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 case involves the New Mexico Public Regulation Commission's (NMPRC) adoption of rules under the Community Solar Act, which provides for the development of community solar facilities. These facilities generate solar electricity within a utility's distribution system, and subscribers receive bill credits. The Southwestern Public Service Company (SPS) and other utilities challenged the rules, particularly the prohibition against subtracting transmission costs from the bill-credit rate, arguing it results in unlawful subsidies (paras 1-3).
Procedural History
- NMPRC, March 30, 2022: Issued Order Adopting the Rule, summarizing the formal comment process and addressing issues raised during the comment period (para 7).
- NMPRC, May 18, 2022: Issued Order on Rehearing, partially granting and denying motions for rehearing, reconsideration, and clarification of the Order Adopting the Rule (para 8).
- NMPRC, Date not specified: Rejected SPS's proposed bill-credit rate without a hearing, ordering SPS to file a compliant rate (para 10).
Parties' Submissions
- Appellant (SPS and other utilities): Argued that the rule prohibiting the subtraction of transmission costs from the bill-credit rate creates an unlawful subsidy, violates statutory prohibitions, and that the NMPRC's reliance on nonpublic recommendations violated due process (paras 1, 9).
- Appellee (NMPRC): Argued that the rule is a reasonable exercise of its policy-making authority, that the prohibition against subtracting transmission costs is consistent with legislative intent, and that the rulemaking process was transparent and lawful (paras 1, 19, 60).
Legal Issues
- Whether the Community Solar Rule's prohibition against subtracting transmission costs from the bill-credit rate is contrary to the Community Solar Act.
- Whether the NMPRC engaged in prohibited ex parte communications after the close of the rulemaking record.
- Whether the NMPRC violated statute and due process by rejecting SPS's proposed bill-credit rate without a hearing.
Disposition
- The Supreme Court of New Mexico affirmed the NMPRC's adoption of the Community Solar Rule in full (para 1).
- The Court held that the NMPRC's actions were neither unreasonable nor unlawful and did not violate due process (para 11).
Reasons
Per Zamora J. (Thomson C.J., Vigil, Bacon, and Vargas JJ. concurring):
- The Court found the NMPRC's interpretation of the Community Solar Act to be reasonable, particularly in prohibiting the subtraction of transmission costs from the bill-credit rate. The Court deferred to the NMPRC's expertise and policy-making authority, noting that the Act's language was ambiguous and the NMPRC's interpretation was consistent with legislative intent (paras 19-24).
- The Court rejected the argument that the NMPRC engaged in prohibited ex parte communications, finding that the NMPRC's reliance on the Team's recommendations was transparent and lawful. The Court noted that the Utilities failed to substantiate their claims of improper communications (paras 47-60).
- The Court held that the NMPRC did not violate statute or due process by rejecting SPS's proposed bill-credit rate without a hearing, as the rate was submitted in open defiance of prescribed requirements, and there were no disputed issues of material fact (paras 68-71).