Report from Santa Fe; Lynda Lovejoy and Tony Schaefer

music Report from Santa Fe is made possible in part by grants from New Mexico Tech on the Frontier of Science and Engineering Education. For bachelor's, master's, and PhD degrees, New Mexico Tech is the college you've been looking for. 1-800-428-TECH. I'm Ernie Mills. This is report from Santa Fe today, a show I've been waiting for. Our two guests, Linda Lovejoy, who is the chairperson of the State Public Regulation Commission, Tony Schaeffer. From Down South and Don Anna County, who is a member of that commission. I want to welcome both of you to the report today. Linda, I'm going to start with you because I think you have probably an outrageous job as far as responsibilities go.

They haven't got too much publicity to date, but between now and the legislative session in mid-January, I think you're going to get more than you share of publicity. Hi, Tony, I'm wrong. Ernie, I believe we've already had some publicity. We've handled some very major cases, some very high-profile cases. We've handled cases with U.S. West and PNM. I believe we've already got down to business and really handled some major cases. I think it's going to get even bigger in the long run. For example, I think a lot of people aren't well educated as to what the Public Regulation Commission handles now. Remember the Corporation Commission used to handle telecommunications, insurance, dealing with the truckers on taxes for truckers and such, safety for truckers. You picked up not only that responsibility, those responsibilities, but you also have the responsibilities from the Public Utility Commission,

where you have the Regulation for gas electricity. That's a lot of work. Do you feel secure now? Do you have enough staff, for example, to handle these jobs? Well, we're trying to work with the staff that we have. This Commission, for the first time, approved an annual budget, and we have some shortages of personnel because of the increased case loads that we have. I'm not sure if we can convince the legislature to give us what we want. We did submit a budget with about a 5% increase because of the heavy case loads, the increased amount of case loads we have. But your correct, Ernie, people outside of Santa Fe and Albuquerque are not aware of this Commission and its role. And what I tend to do as a Commissioner in the district that I represent is go out and educate people, go attend meetings and appear before groups and educate them about this Commission and to let them know what we're doing that this Commission plays an important role in our state.

Ernie, you live in Las Cruz. In fact, both of you, your district is district five. Linda's district is district four. She comes from Crown Point in New Mexico. How do you keep the balance up? Right after the election, you were instrumental in voting for Linda as chairperson, you know, that you're Republican. But I think you made the comment that the politics had to be set aside once the election was over. You still feel that way now? Oh, yeah. No, the issues that come before us. I mean, whether it's a rate case or whether it's an insurance issue, you know, they're typically dollars and sense issues, their economic issues, their public interest issues. And it makes no sense to interject politics into it because, you know, on a five-member board, you're always going to have, you know, well, you might have a green and then you'd end up with a 2-2-1. But then if you voted strictly party lines, you get nothing done. Or if it went strictly on party lines, you'd always have three Republicans in this case. And we've just haven't seen it.

I think the commissioners all recognize that these issues go well beyond any kind of party affiliation. And it's strictly public interest issues. You have Bill Pope on the commission. He had prior experience. Herb Hughes is no stranger to state government. He's from Albuquerque. And of course, Jerome Block, who has lots of experience in the Corporation Commission. I asked Linda earlier, and coming from Crown Point, she spends about three days up here in Santa Fe on commission business, then about two days, again, attending meetings, taking care of other responsibilities. I guess you would call them district-response abilities. How are you handling that in your own right? Well, one of the things that we did early on was we recognized that it was vitally important that we establish a district office. So we've done that now. We have an office in New Mexico State University that's available for constituents and that provides an environment in which, you know, I can work with my attorney on issues when we're not at pure in Santa Fe. And we've been productive in doing that. We've written orders. We've initiated a number of issues that, you know, while they may primarily affect district five and flow out of needs of constituents, they're still broadly affect people throughout the state.

And one of the things that I am really hoping is that, you know, we regulate telecommunications, which is one of the most rapidly advancing technological industries that we have in this nation. And, you know, companies, large corporations, Congress, all use things that teleconferencing, video conferencing, things like that, where you have the opportunity to engage in meetings while we're not there. I mean, we're engaging right now with listeners and talking about issues that are of importance to them, hopefully. And we're not there presently. We're not there physically. But it doesn't impede that exchange of ideas. And it doesn't impede the progress or the work of the commission. And so one of the things that we believe for some time is that by taking advantage of technology, which we regulate and bringing it to productive use in government that we would actually end up with a better end product, which is a better representation for our constituents and the people of the state. And then your home was on the Navajo reservation for you're from Crown Point in Mexico. And I found at the time that this is rather interesting because people would question, you know, we always have the question before the legislature and for state government on Indian sovereignty.

