This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.
Facts
Plains Electric Generation and Transmission Cooperative, Inc. (Plains), a cooperative providing wholesale electric services, conveyed 41 acres of vacant land within its utility site to McKinley County, which leased it to McKinley Paper Company (MPC) for constructing a manufacturing plant. Plains also invested in non-utility facilities for MPC and provided non-utility services, including steam and water. Additionally, Plains operated a satellite television division, SatCon, which it later sold after incurring financial losses (paras 3-6).
Procedural History
- New Mexico Public Utility Commission, Case 2522: The Commission fined Plains $8,000 and suspended an additional $72,000 fine, finding violations of the Public Utility Act, including unauthorized abandonment of facilities, unapproved Class II transactions, and violations of its Certificate of Convenience and Necessity (CCN) (paras 1-2).
Parties' Submissions
- Appellant (Plains): Argued that the conveyance of vacant land was not an abandonment of a "facility," the agreements with MPC did not constitute Class II transactions, and SatCon was a division, not a separate entity requiring approval. Plains also contended that its CCN did not prohibit non-utility services (paras 8-26).
- Appellee (New Mexico Public Utility Commission): Asserted that the land conveyance constituted abandonment, the agreements with MPC were Class II transactions involving securities, and SatCon was a "person" under the Public Utility Act. The Commission also argued that Plains violated its CCN by using utility property for non-utility purposes (paras 8-26).
Legal Issues
- Did Plains' conveyance of vacant land constitute abandonment of a facility requiring prior Commission approval?
- Did Plains' investment in non-utility facilities for MPC constitute a Class II transaction requiring prior Commission approval?
- Was Plains' investment in SatCon a Class II transaction requiring prior Commission approval?
- Did Plains violate its CCN by providing or agreeing to provide non-utility services to MPC?
Disposition
- The Supreme Court of New Mexico annulled and vacated the Commission's Final Order, finding that the Commission relied on improper findings and conclusions for all four issues (para 27).
Reasons
Per Serna J. (Franchini C.J., Baca, Minzner JJ., and Hartz C.J. concurring):
Conveyance of Land: The Court held that the 41 acres of vacant land were not part of a "facility" under the Public Utility Act, as the land was not used for utility services. The sale did not constitute abandonment requiring Commission approval (paras 8-12).
Class II Transactions with MPC: The Court rejected the Commission's finding that Plains' agreements with MPC constituted Class II transactions. The agreements did not involve "securities" as defined by the Public Utility Act, and the Commission's interpretation was overly broad and unsupported by substantial evidence (paras 13-20).
SatCon Investment: The Court determined that SatCon, as a division of Plains, was not a separate "person" under the Public Utility Act. Therefore, Plains' investment in SatCon did not constitute a Class II transaction requiring prior approval (paras 21-22).
CCN Violations: The Court found that Plains' CCN for the PEGS site did not expressly prohibit non-utility activities. The Commission failed to provide evidence that Plains' non-utility services to MPC affected the public interest, rendering its findings unsupported (paras 23-26).
The Court emphasized that the Commission's authority is limited to what is statutorily authorized and that its findings must be supported by substantial evidence (para 27).