Rates and service regulations may be established by contract between the municipality and the utility for a specified term not exceeding twenty-five years, but only by and with the approval of the commission to be expressed by its order. Whenever any such contract shall be made, it shall, before becoming effective, be submitted to the commission. Unless the commission shall find the provisions of any such contract inconsistent with the public interest, the interest of the consumers and the interest of investors, it shall approve the same, otherwise it shall disapprove the same, and, unless and until so approved, such contract shall be of no effect, but if it be approved, it shall be in all respects lawful. Any such new contract shall provide for a redetermination by the commission of the reasonableness of the rates at such intervals as the commission may prescribe not longer than five years and every order made by the commission approving any contract shall expressly state the intervals at which redetermination of rates shall be made. For the purpose of determining whether any such contract hereafter made is consistent with public interest, the commission shall hold such hearings, after notice, as may be necessary to its determination. This act is intended to make rates in existing franchises and contracts subject to the control of the commission only to the extent that the legislature may lawfully do so. The provisions of this section shall not apply to any contract between a municipality and a utility relating to electric power and energy sales between such entities if the electric power and energy which is the subject of such contract is generated by such municipality's generating facility or its interest in a jointly owned generating facility.
History: Laws 1941, ch. 84, § 27; 1941 Comp., § 72-515; 1953 Comp., § 68-5-15; Laws 1979, ch. 260, § 17.
ANNOTATIONSCompiler's notes. — For the meaning of "this act", see 62-13-1 NMSA 1978 and notes thereto.
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of Chapter 62, Article 6 by Laws 1998, Chapter 108, Section 82, effective July 1, 2003 Chapter 108, Section 82 was repealed prior to taking effect by Chapter 23, Section 1, Laws 2003. Although Laws 2003, Chapter 336, Section 8, amended Laws 1998, Chapter 82, as amended, an amendment of a repealed section is ineffective.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.
Contract on behalf of municipal inhabitants allowed. — This section allows municipalities to contract with a public utility for proposed rates and service regulations for utility service to municipal inhabitants. Any rates or service regulations set forth in the contract do not take effect, however, until they have been approved by the commission, which retains plenary authority to approve, disapprove, or modify them. City of Albuquerque v. N.M. Pub. Serv. Comm'n, 1993-NMSC-021, 115 N.M. 521, 854 P.2d 348.
Commission has jurisdiction over municipal contract rates. — The legislature intended to confer general and exclusive jurisdiction on the commission to regulate every intrastate rate to be charged by public utilities for the services they render to the extent provided in this article, including jurisdiction over contract rates between public utilities and municipalities. 1952 Op. Att'y Gen. No. 52-5597.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 13 Am. Jur. 2d Carriers § 105.
Public utility's right to recover cost of nuclear power plants abandoned before completion, 83 A.L.R.4th 183.