And I know that Regis Pecos, who is the director for the Office of Indian Affairs, he has said repeatedly, no matter what you're talking about, whether it be gambling or anything else, you still have that major issue. The extent of Indian sovereignty and that has to be resolved at some point. What, to what extent is the activities of the Public Regulation Commission affect the Native American community, either in the like the Navajo reservation and or the preglos? Ernie, there's still a lot of effect in the legislature. I spent long hours trying to educate our non-Indian legislators about tribal issues, tribal sovereignty, how they could work hand in hand, but to respect one another's government as a nation to another nation. Here with the PRC, it's basically similar. And for example, we are now working on an issue with the Navajo Tribal Utility Authority, who provides electric service up to the reservation boundary.

Now, they want to extend beyond the boundary and go into what we call Indian country. And that's where I live. That's an interweb of different lands, including private lands, BLM lands, other federal lands, including allotment lands, which are considered Indian private property. So, once they leave the reservation and extend their electric services outside the reservation, and then they want to make agreements with companies like Continental Divide, Hamus Electric Co-op, then we're talking about, then we have to look at issues like the restructuring act, impact them. And then the state now have to regulate them because they've extended beyond the reservation line. So, those are issues we have to look at. Same way with telecommunications problems in Indian, some of the Pueblo countries, they're being serviced half of the Pueblo community is serviced by one company. The other half, see, across the bridge is serviced by another company. And so, you look at all those issues, and yes, it's the same as the legislature. It crosses Indian issues, crosses into PRC matters.

Tony, so many issues, I foresee, and one of them, and I want to ask both of you about it. The major issue to me, we have these, not just the expansion of things like the telecommunications computer, the internet is such. I think, eventually, the question will come up as to what the role is, and the Public Regulation Commission, for example, on gaming and computers. Do we delegate this to the feds, or do we get in there and fight over it and say, no, we have to have a role in that. But I'm looking at something, for example, what will the role of the commission be on something like Y2K, and trying to be ready to move into the next millennium? Since the first of the year, we have been talking about Y2K readiness. In fact, we have an order out right now that requires all utilities to become Y2K ready and provide us with reports on the status of their activities that applies to insurance companies, telecommunications companies, across the board. But, you know, it's not carried away here. The PRC has so much on its plate that I think that, I mean, we're going to be darn lucky to be able to achieve any real effective result in the broad areas that we've got already.

We don't need to bring in, you know, other issues or other authorities. I agree with you. I think that, you know, personally, I've always been a strong advocate that the states need the authority to deal with state issues. Let's not seed things to the federal government that we don't need to, because dealing with things in Washington, you get people from Colorado or New Hampshire or wherever weighing in on issues that are New Mexican. So, I think that we're much better off keeping that authority here, but let's not put it with the PRC. We got more than enough right now. Not everybody in these other states have the same kind of organization we have. You know, we've gone from the Public Service Commission, which is Richard, going back now, when there was a baby. And the Public Service Commission, then you had the Public Utility Commission and then Public Regulation Commission. These other states, each one has its own way of handling these. That makes it difficult when you're dealing between the states and the federal government, you know.

Well, I think New Mexico is unique in that I think we're only one of a handful of states that has the broad authority that we do. I mean, that's why that's why the PRC here in New Mexico has been characterized as one of the most powerful in the nation. Because typically what you see is you've got utility commissions who deal with utility issues, including telecommunications, but issues like insurance or transportation or formation of corporations, a fire marshal's office, things like that, typically are handled by other commissions. And I think that, you know, that's part of the difficulty we face because there is just so much to do. Now, you know, and I got to be fair about this, we've both, Linda and I were talking about, your plate is full. She says it's been full even. It's overflowing.

And you know that I'm going to keep, you know, I'm there, you're my job security. I've got to have some warnings. I don't even have to make up my broadcast anymore. I can just figure that your plate is going to be so loaded. So I'll keep loading it on for you. But you know, when you, honestly, when you think about it, I mean, we have right now, we have the restructuring of the electric utility industries. We're charged with bringing competition to the state by the legislature. We regulate HMOs. So healthcare in the state of New Mexico is also a tremendously important issue. And we regulate that. We also regulate telecommunications, as I said, one of the most rapidly advancing industries that exists. In addition to those, we regulate water, gas, pipeline safety, the whip route. I mean, we have so much on our plate that I think that it's, I mean, we're doing the best that we possibly can. And my hope is that after four years of service to the state, constituents will look back. The legislature will look back on this, this, this tenure, this endeavor and say, you know, the charge was well placed. That's my hope. I've got to tell you that it sure and it's Linda. It always is a little sensitive area. On Tuesdays, you usually move into your big hearings. You'll have one after we finish this show today.

