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Council approves 15-year franchise with PNM despite insurance and undergrounding concerns

Village of Corrales Governing Body · July 28, 2026
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Summary

The council voted to grant Public Service Company of New Mexico (PNM) a nonexclusive 15-year franchise to use village rights-of-way and provide electricity; councilors raised concerns about insurance limits, possible undergrounding of lines, and streetlighting responsibilities.

Council considered ordinance 26-06 to grant a 15-year, nonexclusive franchise to the Public Service Company of New Mexico (PNM) authorizing the company to furnish electricity and use public rights-of-way within the village.

Councilor Burkett urged stronger requirements for undergrounding future lines and long-term planning to move utilities out of roadways; others raised the level of required liability coverage in the franchise, noting the policy language calls for $1,000,000 of insurance. One councilor observed that $1,000,000 per occurrence might not adequately cover catastrophic incidents affecting multiple homes; staff said they had negotiated extensively with PNM and the current language is the best achievable at this time.

Councilors also asked whether PNM would install lighting at certain pedestrian crossings and what approvals (including DOT) might be required. After discussion and attorney input, the council approved the ordinance by roll-call vote.

The franchise is effective immediately as adopted; the administration will finalize executed copies and continue conversations about implementing village preferences (such as undergrounding strategies) in future code and franchise revisions.