New Mexico § 62-6-19 - Standard of service

§ 62-6-19. Standard of service

A. The commission may prescribe reasonable and adequate service regulations and standards

of service rendered or to be rendered by any utility and may prescribe such regulations

for the examination and testing of such service and for the measurement thereof. B. In order to assure reasonable and proper utility service at fair, just and reasonable

rates, the commission may investigate: (1) Class I transactions to determine the reasonableness of the cost and contract

conditions to the utility in any such transaction; and (2) Class II transactions or the resulting effect of such Class II transactions on

the financial performance of the public utility to determine whether such transactions

or such performance have an adverse and material effect on such service and rates. C. A public utility engaging in any Class I or Class II transaction shall have the

burden to produce such evidence and information as is sufficient to demonstrate: (1) that such Class I transaction has resulted in reasonable cost and contract conditions

to the utility; and (2) that such Class II transaction or the resulting effect of such Class II transaction

on the financial performance of the public utility has not materially and adversely

affected the utility's ability to provide reasonable and proper utility service at

fair, just and reasonable rates. If the commission finds that the utility has failed to meet its burden, the commission

may issue orders consistent with the authority granted to the commission under the

Public Utility Act to assure the provision of such service at such rates. Any such order that explicitly and directly requires the production of information

shall be in accordance with Section 62-6-17 NMSA 1978 . D. The commission may issue such orders in connection with an evidentiary proceeding

involving a public utility as it finds appropriate and necessary to assure that appropriate

cost allocations are made and that no cross-subsidization occurs between the utility

and an affiliated interest. E. The commission shall, by November 30, 1982, promulgate rules and may amend such

rules thereafter, to implement the provisions of Subsections B, C and D of this section,

including the manner of conducting such investigations and making such determinations,

and the specification of such reporting requirements as may be reasonably necessary

and as are consistent with the provisions of this 1982 act. F. For a period of thirteen months from the effective date of this subsection, no

utility or affiliated interest shall engage in a new Class II transaction described

in Paragraph (1) or (2) of Subsection K of Section 62-3-3 NMSA 1978 , nor during that period shall any utility or affiliated interest controlled by a

utility engage in any nonutility activity not carried on prior to that effective date

except as is necessary to protect or dispose of an asset, unless such nonutility activity

had been the subject of substantial negotiations and had been publicly announced prior

to the effective date of this section. F. For a period of fifteen months from the effective date of this subsection, no utility

or affiliated interest shall engage in a Class II transaction described in Paragraph (1) or (2) of Subsection K of Section 62-3-3 NMSA 1978 , nor during that period shall any utility or affiliated interest controlled by a

utility engage in any nonutility activity not carried on prior to that effective date

except as is necessary to protect or dispose of an asset.