New Mexico utility regulators seek Legislature’s help with small water utilities

New Mexico utility regulators on Tuesday told state lawmakers they’d like the Legislature’s help in tweaking the rules that govern the state’s small water utilities.

The New Mexico Public Regulation Commission oversees service and pricing issues for small, privately owned water utilities across the state. Often when problems with service arise, PRC leaders told lawmakers on the interim Water and Natural Resources Committee, the companies have too little money to correct course and regulators have too little time to intervene.

Small water utilities have presented plenty of problems in recent years. The New Mexico Environment Department last year sought a receivership for the troubled Camino Real Regional Utility Authority in Sunland Park after its water showed exceedingly high levels of arsenic. More recently, Timberon Water and Sanitation District near Alamogordo reported losing as much as 85% of its water to leaky pipes and the Melody Ranch Water Co. near Edgewood had a “complete disruption of water service.”

PRC Chief of Staff Cholla Khoury, on Tuesday said she hopes to see legislation in the session that starts in January that makes it easier for utilities to access capital and streamlines the lengthy process by which a judge can place a utility under state receivership.

“Mostly what we will be looking for is to increase authority, so that when we do have a failing water system, we can move quickly,” Khoury told lawmakers.

Lawmakers were split, though, on support for facilitating state control of private companies — and on whether they had enough relevant data to begin crafting legislation.

“I understand the issue…but your solution is to take control, not to offer independent technical support for these entities,” Rep. Kathleen Cates (D-Rio Rancho) told Khoury. “I’d like to know why that is not on the table?”

Khoury responded and said that receivership is always “truly the last option” and said that streamlining the process would make it easier for the state to intervene in cases of emergencies.

Some lawmakers said they were eager to work on the PRC’s proposal.

Sen. Anthony Thornton (R-Sandia Park) referred back to the recent problems in his district, such as Melody Ranch, and said he wants to make sure utility regulators can swiftly intervene when needed.

“When people are out of water, that’s truly an emergency situation and we need to move quickly,” he said.