Each utility doing business in this state and subject to the control and jurisdiction of the commission with respect to its rates or service regulations shall pay annually to the state a fee for the inspection and supervision of such business in an amount equal to five hundred six thousandths percent of its gross receipts from business transacted in New Mexico for the preceding calendar year. That sum shall be payable on or before the first day of April in each year. An inspection and supervision fee shall be paid by utilities in addition to all property, franchise, license, intangible and other taxes, fees and charges provided by law. No similar inspection and supervision fee shall be measured by the amount of the gross receipts of such utility for the calendar year next preceding the date fixed in this section for the payment of the fee. In the case of utilities engaged in interstate business, the inspection and supervision fee shall be measured by the gross receipts of those utilities from intrastate business only for that preceding calendar year and not in any respect upon receipts derived wholly or in part from interstate business. No inspection and supervision fee shall be charged on the gross receipts from the sale of gas, water or electricity to a utility regulated by the commission for resale to the public.
History: 1953 Comp., § 68-6-8, enacted by Laws 1967, ch. 96, § 6; 1992, ch. 22, § 1; 2003, ch. 14, § 21; 2005, ch. 339, § 5.
ANNOTATIONSRepeals and reenactments. — Laws 1967, ch. 96, § 6, repealed 68-6-8, 1953 Comp., relating to inspection and supervision fees, and enacted the above section.
The 2005 amendment, effective July 1, 2005, changed the date the sum is payable from the last day of February to the first day of April.
The 2003 amendment, effective July 1, 2003, substituted "fee" for "fees" in the section heading, in the first sentence, substituted "five hundred six thousandths" for "one-half of one" following "an amount equal to", deleted "In calendar year 1992, that sum shall be payable in equal quarterly installments on or before the last day of February, May, August and November, respectively. Thereafter" preceding "That sum shall", substituted "An inspection and supervision fee shall be paid by utilities in addition to" for "Inspection and supervision fees shall be paid by such utilities in addition to any and" preceding "all property, franchise", deleted "now or hereafter" preceding "provided by law", in the final and penultimate sentences substituted "the inspection and supervision fee" for "the fees".
The 1992 amendment, effective March 5, 1992, substituted the present second and third sentences for the former second sentence, which read "Said sum shall be payable in equal quarterly installments on or before the last day of February, May, August and November in each year" and made stylistic changes.
Recovery of costs of prudency review audit. — Where a public utility applied for an emergency fuel and purchased power cost adjustment clause; the public regulation commission approved the fuel and purchased power cost adjustment clause; to ensure the proper administration of the fuel and purchased power costs adjustment clause and to ensure that the public utility's electric power was generated at the lowest reasonable cost, the commission required the public utility to pay the costs of an independent prudency review of its fuel and purchased power costs by auditors selected by and under the direction of the commission; and the commission permitted the public utility to treat all prudency review costs paid by the public utility as a regulatory asset which could be recovered from the public utility's ratepayers through the public utility's base rates, the costs of the prudency review audit were a legitimate operating expense of the public utility and could be recovered through its base rates. Albuquerque Bernalillo Co. Water Util. Auth. v. NMPRC, 2010-NMSC-013, 148 N.M. 21, 229 P.3d 494.
Fees permitted for prior year's services. — The commission has authority to assess and collect inspection and supervision fees for the preceding year, despite the fact that, during the year the fees are actually assessed and become payable, the utility is no longer doing business in New Mexico. United Waterworks, Inc. v. N.M. Pub. Util. Comm'n, 2000-NMCA-057, 129 N.M. 262, 5 P.3d 584.
Legislative intent is that fees collected go to the state, not to any specific fund. Once deposited with the state, in the general fund, they may be appropriated by the legislature as it sees fit. Thus, the commission is only entitled for its operation to such money generated by the fees collected pursuant to this section as the legislature may appropriate. The commission may not expend the entire amount received. 1978 Op. Att'y Gen. No. 78-10.
Fee calculated at beginning of year based on past year's receipts. — Under this section the fee to be paid in any given year is calculated at the beginning of the year on the basis of gross receipts for the past year. It is only the payment of the fee which is permitted to be spread throughout the year. 1967 Op. Att'y Gen. No. 67-96.
Where utility operates only for part of a year, it is liable for the full annual fee. 1943 Op. Att'y Gen. No. 43-4266 (rendered under former statute).
Effect of disposing of major part of holdings. — Where utility disposes of a major part of its holdings, the fees for the remaining holdings will be based upon gross receipts of such remaining holdings for the previous year. 1943 Op. Att'y Gen. No. 43-4266 (rendered under former statute).
First fees paid by rural electric cooperatives. 1962 Op. Att'y Gen. No. 62-16 (rendered under former statute).