And I said that the period we don't want to to affect make statements would be insensitive, you know, as far as those you're acting upon. But I know that the commission is going to have to make a decision on just what your role will be with the consolidation. For example, of U.S. West and that they call it quest, but there's a company that we hardly heard about 10 years ago. And now you have a large merger here. And of course, the companies will say right off the bat. Linda, that is this consolidation. This merger doesn't fall under the purview of the public regulation commission. But I don't think it's insensitive to say to you, you seem to have very strong feelings about this. Well, I think it's always when a state can take a strong position to say, I believe we have some jurisdiction here. I believe we can, we have some authority to look at your merger plan that we have a say so in the merger plan that you're going to present to FCC.

Let's give us a chance to take a look at it first and have given opportunity to PRC to look it over and maybe make some comments. And if the state can take that position and take that strong stance, I believe that we can let companies know that we mean business here. Now, this merger is between an out-of-state company, one I think that is headquartered in Colorado and U.S. West that has quarters here, headquartered here in the Mexico, but their main headquarters, of course, are up in Colorado. It was probably about 12 Western states, 12 to 14. There is another merger, but this one would be in state. They're talking about a possible merger of 15 business people or more from New Mexico, possibly taking over that portion of GTE service in the southeast part of the state. Is this different from a merger that would be outside the state with a company that operates in state?

Do you feel there, of course, so you're going to take the same stance that we have a right as the commission to get involved in this? In my opinion, I would take the same stance. They may be somewhat different. GTE may be a little bit more localized as compared to the U.S. Westquist since U.S. are located in 14 states and much broader, but nevertheless, I think we ought to hand treat both a light and say we believe we have some jurisdiction to look at your merger plan and see what we want to look at. What you're able to provide, whether you're going to continue as status quo or whether you're going to increase, make some improvements in providing services to the people? Do you personally get concerned, of course, and I'm looking at your local constituency? You have, I believe, two people that are very consumer-oriented. Jack Hyatt was hired to be the Chief of Staff.

Jack previously worked for the Attorney General's Office and this Director of Consumer Affairs. He also had Molly Woodett, who had been on the Santa Fe City Commission, but she also was very consumer-oriented. You have the same thing again, the problems that you would look at statewide in this situation and locally with your own constituency. What is your own feeling on taking care of the consumer in these affairs? I like the consumer area and I think we need to really build that up. The district that I represent, we need to... people just don't know the outlet and don't know where to go to bring their issues to bear. And so this division is beginning to become more broader out in the state, local areas, rural areas and begin to educate people that consumers who have concerns about the business practices and how they receive services and the lack of services. But they're able to use this consumer division as a way to make their feelings known and I think...

And I'm of the opinion that that division really needs to be a very strong division and play a very important role to the citizens of our state. Do you have enough... Tony has an office in Las Cruces, actually. Do you have an office in Gallup as well? No, I have not. You have not had one there yet. Do your people in that area and your district area and that is in much of it also is sparse in population. Where did they take their complaints then? Did they come directly to Santa Fe? Well, there's other state offices where they take their complaints and then it finally filters to Santa Fe. But sometimes I get dozens and dozens of telephone messages and they're just from constituents who have complaints. And so that's where I spend at least two days, one or two days a week is just trying to handle some of those complaints myself while I'm in that area or just try to handle it and deal with it for the constituents.

Tony, when we watch the consumer protection area here and it's probably... I think the complaints here probably are as dense as they would be at the attorney general's office as such. And I think you and I have talked about this before so that people aren't told that's not my table. Yes, your plate is overloaded but when they come over to this agency they're not told you have to go to the feds. They will keep some sort of a handle on consumer complaints. And I think we recognize too that we had cramming and slamming and think basically when that happens that's cheating. People have to recognize that they're cheating close to fraud. That's right, cheating close to fraud. Your own feelings, because you're in an area that's just showing tremendous development. The governor was at a border conference in Tijuana. We're looking at not only increase trade in these areas, communications. We're going to affect those areas as well.

But of all the members on the commission, you probably will be faced with that border type negotiation than any other member. What are you doing to address that kind of situation? Well, you know, first in the first place, I want to make it real clear that I wholeheartedly agree with Linda about consumer relations and the importance of that role here at the PRC. And while there may be issues, oftentimes telecommunications companies will tell you, you have no authority. We're regulated under the Federal Telecommunications Act in 1996. Nonetheless, it's still our obligation to make sure the complaints are handled and handled in time with fashion. But one of the big problems that we face right now is that, you know, when you look at any surrounding state, you remember, you know, you remember, I'm sure you studied in school what happened when the railroad came to the west. It came through. It might come to one particular town, but not to another. The town that got the railroad prospered. It grew. It boomed. And the town that didn't typically became a backwater town and eventually died.

