New Mexico Administrative Code Title 17 - PUBLIC UTILITIES AND UTILITY SERVICES
Overview: NMAC Title 17 – Public Utilities and Utility Services
Title 17 of the New Mexico Administrative Code regulates public utilities and utility services within New Mexico. It sets forth rules for the operation, management, and regulation of utility providers, including electricity, water, telecommunications, natural gas, and wastewater services.
The rules are promulgated primarily under the authority of the New Mexico Public Regulation Commission (PRC) and the New Mexico Public Utility Act (NMSA 1978, Sections 62-1-1 et seq.).
Purpose and Scope
The primary purposes of Title 17 are to:
Ensure reliable, safe, and reasonably priced utility services to New Mexico consumers.
Regulate utility providers' rates, practices, and service quality.
Promote competition and innovation in utility markets where appropriate.
Protect consumers from unfair, discriminatory, or unsafe practices.
Facilitate public participation and transparency in utility regulation.
Regulatory Framework and Key Provisions
1. Rate Regulation and Tariffs
Procedures for filing and approval of utility rates and tariffs.
Requirements for rate schedules, service rules, and billing.
Criteria for cost recovery and rate design to ensure fairness and adequacy.
2. Service Quality and Consumer Protection
Standards for utility service reliability and quality.
Procedures for handling customer complaints and dispute resolution.
Rules prohibiting unfair billing practices, unauthorized charges, and service disconnections.
3. Licensing and Certification
Requirements for obtaining and maintaining certificates of public convenience and necessity.
Conditions for new market entrants and franchise approvals.
4. Reporting and Recordkeeping
Mandates for utilities to submit financial, operational, and safety reports.
Record retention and audit provisions.
5. Energy Efficiency and Renewable Energy
Incentives and rules promoting energy conservation and renewable resource integration.
Reporting on renewable portfolio standards compliance.
Administrative Authority
The New Mexico Public Regulation Commission (PRC) is the primary regulatory body enforcing Title 17.
The PRC conducts hearings, adjudicates disputes, and issues orders binding on utilities.
Administrative rules in Title 17 implement statutory mandates from the Public Utility Act and related laws.
Relevant Legal Principles and Case Law
The following legal principles and illustrative case law are key to understanding Title 17’s application:
1. State Regulatory Authority Over Utilities
States have broad power under their police and taxing powers to regulate utilities in the public interest.
Case Principle: Federal Power Commission v. Hope Natural Gas Co., 320 U.S. 591 (1944)
Rates set by regulators must be “just and reasonable” but do not require exact cost recovery.
Application: PRC’s rate-setting under Title 17 must balance utility financial health with consumer protection.
2. Due Process in Rate Hearings
Utilities and consumers have rights to fair hearings before rates or regulations are adopted.
Case: Duquesne Light Co. v. Barasch, 488 U.S. 299 (1989)
Due process requires meaningful opportunity to present evidence in utility rate cases.
Application: PRC must provide notice and hearing consistent with procedural due process before altering rates.
3. Just and Reasonable Rates
Rate structures must avoid discrimination and unjust preference.
Case Principle: Bluefield Water Works & Improvement Co. v. Public Service Commission, 262 U.S. 679 (1923)
Rates should allow utilities a reasonable return on investment.
Application: Title 17 rules reflect this balance in tariff approval and rate design.
4. Consumer Protection Against Unfair Practices
Utility providers cannot engage in deceptive, unfair, or discriminatory practices.
Case: Public Service Commission of Utah v. Wycoff Co., 344 U.S. 237 (1952)
Commission may order utilities to cease unfair billing or service denial practices.
Application: Title 17 includes complaint procedures and enforcement against unfair utility conduct.
5. Preemption and Federal Regulatory Coordination
Certain utilities, such as interstate telecommunications or energy sales, may fall under federal jurisdiction.
Case: AT&T Corp. v. Iowa Utilities Board, 525 U.S. 366 (1999)
Federal law preempts conflicting state utility regulation in some areas.
Application: New Mexico PRC regulations under Title 17 coordinate with federal rules, deferring when federal law applies.
Hypothetical Case Scenario
Case: A water utility files a rate increase petition under Title 17. Consumer groups challenge the increase, alleging it exceeds the cost of service and disproportionately impacts low-income customers.
The PRC holds a public hearing, reviewing evidence on cost of service, revenue requirements, and social impact.
After due process, the PRC approves a modified rate increase with consumer protections.
The utility appeals, arguing the rate is confiscatory.
The court defers to PRC’s expertise unless arbitrary or unsupported by evidence.
Summary Table
| Aspect | Description |
|---|---|
| Regulatory Body | New Mexico Public Regulation Commission (PRC) |
| Statutory Authority | New Mexico Public Utility Act, NMSA 62-1-1 et seq. |
| Scope of Regulation | Rates, service quality, licensing, reporting, energy efficiency |
| Key Legal Principles | Just and reasonable rates, due process, consumer protection, federal preemption |
| Notable Case Law | Hope Natural Gas Co., Duquesne Light Co., Bluefield Water Works |
Conclusion
NMAC Title 17 – Public Utilities and Utility Services establishes a comprehensive regulatory framework ensuring that utility services in New Mexico are reliable, affordable, and fair. The New Mexico Public Regulation Commission administers these rules with an eye toward balancing utility interests with consumer protections and public policy goals.
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