NMPRC requests information about SEC trustees

The New Mexico Public Regulations Commission (NMPRC) is requesting more information from Socorro Electric Co-op (SEC) on its trustees who served during their period of non-compliance.

“This bench request is issued to assess whether the terms of the uncontested stipulation sufficiently address the circumstances that permitted the non-compliance to continue for such an extended period of time,” said the request filed on Feb. 24.

The request came after the SEC, the City of Socorro and New Mexico Tech (NMT) agreed on a stipulation order at the end of last year.

“Since the stipulations are pending, the main point that I want to emphasize is the SEC is happy to answer any and all questions as we continue to pave the road of transparency, accountability and serving our members,” Manuel Gonzales, SEC’s General Manager and CEO, said.

City of Socorro Attorney Keith Herrmann said the City of Socorro remains supportive of approval of the stipulation between SEC and all intervening parties.

“As we are an active litigant, most of our public statements are contained in sworn pleadings before the Commission. However, we appreciate the Commission’s attention to the matter and recognize that the stipulation ultimately requires their approval. As such, we will respect the commission’s decision-making process.” Herrmann said.

SEC must file responses by March 6.

At a status conference in October 2025 with attorneys for SEC, NMT, the City of Socorro and NMPRC hearing officers the stipulation order was uncontested and supported by all parties.

The stipulation would require SEC to refund members about $600,000 they were overbilled during the non-compliance period. It would also include changes to be proposed to the cooperative’s bylaws, a formation of an advisory committee representing all districts to increase transparency and new ethics rules that will require future board members to commit to compliance.

On January 12, the NMPRC hearing examiners, Christopher Ryan and Jocelyn Barrett, recommended the NMPRC accept the uncontested stipulation.

According to the bench request, the uncontested stipulation indicates one member of the board of trustees responsible for the decision to violate the commission is still serving on the board.

The bench request orders SEC to identify all trustees who served during the period of non-compliance along with information on how each term ended, if there were any changes in membership based on conduct, if the trustees have been investigated, disciplined, censured or removed. It also asks SEC to identify and explain all provisions in the uncontested stipulation that are intended to address the conduct of prior board members and accountability for the conduct to prevent recurrence of similar conduct.

Brief history of the case

In December 2018, the SEC filed a notice with the NMPRC that it would increase rates by 5% to raise revenue by $1.25 million. NMPRC, as state regulators, rejected the rate-increase proposal, arguing that the utility wanted the price increase to advance the objectives of its board of trustees rather than needing it financially to operate.

SEC refused to follow the Commission order for 948 days from Sept. 11, 2019, until the Commission approved SEC’s agreement on May 18, 2022.

The case was taken to the New Mexico Supreme court in June 2024 where it was ruled rural New Mexico electrical co-operatives are not exempt from state regulators’ authority over rates. When the co-op rejected the NMPRC’s findings, the NMPRC fined the board $1,000 a day for not following its ruling.

In August 2024, SEC CEO Joseph Herrera left the electric co-operative after holding its prime leadership position for 13 years. In January 2025, Gonzales took the position.

In May of 2025 NMPRC voted unanimously on appointing co-Hearing examiners Ryan and Barrett to consider mechanisms for recovering fines accrued by SEC and proper corrective actions that do not unduly burden SEC members.