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Annual Shareholder Luncheon October 26, 2011
Thanks to today’s sponsors:
In Perspective: New Mexico Public Regulation Commission Presented by PRC Chairman, Patrick H. Lyons, District 2
PRC Quick Facts: q The PRC was created in 1996 by a voter-approved Constitutional Amendment that combined the NM Public Utility Commission and the State Corporation Commission. q The PRC is an elected body of five (5) members chosen by voters from their respective districts. q The PRC regulates: Public Utility & Telecommunications Companies Motor Carriers Insurance Companies q The PRC administers: State Fire Marshall NM Firefighters Training Academy Pipeline Safety Bureau State Corporations Bureau
Under PRC Commissioners, the agency is broken out into six (6) major divisions, each with multiple functions and offices: q PRC Insurance Division q PRC Legal Division q PRC Transportation Division q PRC Utility Division q PRC Consumer Division q State Fire Marshal’s Office
PRC Organizational Chart - 2011 COMMISSIONERS General Counsel Hearing Examiners Consumer Relations PIO Insurance Division Native American Liason Management Analyst Chief of Staff Legal Division Administrative Services Commissioner Assistants State Fire Marshal Technical Staff & Bureaus Transportation Division Utility Division
INSURANCE DIVISION The mission of PRC’s Division of Insurance is to provide a solid regulatory framework for an efficient, safe, fair and stable insurance market in New Mexico. That framework includes initiatives like: q Implementing performance-based budgeting to measure and improve delivery of public services. q Improving speed-to-market concerns in New Mexico. q Promoting an insurance market that provides individuals and businesses with access to reliable insurance products that meet needs at affordable rates.
LEGAL DIVISION The PRC’s Legal Division ensures PRC technical staff in each division have proper legal counsel. q Outside entities do not always need to bring legal counsel to discuss matters at the PRC. q If an outside entity brings legal counsel to discuss matters at the PRC, the PRC’s legal division will likely also be present to assist technical staff.
TRANSPORTATION DIVISION Under constitutional laws of New Mexico, the PRC Transportation division regulates: q Motor carriers for hire from point-to-point within the state. q Administration of the Unified Carrier Registration Program, which: Requires individuals and companies that manage interstate or international commerce for commercial motor vehicles to register each business with a base state and pay annual fees based on (a) the size of their fleet and (b) the responsibility associated with at-grade railroad crossings and safety and railroad clearances.
UTILITY DIVISION The PRC regulates and supervises public utilities pursuant to the Public Utility Act in several ways: q The PRC requires all public utilities to provide adequate, efficient and reasonable service at reasonable rates. q The PRC requires all public utility rates, rules and forms to be on file with the Commission in Commission-approved tariffs.
CONSUMER DIVISION The PRC’s Consumer Relations Division is made up of two (2) bureaus--Utility & Transportation Complaints and Insurance Complaints--and has several important functions: q The division assists consumers with inquiries and complaints against companies regulated by the PRC. q The division’s compliance officers assist consumers with industry disputes to resolve consumer issues, processing each case within 24 hours. q After a consumer inquiry is made, the division formally investigates the inquiry and refers it to the PRC from the NM Attorney General and Governor’s Constituent Services Office.
STATE FIRE MARSHAL OFFICE Through its four (4) bureaus, the State Fire Marshal’s Office provides numerous services related to the life safety of New Mexico’s residents and guests, including: q Managing legal requirements and goals of the division. q Managing fire grants through a fire grant council. q Firefighter training. q Arson investigations. q Fire service support. q Code enforcement.
MOVING FORWARD While much of the PRC’s recent self-reform may slip under the media radar behind other, more bleeding topics, the agency has accomplished a great deal of positive change for New Mexico taxpayers in recent months. The PRC’s diligence in rebranding itself from the inside out has also created noteworthy successes, culminating in better overall competency, consumer relations and staff production.
RECENT REFORM Several examples of recent internal PRC reform include: q A Commissioner’s Code of Ethics. q A Commissioner’s Oath of Ethical Conduct. q An agency-wide salary cap. q An improved, user-friendly website. q A newly-hired Public Information Officer. q New gas card and vehicle policies to better balance fleet management.
FUTURE CHALLENGES GOALS > LEADERSHIP > HARD WORK > SUCCESS No agency as large and with as many moving parts is without error. Today, more than ever, the PRC continues to step back to look at itself and determine what needs to be corrected. And when the time comes to take important steps forward, the PRC has shown it will not back down from the challenge.
OUTSIDE PERSPECTIVES While the PRC continues to judge itself and make necessary internal changes on the way to becoming a stronger, more streamlined agency, it is also taking into consideration the opinions and suggested reforms of outside entities.
Think New Mexico: “Rethinking the PRC” Earlier this fall, Think New Mexico – the state’s leading think tank on public policy – published a report on the PRC, titled, “Rethinking the PRC. ” The organization’s indepth analysis concluded with a proposal for significant reform and change to the PRC’s structure and its elected body.
Think New Mexico suggests two main fundamental changes to the PRC: 1. Qualification standards for all PRC Commissioners. 2. A much smaller, streamlined PRC jurisdiction.
ENHANCED QUALIFICATIONS Think New Mexico’s proposed rules would require all incoming elected or appointed Commissioners to: q Possess a bachelor’s degree or higher from an accredited college or university. OR… q Have at least five (5) years of professional experience in law, engineering, economics or accounting.
STREAMLINED JURISDICTION Think New Mexico’s suggested amendments to PRC jurisdiction would significantly reduce the number of bureaus the agency currently oversees. These changes would: q Create a separate Department of Insurance. q Move the State Fire Marshal to the Dept. of Homeland Security. q Consolidate corporate reporting in the Office of the Secretary of State. q Eliminate duplicative regulation of railroads by the PRC and the Dept. of Transportation. q Transfer ambulance regulation to the Dept. of Health. q Deregulate market entry and rates for almost all motor carriers of passengers and household goods.
Think New Mexico’s Vision From “Rethinking the PRC”: “Our vision of tomorrow’s PRC is an agency that is professional, restructured in a rational way, and overseen by competent, qualified commissioners. Such a commission would help facilitate strong economic development, protect family budgets, and restore the public’s trust…”
Thank You Visit the New Mexico Public Regulation Commission on the web at: www. nmprc. state. nm. us or call the PRC toll-free at 1 -888 -427 -5772
Bill Hagler, President
Board of Directors 2011 - 2012 Officers: Bill Hagler, President Ash Collins, Jr. , Vice President Bob Reed, Secretary Dan Lyon, J. D. , Treasurer Bill Pope, Past President Directors: Al Adamsko, Ed Borchardt John Florez, Dr. Lenton Malry
Energy Discussion Luncheon The New Mexico Utility Shareholders Alliance, along with The Rio Grande Foundation and Energy Makes America Great, is hosting a presentation on Energy and America's future with energy policy expert Robert Bradley, Jr. of the Institute for Energy Research. November 10 th at the Marriott Pyramid, 1: 00 PM
Governor Susana Martinez
NEW LOGO 1003 Tomas Ct SW Albuquerque, NM 87121 (505) 836 -4223 Email: [email protected] 66. com NEW WEBSITE: www. nmusa. org