No public utility shall, as to rates or services, make or grant any unreasonable preference or advantage to any corporation or person within any classification or subject any corporation or person within any classification to any unreasonable prejudice or disadvantage. No public utility shall establish and maintain any unreasonable differences as to rates of service either as between localities or as between classes of service. Nothing shall prohibit, however, the commission from approving economic development rates and rates designed to retain load or from approving energy efficiency programs designed to reduce the burden of energy costs on low-income customers pursuant to the Efficient Use of Energy Act [Chapter 62, Article 17 NMSA 1978].
History: Laws 1941, ch. 84, § 42; 1941 Comp., § 72-606; 1953 Comp., § 68-6-6; Laws 1989, ch. 5, § 2; 1993, ch. 282, § 33; 2008, ch. 24, § 2.
ANNOTATIONSCompiler's notes. — Sections 62-8-1 to 62-8-9 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of Chapter 62, Article 6 by Laws 1998, Chapter 108, Section 82, effective July 1, 2003 Chapter 108, Section 82 was repealed prior to taking effect by Chapter 23, Section 1, Laws 2003. Although Laws 2003, Chapter 336, Section 8, amended Laws 1998, Chapter 82, as amended, an amendment of a repealed section is ineffective.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 Laws 2003, Chapter 416, Section 5 also repealed Laws 1998, Chapter 108, Section 82, as amended, a second time, however, that repeal is of no effect as the section had previously been repealed by Chapter 23, Section 1, Laws 2003.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 denial of service by utility being petty misdemeanor, see 30-13-2 NMSA 1978.
The 2008 amendment, effective May 14, 2008, authorized the commission to approve energy efficiency programs to reduce the burden of energy costs on low-income customers.
The 1993 amendment, effective June 18, 1993, substituted "the commission" for "the New Mexico public service commission" in the last sentence.
The 1989 amendment, effective June 16, 1989, added the last sentence.
Cost recovery based on a uniform per kilowatt hour basis. — Where a public utility applied for an emergency fuel and purchased power cost adjustment clause; the public regulation commission approved a fuel and purchased power cost adjustment clause that permitted the public utility to recover its fuel and purchased power costs through a uniform per kilowatt hour charge; the public utility's expert witness testified that the proposed fuel and purchased power cost adjustment clause fairly apportioned cost recovery across different rate classes; the commission had a long standing policy that required fuel and purchased power costs to be recovered on a uniform per kilowatt basis; and the policy was reflected in a rule promulgated by the commission, emergency fuel and purchased power cost adjustment clause was supported by substantial evidence. Albuquerque Bernalillo Cnty. Water Util. Auth. v. NMPRC, 2010-NMSC-013, 148 N.M. 21, 229 P.3d 494.
Discrimination in rates or service is prohibited. — This section prohibits any unreasonable preference or advantage to any corporation or person as to rates or service. Potash Co. of Am. v. N.M. Pub. Serv. Comm'n, 1956-NMSC-091, 62 N.M. 1, 303 P.2d 908.
Tariff permitting utility to recover costs of relocation required by a local ordinance did not impermissibly assess different rates for different communities in violation of this section. City of Albuquerque v. N.M. Pub. Regulation Comm'n, 2003-NMSC-028, 134 N.M. 472, 79 P.3d 297.
Refund to wholesale users held not discriminatory. — There was no de facto discrimination where electric company gave refund to wholesale users and did not give it to small consumers who did not have contracts with power company. N.M. Elec. Serv. Co. v. N.M. Pub. Serv. Comm'n, 1970-NMSC-097, 81 N.M. 683, 472 P.2d 648.
Ordering change in contract rate is within commission's jurisdiction. — Where the commission had entered an order authorizing a public utility to enter into a contract and to continue to charge the gas rate therein specified until further order and on the ex parte petition of the utility subsequently entered an interlocutory order making a rate increase to be effective until the commission could hold a hearing to determine and set a new and proper rate, the commission was moving strictly in conformity with the act creating it to determine one of the major questions submitted to its jurisdiction - a question of rates. Potash Co. of Am. v. N.M. Pub. Serv. Comm'n, 1956-NMSC-091, 62 N.M. 1, 303 P.2d 908.
Variation between rates of different utilities is not discrimination within the meaning of this section. Gonzales v. Public Serv. Comm'n, 1985-NMSC-038, 102 N.M. 529, 697 P.2d 948.
Contract on behalf of municipal inhabitants allowed. — This section does not prohibit variations in rates, nor does it require "equal service." Rather, it prohibits "unreasonable differences" in rates of service between localities. Allowing municipalities to contract with utilities for service rates to their inhabitants does not, therefore, ipso facto, violate this section. City of Albuquerque v. N.M. Pub. Serv. Comm'n, 1993-NMSC-021, 115 N.M. 521, 854 P.2d 348.
Law reviews. — For note, "Conservation, Lifeline Rates and Public Utility Regulatory Commissions," see 19 Nat. Res. J. 411 (1979).
For note, "The Public Service Commission: A Legal Analysis of an Administrative System," see 3 N.M.L. Rev. 184 (1973).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 64 Am. Jur. 2d Public Utilities §§ 38 to 42, 110 to 116.
Franchise provisions for free or reduced rates of public service corporations as within constitutional or statutory provision prohibiting discrimination, 10 A.L.R. 504, 15 A.L.R. 1200.
Right to discriminate against a concern which desires service for resale, 12 A.L.R. 327, 112 A.L.R. 773.
Discrimination by public utility in respect of extension of credit, 12 A.L.R. 964.
Discrimination in operation of municipal utility, 50 A.L.R. 126.
Discrimination between property within and that outside governmental districts as to public service or utility rates, 4 A.L.R.2d 595.
Deposit required by public utility, 43 A.L.R.2d 1262.
Racial or religious discrimination in furnishing of public utility services or facilities, 53 A.L.R.3d 1027.
73B C.J.S. Public Utilities § 43.