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New Mexico Certificate of Public Convenience and Necessity (7-NM-c)

Information current as of 2024
In New Mexico, a geothermal developer may need to obtain a Certificate of Public Convenience and Necessity from the New Mexico Public Regulation Commission (“Commission”) if the project provides a “public utility” that provides electricity to the public. Under the New Mexico Public Utility Act, a “public utility” or “utility” means every person not engaged solely in interstate business and that may own, operate, lease or control any plant, property or facility for the generation, transmission or distribution, sale or furnishing to or for the public of electricity for light, heat or power or other uses. 62-3-3(G)(1).



Certificate of Public Convenience and Necessity Process


7-NM-c.1 – Application for Certificate of Public Convenience and Necessity

The developer is required to file an Application for Certificate of Public Convenience and Necessity to the Commission. The application must include in written form all direct testimony and supporting exhibits intended to be introduced into evidence. NMAC 17.1.2.9(A).

7-NM-c.2 to 7-NM-c.4 – Is a Report for an Extension, Improvement, or Addition Required?

The developer is required to file a written report to the Commission for certain extensions, system improvements, or additions. The report will set forth the following:

  • The character of the undertaking;
  • The purpose sought to be accomplished;
  • The means by which that purpose is intended to be realized;
  • The estimated costs involved, the data upon which the engineering and economic feasibility of the undertaking is based; and
  • If extensions are involved, the name(s) of the utilities toward which the proposed extension is to be made. NMAC 17.5.440.9(A).

The developer must file a report with the Commission prior to making any of the following changes:

  • Any extension, of any electric facility outside the limits of a municipality to a point within one-half mile of the facilities of any other utility rendering electric service;
  • Any extension, improvement, or addition to any transmission or distribution line, plant, facility, or system exclusive of generating facilities which will have an original cost to the utility under the uniform system of accounts of $500,000 or more and for which the utility intends to seek rate base treatment under the Public Utility Act;
  • Any addition to or replacement of any electric generating facility which will have an original cost to the utility under the uniform system of accounts of $1,000,000 or more and for which the utility intends to seek rate base treatment under the Public Utility Act;
  • Substantial system characteristic improvements involving a change in operating voltage of electric lines. System improvements of an overall or system-wide nature must be submitted to the Commission as an overall plan;
  • Any agreements of sale, power pooling, interchange, capacity sharing, or similar transactions designed to achieve joint economies of generation or transmission. NMAC 17.5.440.9(A)(1)-(5).

If the developer is required to file a report with the Commission based on an extension, then they must also provide a copy of the filed report to the public utility on whose facilities the extension will be made. NMAC 17.1.2.9(B).

7-NM-c.5 – Set Date and Time for Public Hearing

When the Commission receives an Application for a Certificate of Public Convenience and Necessity, they are required to set a date and time for a public hearing on the application. NMAC 17.1.2.9(C).

7-NM-c.6 – Provide Notice of Public Hearing

The developer is required to provide notice of the public hearing on the application. The developer must publish the notice in a newspaper of general circulation in the counties in which the developer seeks to construct or operate the proposed facilities. The publication must appear once, at least 20 days prior to the date of the initial hearing. NMAC 17.1.2.9(D).

7-NM-c.7 – Affidavit of Publication

The developer is required to provide the Commission with an Affidavit of Publication indicating that the newspaper made the necessary publication. NMAC 1.2.2.24(C)(2).

7-NM-c.8 – Hold Public Hearing

The Commission will conduct a public hearing to give the public an opportunity to present evidence and arguments relevant to the application.

7-NM-c.9 – Review Application Materials

The Commission will review application materials and consider evidence presented at the public hearing.

7-NM-c.10 to 7-NM-c.11 – Does the NMPRC Approve the Application

The Commission issues approval, in whole or in part, or denial of the Application for a Certificate of Public Convenience and Necessity. The certificate will specify any conditions and limitations placed on it by the Commission.


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