: Taxes other than income taxes.

(a) [Base Period]: In this schedule the applicant shall show the taxes, excluding federal and state income taxes, by type of tax accrued, prepaid, and charged on an actual basis for the Base Period.

(9) Schedule H-9: Federal and state income taxes.

(a) [Base Period]: In this schedule the applicant shall show the computation for federal and state income taxes on an unadjusted basis for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the computation for federal and state income taxes reflecting all adjustments made for the Test Year Period.

(10) Schedule H-10: Reconciliation of net income per books to net income for income tax purposes.

(a) [Base Period]: In this schedule the applicant shall show the reconciliation of the net income per books to the net income as reported to the Federal Internal Revenue Service for the Base Period.

(11) Schedule H-11: Income tax effect as a result of applicant joining in a consolidated federal income tax return.

(a) [Base Period]: In this schedule the applicant shall show a detailed analysis for the Base Period of the applicant's tax effect as a result of joining in the filing of a consolidated federal income tax return.

(b) [Test Year Period]: In this schedule the applicant shall show a detailed analysis for the Test Year Period of the applicant's tax effect at the proposed revenue as a result of joining in the filing of a consolidated federal income tax return.

(12) Schedule H-12: Accumulated tax deferrals.

(b) In addition the applicant shall show the item giving rise to the tax deferral separately, such as accelerated amortization, liberalized depreciation, asset depreciation range, investment tax credit, job development credit, etc.

(c) [Test Year Period]: In this schedule the applicant shall show the accumulated tax deferrals as of the end of the Base Period, all adjustments thereto for the Test Year Period, and the balances at the end of the Test Year Period.

(d) In addition the applicant shall show the item giving rise to the tax deferral separately, such as accelerated amortization, liberalized depreciation, asset depreciation range, investment tax credit, job development credit, etc.

(13) Schedule H-13: Investment tax credits.

(a) [Base Period]: In this schedule the applicant shall show an analysis of the investment tax credits earned, utilized, and amortized during the Base Period on an unadjusted basis.

(b) In addition the applicant shall show herein the particulars concerning any sale/leaseback transactions under the safe-harbor lease provisions of the Accelerated Cost Recovery System established by the Economic Recovery Tax Act of 1981 and amendments thereto, such as the investor/lessor, amount of property, cash payment, term of lease, discount, and tax rate.

(c) [Test Year Period]: In this schedule the applicant shall show an analysis of the investment tax credit for the Base Period, all adjustments made thereto for the Test Year Period, and the balances at the end of the Test Year Period.

(d) In addition the applicant shall show herein the particulars concerning any sale/leaseback transactions under the safe-harbor lease provisions of the Accelerated Cost Recovery System established by the Economic Recovery Tax Act of 1981 and amendments thereto, such as the investor/lessor, amount of property, cash payment, term of lease, discount, and tax rate.

(14) Schedule H-14: Expenses associated with affiliated interests.

(15) Schedule H-15: Expenses associated with nonutility services.

(a) [Base Period]: In this schedule the applicant shall show the investments, revenues, and expenses pertaining to the applicant's nonutility services on an unadjusted basis for the Base Period. The applicant shall include a full explanation of the rationale, methods, formulae, and calculations used in the allocation of these expenses to the nonutility service.

(b) [Test Year Period]: In this schedule the applicant shall show the investments, revenues, and expenses pertaining to the applicant's nonutility services for the Base Period; all adjustments made thereto; and the balances as of the end of the Test Year Period. The applicant shall include a full explanation of the rationale, methods, formulae, and calculations used in the allocation of these expenses to the nonutility service.

(16) Schedule H-16: Explanation of the adjustments to expenses of operation. In this schedule the applicant shall state in a brief narrative explanation the nature of each adjustment made to the book balances of expenses of operation.

I. Schedule I Series: Balance sheet, income statement, and changes in financial position. In this series of schedules the applicant shall submit copies of the financial forms, as required herein.

(1) Schedule I-1: Balance sheet.

(2) Schedule I-2: Income statement.

(3) Schedule I-3: Statement of changes in financial position.

J. Schedule J Series: Construction program and sources of construction funds. In this series of schedules the applicant shall show its proposed construction program and the sources of construction funds as developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package.

(1) Schedule J-1: Construction program.

(2) Schedule J-2: Sources of construction funds.

K. Schedule K Series: Gas operating revenues and sales volumes. In this series of schedules the applicant shall show the operating revenue from sales of natural gas, natural gas products, and services classified in accordance with the Commission's prescribed Uniform System of Accounts and as developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package.

(1) Schedule K-1: Gas operating revenue and sales volumes.

(a) [Base Period]: In this schedule the applicant shall show the book balances by month of the operating revenues from sales of natural gas, natural gas products, and services on an unadjusted basis for the Base Period including totals thereof classified in accordance with the Commission's prescribed Uniform System of Accounts (Account 400) along with the related sales volume of natural gas and natural gas product sales and services.

(b) [Test Year Period]: In this schedule the applicant shall show operating revenues from sales of natural gas, natural gas products, and services by month for the Base Period; all adjustments thereto for the Test Year Period including totals thereof; and be classified in accordance with the Commission's prescribed Uniform System of Accounts (Account 400) along with the related estimated or projected volumes of natural gas and natural gas product sales and services.

(2) Schedule K-2: Revenues from sales of products extracted from natural gas and from gas processed by others.

(a) [Base Period]: In this schedule the applicant shall show for the Base Period the sales of products extracted from natural gas [such as gasoline, butane, propane, and other salable products] processed through:

(i) facilities owned by the applicant,

(ii) as designated by an asterisk through facilities owned by an affiliated company, or

(iii) through facilities owned by others.

(b) The applicant shall state the name of the gas processor in each of the aforementioned cases.

(i) the volume of natural gas processed,

(ii) the volume of natural gas consumed as fuel,

(iii) the volume of natural gas consumed by shrinkage,

(iv) the wellhead price of the natural gas processed,

(v) the name of each product extracted,

(vi) the quantity of each product extracted in gallons,

(vii) sales revenue received for each product extracted and sold, and

(viii) sales revenue per gallon of each product extracted and sold.

(d) [Test Year Period]: In this schedule the applicant shall show the information requested for the Base Period as of the end of the Base Period, all adjustments made to the Base Period balances, and the balances for the Test Year Period.

L. Schedule L Series: Fully allocated cost of service study. In this series of schedules the applicant shall show the total cost of service for the Base Period and for the Test Year Period separated by jurisdiction and, where applicable, by corporate department or division; functional classification; classified to demand, commodity, and customer; and by rate classification as developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package.

(1) Schedule L-1: Allocation of Rate Base -- jurisdictional.

(2) Schedule L-2: Allocation of Rate Base -- functional classification.

(a) [Base Period]: In this schedule the applicant shall show the Rate Base components on an unadjusted basis for the Base Period separated by functional classification.

(b) [Test Year Period]: In this schedule the applicant shall show the Rate Base components after adjustments to the Base Period balances separated by functional classification.

(3) Schedule L-3: Allocation of Rate Base -- demand, commodity, and customer.

(a) [Base Period]: In this schedule the applicant shall show the Rate Base components on an unadjusted basis for the Base Period separated as to demand, commodity, and customer.

