Opinion ID: 2600461
Heading Depth: 3
Heading Rank: 3

Heading: Service to Sandhill Center

Text: {25} Doña Ana also argues that the PRC erred in not adopting the Hearing Examiner's recommendation that either Moongate or Doña Ana could offer service to Sandhill Center. Doña Ana argues that Moongate's own experts conceded that service to a portion of Sandhill Center will not interfere with its system. Because there would be no interference, Doña Ana argues that the PRC's order was not supported by substantial evidence. {26} Moongate offered testimony that it is prepared to offer service to Sandhill Center and is the only entity with facilities at elevations high enough to provide service to all of Sandhill Center within a reasonable time. In response, the PRC notes that Sandhill is within one-half mile of Moongate's facilities. The PRC does not require utilities to seek approval of new construction within contiguous territory and regards this territory as a part of the utility's service or system. Contiguous territory is generally within one-half mile of the utility's existing facilities and lines. {27} We are not persuaded that the PRC erred in not adopting a portion of the Hearing Examiner's recommendation. As an initial matter, we note that the PRC is granted general and exclusive power and jurisdiction to regulate and supervise every public utility in respect to its rates and service regulations and in respect to its securities. NMSA 1978, § 62-6-4(A) (2003). Our review of a final order by the PRC is not altered when the PRC's order is contrary to the recommendations of its hearing examiner or staff. See PNM Elec. Servs. v. N.M. Pub. Util. Comm'n, 1998-NMSC-017, ¶¶ 5, 23-25, 125 N.M. 302, 961 P.2d 147 (reviewing the PRC's final order rejecting an application that the hearing examiner recommended the PRC accept). Our review might be altered if credibility of witnesses had been contested. See Bd. of Educ. of the Melrose Mun. Schs. v. N.M. State Bd. of Educ., 106 N.M. 129, 130, 740 P.2d 123, 125 (Ct.App.1987) (recognizing that an agency may not arrive at a conclusion contrary to hearing examiner where credibility is at issue without reviewing the entire record). In this case, however, both the Hearing Examiner and the PRC based their decisions on reports and opinions submitted by experts whose credibility is based on their credentials and the strength of their analyses, rather than their demeanor as witnesses. {28} We have already recognized that the PRC has the authority to interpret Section 62-9-1 broadly and the entry of a water service provider in an area may interfere in the service or system of another even if there is no risk of immediate impact on the physical system of the utility. In order to carry out its planning and coordination responsibilities, the PRC appears to have found that any construction by Doña Ana within one-half mile of Moongate's facilities will constitute interference. We are not persuaded that this is an incorrect application of the Section 62-9-1. Furthermore, the PRC has not mechanically or arbitrarily applied its half mile presumption. The PRC considered the likely ability of each entity to offer service to Sandhill Center, and its conclusion that Moongate was better prepared to offer service was supported by substantial evidence. The PRC also considered the long term effect of leaving an area open to receive service from multiple providers and determined that this would likely lead to future duplication and confusion. This was a proper factor for the PRC to consider, and provides additional support for its decision. {29} There is evidence in the record that Moongate has facilities within one-half mile of Sandhill Center, is prepared to offer service in the area, has made previous investments in the area, and is the only entity with existing facilities capable of serving the entire Sandhill Center. Granting exclusive service to Moongate in this area will avoid future confusion and disputes. We therefore conclude that the PRC's decision regarding Sandhill Center was supported by substantial evidence and is neither arbitrary nor capricious.