24.2.5.010 Findings

(a) In early 2012, the Pueblo and Jemez Mountains Electric Cooperative, Inc. (JMEC) negotiated a settlement for three expired rights-of-way across the Pueblo's lands and the renewal for the substation properties in a global settlement that included both the past due amounts and future payments for all of the JMEC rights-of-way and substation lease under a new rights-of-way agreement for a 25 year term.

(b) The "Rights of Way, Lease and Trespass Settlement Agreement" dated February 11, 2012 provided for payment of $5,998,695 over 25 years for 74.73 acres based on a value of $3211.09 per acre.

(c) JMEC filed various Rate Riders with the New Mexico Public Regulation Commission ("PRC") in order to recover the cost of rights-of-way across several different Pueblos' lands.

(d) The initial proposed rate increase filed with the PRC for the recovery of the costs for the Pueblo's rights of way was based on revised acreage amounts for JMEC Facilities on San Ildefonso lands of 78.43 acres.

(e) Rate Rider No. 4 as initially filed could have raised the electric bills for JMEC customers residing within the Pueblo's boundaries by as much as 50% and such an increase would have caused an economic hardship to both tribal and non-tribal residents.

(f) The Pueblo agreed to mediation in an effort to find ways to reduce the impact of the rate increase.

(g) Pueblo and JMEC representatives met numerous times to reevaluate the routes, acreage, and type of electric facilities in a good faith effort to reduce the electric rate increase while still maintaining the Pueblo's right to compensation for rights of way over its lands.

(h) The Pueblo has proposed to have several local distribution lines be subject to service line agreements rather than a right of way agreement, thereby removing those lines from the total right of way acreage amount subject to compensation.

(i) reducing the amount of local distribution line acreage will result in the Pueblo receiving less compensation for the right of way across its lands but it will have the beneficial effect of reducing the rate increase for all JMEC customers within the Pueblo's boundaries.

(j) The Council has been continuously informed of the proposed negotiations regarding the right-of-way and the rate increase matters and has determined that it is in the Pueblo's best interest to amend the right of way agreement with JMEC to maintain the value per acre of $3211.09 and reduce the right of way acreage from 74.73 acres in the initial agreement to 58.19 acres.

(k) The Council understands that the reduction in acreage will result in the Pueblo forgoing approximately $53,111 annually and $1,327,785 over the life of the 25 year right of way agreement term.

(l) The Council has determined it is in the best interest of the Pueblo and its residents, both tribal and non-tribal, to amend the right of way agreement in order to reduce the economic impact for JMEC customers within its boundaries as a result of rate recovery actions.