Editor's Note: See a related article published on Saturday, Oct. 22, about PRC commissioner Ben Hall's  comments at a Republican Party meeting. The contrast from what he said and what this article says is striking.

Reducing the jurisdiction of the Public Regulation Commission and enhancing qualifications for commissioners can improve the quality of utility regulation in New Mexico and save taxpayer dollars, according to a new report released today by Think New Mexico, the results-oriented think tank that has led successful campaigns to repeal New Mexico's regressive food tax and to reform the state lottery by reducing operating costs and delivering more money to college scholarships.

The PRC touches the lives of every New Mexican who pays a gas, electric, water, or phone bill, or buys health, home, or car insurance. Yet the regulatory agency has been in a constant state of turmoil and scandal since it was hastily created in the late 1990s.

In a report titled, Rethinking the PRC, Think New Mexico recommends fundamentally reforming the agency by amending the state constitution to (1) reduce the PRC's jurisdiction so that it can focus on its core mission of regulating utilities and telecommunications, and (2) require candidates for the PRC to have a four-year degree from an accredited college or at least five years of relevant professional experience

The PRC currently has a broader jurisdiction than any other utility regulatory body in the nation. Along with regulating telecommunications and electric, gas, water, and wastewater utilities, the PRC is also responsible for regulating insurance, overseeing the State Fire Marshal's Office and State Fire Academy, registering corporations, regulating motor carriers (including shuttles, buses, ambulances, tow trucks, and moving vans), ensuring the safety of railroad crossings, and even certifying annual ski lift inspections.

The PRC's exceedingly broad jurisdiction is compounded by the fact that there are almost no qualifications required for the $90,000 a year position of PRC commissioner. Currently, the only requirements for PRC candidates are that they must be at least 18 years old, they must have been residents of New Mexico for at least a year, and they must not have been convicted of a felony. As a result, while only 11% of utility commissioners nationwide have less than a college degree, a full 44% of the commissioners who have served on New Mexico's PRC had not finished college by the time they were elected (on the current commission, that number has risen to 60%)

In order to improve the performance of the PRC, Think New Mexico proposes reducing the agency's jurisdiction and increasing commissioner qualifications.

The PRC's jurisdiction would be streamlined and refocused on its core mission of regulating utilities and telecommunications. Other responsibilities would be shifted to more appropriate agencies. For example, corporate registration would go to the Secretary of State, which already handles other business reporting duties. Ambulance regulation would go to the Department of Health, which already regulates air ambulances. The PRC's responsibility to ensure the safety of railroad tracks where they cross highways would go to the Department of Transportation, which is already responsible for ensuring the safety of highways where they cross railroad tracks.

In addition, Think New Mexico's report recommends deregulating the PRC's economic regulation of motor carriers. Currently, the PRC controls the market entry and rates of in-state motor carriers of passengers and household goods, including shuttles, buses, taxis, limousines, and moving companies. This means that before New Mexicans can start a new business in any of these industries, they must first obtain permission from the PRC and allow their potential competitors to protest their application and their proposed rates. Think New Mexico argues that these antiquated regulations discourage entrepreneurship and harm job creation.

Finally, to improve the qualifications of PRC commissioners, Think New Mexico recommends requiring that all PRC candidates have either a four-year degree from an accredited college or university or at least five years of relevant professional experience (e.g., law, engineering, accounting, or finance). Think New Mexico's report notes that fifteen other states have already established similar qualification requirements for their utility commissioners.

“These reforms are urgent,” said Fred Nathan, Executive Director of Think New Mexico, “because New Mexicans desperately need the PRC to foster job creation and protect family budgets. To get there, the PRC needs to be streamlined and more effectively administered.” Nathan added: “Jerome Block's resignation will be a good first step to cleaning up the PRC, but it does not address the agency's significant underlying structural problems.”

Think New Mexico is calling on the Legislature to put these reforms on the ballot for voters to consider during the 2012 election.

Think New Mexico is a nonpartisan, results-oriented think tank dedicated to improving the quality of life for all New Mexicans, especially those who lack a strong voice in the political process. Along with the food tax repeal and lottery reform, the group has successfully won passage of legislation making full-day kindergarten accessible to every child in New Mexico, creating a Strategic Water Reserve to protect and restore New Mexico's rivers, and reforming title insurance to lower closing costs for homebuyers and homeowners who refinance their mortgages.

More information is available on the organization's website at: www.thinknewmexico.org.