New Mexico § 62-9-1 - New construction; ratemaking principles

§ 62-9-1. New construction; ratemaking principles

A. No public utility shall begin the construction or operation of any public utility

plant or system or of any extension of any plant or system without first obtaining

from the commission a certificate that public convenience and necessity require or

will require such construction or operation. This section does not require a public utility to secure a certificate for an extension

within any municipality or district within which it lawfully commenced operations

before June 13, 1941 or for an extension within or to territory already served by

it, necessary in the ordinary course of its business, or for an extension into territory

contiguous to that already occupied by it and that is not receiving similar service

from another utility. If any public utility or mutual domestic water consumer association in constructing

or extending its line, plant or system unreasonably interferes or is about to unreasonably

interfere with the service or system of any other public utility or mutual domestic

water consumer association rendering the same type of service, the commission, on

complaint of the public utility or mutual domestic water consumer association claiming

to be injuriously affected, may, upon and pursuant to the applicable procedure provided

in Chapter 62, Article 10 NMSA 1978 , and after giving due regard to public convenience and necessity, including reasonable

service agreements between the utilities, make an order and prescribe just and reasonable

terms and conditions in harmony with the Public Utility Act to provide for the construction,

development and extension, without unnecessary duplication and economic waste. B. If a certificate of public convenience and necessity is required pursuant to this

section for the construction or extension of a generating plant or transmission lines

and associated facilities, a public utility may include in the application for the

certificate a request that the commission determine the ratemaking principles and

treatment that will be applicable for the facilities that are the subject of the application

for the certificate. If such a request is made, the commission shall, in the order granting the certificate,

set forth the ratemaking principles and treatment that will be applicable to the public

utility's stake in the certified facilities in all ratemaking proceedings on and after

such time as the facilities are placed in service. The commission shall use the ratemaking principles and treatment specified in the

order in all proceedings in which the cost of the public utility's stake in the certified

facilities is considered. If the commission later decertifies the facilities, the commission shall apply the

ratemaking principles and treatment specified in the original certification order

to the costs associated with the facilities that were incurred by the public utility

prior to decertification. C. The commission may approve the application for the certificate without a formal

hearing if no protest is filed within sixty days of the date that notice is given,

pursuant to commission order, that the application has been filed. The commission shall issue its order granting or denying the application within

nine months from the date the application is filed with the commission. Failure to issue its order within nine months is deemed to be approval and final

disposition of the application; provided, however, that the commission may extend

the time for granting approval for an additional six months for good cause shown. D. In an application for a certificate of public convenience and necessity for an

energy storage system, the commission shall approve energy storage systems that: (1) reduce costs to ratepayers by avoiding or deferring the need for investment in

new generation and for upgrades to systems for the transmission and distribution of

energy; (2) reduce the use of fossil fuels for meeting demand during peak load periods and

for providing ancillary services; (3) assist with ensuring grid reliability, including transmission and distribution

system stability, while integrating sources of renewable energy into the grid; (4) support diversification of energy resources and enhance grid security; (5) reduce greenhouse gases and other air pollutants resulting from power generation; (6) provide the public utility with the discretion, subject to applicable laws and

rules, to operate, maintain and control energy storage systems so as to ensure reliable

and efficient service to customers; and (7) are the most cost effective among feasible alternatives. E. As used in this section: (1) “ energy storage system ” means methods and technologies used to store electricity; and (2) “ mutual domestic water consumer association ” means an association created and organized pursuant to the provisions of: (a) Laws 1947, Chapter 206; Laws 1949, Chapter 79; or Laws 1951, Chapter 52; or (b) the Sanitary Projects Act. 1 1

NMSA 1978, § 3-29-1