A. With the prior express authorization of the commission, but not otherwise:
(1) any two or more public utilities may consolidate or merge with each other so as to form a new concern;
(2) any person and a public utility or public utility holding company may consolidate or merge with each other so as to form a new concern;
(3) stock of a public utility or public utility holding company may be acquired by:
(a) any person who prior to the acquisition of any such stock or part thereof is a person subject to regulation or classified as a public utility or public utility holding company in any jurisdiction;
(b) any person who is or during the course of an acquisition covered by this section becomes subject to regulation or is classified as a public utility or public utility holding company in any jurisdiction based on reasons other than solely the acquisition described in this paragraph;
(c) any person associated, affiliated or acting in concert with any person subject to regulation or classified as a public utility or public utility holding company in any jurisdiction for the purposes of any acquisition subject to the provisions of this section;
(d) any person associated, affiliated or acting in concert with any person described in Subparagraphs [Subparagraph] (a), (b) or (c) of this paragraph; or
(e) any person who, during the course of an acquisition covered by this section, merges or consolidates with a person described in Subparagraphs [Subparagraph] (a), (b), (c) or (d) of this paragraph.
(4) any public utility may sell, lease, rent, purchase or acquire any public utility plant or property constituting an operating unit or system or any substantial part thereof; provided, however, that this paragraph shall not be construed to require authorization for transactions in the ordinary course of business.
B. Any consolidation, merger, acquisition, transaction resulting in control or exercise of control, or other transaction in contravention of this section without prior authorization of the commission shall be void and of no effect.
C. Nothing in this section shall limit or expand the authority of the commission with respect to Class II transactions as provided in the Public Utility Act [Chapter 62, Articles 1 to 6 and 8 to 13 NMSA 1978].
History: Laws 1941, ch. 84, § 24; 1941 Comp., § 72-512; 1953 Comp., § 68-5-12; Laws 1983, ch. 250, § 1; 1989, ch. 33, § 1.
ANNOTATIONSBracketed material. — The bracketed material was added by the compiler and is not part of the law.
Compiler's notes. — Sections 62-6-4 to 62-6-26.1 of the Public Utility Act are still effective as the repeal of Chapter 62, Article 6 by Laws 1998, Chapter 108, Section 82, effective July 1, 2003 Chapter 108, Section 82 was repealed prior to taking effect by Chapter 23, Section 1, Laws 2003. Although Laws 2003, Chapter 336, Section 8, amended Laws 1998, Chapter 82, as amended, an amendment of a repealed section is ineffective. See Quintana v. N.M. Dep't of Corrs., 100 N.M. 224, 668 P.2d 1101 (1983). Laws 2003, Chapter 416, Section 5 also repealed Laws 1998, Chapter 108, Section 82, as amended, a second time, however, that repeal is of no effect as the section had previously been repealed by Chapter 23, Section 1, Laws 2003.
Cross references. — For definition of "commission," see 62-3-3 NMSA 1978.
The 1989 amendment, effective June 16, 1989, designated the formerly undesignated introductory paragraph as Subsection A and inserted "prior" therein; deleted subsection designation "A" preceding Subsection A(1) and made a minor stylistic change in that subsection; added Subsection A(2); substituted present Subsection A(3) for former Subsection B, which read "any public utility may acquire the stock or any part thereof of any other public utility"; redesignated former Subsection C as present Subsection A(4) and made a minor stylistic change therein; and added present Subsections B and C.
The 1983 amendment added "and" at the end of Subsection B and added the language beginning with "or any substantial part thereof" at the end of Subsection C.
Jurisdiction of municipal condemnation of public utility. — Subsection A(4) of this section and Section 62-9-5 NMSA 1978 (abandonment) do not give the commission jurisdiction over municipal condemnations of regulated water and sewer utilities. United Water N.M., Inc. v. N.M. Pub. Util. Comm'n, 1996-NMSC-007, 121 N.M. 272, 910 P.2d 906.
Consent to sell real property. — The New Mexico public regulation commission has exclusive jurisdiction to determine whether a public utility's sale of real property is required to be approved by the commission. OS Farms, Inc. v. N.M. Am. Water Co., Inc., 2009-NMCA-113, 147 N.M. 221, 218 P.3d 1269.
Where defendant, which was a public water utility regulated by the New Mexico public regulation commission, sold land to plaintiff; defendant reserved all water rights to its own use; defendant originally purchased the land to acquire water rights; and defendant decided to sell the land, reserving the water rights, to reduce plant investment and decrease the cost of maintaining the land, the public regulation commission had exclusive jurisdiction to determine whether the sale of the land required approval by the commission. OS Farms, Inc. v. N.M. Am. Water Co., Inc., 2009-NMCA-113, 147 N.M. 221, 218 P.3d 1269.
Law reviews. — For note, "United Water New Mexico v. New Mexico Public Utility Commission: Why Rules Governing the Condemnation and Municipalization of Water Utilities May Not Apply to Electric Utilities," see 38 Nat. Res. J. 667 (1998).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 73B C.J.S. Public Utilities §§ 14, 72.