New Mexico § 62-8-7 - Change in rates

§ 62-8-7. Change in rates

made by Laws 2011, Ch. 155, § 1 and L. 2011, Ch. 170, § 1. The reconciled text is incorporated and set forth> A. At any hearing involving an increase in rates or charges sought by a public utility,

the burden of proof to show that the increased rate or charge is just and reasonable

shall be upon the utility. B. Unless the commission otherwise orders, no public utility shall make any change

in any rate that has been duly established except after thirty days' notice to the

commission, which notice shall plainly state the changes proposed to be made in the

rates then in force and the time when the changed rates will go into effect and other

information as the commission by rule requires. The utility shall also give notice of the proposed changes to other interested persons

as the commission may direct. All proposed changes shall be shown by filing new schedules that shall be kept open

to public inspection. The commission for good cause shown may allow changes in rates without requiring

the thirty days' notice, under conditions that it may prescribe. C. Whenever there is filed with the commission by any public utility a complete application

as prescribed by commission rule proposing new rates, the commission may, upon complaint

or upon its own initiative, except as otherwise provided by law, upon reasonable notice,

enter upon a hearing concerning the reasonableness of the proposed rates. If the commission determines a hearing is necessary, it shall suspend the operation

of the proposed rates before they become effective but not for a longer initial period

than nine months beyond the time when the rates would otherwise go into effect, 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. The commission shall hear and decide cases with reasonable promptness. The commission shall adopt rules identifying criteria for various rate and tariff

filings to be eligible for suspension periods shorter than what is allowed by this

subsection and to be eligible for summary approval without hearing. D. If after a hearing the commission finds the proposed rates to be unjust, unreasonable

or in any way in violation of law, the commission shall determine the just and reasonable

rates to be charged or applied by the utility for the service in question and shall

fix the rates by order to be served upon the utility or the commission by its order

shall direct the utility to file new rates respecting such service that are designed

to produce annual revenues no greater than those determined by the commission in its

order to be just and reasonable. Those rates shall thereafter be observed until changed, as provided by the Public

Utility Act. E. Except as otherwise provided by law, any increase in rates or charges for the utility

commodity based upon cost factors other than taxes or cost of fuel, gas or purchased

power, filed for after April 4, 1991, shall be permitted only after notice and hearing

as provided by this section. The commission shall enact rules governing the use of tax, fuel, gas or purchased

power adjustment clauses by utilities that enable the commission to consider periodically

at least the following: (1) whether the existence of a particular adjustment clause 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; (2) the specific adjustment mechanism to recover tax, gas, fuel or purchased power

costs; (3) which costs should be included in an adjustment clause, procedures to avoid the

inclusion of costs in an adjustment clause that should not be included and methods

by which the propriety of costs that are included may be determined by the commission

in a timely manner, including what informational filings are required to enable the

commission to make such a determination; and (4) the proper adjustment period to be employed. F. Except as otherwise provided by law, any increase in rates or charges for a public

utility as defined in Paragraph (3) of Subsection G of Section 62-3-3 NMSA 1978 based upon cost factors other than taxes or cost of fuel, gas, purchased power or

acquisition of water resources shall be permitted only after notice and hearing as

provided by this section. For the purposes of this subsection, “acquisition of water resources” does not include

the purchase or other permanent acquisition of water rights. The commission shall enact rules governing the use of tax, fuel, gas, purchased

power or water resource acquisition adjustment clauses by such utilities that enable

the commission to consider periodically at least the following: (1) whether the existence of a particular adjustment clause 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; (2) the specific adjustment mechanism to recover tax, gas, fuel, purchased power or

acquisition of water resource costs; (3) which costs should be included in an adjustment clause, procedures to avoid the

inclusion of costs in an adjustment clause that should not be included and methods

by which the propriety of costs that are included may be determined by the commission

in a timely manner, including what informational filings are required to enable the

commission to make such a determination; and (4) the proper adjustment period to be employed. G. The commission may eliminate or condition a particular adjustment clause if it

finds such elimination or condition 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 condition shall be ordered unless such elimination or condition

will not place the affected utility at a competitive disadvantage. The commission rules shall also provide for variances and may provide for separate

examination of a utility's adjustment clause based upon that utility's particular

operating characteristics. H. Whenever there is filed with the commission a schedule proposing new rates by a

rural electric cooperative organized under the Rural Electric Cooperative Act or by

a foreign distribution cooperative, the rates shall become effective as proposed by

the rural electric cooperative or the foreign distribution cooperative without a hearing,

except as provided in this subsection. The rural electric cooperative or the foreign distribution cooperative shall give

written notice of the proposed rates to its affected patrons in New Mexico at least

thirty days prior to the filing with the commission. Upon the filing with the commission of a protest setting forth grounds for review

of the proposed rates signed by the lesser of one percent of or twenty-five members

of a customer rate class of the rural electric cooperative or foreign distribution

cooperative and if the commission determines that there is just cause for reviewing

the proposed rates on one or more of the grounds of the protest, the commission shall

suspend the rates and conduct a hearing concerning the reasonableness of any proposed

rates filed by a rural electric cooperative or a foreign distribution cooperative

pursuant to Subsections C and D of this section. The protest shall be filed no later than twenty days after the filing with the commission

of the schedule proposing the new rates. The hearing and review shall be limited to the issues set forth in the protest and

for which the commission may find just cause for the review, which issues shall be

contained in the notice of hearing. The provisions of this subsection shall not be construed to affect commission authority

or procedure to regulate the sale, furnishing or delivery by wholesale suppliers of

electricity to rural electric cooperatives or foreign distribution cooperatives pursuant

to Section 62-6-4 NMSA 1978 . In addition to the adjustments permitted by Subsections E and G of this section,

the commission may authorize rate schedules of rural electric cooperatives and foreign

distribution cooperatives to recover, without notice and hearing, changes in the cost

of debt capital incurred pursuant to securities that are lawfully issued. This subsection shall not apply to any foreign distribution cooperative that proposes

rates for any of its customer rate classes in the state that are higher than the rates

it charges to the same or substantially similar customer rate class in the state under

the laws of which the foreign distribution cooperative is organized. For the purposes of this subsection: (1) “ foreign distribution cooperative ” means a rural electric distribution cooperative corporation serving its members

at retail and transacting business in New Mexico pursuant to the authority granted

under Section 62-15-26 NMSA 1978; (2) “ member of a foreign distribution cooperative ” means a retail customer in New Mexico serviced by a foreign distribution cooperative;

and (3) “ member of a rural electric cooperative ” means a member as defined by the Rural Electric Cooperative Act.