N.M. Admin. Code § 17.5.440.8

Current through Register Vol. 35, No. 23, December 10, 2024

Section 17.5.440.8 - ELECTRIC UTILITIES

A. Report requirements for extensions, system improvements, repairs or replacements, or additions:

(1) A public utility shall, prior to making any of the following described extensions, system improvements, repairs or replacements, or additions as set forth in Subparagraphs (a) through (e) of 17.5.440.8 NMAC below, file a report with the commission setting forth the character of the undertaking, the purpose sought thereby to be accomplished, the means by which that purpose is intended to be realized, the estimated costs involved in the employment of those means, the data upon which the engineering and economic feasibility of the undertaking is based, any reasonable alternatives to the proposed undertaking that have been considered, any system upgrades that may be needed due to the undertaking, and, if Subparagraph (a) of 17.5.440.8 NMAC below is applicable, the name or names of the utility or utilities toward which the proposed extension is to be made.

(a) Any extension, of any electric facility outside the limits of a municipality to a point within one-half mile of the facilities of any other utility or utilities rendering electric service.

(b) Any extension, system improvement, repairs or replacements, or addition to any transmission or distribution line, plant, facility, or system, exclusive of generating facilities, which will have an estimated cost to the utility under the uniform system of accounts of $1,000,000 or more on a total company basis and for which the utility intends to seek rate recovery from its New Mexico customers, regardless of the location of the line, plant, facility, or system.

(i) In calculating the estimated cost, the utility shall include the cost of any system upgrades that are directly related to, or required as a result of, such addition, repair or replacement, or system improvement.

(ii) The estimated cost shall be reasonable and proposed in good faith.

(c) Any addition to, or repair or replacement of, or improvement of, any electric generating facility which will have an estimated cost to the utility under the uniform system of accounts of $2,000,000 or more on a total company basis and for which the utility intends to seek rate recovery from its New Mexico customers, regardless of the location of the electric generating facility.

(ii) The estimated cost shall be reasonable and proposed in good faith.

(d) Substantial system characteristic improvements involving a change in operating voltage of electric lines. Substantial system characteristic improvements involving reconductoring, rephasing (addition or deletion of phases) of electric lines resulting in a length of two miles or more. System improvements of an overall or system wide nature shall be submitted to the commission as an overall plan.

(e) Any extensions, system improvements, repairs or replacements, or additions for which the public utility claims or intends to claim safe harbor under 17.9.592.15 NMAC that have an estimated cost to the utility under the uniform system of accounts of $1,000,000 or more on a total company basis and for which the utility intends to seek rate recovery from its New Mexico customers, regardless of the location of the undertaking.

(i) In calculating the estimated cost, the utility shall include the cost of any system upgrades that are directly related to, or required as a result of, such extension, system improvement, repair or replacement, or addition.

(ii) The estimated cost shall be reasonable and proposed in good faith.

(2) The report is for informational purposes and shall not constitute nor be deemed to constitute an application by the utility for authority to engage in the reported undertaking.

(3) Reports shall include sufficient information to enable the commission to appropriately relate the proposed extension, system improvement, repair or replacement, or addition to maps of existing facilities.

(4) The utility shall file reports on forms to be furnished by the commission and shall be numbered serially.

B. The commission shall not be precluded from requiring the filing of further information by the reporting utility with respect to its proposed undertaking.

C. Filing and service procedures:

(1) The utility shall file a report at least 30 days prior to the commencement of construction of the extension, system improvement, repair or replacement, or addition, except in the event of unplanned emergency undertakings, in which case the report shall be filed not more than 30 days after the onset of the emergency.

(2) Upon the utility's filing of a report, commission utility division staff shall review the report and notify by email the utility, office of general counsel, and the individual commissioners of statutory, regulatory, or feasibility issues, if any, within a reasonable time prior to the commencement of construction, or within a reasonable time following the filing of a report on an unplanned emergency undertaking.

(3) Where a utility is required to file a report with the commission pursuant to Subparagraph (a) of Paragraph (1) of Subsection A of 17.5.440.8 NMAC, the utility shall, at the time of filing its report with the commission, serve a copy of the filed report on the utility or utilities toward whose facilities the extension is proposed to be made.

(a) Proof of service of such copy shall be made and filed with the commission under the certificate of the person making the service.

(b) If the service is made by mail, it shall be made by certified mail with return receipt requested, it shall include the corresponding 440 filing number, and the return receipt shall be filed with the commission with the proof of service.

(c) Thereafter, no complaint by a utility in opposition to the proposed extension will be entertained by the commission unless filed with the commission by the opposing utility within 20 days of its receipt of the served copy of the report.

(d) The provisions of this section will be waived whenever the commission is furnished proof in writing that the utility toward whose facilities the extension is proposed to be made has no complaints.

(4) A public utility shall notify each individual commissioner by email when it files a report or amended report with estimated or actual costs of $8,000,000 or more on a total company basis.

D. Duty to amend report:

(1) Prior to any request for rate recovery for the undertaking, the utility shall amend a report to update the undertaking's estimated costs, if the estimates increased or decreased by greater than twenty percent, and to reflect the utility's actual costs incurred for that undertaking.

(a) In its amended report, the utility shall provide explanations for why its initial estimated costs were inaccurate and why its actual costs fell below or exceeded its estimated costs.

(b) The amended report shall be included with the utility's request for rate recovery.

(2) The utility shall amend a report to accurately reflect the undertaking's materially altered character or purpose, or if the utility pursues a reported alternative, pursuant to Paragraph (1) of Subsection A of 17.5.440.8 NMAC, at least 30 days prior to the commencement of construction of the extension, system improvement, repair or replacement, or addition. If a utility files an amended report pursuant to this Paragraph, commission utility division staff shall follow the procedures of Paragraph (2) of Subsection C of 17.5.440.8 NMAC above.

N.M. Admin. Code § 17.5.440.8

17.5.440.8 NMAC - Rp, NMPSC Rule 440, 5/15/2013, Adopted by New Mexico Register, Volume XXXIII, Issue 24, December 27, 2022, eff. 12/27/2022