(b) [Test Year Period]: In this schedule the applicant shall show the Rate Base components after adjustments to the Base Period balances separated by demand, commodity, and customer.

(4) Schedule L-4: Allocation of Rate Base to rate classes.

(a) [Base Period]: In this schedule the applicant shall show the Rate Base components on an unadjusted basis for the Base Period separated by rate classification.

(b) [Test Year Period]: In this schedule the applicant shall show the Rate Base components after adjustments to the Base Period balances separated by rate classification.

(5) Schedule L-5: Allocation of total expenses -- jurisdictional.

(6) Schedule L-6: Allocation of total expenses -- functional classification.

(a) [Base Period]: In this schedule the applicant shall show the total expenses on an unadjusted basis for the Base Period separated by functional classification.

(b) [Test Year Period]: In this schedule the applicant shall show the total expenses after adjustments to the Base Period balances separated by functional classification.

(7) Schedule L-7: Allocation of total expenses -- demand, commodity, and customer.

(a) [Base Period]: In this schedule the applicant shall show total expenses on an unadjusted basis for the Base Period separated as to demand, commodity, and customer.

(b) [Test Year Period]: In this schedule the applicant shall show total expenses after adjustments to the Base Period balances separated as to demand, commodity, and customer.

(8) Schedule L-8: Allocation of total expenses to rate classes.

(a) [Base Period]: In this schedule the applicant shall show total expenses on an unadjusted basis for the Base Period separated by rate classification.

(b) [Test Year Period]: In this schedule the applicant shall show total expenses after adjustments to the Base Period balances separated by rate classification.

(9) Schedule L-9: Allocation of total revenue -- jurisdictional.

(a) [Base Period]: In this schedule the applicant shall show total annual revenue on an unadjusted basis for the Base Period separated by jurisdiction and, where applicable, by corporate department or division.

(b) [Test Year Period]: In this schedule the applicant shall show total annual revenue for the Test Year Period after adjustments to the Base Period balances separated by jurisdiction and, where applicable, by corporate department or division.

(10) Schedule L-10: Allocation of total revenue -- demand, commodity, and customer.

(a) [Base Period]: In this schedule the applicant shall show total annual revenue on an unadjusted basis for the Base Period classified to demand, commodity, and customer class.

(b) [Test Year Period]: In this schedule the applicant shall show total annual revenue for the Test Year Period after adjustments to the Base Period balances classified to demand, commodity, and customer class.

(11) Schedule L-11: Allocation of total revenue to rate classes.

(a) [Base Period]: In this schedule the applicant shall show total annual revenue on an unadjusted basis for the Base Period separated by rate classification.

(b) [Test Year Period]: In this schedule the applicant shall show total annual revenue for the Test Year Period after adjustments to the Base Period balances separated by rate classification.

M. Schedule M Series: Allocated cost of service per billing unit of demand, commodity, and customer by rate classification. In this series of schedules the applicant shall show the allocated cost of service by rate classification per billing unit of demand, commodity, and customer as requested in each schedule and developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package.

(1) Schedule M-1: Allocated cost per billing unit of demand, commodity, and customer.

(a) [Base Period]: In this schedule the applicant shall show the total allocated cost of service and the total allocated cost of service per billing unit of demand, commodity, and customer on an unadjusted basis for the Base Period existing rate schedules.

(b) [Test Year Period]: In this schedule the applicant shall show the total allocated cost of service and the total allocated cost of service per billing unit of demand, commodity, and customer for the proposed rate schedules after adjustments to the Base Period balances.

(c) A full explanation of each of the adjustments made to the balances shown at the end of the Base Period shall be referenced to the appropriate supporting schedules or workpaper which shall constitute a part of the applicant's filing package.

(2) [Reserved]

N. Schedule N Series: Allocation Factors. In this series of schedules the applicant shall provide a list of the allocation factors used to assign items of plant and expenses to the various rate classes as well as a brief summary of the derivation of the allocation factors used.

(1) Schedule N-1: Allocation factors used to assign items of plant and expenses to the various rate classes.

(2) Schedule N-2 Classification factors used to assign items of plant and expenses to demand, commodity, and customer components.

(a) [Base Period]: In this schedule the applicant shall provide a tabulation of the classification factors used to assign items of plant and expenses to the appropriate demand, commodity, and customer components on an unadjusted basis for the Base Period showing the classification and providing a brief rationale for the classification.

(b) [Test Year Period]: In this schedule the applicant shall provide a tabulation of the classification factors used to assign items of plant and expenses to the appropriate demand, commodity, and customer components after adjustments to the Base Period balances showing the classification and a brief rationale for the classification.

(3) Schedule N-3: Demand and commodity loss factors.

(a) [Base Period]: In this schedule the applicant shall provide the demand and commodity loss factors used to assign the cost of service responsibility on an unadjusted basis to the Base Period. In addition the applicant shall supply a brief explanation of the methods, procedures, and formulae used to determine the loss factors and demand and commodity losses.

(b) [Test Year Period]: In this schedule the applicant shall provide the demand and commodity loss factors used to assign the cost of service responsibility after adjustments to the Base Period balances. In addition the applicant shall supply a brief explanation of the methods, procedures, and formulae used to determine the loss factors and demand and commodity losses.

O. Schedule O Series: Rate of return by rate classification. In this series of schedules the applicant shall show the rate of return and the relative rates of return by rate classification as developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package.

(1) Schedule O-1: Rate of return by rate classification.

(a) [Base Period]: In this schedule the applicant shall show the rate of return and the relative rates of return by rate classification for the Base Period.

(b) [Test Year Period]: In this schedule the applicant shall show the rate of return and the relative rates of return by rate classification under the proposed rate schedules for the Test Year Period.

(2) [Reserved]

P. Schedule P Series: Rate design. In this series of schedules the applicant shall show the total revenue requirement by rate classification as developed from the supporting schedules and workpapers included elsewhere in the applicant's filing package.

(1) Schedule P-1: Total revenue requirements by rate classification.

(a) [Base Period]: In this schedule the applicant shall show the total revenue requirements on an unadjusted basis by rate classification for the Base Period, showing on a separate basis: base revenues, revenues derived from cost of purchased gas, and other revenue.

(b) [Test Year Period]: In this schedule the applicant shall show by rate classification:

(i) the total revenue requirements under existing rate schedules after adjustments to the Base Period balances, showing on a separate basis: base revenues, revenues derived from cost of purchased gas, and other revenue;

(ii) the total revenue requirements under the proposed rates after adjustments to the Base Period balances showing on a separate basis: base revenues, revenues derived from cost of purchased gas, and other revenue; and

(iii) the difference between the total revenue under existing rates and the total revenue under the proposed rates expressed in both dollars and as a percent.

(2) Schedule P-2: Proof of revenue analysis.

(a) [Base Period]: Not required.

(b) [Test Year Period]: To satisfy the requirements of this request the applicant shall include a proof of revenue by rate class utilizing the proposed rate schedules.

(3) Schedule P-3: Comparison of rates for service under the present and proposed schedules. To satisfy the requirements of this request the applicant shall include herein a tabulation showing a comparison of the rates for each rate classification for the present and proposed schedules.

(4) Schedule P-4: Explanation of proposed changes to existing rate schedules. In this schedule the applicant shall provide a brief explanation for the proposed change to the Base Period existing rate schedules and shall include therein the justification and support for the proposed change.

