The legislation is expected to streamline the process for financing and administering public projects, which can contribute to economic growth and community development. By permitting utilities to defer project costs, the bill is designed to foster infrastructure investments that support new and existing commercial and industrial operations. Moreover, it will enable better recovery of costs associated with these economic development initiatives through regulated rates, potentially leading to a more attractive business environment in New Mexico.
Summary
Senate Bill 170 aims to revise the definitions, funds, and rates under the New Mexico Finance Authority Act to enhance economic development in the state. The bill mandates the revision of permitted uses for money in the Public Project Revolving Fund and allows public utilities to defer costs incurred for economic development projects that are not included in the standard rates. One of the key features is that it provides for expedited ratemaking orders, ensuring that public utilities can quickly receive approval for required projects.
Contention
There may be points of contention regarding the resource allocation and the prioritization of certain projects over others. Stakeholders could debate the implications of expedited approvals, arguing that this could lead to insufficient oversight or the prioritization of certain industries over community needs. Additionally, the allowable uses for the Public Project Revolving Fund could be scrutinized, as different entities may have contrasting views on what should qualify for funding and how it impacts overall economic development strategies.