That's the same thing we face right now with with what's called high speed broadband with telephone light DSL T1. How do you want to how do you want to describe it? Every state around New Mexico, every state around New Mexico has wide deployment of high speed broadband with telecommunications. New Mexico does not. It's a real impediment to trade. It's a real impediment to things like telemedicine or tele education. When you look at what's happened here in the state in terms of the ability of people in rural New Mexico to get quality health care, there is one health care market. That's advocate. You typically have to travel there. The governor has talked about school vouchers. Yet through tele education or distance learning, you have the ability to bring top educators from around the world, really, to bring them to bear in a small rural school in jail for the sake of discussion. But without the deployment of those telecommunications services, no, this is possible. So my attitude has been a little bit different.

One of the things I intend to do is to, I'm bringing in order to show cause to this commission, to look at the question of whether or not U.S. West's certificate to do business in New Mexico should be revoked, amended or modified. Because when you look at the number of complaints that we've had and you look at the obligation of U.S. West as the incumbent telephone provider, there are no benchmarks of standard. There are no performance standards. There's nothing that says this is adequate service and this isn't. There's nothing that says that this is adequate investment and this isn't. It's all tied to dollars and cents and rates. But there's a lot of things that are more important in rates. Pure, simple service is a lot more important. And that's the key element in promoting trade across the board. Linda, your chairperson of this commission, I've known you long enough to know people often say she's such, such a sweet person. She's okay. You're also very stubborn. You're tough. Tony knows it. He'd be the first to tell you the truth.

It's her. You are. She is. And what Tony speaks about is an aggressiveness. This commission isn't going to be strictly defensive. It's going to be defensive and aggressive as well. If I read it right, I appreciate both of you coming in today because one of the things I have to do, you have a five member commission handling the work of what used to be handled by six people. So you have five people now, but I'd like to get in closing your perspective on where we're heading and also a commitment that you will be back individually with us to look at the individual areas. People first have to get an understanding what the commission's about, who you are, and then we'll come back individually to discuss these issues with both of you. But your own perception on what's what's to come, what you would like to see happen, say between now and the next session. This commission is, I see a very unique, each commission is very independent. Our personalities are very different. For example, a very quiet nature individual where Tony is very somewhat sometimes aggressive, like you said, but through that, we work things out. We, and we're still going through completing that transition for our organization. We still have a lot of housekeeping chores to do here, and we still have a lot of educating to do away from Santa Fe and Albuquerque so that people are aware of what we do.

We still need to continue working with the legislature. My attitude has been, we have to work as a partnership with all stakeholders, including the companies that are doing business in the companies we regulate. There will be times we're going to be very aggressive, and we may make some decisions that are not going to be satisfactory to everyone. There will be times we're going to listen and try to work things out in a very mannered fashion. But we've got to keep looking. Our focus has to be, what is good for this state? What is good for the citizens of New Mexico? And that's kind of the direction that I see. But in terms of what's coming up in the legislature, which PRC plays a role, it's very hard to tell at this point. Companies are saying we want relaxed regulation. We agree that we need to modify our regulation.

We've been operating with sort of outmoded, outdated regulation. We are working on those things to bring it up to speed, bring it up to today's trend. So we're always looking at how we can do business and partnership. Tony, where would you like to see this going? Well, I agree with Linda. I think we do have some housekeeping to be taken care of. But, you know, by the end of the year, I hope to see our slamming and cramming rules completed in a strong fashion with real consumer protection in place. I think it's important that we move aggressively towards establishing some green standard for generation of power. If we're going to have power companies coming into Mexico, I think that they need to also look at renewable energy, rewriting our HMO rules. It's an area that has been frankly overlooked, and I think that we need to address it. But those are just a few of the things that we need to try to bring to closure.

I'm Ernie Mills. We'd like to thank our guest today, Linda Lovejoy, who is the chairperson for the State Public Regulation Commission and Tony Schaefer, a member of that commission from Dynana County. This is a Primrose path and my estimation toward a nervous breakdown. I'd like to thank you for being with us. Report from Santa Fe. Report from Santa Fe is made possible in part by grants from New Mexico Tech on the frontier of science and engineering education for bachelor's, master's and PhD degrees. New Mexico Tech is the college you've been looking for 1-800-428-TECH.