Q. Schedule Q Series: Key operating statistics. In this series of schedules the applicant shall provide the statistical data as requested in the following series of schedules and shall include an explanation or reference to the appropriate supporting schedules or workpapers for any adjustments made to the historical data requested or to the data for the Base Period. In addition, detailed explanations of all estimates and assumptions used to arrive at future values of data shall be provided.

(1) Schedule Q-1: Peak demand Information. In this schedule the applicant shall provide the following peak demand data:

(a) for total system;

(b) for the New Mexico jurisdiction;

(d) by customer classification and load factor;

(e) for four (4) years prior to the Test Year Period by month;

(f) for twelve (12) months of the Test Year Period, and

(g) for five (5) years beyond Test Year Period by month.

(2) Schedule Q-2: Plant in service information. In this schedule the applicant shall provide the following plant in service data, as requested:

(a) for total system;

(b) by New Mexico jurisdiction;

(d) for four (4) years prior to Test Year Period;

(e) for twelve (12) months of the Test Year, and

(f) for five (5) years beyond the Test Year Period.

(3) Schedule Q-3: Property retirements and property investments information. In this schedule the applicant shall provide the following property retirements and property investments data, as requested:

(a) for total system;

(b) for New Mexico jurisdiction;

(d) for four (4) years prior to the Test Year Period;

(e) for twelve (12) months of the Test Year Period, and

(f) for five (5) years beyond Test Year Period.

(4) Schedule Q-4: Operation and maintenance expense information. In this schedule the applicant shall provide the following operation and maintenance expense data, as requested:

(a) for total system;

(b) for New Mexico jurisdiction;

(d) by demand, commodity, and customer;

(e) by customer classification;

(f) for four (4) years prior to the Test Year Period;

(g) for twelve (12) months of the Test Year Period; and

(h) for five (5) years beyond the Test Year Period.

(5) Schedule Q-5: Customer Information. In this schedule the applicant shall provide the following customer information for the New Mexico jurisdiction and by service area:

(a) year-end number of customers and average number of customers for the year by customer classification;

(b) therm or MCF sales per customer by customer classification;

(d) for four (4) years prior to the Test Year Period;

(e) for the Test Year Period, and

(f) for five (5) years beyond the Test Year Period.

(6) Schedule Q-6: Weather Data. In this schedule the applicant shall provide weather data, including cooling and heating degree days by service area, used by the applicant to support any adjustments to sales due to weather.

(7) Schedule Q-7: Scheduled maintenance information. In this schedule the applicant shall provide the following scheduled system maintenance data:

(a) for New Mexico jurisdiction;

(b) by operating unit;

(d) for twelve (12) months of the Test Year Period, and

(e) for five (5) years beyond Test Year Period by month.

(8) Schedule Q-8: Customer service interruption information. In this schedule the applicant shall provide the following customer service interruption data:

(a) for total system and for the New Mexico jurisdiction by:

(i) occurrence,

(ii) duration, and

(iii) geographical location;

(b) for four (4) years prior to the Base Period; and

R. Schedule R Series: Required reports. In this series of schedules the applicant shall submit a copy of the most current reports as requested.

(1) Schedule R-1: Natural gas receipts and deliveries. To satisfy the requirements of this schedule the applicant shall submit copies of its natural gas account conforming with the Base Period and the Test Year Period of operations.

(2) Schedule R-2: Load research program and conservation plan. To satisfy the requirements of this schedule the applicant shall submit a copy of its latest load research program. The applicant shall also submit its latest conservation plan pursuant to the provisions of NMPSC Rules 420.24 through 420.28 [17.7.420 NMAC] and shall file studies, testimony, and exhibits as required by NMPSC Rule 420 [17.7.420 NMAC].

(3) Schedule R-3: Description of Company. To satisfy the requirements of this schedule the applicant shall submit a statement describing the company and its scope of operations by service area and shall include an organizational chart.

(4) Schedule R-4: Annual Report to stockholders. To satisfy the requirements of this schedule the applicant shall submit a copy of its latest Annual Report to stockholders. If the applicant is a wholly-owned subsidiary, the Annual Report to stockholders of its parent company shall be submitted.

(5) Schedule R-5: Reports to the Securities and Exchange Commission. To satisfy the requirements of this schedule the applicant shall submit copies of its latest SEC Form 10K and SEC Form 10Q and shall include copies of the Form 10Q conforming to the latest Form 10K accounting period. If the applicant is a wholly-owned subsidiary, division, or department, the applicable SEC Forms of its parent company shall be submitted.

(6) Schedule R-6: Form 2 reports. To satisfy the requirements of this schedule the applicant shall submit a copy of the latest Form 2 report required to be on file at the New Mexico Public Service Commission [New Mexico Public Regulation Commission]. Where the applicant has duly filed such report with the New Mexico Public Service Commission [New Mexico Public Regulation Commission], notice herein of the fact will satisfy the requirements of this schedule. In addition, if the applicant is required to file Form 2 with the Federal Energy Regulatory Commission, the latest Form 2 report filed at the Federal Energy Regulatory Commission shall be submitted herein.

(7) Schedule R-7: Opinion of independent public accountants. To satisfy the requirements of this schedule the applicant shall submit a copy of the opinion of its independent certified public accountant stating that an independent examination of the book amounts and accounting adjustments thereto of the applicant utility company's books and records has been made for the Base Period, as defined herein, and that the results thereof are in all material respects in compliance with the Uniform System of Accounts prescribed by the New Mexico Public Service Commission [New Mexico Public Regulation Commission].

S. Schedule S Series: Testimony and exhibits. To the extent that testimony and exhibits are required in support of the materials submitted in compliance with the filing requirements herein, the applicant shall submit testimony and exhibits of such composition, scope, and format so as to serve as the applicant's case-in-chief in the event the matter is set for hearing. Further, any utility seeking recovery of litigation expenses as defined in Section 62-13-3 NMSA 1978 shall file sufficient testimony to enable the Commission to find those expenses were prudently incurred.

17.10.630.14 [HISTORY: Codified by NMPUC Case No. 2086, Order dated June 30, 1988; amended by NMPUC Case No. 2232, Order dated December 19, 1988; amended by NMPUC Case No. 2561, Order dated April 4, 1994. Formerly NMPUC General Order No. 41, superseded for purposes of rule reorganization and codification.]

HISTORY OF 17.10.630 NMAC:

Pre-NMAC History: The material in this part was derived from that previously filed with the Commission of Public Records-State Records Center and Archives.

General Order No. 41, Minimum Data Standard Filing Requirements For Investor-Owned Natural Gas Utilities, 1/5/84.

NMPSC Rule 630, Filing Requirements in Support of Rate Schedules For Investor-Owned Natural Gas Utilities, 6/30/88.

History of Repealed Material: [RESERVED]

History

Recompiled 12/30/01
Recompiled 12/30/01

Part 640 Purchased Gas Adjustment Clauses for Gas Utilities

N.M. Admin. Code § 17.10.640.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.10.640.1 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.2 Scope

This rule applies to all natural gas utilities subject to the commission’s jurisdiction.

History

17.10.640.2 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.3 Statutory Authority

NMSA 1978 Sections 8-8-15 and 62-8-7.

History

17.10.640.3 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.4 Duration

Permanent.

