WILDFIRE MITIGATION & LIABILITY ACT

SB 161 requires New Mexico electric utilities (including regulated companies and certain municipal cooperatives) to create and submit wildfire prevention plans to the Public Regulation Commission for approval. Utilities that follow approved plans can receive a "certificate of compliance," which shields them from liability in lawsuits if a fire originates from their equipment. The law also allows utilities to recover mitigation costs through special bill charges ("riders") and mandates annual compliance reports. This directly affects utilities operating in wildfire-prone areas and changes how liability is handled in fire-related lawsuits.