This rule was
filed as NMPSC Rule 360.
TITLE 17 PUBLIC UTILITIES AND UTILITY
SERVICES
CHAPTER 3 UTILITIES FINANCIAL ACCOUNTING AND
REPORTIING-GENERAL PROVISIONS
PART 360 PROCEDURES FOR THE AUDIT AND
EXAMINATION OF UTILITY BOOKS AND
RECORDS OF
ACCOUNTS
17.3.360.1 ISSUING AGENCY:
New Mexico Public Service Commission [New Mexico Public Regulation
Commission].
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17.3.360.2 SCOPE:
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17.3.360.3 STATUTORY AUTHORITY:
A. NMPSC Rule 360 [17.3.360 NMAC] is adopted under the
authority vested in the Commission pursuant to NMSA 1978, Sections 62‑6‑1,
62‑6‑4A, 62‑6‑14, 62‑6‑16 and 62‑6‑17.
B. NMPSC Rule 360 [17.3.360 NMAC] shall apply to all
electric, gas, water and sewer utilities subject to the jurisdiction of the
Commission, including municipally‑owned utilities which have elected to
come within the jurisdiction of the Commission pursuant to NMSA 1978, Section
62‑6‑5.
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17.3.360.4 DURATION:
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17.3.360.5 EFFECTIVE DATE:
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17.3.360.6 OBJECTIVE:
A. NMPSC Rule 360 [17.3.360 NMAC] is intended to formalize
the procedures to be followed by the Commission for the audit and examination
of the books and records of a utility in order to insure that all utilities
subject to the jurisdiction of the Commission are uniformly and correctly
maintaining their accounting records in conformance with the Uniform System of
Accounts as established and prescribed by the NMPSC Code of Rules and
Regulations or as otherwise directed by the Commission.
B. An audit or examination undertaken by the Commission
pursuant to Rule 360 [17.3.360 NMAC] is for the purpose of accumulating and
evaluating evidence regarding quantifiable accounting information related to a
specific utility in order to determine and report on the degree of
correspondence between the quantifiable accounting information and the
established criteria for the maintenance of that utility's records under the
uniform system of accounts as prescribed for such utility.
C. The audit and examination procedures established by this
rule are designed to review state utility regulatory information necessary for
the Commission to carry out its duties as authorized by the Public Utility Act,
NMSA 1978 Sections 62‑3‑2, et. seq., and are not intended to
supersede or duplicate financial audits by any federal or other state
regulatory agency which any utility is required to undergo by law.
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17.3.360.7 DEFINITIONS:
Unless otherwise defined the following terms shall have the following
meanings for the purposes of these rules of examination and auditing
procedures.
A. "Accounts" means the uniform system of accounts
for each utility as prescribed by the Code of Rules and Regulations of the New
Mexico Public Service Commission [New Mexico Public Regulation Commission] or
any other system of accounts maintained by the utility as ordered by the
Commission [New Mexico Public Regulation Commission].
B. "Audit" or "Examination" means the
process by which evidence is accumulated and evaluated.
C. "Audit report" means the final written report
of the auditor's findings concerning the utility's compliance or non‑compliance
with the uniform system of accounts, and may, but is not required to, include
any opinions and conclusions of the auditor in addition to the factual
information contained therein.
D. "Auditor" means a member or members of the
Staff of the New Mexico Public Service Commission [New Mexico Public Regulation
Commission] as defined in the Code of Rules and Regulations of the NMPSC
qualified and authorized to perform or assist in the performance of an audit
undertaken pursuant to Rule 360 [17.3.360 NMAC].
E. "Evidence" means any information relied upon
by the auditor to determine the degree of correspondence between quantifiable
information and established criteria for the maintenance of the utility's
records under the uniform system of accounts as prescribed for such utility.
F. "Routine audit" means any audit or examination
undertaken pursuant to Rule 360 [17.3.360 NMAC], with the exception of Rule
360.7 [17.3.360.12 NMAC] which pertains only to special audits.
G. "Special audit" means any audit or examination
undertaken pursuant to Rule 360.7 [17.3.360.12 NMAC], and the provisions of
Rule 360.5 and 360.6 [17.3.360.10 NMAC and 17.3.360.11 NMAC] shall not apply to
a special audit. All other provisions
of Rule 360 [17.3.360 NMAC] are applicable to a special audit.