History

17.10.640.4 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.5 Effective Date

March 15, 2004, unless a later date is cited at the end of a section.

History

17.10.640.5 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.6 Objective

The purpose of this rule is to establish a procedure by which a natural gas utility may propose a purchased gas adjustment clause (PGAC) that the commission will review pursuant to Subsection E of NMSA 1978 Section 62-8-7. The PGAC is intended to ensure the stability of the utility’s annual earnings consistent with the utility’s duty to provide adequate service at just and reasonable rates. The PGAC mechanism also is designed to aid in the levelization of the gas cost factor reflected in the PGAC component of the customer’s bill.

History

17.10.640.6 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.7 Definitions

In addition to the definitions contained in NMSA 1978 Section 62-3-3, as used in this rule, unless otherwise specified:

A. annual reconciliation factor means a computed surcharge or credit factor in the PGAC used to collect any revenue shortfall in the PGAC or to refund any excess revenue collected through the PGAC;

B. annual reconciliation factor implementation period means that twelve consecutive months comprising the period set forth in the utility’s PGAC for the implementation of its annual reconciliation factor;

C. annual reconciliation period means the historical period of twelve consecutive months used for purposes of determining the PGAC balancing account under-collection or over-collection;

D. annual reconciliation report means a report setting out all costs and revenues applicable to the utility's PGAC and including the calculation of the annual reconciliation factor;

E. attorney general means the attorney general of the state of New Mexico and the representatives and consultants of the attorney general's office;

F. balancing account means the account containing the current cumulative over-collected or under-collected gas costs or such other costs as ordered by the commission;

G. balancing account adjustment factor means a mechanism employed within the gas cost factor statement that allows the utility to make adjustments to the balancing account to manage the utility’s balancing account as necessary;

H. basic gas cost factor means an interim factor developed during the calculation of the gas cost factor statement that considers all of the normal, recurring gas cost elements;

I. billing cycle means a regular periodic interval during which certain customers of the utility are billed. For purposes of this rule, the billing cycle shall be deemed to begin on the day of preparation of bills for mailing for the utility’s first billing cycle in which the gas cost factor will become effective;

J. billing factor means the gas cost factor applicable for a billing period;

K. billing period means that period of time that encompasses the date of the first billing cycle through the date of the last billing cycle;

L. gas costs mean those types of costs defined by the utility in its PGAC tariff as approved by the commission for recovery through the utility’s PGAC. No gas costs of customers of the utility not subject to the PGAC shall be included in the utility’s PGAC calculations;

M. gas cost factor means the gas cost billing rate used in the utility’s billing process for recovery of gas costs not included in the base rates;

N. gas cost factor statement (GCFS) means the filing required by a utility before an adjustment can be made in its gas cost factor;

O. gas supply plan means a planning report that sets forth the steps to provide a reliable gas supply at just and reasonable rates consistent with market conditions, regulatory requirements and other authorized purposes;

P. general service gas cost factor means the factor determined within the gas cost factor statement that is billed directly to sales service customers for gas costs. This factor is the sum of the basic gas cost factor, the balancing account adjustment factor, the producer/supplier surcharge or refund factor, the annual reconciliation factor, any other surcharge or refund factor authorized by the commission, and the factor for taxes and commission inspection and supervision fees, if applicable;

Q. lowest reasonable cost means gas supply procured at the lowest cost available at the time a gas contract is entered into or a purchase is made, consistent with supply reliability and operational needs of the utility;

R. month means a calendar month;

S. planning period means a period of twelve consecutive months or longer, beginning and ending in the months specified in the utility’s PGAC;

T. producer/supplier surcharge or refund factor means a factor utilized to return refunds collected from suppliers or to surcharge additional items billed by suppliers that are not recognized elsewhere in the gas cost factor statement;

U. purchased gas adjustment clause (PGAC) means the mechanism that allows the utility to set gas cost billing rates for the purpose of recovering gas costs on a continuing basis and allows for levelization of the gas cost factor reflected in the PGAC component of the customer’s bill;

V. sales customer means a customer of a utility who purchases gas from the utility rather than from a marketer, broker or other supplier;

W. staff means all persons employed by or representing the utility division of the commission;

X. tariff means the filed rate schedule, including rates, rules, and forms, setting forth the obligations of the utility and its customers;

Y. verification period means that time as established by this rule between the receipt of a gas cost factor statement by the commission and the first day of the first billing cycle in which the proposed gas cost factor will be placed in effect;

Z. transportation customer means a customer of the utility who purchases gas from a marketer, broker or supplier other than the utility and/or obtains only transmission and/or distribution services from the utility;

AA. year means a consecutive twelve-month period as defined in the utility’s PGAC.

History

17.10.640.7 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.9 Application for Approval of Pgac

A. Any gas utility without an approved PGAC that requests to use a PGAC for the recovery of gas costs must file an initial application with the commission. The filing requirements for the initial application are set forth in this section and in 17.10.640.12 NMAC.

(1) The utility’s initial application for use of a PGAC shall include, at a minimum, the following:

(a) a detailed description and justification of the gas cost factor calculation methodology the utility proposes to use as a basis for the PGAC;

(b) proposed PGAC tariff provisions, which shall contain the specific methodology for calculation of the gas cost factor as provided for in 17.10.64012 NMAC;

(c) identification of the specific months in which the utility proposes to begin and end its annual reconciliation period, as provided for in Subsection C of 17.10.640.13 NMAC, identification of the specific months in which the utility proposes to begin and end its annual reconciliation factor implementation period, as provided for in Subsection E of 17.10.640.13 NMAC, and identification of the annual date proposed for the filing of the utility’s gas supply plan and the beginning and ending months proposed for the utility’s planning period, as provided for in Subsections B and D of this section;

(d) sufficient financial and other necessary information and data to identify and justify the inclusion and recovery of allowable gas costs through the utility’s PGAC, including a demonstration that no amounts to be recovered under the operation of the PGAC are included in other tariffs or charges for service; and

(e) an initial gas supply plan, as provided for in Subsection B of this section.

(2) Sworn testimony and exhibits explaining the utility's proposal and demonstrating that its proposed PGAC complies with this rule shall accompany an initial application for approval to use a PGAC.

(3) The utility may submit portions of its gas supply plan and initial application under seal as provided for in Paragraph 3 of Subsection B of this section.

B. Any gas utility seeking commission approval to use a PGAC shall file with its initial application pursuant to Subsections A and C of this section a gas supply plan that describes the utility's plans to meet customer demands for supply and transportation services throughout its service area and shows that its procurement policies are designed to ensure that gas supplies are purchased at the lowest reasonable cost. Any utility intending to continue using its approved PGAC shall file a gas supply plan annually pursuant to Subsection D of this section.

(1) The utility’s gas supply plan shall include, at a minimum, the following:

(a) for the utility’s planning period, information on the utility’s procurement related plans, including supply sources, projected significant system modifications or improvements, types and durations of contracts, generic pricing provisions, storage arrangements, and arrangements for processing, gathering, and transportation by others of utility-owned gas supply;

(b) for the utility’s planning period, information on projected demands for sales and transportation services;

(c) a description of foreseeable market or regulatory developments that may affect the plans described in the gas supply plan; and

(d) any other matters as may be ordered by the commission.

