Discussion continues on how SEC will repay fines to members

The Socorro Electric Co-op (SEC), the City of Socorro and New Mexico Tech are scheduled to attend a status conference in the matter of non-compliance fees for the SEC at 9 a.m. on Oct. 31.

After the Oct. 7 conference, the New Mexico Public Regulation Commission (PRC) Hearing officers believed it was in the public interest to allow the parties to continue their discussion before any decisions are made about a potential procedural schedule. Court documents confirmed the conference does not serve as the official end to the discovery period.

According to the PRC website, members of the public are allowed to submit a written comment regarding a specific case number to prc.records@prc.nm.gov.

Brief history on the PRC and SEC

In May 2025, the PRC unanimously appointed co-hearing examiners to explore how SEC can repay fines without unduly burdening its members. PRC associate general counsel Erika Avila Stephanz clarified that the hearing’s focus is on repayment methods, not on whether SEC violated any orders.

In December 2018, SEC announced a proposed 5% rate increase aimed at raising $1.25 million. However, after member objections, the PRC rejected the proposal, noting that the increase served board objectives rather than an actual financial need.

In June 2024, the New Mexico Supreme Court ruled that rural utility companies, including SEC, are subject to PRC rate regulation, clarifying that there is no distinction between rural cooperatives and other public utilities regarding the commission’s authority.

During a November 2024 meeting, Commissioner Aguilera suggested that forgiving SEC’s fines could set a precedent since the commission ordered compliance and the company refused.

The PRC said it would base its decision on three factors: an accounting of mis-collected amounts, SEC’s proposed corrective plan and justification for not facing fines.