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17.3.360.8 [TABLE OF CONTENTS:]
A. Purpose [17.3.360.6 NMAC]
B. Authority [17.3.360.3 NMAC]
C. Definitions
[17.3.360.7 NMAC]
D. Access to Records
[17.3.360.9 NMAC]
E. Scope of Audit or Examination [17.3.360.10 NMAC]
F. Notice of Routine Audit
[17.3.360.11 NMAC]
G. Special Audit
[17.3.360.12 NMAC]
H. Exit Conference
[17.3.360.13 NMAC]
I. Audit Report
[17.3.360.14 NMAC]
J. Variances
[17.3.360.15 NMAC]
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17.3.360.9 ACCESS TO RECORDS:
A. In addition to the preservation of records as required by
NMPSC Rule 310 [17.3.310 NMAC], each utility shall also maintain and make
available to the Commission all records and documentation supporting the
entries in the records of accounts, including but not limited to, minute books,
stock books, reports, correspondence, memoranda and any other documentation
which is relevant to the development of history of, or facts regarding, any
transaction or entry in the records of accounts.
B. Consistent with applicable law governing the maintenance
of the uniform system of accounts for each utility, no utility shall destroy or
dispose of any books and records required to be maintained unless the
destruction or disposition thereof is permitted by such applicable law.
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17.3.360.10 SCOPE OF AUDIT OR EXAMINATION:
The scope of any routine audit or examination of the records of a
utility shall be determined consistent with Commission authority on a case‑by‑case
basis, provided that the scope of the audit or examination shall be clearly
identified and submitted to the utility at the time of notice of the audit or
examination. The scope of a special
audit shall be determined according to the provisions of Rule 360.7
[17.3.360.12 NMAC].
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17.3.360.11 NOTICE OF ROUTINE AUDIT:
A utility which is to be the subject of a routine audit or examination
by the Commission shall be provided with no less than ten (10) working days
notice prior to the date of performance of the audit or examination. All routine audits or examinations shall be
conducted in a manner such as not to unreasonably disrupt the normal business
of the utility.
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17.3.360.12 SPECIAL AUDIT:
A special audit or examination may be conducted at the Commission's
discretion pursuant to NMSA 1978 Section 62-6-17, on a case-by-case basis. A special audit or examination shall not be
subject to the notice provisions of 360.6 [17.3.360.11 NMAC]. The scope of the special audit shall be
identified and provided to the utility at the beginning of the audit.
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17.3.360.13 EXIT CONFERENCE:
At the conclusion of any audit or examination undertaken pursuant to
Rule 360 [17.3.360 NMAC], the auditor shall conduct an oral exit conference
with the utility management in order to enter into preliminary discussions of
the auditor's findings.
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17.3.360.14 AUDIT REPORT:
After any audit or examination undertaken pursuant to Rule 360 [17.3.360
NMAC] is concluded, a copy of the final audit report will be provided to the
utility within five (5) days of the completion of the report. The utility will be given thirty (30) days
to respond to the report in writing.
After expiration of the thirty (30) day period, the audit report will be
placed in the audit files at the Commission with the response, if any, from the
utility. For good cause in accordance
with NMPSC Rule 110.2 [17.1.2 NMAC], the utility may file a written request for
a protective order protecting the report and response and all supporting
documentation, if any.
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17.3.360.15 VARIANCES:
A. A utility may file a written request with the Commission
seeking a variance from the provisions of Rule 360 [17.3.360 NMAC] for good
cause shown. Each variance request
shall identify the specific provision of Rule 360 [17.3.360 NMAC] from which a
variance is requested, provide an explanation for the conditions requiring the
variance, and an alternate proposal designed to achieve the purposes of the
provisions of the rule to be waived and to be implemented for application to
the condition(s) requiring the variance.
B. If the Commission determines that the variance requested
is consistent with the purposes of NMPSC Rule 360 [17.3.360 NMAC] as defined
herein, the variance may be granted.
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17.3.360.16 [HISTORY:
Codified by NMPSC Case No. 2276, order dated September 18, 1989, unless
otherwise noted.]
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HISTORY OF
17.3.360 NMAC:
Pre-NMAC
History: The material in this part was
derived from that previously filed with the Commission of Public Records-State
Records Center and Archives.
NMPSC Rule 360,
Procedures For The Audit And Examination Of Utility Books And Records Of
Accounts, 9/18/89.
History of
Repealed Material: [RESERVED]