(2) An officer of the utility shall verify the gas supply plan.

(3) The utility may submit under seal any portions of its gas supply plan that reveal its contracted portfolio, its major suppliers, transportation volumes, or its contract pricing, on a contract-by-contract basis, to the extent the utility deems specific information to be confidential. The utility also may seek a protective order under Subsection B of 17.1.2.8 NMAC for other portions of its gas supply plan it considers confidential, but the utility shall have the burden of proving its right to such protection. Any information submitted under seal pursuant to this Paragraph shall remain under seal for a period of two (2) years, after which time it shall become public unless the utility seeks and obtains further protection from the commission. Information submitted under seal shall be available for review by the commission and its designated representatives and by any person who has entered into a confidentiality agreement with the utility in a form approved by commission order.

C. An initial PGAC application shall be filed with the commission and shall be reviewed and approved as provided herein.

(1) A utility filing an initial PGAC application shall contemporaneously with such filing mail a copy of such application to the attorney general and notification of its filing to the intervenors in the utility’s most recent general rate case.

(2) A utility’s initial PGAC application and proposed PGAC shall be deemed approved thirty (30) days after the filing of the application unless otherwise ordered by the commission.

(3) Any person or staff may file a request for a hearing on an initial PGAC application no later than twenty (20) days after the filing of the application. The request for hearing shall set forth clearly the grounds for requiring a hearing and shall indicate whether the proposed hearing shall be limited to specific issues. Upon receipt of a request for hearing, or upon its own motion, the commission may order a hearing, upon reasonable notice, on the initial PGAC application and may suspend the operation of the PGAC proposed in the application, pursuant to NMSA 1978 Section 62-8-7.

(4) The commission may approve all or part of the initial PGAC application. Approval of the application shall constitute approval of the utility’s use of the proposed PGAC unless otherwise provided in the commission’s order.

(5) A utility operating with an approved PGAC shall continue to use its approved PGAC until the commission orders otherwise.

D. A utility operating with an approved PGAC shall file an annual gas supply plan pursuant to Subsection B of this section on or before the date specified for such filing pursuant to Subsection A of this section and Paragraph 5 of Subsection A of 17.10.640.12 NMAC. If the utility fails to timely file its annual gas supply plan as required by this subsection, the commission may terminate the utility’s PGAC and the utility automatically shall be subject to sanctions in accordance with NMSA 1978 Sections 62-12-4 through 62-12-6.

(1) A utility filing an annual gas supply plan shall contemporaneously with such filing mail a copy of the report to the attorney general.

(2) An annual gas supply plan filed pursuant to this rule shall not be deemed approved by the commission.

(3) Staff, the attorney general, or any other interested party may file a request for a hearing no later than twenty (20) days after the filing of the annual gas supply plan. The request for hearing shall set forth clearly the grounds for requiring a hearing and shall indicate whether the proposed hearing shall be limited to specific issues. Upon receipt of a request for hearing or upon its own motion, the commission may order a hearing, upon reasonable notice, on any or all of the issues identified and on continued use of the PGAC, and may suspend the operation of any changes to the utility’s procurement program as described in the gas supply plan, pursuant to NMSA 1978 Section 62-8-7.

E. If a utility determines that a deviation from its most recently filed gas supply plan is required to achieve its portfolio’s purposes or the objectives of this rule, the utility shall file an update with the commission which explains the deviation from the plan. Such deviation shall be subject to the hearing provisions set forth in Subsection D of this section.

History

17.10.640.9 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.10 Affiliate Transactions

Any utility intending to include a transaction with an affiliate in its PGAC shall comply with the requirements of 17.6.450 NMAC, Affiliate Transactions.

History

17.10.640.10 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.11 Continuation Filing

A. Each utility operating with a PGAC as part of its tariff shall file an application for continued use of its PGAC at intervals of no more than four (4) years. The application must address the considerations described in Paragraphs (1) through (4) of Subsection E of NMSA 1978 Section 62-8-7. A utility may elect to satisfy this requirement by presenting evidence and testimony either in a rate case or in a discrete filing.

B. If the utility fails to timely file its continuation filing as required by Subsection A of this section, the commission may terminate the utility’s PGAC and the utility automatically shall be subject to sanctions in accordance with NMSA 1978 Sections 62-12-4 through 62-12-6.

History

17.10.640.11 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.12 Pgac Tariff and Gas Cost Factor Statement

A. Tariff filing. The information required by Paragraphs 3 through 6 of Subsection A of this section may be included in a utility-specific rule or rate. Each utility shall file a tariff, subject to commission approval, that includes at a minimum the following:

(1) a general description of the PGAC and its applicability to customers;

(2) a provision that rate changes shall be effectuated through the filing of a gas cost factor statement as provided for in Subsection B of this section;

(3) the detailed methodology for the calculation of the gas cost factor, including the accounting methodology used to ensure that the effects that transportation imbalances may have on PGAC gas costs are substantially neutralized;

(4) specific identification and definition of all terms applicable to sales customers utilized in the calculation of the gas cost factor, including but not limited to the recovery of unaccounted for gas and any fuel and power used in connection with the transportation and processing of gas;

(5) identification of the annual date for the filing of the gas supply plan as provided for in Subsections B and D of 17.10.640.9 NMAC and of the beginning and ending months of the planning period as defined in Subsection S of 17.10.640.7 NMAC; and

(6) identification of the annual reconciliation period as provided for in Subsection C of 17.10.640.13 NMAC and the annual reconciliation factor implementation period as provided in Subsection E of 17.10.640.13 NMAC.

B. Gas cost factor statement. The format for a utility’s gas cost factor statement, including definitions, shall be submitted with its application for approval of a PGAC as provided in Section 9 of 17.10.640 NMAC. The GCFS shall include all data necessary for the commission to review and verify the calculation of the resulting commodity billing factor. Each factor or term used, not previously described in this rule, shall be specifically defined in each utility's PGAC. The time period over which gas usage shall be billed using the requested rate shall be specified in the GCFS. Each GCFS filed shall be certified by an officer of the utility. The GCFS shall include, if applicable, calculations of the following:

(1) an actual or estimated basic gas cost factor;

(2) a producer/supplier surcharge or refund factor;

(3) a balancing account adjustment factor;

(4) an annual reconciliation factor;

(5) any other surcharge or refund factor authorized by the commission;

(6) a factor for inspection and supervision fees and taxes to be applied to revenues generated by the resulting billing factor;

(7) a general service gas cost factor resulting from the summation of the above components; and

(8) the amount and the duration of such refund or surcharge, if an optional methodology for passing refunds or surcharges through the PGAC as authorized by Subsection C of this section is implemented by the utility.

C. Tariff revisions. At any time that the commission orders changes in the utility's PGAC or the utility proposes changes in its PGAC, the utility shall file a revised tariff as provided for in Subsection A of this section, to the extent that the utility's approved tariff provisions require revisions. The utility's revised tariff shall be deemed approved thirty (30) days after the filing of the revised tariff unless the commission orders otherwise.

