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Monday, May 12, 2008
New PRC Members Will Face Many Issues as State Develops
By Jack King
Journal Staff Writer
SANTA FE – One of the challenges facing N.M. Public Regulation Commission members is the sheer number of industries and entities they regulate.
“It’s one of the most comprehensive agencies in the United States. It has a huge portfolio,” said state Assistant Attorney General Brian Harris, a telecommunications specialist who works closely with the commission because the AG’s office represents New Mexico consumers.
Created in 1998 by combining the former Public Utility Commission and former State Corporation Commission, the PRC covers utilities, insurance, transportation and pipeline safety, telecommunications, corporate charters, water issues and fire safety, and the registration of corporations in New Mexico.
The Journal asked PRC members who are not running for reelection to outline upcoming issues the commission will face, to give a sense of the agency that will elect two new commissioners later this year.
Commissioner David King, whose District 2 covers the southeastern part of New Mexico, said that, especially in the oil- and gasrich southeast, growth is booming. Growth puts pressure on utilities to expand, strains shrinking water supplies and pushes public transportation, taxis and tow trucks, he said.
A number of small, private water companies that previously served rural areas are now feeling the pressure to get bigger but may not have the revenue to pay for expensive environmental upgrades. Commissioners will have to deal with the issues raised by such companies quite soon, King said.
Growing energy demand will also require greater attention to pipeline safety and efficiency, and the PRC will be closely involved with the development of new networks of transmission lines currently under discussion, such as the High Plains Express, King said.
Despite the downward national trend, new homes will continue to be built and bought in New Mexico, which will require the PRC to address ongoing concerns about title insurance. For older buildings, particularly schools, fire inspections will become more critical, he added.
Commissioner Carol Sloan, whose District 4 covers the northwestern part of the state and borders the Navajo Nation, said she foresees growing worries about access to water in the San Juan River. Like King, she said the plight of small, private water companies will be a continuing issue, noting that the inability to maintain infrastructure could raise water quality concerns, as it did recently with the Dutchman Hill water company near Aztec.
Increasing development on tribal lands, combined with sovereignty concerns, will make it imperative for the PRC to work more closely with tribal leaders, she said. One example of this is the development of Internet and telecommunications systems on the Navajo reservation, where the commission will have to work more closely with Navajo officials. There is also a need for the PRC and tribal leaders statewide to develop clearer guidelines for the collection of taxes from Native Americans living on tribal lands, Sloan said.
New Mexico has tremendous potential for the development of biomass and solar-energy production, she said, adding that on the other hand, the PRC should encourage proper infrastructure for uranium mining in McKinley and Sandoval counties to allay questions about health and safety. The commission should also encourage efficient mining practices to prevent the depletion of coal supplies in the northwest, she said.
Health care for the elderly is a problem in her district. In coming years the PRC will work to achieve improved health insurance and improved consumer protection, she said.
Ben R. Lujan, whose District 3 covers the northern and northeastern parts of the state, said encouraging renewable energy development will continue to be an important role for commissioners. The PRC should implement the renewable energy portfolio standards and energy efficiency targets passed by the Legislature and should advocate for the expansion of those standards, he said.
Lujan also said commissioners should improve their outreach to the public, providing more information about the agency’s capacity to provide complaint resolution and insurance information. In addition, he said, commissioners must lead in the effort to retain and recruit qualified PRC staff members.
Assistant Attorney General Jeff Taylor, who specializes in utilities and works closely with the PRC, said a major upcoming issue will be utility companies’ need to build new plants, while, at the same time, facing revenue restrictions.
Harris, his colleague, said another fundamental problem the commission will face is the practice by regulated businesses of bypassing the agency and asking the Legislature for regulatory relief. This maneuver has been used by Qwest in 2005 and, more recently, by the title insurance industry, although title legislation failed to get on the Legislature’s agenda in 2007, he said.
“It has the effect of removing the PRC from regulatory oversight,” Harris said.
District 5 Commissioner Sandy Jones was also asked to provide a list of issues but did not respond by press time.
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