Signed by Governor Michelle Lujan Grisham

Vote Smart's Synopsis:

Vote to pass a bill that authorizes public utilities to file an application with the commission to approve grid modernization projects.

Highlights:

• Authorizes a public utility to file an application with the Public Regulation Commission for grid modernization projects (Sec. 1).

• Specifies that applications may include requests to facilitate grid modernization, rate designs, or programs that incorporate the use of technologies, equipment, or infrastructure associated with grid modernization and customer education/outreach (Sec. 1).

• Specifies that applications must include the utility’s estimate of costs for grid modernization projects (Sec. 1).

• Requires the Public Regulation Commission to consider whether applications for grid modernization projects are (Sec. 1):

• Reasonably expected to improve the public utility’s electrical system efficiency, reliability, resilience, and security while maintaining operations and costs;

• Designed to support connection of New Mexico’s electrical grid into regional energy markets;

• Reasonably expected to increase access to and use of clean and renewable energy;

• Designed to contribute to the reduction of air pollution;

• Reasonably expected to support increased offerings by utilities to their customers;

• Transparent; and

• Consistent with the state’s grid modernization planning process and priorities.

• Authorizes a public utility that undertakes a Commission-approved grid modernization project to recover its reasonable costs through an approved tariff rider, in base rates, or a combination of the two (Sec. 1).

• Specifies that Section 1 of this Act does not apply to a distribution cooperative under the Rural Electric Cooperative Act (Sec. 1).

• Defines “grid modernization,” as used in this Section, as improvements to electric distribution infrastructure through investments in assets, technologies, or services that are designed to enhance reliability, resilience, interconnection of distributed energy sources, security against cyber and physical threats, customer service, or energy efficiency and conservation (Sec. 1).

• Requires distribution cooperative utilities to include a description of all measures to promote energy efficiency, conservation, or load management in its annual report to the Commission (Sec. 5).

• Authorizes residents of New Mexico to receive electricity service using a qualified microgrid (Sec. 6).

• Authorizes electric public utilities to acquire self-source generation resources or energy and dedicate those resources to retail services, if approved by the Commission.

• Specifies that this Act takes effect July 1, 2025 (Sec. 7).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes public utilities to file an application with the commission to approve grid modernization projects.

Highlights:

• Authorizes a public utility to file an application with the Public Regulation Commission for grid modernization projects (Sec. 1).

• Specifies that applications may include requests to facilitate grid modernization, rate designs, or programs that incorporate the use of technologies, equipment, or infrastructure associated with grid modernization and customer education/outreach (Sec. 1).

• Specifies that applications must include the utility’s estimate of costs for grid modernization projects (Sec. 1).

• Requires the Public Regulation Commission to consider whether applications for grid modernization projects are (Sec. 1):

• Reasonably expected to improve the public utility’s electrical system efficiency, reliability, resilience, and security while maintaining operations and costs;

• Designed to support connection of New Mexico’s electrical grid into regional energy markets;

• Reasonably expected to increase access to and use of clean and renewable energy;

• Designed to contribute to the reduction of air pollution;

• Reasonably expected to support increased offerings by utilities to their customers;

• Transparent; and

• Consistent with the state’s grid modernization planning process and priorities.

• Authorizes a public utility that undertakes a Commission-approved grid modernization project to recover its reasonable costs through an approved tariff rider, in base rates, or a combination of the two (Sec. 1).

• Specifies that Section 1 of this Act does not apply to a distribution cooperative under the Rural Electric Cooperative Act (Sec. 1).

• Defines “grid modernization,” as used in this Section, as improvements to electric distribution infrastructure through investments in assets, technologies, or services that are designed to enhance reliability, resilience, interconnection of distributed energy sources, security against cyber and physical threats, customer service, or energy efficiency and conservation (Sec. 1).

• Requires distribution cooperative utilities to include a description of all measures to promote energy efficiency, conservation, or load management in its annual report to the Commission (Sec. 5).

• Authorizes residents of New Mexico to receive electricity service using a qualified microgrid (Sec. 6).

• Authorizes electric public utilities to acquire self-source generation resources or energy and dedicate those resources to retail services, if approved by the Commission.

• Specifies that this Act takes effect July 1, 2025 (Sec. 7).

Full Bill Text