D. Filing verification and factor effective date. The utility shall file a gas cost factor statement as provided for herein to begin a verification period which shall be no less than fifteen (15) calendar days unless otherwise directed by the commission. The effective date for the new general service gas cost factor shall be deemed to be the first day of the first billing cycle containing the first day of the month in the subsequent calendar month. Unless otherwise directed by the commission, no change in the utility’s general service gas cost factor shall be made except at the beginning of a billing cycle. General service gas cost factors will be applied to calendar month consumption. Calendar month consumption may be determined and applied on a pro rata basis if a utility employs a billing cycle application whereby a billing cycle covers portions of two (2) or more months. The commission shall act upon a utility’s gas cost factor statement filing within the fifteen (15) day verification period, otherwise the filing is deemed approved.

E. Gas cost factor hearings. Staff or any interested party may file a complaint or challenge to the propriety of any costs and revenues included in the utility's PGAC within sixty (60) days of any filing by the utility made pursuant to NMSA 1978 Section 62-10-1. Upon receipt of a complaint or challenge, or upon its own motion pursuant to NMSA 1978 Section 62-10-1, the commission may direct the utility to respond within thirty (30) days. Upon receipt of the utility's response, the commission may require a formal hearing. Pending a hearing, the commission may allow the costs to be placed into the PGAC subject to refund, suspend the inclusion of costs in the PGAC, or take any other reasonable action designed to protect the interests identified in NMSA 1978 Section 62-3-1. To the extent allowed by law, the commission in its discretion may order refunds of amounts collected or surcharges for amounts not collected under the provisions of this rule to the customers of a gas utility when the commission determines, after notice and hearing, that the utility over-collected or under-collected such amounts. Unless otherwise ordered by the commission, formal hearings will not be held prior to the effective date of any adjustment determined in accordance with the provisions of an approved PGAC.

F. Circumstances materially impacting the cost of gas. The utility shall describe and explain any circumstances that materially impact its cost of gas in its gas cost factor statement. Unless specifically approved by the commission, the utility shall justify the reasonableness of any costs incurred due to these circumstances prior to the inclusion of any gas costs in their PGAC. If the commission determines to hold a hearing, it shall provide five (5) days’ prior notice to the utility, public, attorney general, and intervenors of record in the utility’s most recently filed general rate case.

History

17.10.640.12 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.13 Annual Pgac Reconciliation

A. Annual reconciliation. Each utility filing an application for a PGAC or operating with a PGAC under the terms of this rule shall provide for an annual reconciliation of allowable gas costs incurred to billed gas costs as recorded on the books and records of the utility. A utility’s proposal for the annual reconciliation shall be consistent with the general provisions described below.

B. Purpose. The purpose of the annual reconciliation report is to:

(1) substantiate the appropriateness of the amount of the over-collected or under-collected PGAC dollars remaining in the PGAC balancing account at the end of the annual reconciliation period; and

(2) to establish the annual reconciliation factor for refunding or surcharging customers for that period’s PGAC balancing account amount, unless the utility utilizes another commission-approved method for refunding or surcharging customers.

C. Reconciliation methodology. In general, the PGAC balancing account amount shall consist of the difference between allowable gas costs incurred during the annual reconciliation period and gas costs billed during the same period. The PGAC balancing account amount shall also contain all applicable amounts included by order of the commission. The reconciliation process shall substantiate the PGAC balancing account amount and shall be performed utilizing the amounts recorded on the books and records of the utility applicable to the annual reconciliation period. The annual reconciliation shall cover a period of twelve (12) consecutive historical months. The specific period that comprises the annual reconciliation period shall be applied for in the utility’s initial application filing for a PGAC. The specific period may be changed by commission order.

D. Annual reconciliation report. An annual reconciliation report shall be filed with the commission no later than four (4) months following the end of the annual reconciliation period. The annual reconciliation report shall be certified by an officer of the company to be true, correct, and in compliance with the reconciliation methodology determined herein. The annual reconciliation report shall generally consist of, but not be limited to, the following.

(1) Agreed-upon procedures. A report by an independent auditor, who shall perform agreed-upon procedures pursuant to Statement on Standards for Attestation Engagements (SSAE) No. 10 and No. 11 , or successor auditing standards, shall be submitted with the annual reconciliation report. The auditor’s report shall set forth the procedures and findings of the review.

(2) Schedule of gas purchases by account number. A summary schedule shall be submitted detailing all applicable gas purchase dollars and volumes expensed for the annual reconciliation period by account number as prescribed in the applicable uniform system of accounts. The schedule shall also include, but not be limited to, expenses associated with gas storage-related transactions, exchange transactions, and transactions related to the transportation of PGAC-related gas purchases.

(3) Schedule of gas purchases by supplier. A summary schedule shall be submitted detailing all applicable gas purchase dollars and volumes expensed for the annual reconciliation period by supplier. Purchases from suppliers totaling less than 3% of total purchase costs for the period shall be summed in an “All Others” category.

(4) Schedules of PGAC revenues. Schedules shall be submitted summarizing gas sales dollars and volumes billed and other PGAC revenues collected and attributable to the annual reconciliation period.

(5) Schedule of costs and revenues billed. A schedule shall be submitted summarizing the above schedules of costs and billed revenues, gas related taxes, reconciling items, and other applicable amounts for the annual reconciliation period resulting in the total amount under-collected or over-collected from customers. This over-collected or under-collected amount shall include an interest charge or credit at the rate specified by NMSA 1978 Section 62-13-13, or at such other rate as may be approved by the commission.

(6) Calculation of the annual or other commission-approved reconciliation methodology. A schedule shall be submitted detailing the calculation of the factor to be utilized in refunding or surcharging the over-collected or under-collected amount.

E. Untimely filing of annual reconciliation report. If the utility fails to timely file its annual reconciliation report as required by Subsection D of this section, the commission may terminate the utility’s PGAC and the utility automatically shall be subject to sanctions in accordance with NMSA 1978 Sections 62-12-4 through 62-12-6.

F. Annual reconciliation factor. The annual reconciliation factor shall be calculated by dividing the over-collection or under-collection amount by the estimated sales volumes in the annual reconciliation factor implementation period. The specific period of time that comprises the annual reconciliation factor implementation period shall be applied for in the utility’s initial application filing for a PGAC, and the specific period may be changed by commission order.

History

17.10.640.13 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.14 Extraordinary Circumstances

Notwithstanding the provisions of this rule and specifically Subsection C of 17.10.640.12 NMAC, the commission may direct the utility to alter its collections through the PGAC as provided herein.

A. Under-collection or over-collection situation. The utility may apply to the commission or the commission may order a hearing on its own motion whenever the utility or the commission has good reason to believe, on the basis of information available to it at the time, that the presently effective gas cost factor or the gas cost factor adjustment proposed in any gas cost factor statement filed pursuant to Subsection D of 17.10.640.12 NMAC would result in a substantial under-collection or over-collection of revenue.

B. Substantial gas cost factor adjustments. The utility may apply to the commission or the commission may order a hearing on its own motion whenever the utility or the commission becomes aware of an extraordinary circumstance under which the gas cost factor adjustment calculated in accordance with this rule will result in a substantial change in the level of the PGAC in the following billing period and excessive fluctuations in the gas cost factor adjustments for future billing periods.

C. Mitigation of concerns. After notice and hearing, the commission may order the utility to place in effect, for such period of time as the commission may direct, a specified increase or decrease in the amount of the gas cost factor or take any other action appropriate to the public interest to mitigate the concerns identified in Subsections A and B of this section.

