24.6.4.010 Findings

(a) 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, including the rights of way over the Pueblo de San Ildefonso.

(b) Rate Rider No. 4 as initially filed could have raised the electric bills for JMEC customers 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 customers.

(c) The Pueblo agreed to mediation in an effort to find ways to reduce the impact of the rate increase on tribal and non-tribal customers of JMEC.

(d) 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 amount of electric rate increase.

(e) In keeping within the limitations of Rate 19, 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.

(f) 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.

(g) The Council has approved the amendment of the underlying right of way agreement with JMEC per Resolution No. SI-2014-006.

(h) The Council has been continuously informed about the negotiations and proceedings regarding the PRC rate case.

(i) The Governor has negotiated the attached Stipulation agreement with JMEC and other parties in the PRC rate case to put in place the lower rate increase that will result from the amended right of way agreement and establish terms that will effectively resolve the rate increase matter.

(j) The Governor presented a draft Stipulation to the Council on March 7, 2014, and having the opportunity to provide input and comment, the Council authorized the filing of the Stipulation with the PRC on March 10, 2014.