New Mexico utility regulators advance transfer of troubled water company that ran dry last year

New Mexico utility regulators on Thursday approved an expedited process for reviewing a potential takeover of a small-town water company that suffered a “complete” water outage in 2025.

For much of this year, the New Mexico Public Regulation Commission has received regular updates about Melody Ranch Water Co., a utility that serves a small town outside of Edgewood. One of the company’s primary wells didn’t produce enough water to keep up with demand last year, resulting in a widespread water outage. In a 2025 email to the commission, company representatives said they had depleted much of their financial reserves to address the problem.

The commission unanimously voted Thursday to accelerate its review of a proposal that would let the Estancia, Moriarty, Williard and Torrance County Regional Water Association take control of Melody Ranch Water Co.’s operations. The commission will notify Melody Ranch customers by Nov. 9 and give interested parties until Nov. 16 to weigh in.

The commission could consider a final decision as soon as Dec. 3, according to a PRC news release.

If approved, the regional water association would take control of Melody Ranch’s water system, wells, equipment and water rights at no cost, but would not assume the company’s debts or add new fees to customers’ bills. It would also let the association build a new well and connect Melody Ranch’s system to Moriarty’s with a pipeline. Earlier this year, the state Legislature dedicated $4 million to water infrastructure improvements. 

Gov. Michelle Lujan Grisham had previously signed an executive order that facilitated hauling water to the community. However, that agreement is set to expire at the end of the year.

While commissioners voted on the expedited review with little discussion, they said finding a permanent solution — such as connecting Melody Ranch to Moriarty with a pipeline — is a top priority.

“I share the sense of urgency…for me, it’s just making sure that whatever we do sticks,” PRC Chair Pat O’Connell said during Thursday’s meeting.

Melody Ranch officials have already signed a transfer agreement with the regional water authority, according to a recent PRC filing, and in 2025 requested PRC support in expedited measures to restore service.