New Mexico § 62-3-2 - Objects and purposes; liberal interpretation; repeal of inconsistent statutory provisions

§ 62-3-2. Objects and purposes; liberal interpretation; repeal of inconsistent statutory provisions

A. The following are the objects and purposes of this act. (1) Experience has proven that electric service by rural electric cooperatives must

be furnished under the regulation of the commission in order to effectuate the purposes

of both the Rural Electric Cooperative Act, as amended, and the Public Utility Act,

as amended, and that without extending the coverage of the Public Utility Act, as

amended, to rural electric cooperatives, the declared policy of the Public Utility

Act, as amended, and the general welfare, business and industry of the state may be

frustrated. (2) It is the declared policy of the state that preservation of the public health,

safety and welfare, the interest of consumers and the interest of investor-members

require that the construction, development and extension of utility plants and facilities

be without unnecessary duplication and economic waste. Experience has proven that this purpose cannot be accomplished without bringing

the rural electric cooperatives and persons heretofore recognized as public utilities

into parity of treatment with respect to the commission's independent jurisdiction

and power to prevent unreasonable interference between proposed and existing plants,

lines and systems. (3) Experience has also proven that rural electric cooperatives are substantially

different from investor-owned utilities, particularly relative to setting rates. Under the Rural Electric Cooperative Act, rural electric cooperatives are nonprofit

membership corporations whose members have direct control over the cooperative's rates

through an elected board of trustees. Generally, consumers of the cooperative's power are members. In contrast, consumers of power from investor-owned utilities have no control over

the setting of rates by such utilities which are profit motivated. Experience has proven that the costs to rural electric cooperatives and the public

at large in complete government regulation of their rates is greatly disproportionate

to the need and benefits of complete rate regulation and interferes with the setting

of fair, just and reasonable rates to all utilities. Experience has shown that a rational basis exists to provide procedures for setting

rates of rural electric cooperatives different from and more limited than those for

setting rates of investor-owned utilities. Without limiting government regulation of rate setting by rural electric cooperatives

as provided by Section 62-8-7 NMSA 1978 , the declared policy of the Public Utility Act, the provision of reasonable and proper

utility services at fair, just and reasonable rates, and the general welfare, business

and industry of the state may be frustrated. (4) It is the intent of the legislature in enacting this statute to bring up to date

the laws pertaining to public utilities and rural electric cooperatives so that the

rural electric cooperative which is a public utility is subject to reasonable burdens

and entitled to reasonable benefits which apply to public utilities generally, to

insure more reasonable public regulation and supervision of public utilities, to facilitate

the prevention of unnecessary duplication and economic waste between utility systems

and to establish a system which will more adequately provide for the development and

extension of reasonable and proper utility services at fair, just and reasonable rates. The accomplishment of this intent is necessary and vital to the preservation of

the public health, safety and welfare. B. This act shall be liberally construed to carry out its purposes. C. Nothing contained in any other act governing the creation and operation of rural

electric cooperatives which are public utilities, including Laws 1937, Chapter 100

and the Rural Electric Cooperative Act, as amended, shall be construed to conflict

with any duty to which such a utility may be subject or with any benefit to which

such a utility may be entitled under the Public Utility Act, as now or hereafter amended. In the event any provision of such other act, including Laws 1937, Chapter 100 or

the Rural Electric Cooperative Act, as now or hereafter amended, is held to be repugnant

to any provision of the Public Utility Act, as now or hereafter amended, the latter

shall be controlling and the former is repealed to the extent of the repugnancy.