History

17.10.640.14 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.15 Exemption or Variance

A. A utility may file a written application for an exemption or variance from this rule or its approved PGAC, which shall be verified by an officer of the utility. The utility’s application for an exemption or variance shall:

(1) describe the need for a variance;

(2) set out the effect of complying with this rule or the approved PGAC on the utility and its customers as a result of the condition;

(3) identify any section of this rule or the approved PGAC for which the exemption or variance is requested;

(4) define the result which the request will have if granted;

(5) state how the exemption or variance will meet the objectives of this rule; and

(6) state why the requested relief is a reasonable alternative.

B. A utility filing an application for an exemption or variance shall contemporaneously with such filing mail copies of such application to the attorney general and the intervenors in the utility’s most recent general rate case.

C. An application by any utility for an exemption or a variance shall stay the application of the affected portion of this rule or its PGAC for that utility for a period of sixty (60) days from the filing of the request, during which time the commission may grant or deny the exemption or variance, require that the utility file additional information in support of the request, or set the matter for hearing. The stay shall be extended automatically if the commission has not taken the above‑noted action within sixty (60) days after the filing of the application for variance or exemption.

History

17.10.640.15 NMAC - N, 3-15-04

N.M. Admin. Code § 17.10.640.16 Termination of Pgac

If the commission orders termination of the PGAC, the utility shall perform an annual reconciliation in accordance with the methodology prescribed in 17.10.640.13 NMAC for the period of time between the end of the period included in its last annual reconciliation report and the date of termination of the PGAC. The utility shall file with the commission a final reconciliation report consistent with the requirements of the annual reconciliation report under Subsection D of 17.10.640.13 NMAC and shall calculate and collect or refund a final reconciliation factor consistent with the requirements of Subsection E of 17.10.640.13 NMAC.

HISTORY OF 17.10.640 NMAC:

Pre-NMAC history: The material in this part was derived from that previously filed with the state records center and archives.

PSC - GO 36 (General Order No. 36) Rules and Regulations Governing Natural Gas Utilities Purchased Gas Adjustment Clauses, filed 12-24-80.

NMPSC Rule 640, Purchased Gas Adjustment Clauses For Gas Utilities, (NMPSC Case No. 2086), filed 6-30-88.

NMPSC Rule 640, Purchased Gas Adjustment Clauses For Gas Utilities, (NMPSC Case No. 2360), filed 9-2-92.

History of repealed material:

NMPSC Rule 640, Purchased Gas Adjustment Clauses For Gas Utilities, (NMPSC Case No. 2360), repealed 3-15-04.

Other history:

NMPSC Rule 640, Purchased Gas Adjustment Clauses For Gas Utilities, (NMPSC Case No. 2360), filed 9-2-92, replaced by 17.10.640 NMAC, Purchased Gas Adjustment Clauses For Gas Utilities, effective 3-15-04.

History

17.10.640.16 NMAC - N, 3-15-04

Part 650 Service Standards for Gas Utilities

N.M. Admin. Code § 17.10.650.1 Issuing Agency

New Mexico Public Regulation Commission.

History

17.10.650.1 NMAC - Rp, 17.10.650.1 NMAC, 11/10/2020

N.M. Admin. Code § 17.10.650.2 Scope

17.10.650 NMAC shall apply to any gas utility operating within the state of New Mexico under the jurisdiction of the New Mexico public regulation commission.

History

17.10.650.2 NMAC - Rp, 17.10.650.2 NMAC, 11/10/2020

N.M. Admin. Code § 17.10.650.3 Statutory Authority

Section 8-8-15 NMSA 1978.

History

17.10.650.3 NMAC - Rp, 17.10.650.3 NMAC, 11/10/2020

N.M. Admin. Code § 17.10.650.4 Duration

Permanent.

History

17.10.650.4 NMAC - Rp, 17.10.650.4 NMAC, 11/10/2020

N.M. Admin. Code § 17.10.650.5 Effective Date

November 10, 2020 unless a later date is cited at the end of a section.

History

17.10.650.5 NMAC - Rp, 17.10.650.5 NMAC, 11/10/2020

N.M. Admin. Code § 17.10.650.6 Objective

A. Intentions: 17.10.650 NMAC is intended to promote safe and adequate service to the public, to provide standards for uniform and reasonable practices by utilities, and to establish a basis for determining the reasonableness of such demands as may be made by the public upon the utilities.

B. Modifications: If unreasonable hardship to a utility or to a customer results from the application of any provision herein prescribed, application may be made to the commission for the modification of the provision or for temporary or permanent exemption from its requirements.

C. Rule revisions: 17.10.650 NMAC establishes standards to be followed by every gas utility in providing service to customers who are not residential customers as defined in Subsection J of 17.5.410.7 NMAC and in providing service to residential customers except to the extent inconsistent with 17.5.410 NMAC provided, however, that any electric utility may file rules inconsistent with the provisions established herein when permitted by the commission under the provisions of Subsection A of 17.9.560.9 NMAC, or, for residential customers, to conform with 17.5.410 NMAC. When so filed and approved by the commission such utility rules shall take precedence over the provisions established herein.

D. Adoption: The adoption of 17.10.650 NMAC shall not preclude the commission from altering or amending it or from making such modifications with respect to its application as may be found necessary to meet exceptional conditions.

E. Duties: These regulations shall not relieve any utility from its duties under the laws of this state.

History

17.10.650.6 NMAC - Rp, 17.10.650.6 NMAC, 11/10/2020

N.M. Admin. Code § 17.10.650.7 Definitions

When used in 17.10.650 NMAC unless otherwise specified the following definitions will apply:

A. “BTU means” British thermal unit;

B. “check flow means” a flow between twenty percent and fifty percent of the meter's rated capacity;

C. “commission means” the New Mexico public regulation commission;

D. “cubic foot of gas shall have the following meanings”:

(1) when gas is supplied and metered to customers at the pressure (as defined in Subsection B of 17.10.650.14 NMAC) normally used for domestic customers' appliances and no other basis of measurement is provided for by special contract or in the utility's rules on file with the commission, a cubic foot of gas shall be that quantity of gas which at the temperature and pressure existing in the meter occupies one cubic foot;

(2) when gas is supplied to customers at other than the pressure in Paragraph (1) above, the utility shall specify in its rules or special contract the base for measurement of a cubic foot of gas (see Paragraph (2) of Subsection C of 17.10.650.9 NMAC); unless otherwise stated a cubic foot of gas shall be that quantity of gas which at temperature of 60 degrees F. and a pressure of 14.73 psia occupies one cubic foot; and

(3) the standard cubic foot of gas for testing the gas itself for heating value shall be that quantity of gas saturated with water vapor which at a temperature of 60 degrees F. and a pressure of 30 inches of mercury occupies one cubic foot; (temperature of mercury = 60 degrees F.; acceleration due to gravity = 32.17 ft. per second; density = 13.595 grams per cubic centimeter;) other bases may be used by the utility and customer when provided for by special contract;

E. “customer means” any person, firm, association, corporation, or any agency of the federal, state, or local government being supplied with and responsible for payment for gas service by a gas utility;

F. “delivery point means” that point at which the system of the seller connects into the system of the buyer regardless of the location of the meter unless otherwise specified by written contract;

G. “filed rule means” rules and regulations filed by a utility with the commission in compliance with 17.1.210 NMAC which have been made effective either through commission approval thereof or by operation of law;

H. “final notice means” personal communication with a non-residential customer by telephone, hand delivery or other electronic communications at least two days prior to the specific date of discontinuance of service or if by mail, at least four days prior to the specific date of discontinuance of service, excluding Sundays and holidays observed by the utility, to: remind the non-residential customer of the pending date of discontinuance of service.

