A. Any municipality acquiring, operating or maintaining an electric utility system in that area more than five miles beyond its boundary shall:

(1) establish, maintain and collect rates or charges for service in that area that are just and reasonable; and

(2) furnish adequate, efficient and reasonable service in that area.

B. No municipality acquiring, operating or maintaining an electric utility system in that area more than five miles beyond its boundary shall, as to rates or services:

(1) make or grant any unreasonable preference or advantage to any customer or group of customers;

(2) subject any customer or group of customers to any unreasonable prejudice or disadvantage; or

(3) establish and maintain any unreasonable differences either as between or among areas being served or as between or among customer groups.

C. Prior to implementing general retail rate increases for customers of its electric utility system in that area more than five miles beyond its boundaries, a municipality shall, after reasonable notice by publication in one or more newspapers of general circulation in such area and to the board of county commissioners of each county in which such customers are situated and to the New Mexico public utility commission, provide an opportunity at one or more public forums for affected customers and the board of county commissioners to present their views, comments and data. The New Mexico public utility commission may also appear and present matters within its rate-making expertise. The municipality and board of county commissioners may agree to alternative or additional rate-making procedures for such rate increases.

D. No later than June 1 of each year, the property tax division of the taxation and revenue department shall determine the actual value of all property belonging to the municipality in any electric utility system in that area five miles beyond its boundary and certify to the local assessor in the county in which any property is located the value of such property. The municipality shall pay to the treasurer of that county a fee for extraterritorial operation in that area five miles beyond its boundary, payable in installments and at the dates when taxes levied for ad valorem purposes are payable, equal to the taxes for ad valorem purposes and assessments that would be paid upon the property if privately owned, to be distributed by the county treasurer in the manner provided by law for the distribution of taxes for ad valorem purposes and assessments upon real and personal property.

History: 1953 Comp., § 14-23-9, enacted by Laws 1965, ch. 300; 1977, ch. 249, § 18; 1987, ch. 170, § 1; 1993, ch. 282, § 7.

The 1993 amendment, effective June 18, 1993, made a stylistic change in Paragraph A(1); in Subsection C, in the first sentence, substituted "in that area more than five" for "in the area of more than five" and "situated" for "situate", and substituted "New Mexico public utility commission" for "New Mexico public service commission" in the first two sentences; and made a stylistic change in Subsection D.

Obligation to pay fee regardless of commission's expenses. — That the public service commission (now public utility commission) did not in fact incur any expenses in the exercise of its jurisdiction is immaterial to a municipality's obligation to pay the fee. 1969 Op. Att'y Gen. No. 69-146.

If a municipality does not allow for the fee called for by this section when rates and charges are established, then the municipality must pay the fee out of its general financial resources within the statutory provisions relating to municipal expenditures. 1969 Op. Att'y Gen. No. 69-146.