New Mexico § 62-6-14 - Valuation by the commission

§ 62-6-14. Valuation by the commission

A. When in the exercise of its powers and jurisdiction it is necessary for the commission

to consider or ascertain the valuation of the properties or business of a public utility,

or make any other determination involved in the fixing or setting of rates for a utility,

the commission shall give due consideration to the history and development of the

property and business of the particular public utility, to the original cost thereof,

to the cost of reproduction as a going concern, to the revenues, investment and expenses

of the utility in this state and otherwise subject to the commission's jurisdiction,

to construction work in progress and to other elements of value and rate-making formulae

and methods recognized by the laws of the land for rate-making purposes. B. For the purpose of making such valuation or determinations, the members of the

commission and its duly authorized agents and employees shall at all reasonable times

have free access to the property, accounts, records and memoranda of the utility whose

property and rights are being valued, and the utility shall aid and cooperate with

the commission and its duly authorized agents and employees to the fullest degree

for the purpose of facilitating the investigation. C. In making any determination involving the rates or service of a utility, the commission

may change its past practices or procedures, provided that substantial evidence on

the record justifies such a change. D. The commission shall set rates based on a test period that the commission determines

best reflects the conditions to be experienced during the period when the rates determined

by the commission take effect. If a future test period is proposed, the commission shall give due consideration

that the future test period may best reflect those conditions. E. Upon a request to include construction work in progress in the rate base, the commission

shall grant the request only upon a finding that a project's costs are reasonable. The commission shall not include the associated allowance for funds used during

construction in income. The projects for which the commission shall grant a request include environmental

improvement projects and generation and transmission investments for which the utility

has obtained a certificate of public convenience and necessity; provided that the

projects are anticipated to be in service no later than five months after the end

of a utility's test period, but in no event later than twenty-four months after the

filing date of a utility's rate proceeding.