I. “full rated flow means” a flow of one hundred percent of the rated capacity of a meter;

J. “gas plant means” all facilities owned by a gas utility for the production, storage, transmission, and distribution of gas;

K. “LP-gas means” liquefied petroleum gas;

L. “main means” a gas pipe owned, operated, or maintained by a utility which is used for the transmission or distribution of gas, but does not include "service pipe;"

M. “meter, without other qualification, means” any device or instrument which a utility uses to measure a quantity of gas;

N. “premises means” a piece of land or real estate, including buildings and other appurtenances thereon;

O. “psia means” pounds per square inch, absolute;

P. “psig means” pounds per square inch, gauge;

Q. “service pipe means” the pipe that runs between a main or a transmission line and a customer's property line;

R. “special contract means” a written agreement between a utility and a customer to establish a rate or conditions of utility service, or both, that due to size or load characteristics, or both, differ from those established for general classes of service;

S. “system emergency means” an unplanned situation in which a utility's system or a segment of its system is in imminent danger of failure and implementation of normal curtailment or interruption procedures would not rectify the condition;

T. “therm means” the unit of heat that is equal to 100,000 British thermal units;

U. “utility and gas utility” shall have the meaning given for "public utility" or "utility" in the New Mexico Public Utility Act, Section 62-3-3 NMSA 1978;

V. “W.C. means” water column;

W. “yard line means” the pipe that runs across a customer's property from the property line to the point of consumption;

X. “final notice means” personal communication with a non-residential customer by telephone, hand delivery or other electronic communications at least two days prior to the specific date of discontinuance of service or if by mail, at least four days prior to the specific date of discontinuance of service, excluding Sundays and holidays observed by the utility, to: remind the non-residential customer of the pending date of discontinuance of service.

17.10.650.8 [RESERVED]

History

17.10.650.7 NMAC - Rp, 17.10.650.7 NMAC, 11/10/2020
17.10.650.8 NMAC - Rp, 17.10.650.8 NMAC, 11/10/2020

N.M. Admin. Code § 17.10.650.9 Records and Reports

A. Location of records: Records shall be located as provided in Section 62-6-17 NMSA 1978.

B. Retention of records: Records shall be retained as provided in 17.3.310 NMAC.

C. Data to be filed with the commission: The utility shall maintain the following documents and information on a current basis and upon commission request, the utility shall provide the information to the commission within 10 working days:

(1) a statement of the standard heating value in BTU's per cubic foot of the gas supplied by the utility in each district, division, or community served;

(2) a statement indicating the volumetric measurement base to which all sales of gas at other than standard delivery pressure except where made under special contract are corrected (see Paragraph (2) of Subsection K of 17.10.650 NMAC and Subsection B of 17.10.650.14 NMAC);

(3) a map or series of maps showing the utility's operating area (the map shall be revised annually unless such revision is unnecessary, in which event the utility shall notify the commission that the map on file is current); the map should show:

(a) gas production plant,

(b) principal storage holders,

(d) system metering (supply) points,

(e) state boundary crossings,

(f) franchise area, and

(g) names of all incorporated communities served;

(4) the name, title, address, and telephone number of the person who should be contacted in connection with:

(a) general management duties,

(b) customer relations (complaints),

(d) meter tests and repairs, and

(e) emergencies during non-office hours;

(5) notice of accidents, explosions, and leaks:

(a) prompt notice of fatal accidents shall be given to the commission by telephone or telegraph,

(b) prompt notice of any explosion involving any of the utility's system or products shall be given to the commission by telephone or telegraph,

(c) the utility shall maintain information regarding leaks that occur in a transmission or distribution line owned by the company or in a customer's line for at least three years from the date the leak is discovered by the utility, and

(d) the utility shall file a report with the commission within 48 hours after exercising its option to discontinue service under Paragraph (1) of Subsection F of 17.10.650.11 NMAC;

(6) reports of heating value:

(a) each utility shall file reports showing the results of its determinations of the heating value of the gas made in accordance with Subsection F of 17.10.650.14 NMAC,

(b) when the utility obtains its gas supply from another utility which is required to supply BTU reports to the commission under this section, copies of the supplier's reports may be submitted in lieu of compliance with the other requirements of this section, and

(c) these reports shall be provided to the commission within 10 working days of a request for such a report by the commission;

(7) the location at which the utility keeps the various classes of records required by these rules; and

(8) a report detailing the results of all meters (excluding new meters and all orifice meters) tested during the year showing:

(a) total number of meters tested;

(b) percentage breakdown of reasons for tests;

(d) number of meters found to be more than two percent slow.

History

17.10.650.9 NMAC - Rp, 17.10.650.9 NMAC, 11/10/2020

N.M. Admin. Code § 17.10.650.10 General Requirements

A. Disposition of gas:

(1) Unless otherwise authorized by the commission all gas sold by a utility shall be on the basis of meter measurement except where the usage is constant and the consumption may be readily computed.

(2) Wherever practicable and exclusive of field usages, consumption of gas within the utility itself or by administrative units associated with it shall be metered.

B. Meter reading sheets, cards, or records: The meter reading sheets, cards, or records from which the customer's bills are prepared shall show:

(1) customer's name, address, and rate schedule;

(2) identification number or description of the meter(s);

(3) meter readings;

(4) if the reading has been estimated; and

(5) any applicable multiplier or constant.

C. Meter reading interval: Meters shall be read monthly except that authority may be obtained from the commission for reading the meters at other than monthly intervals. Commission approval need not be obtained where deviation from monthly meter reading schedules occurs because of changes in meter reading routes. As nearly as practicable utilities shall avoid sending a customer two successive estimated bills.

D. Condition of meter: No meter shall be installed which is mechanically defective, has an erroneous correction factor, or has not been tested and adjusted if necessary in accordance with Subsection B of 17.10.650.13 NMAC. However, meters being transferred from one service location to another need not be so tested if the time period prescribed in Paragraph (5) of Subsection A of 17.10.650.13 NMAC has not yet expired unless the utility has reasonable grounds for believing that some particular meter may be registering improperly. The capacity of the meter and the index mechanism should be consistent with the gas requirements of the customer.

E. Prepayment meters: Prepayment meters shall not be geared or set so as to result in the charge of a rate or amount higher than would be paid if a standard meter were used except under such special rate schedule as may be filed under 17.1.210 NMAC.

F. Temporary service: When the utility renders temporary service to a customer it may require that the customer bear all the costs of installing and removing the service in excess of any salvage realized.

G. Extension plan: Each utility shall develop a plan acceptable to the commission for the installation of extensions of mains and service lines where such facilities are in excess of those included in the regular rates for service and for which the customer shall be required to pay all or part of the cost. This plan must be related to the investment that can be made prudently for the probable revenue and expenses to be incurred.

History

17.10.650.10 NMAC - Rp, 17.10.650.10 NMAC, 11/10/2020

N.M. Admin. Code § 17.10.650.11 Customer Relations