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 arose when a cellular partnership sought to transfer a Certificate of Public Convenience and Necessity to a cooperative entity, ENMR Telephone Cooperative (ENMR), as part of ENMR's acquisition of the remaining partnership interest. The New Mexico State Corporation Commission approved the transfer but also ordered a regulatory audit of ENMR, requiring ENMR to pay for the audit. ENMR challenged the Commission's authority to impose the cost of the audit on the cooperative (paras 3-5).
Procedural History
- New Mexico State Corporation Commission, March 1, 1993: Approved the transfer of the Certificate of Public Convenience and Necessity to ENMR and ordered a regulatory audit to be conducted by an independent firm selected by the Commission (para 4).
- New Mexico State Corporation Commission, April 21, 1993: Issued a second order requiring ENMR to pay for the audit, asserting constitutional authority to do so (para 5).
- New Mexico State Corporation Commission, May 5, 1993: Reaffirmed its authority to require ENMR to pay for the audit after considering ENMR's brief (para 6).
Parties' Submissions
- Appellant (ENMR Telephone Cooperative): Argued that the Commission lacked constitutional or statutory authority to require ENMR to pay for the regulatory audit (paras 6, 9-10).
- Respondent (New Mexico State Corporation Commission): Asserted that its broad constitutional powers under Article XI, Sections 7 and 11 of the New Mexico Constitution authorized it to order ENMR to pay for the audit (paras 9, 12).
Legal Issues
- Did the New Mexico State Corporation Commission have the authority to require ENMR to pay for a regulatory audit?
Disposition
- The Supreme Court of New Mexico vacated the Commission's order requiring ENMR to pay for the regulatory audit (para 15).
Reasons
Per Baca CJ (Franchini J. and Flores J. concurring):
The Court held that the Commission lacked the authority to require ENMR to pay for the regulatory audit. While Article XI, Section 7 of the New Mexico Constitution grants the Commission broad powers in matters of public convenience and necessity, these powers are limited to those "provided by law." The Court found no statutory provision authorizing the Commission to impose the cost of a regulatory audit on a regulated entity (paras 10-11).
The Court also rejected the Commission's reliance on Article XI, Section 11, which allows the Commission to require companies to submit special reports. The Court reasoned that this provision does not extend to ordering a company to pay for an audit conducted by a firm chosen by the Commission (paras 12-13).
The Court suggested that the Commission could have either required ENMR to submit a special report at its own expense or conducted the audit itself using funds appropriated by the legislature (para 14). Accordingly, the order was vacated (para 15).