Nov 9 - McClatchy-Tribune Business News Formerly Knight Ridder/Tribune Business News - Russell Max Simon Albuquerque Journal, N.M.

Santa Fe city officials are considering a new law that could require PNM to put all new electric lines of less than 40 kilovolts underground.

The move could eventually lead to higher utility bills for city customers, as PNM is typically allowed to raise rates on area customers to pay for the increased cost of burying the lines.

A bill introduced by City Councilor Matthew Ortiz and unanimously approved recently by the city's Public Utilities Committee states that "it is in the best interest of the health, safety and welfare of all citizens of Santa Fe that the City immediately takes the steps necessary to adopt policies that conserve open skies and improve public accessibility along city sidewalks and city rights of way."

Ortiz said the new law would require PNM to present the cost of placing lines underground to the City Council, which would then have the authority either to require the lines to be underground or grant PNM a waiver to build above ground lines.

Ortiz said it is possible the City Council could decide to use other sources of funding, such as capital improvement money, to defray the cost to ratepayers.

PNM spokeswoman Susan Sponar said the utility company is not opposed to the idea.

"PNM understands that, from an aesthetic point of view, undergrounding can be an appealing option to the community that helps to preserve the beauty of the landscape," Sponar said.

"We are neutral to the construction of underground distribution lines when mandated by the community, and when technically feasible to construct, provided that those customers who request the underground lines agree to pay the incremental costs. The reason for that is that putting distribution lines underground is significantly more expensive than putting them overhead."