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This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

  • The City of Las Cruces, operating its own municipal water utility, filed a complaint against Moongate Water Company, a public water utility, with the New Mexico Public Regulation Commission (PRC). The complaint, filed under Section 62-10-1, challenged Moongate's legal authority, financial, and operational capacity to undertake three proposed line extensions intended to expand its water service infrastructure in the East Mesa of Las Cruces, New Mexico (paras 3-4).

Procedural History

  • [Not applicable or not found]

Parties' Submissions

  • City of Las Cruces: Argued that Moongate lacked the legal authority and the financial and operational capacity to undertake the proposed line extensions and that the PRC has jurisdiction under Section 62-10-1 to hear complaints by municipalities acting as parens patriae (paras 4, 8).
  • Moongate Water Company, Inc.: [Not applicable or not found]
  • New Mexico Public Regulation Commission: Argued that it had jurisdiction over Moongate’s rates, charges, and service area but believed the City lacked standing to challenge Moongate’s authority to serve, except for the per-lot fees issue, which was seen as a genuine effort by the City to protect its inhabitants (para 5).

Legal Issues

  • Whether the New Mexico Public Regulation Commission has jurisdiction under Section 62-10-1 to hear complaints by municipalities acting as parens patriae to protect residents from unreasonable service practices and rates relating to public utility line extensions (para 8).

Disposition

  • The Supreme Court of New Mexico reversed the PRC's dismissal of the City's complaint, holding that municipalities have standing under Section 62-10-1 to file parens patriae complaints on behalf of their citizens to the PRC (para 11).

Reasons

  • Per Charles W. Daniels, Justice, Barbara J. Vigil, Chief Justice, Petra Jimenez Maes, Justice, Richard C. Bosson, Justice, Edward L. Chávez, Justice: The Court found that the PRC erred in dismissing the City's complaint by misinterpreting the Court's previous opinion in Moongate Water Co. and creating a jurisdictional bar. The Court clarified that its prior holding did not eliminate the PRC's jurisdiction over parens patriae complaints and that municipalities, including those with their own utilities not under the PUA, have standing to complain on behalf of their citizens. The PRC is required to determine probable cause for such complaints and has discretion on how to proceed with the case. Although the appeal was moot due to the PRC currently addressing the issues in a separate case, the City has standing to intervene in that matter (paras 8-11).
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