Energy (Utility Regulation)

HB 329 creates the Energy Affordability and Grid Reliability Council to evaluate strategies for keeping electricity and natural gas rates affordable while modernizing the grid. The council, composed of 5 appointed members (including utility, consumer advocacy, and economic development experts) plus utility representatives, will assess regulatory approaches, examine impacts on residential, rural, tribal, and small business customers, and identify best practices. It will develop recommendations for legislative or regulatory action to balance cost containment, reliability, emissions reduction, and grid resilience. The bill appropriates $2 million from the general fund for the council’s operations in fiscal year 2027.

HB 303 requires New Mexico public utilities to obtain a certificate from the Public Regulation Commission before providing new service or extending systems, with limited exceptions for existing service areas or routine business expansions. It specifically mandates that energy storage projects be approved if they reduce costs, cut fossil fuel use during peak demand, improve grid reliability with renewables, and lower emissions. The bill sets strict deadlines for commission decisions (six months for energy storage projects, nine months otherwise), with automatic approval if deadlines are missed. The law takes immediate effect as an emergency measure.

SB 109 prevents utilities from recovering costs related to abandoning power plants if they later build new natural gas resources. Specifically, it blocks qualifying utilities from applying for financing orders to recover energy transition costs (like employee severance, decommissioning, and mine reclamation) through energy transition bonds if they construct new natural gas facilities. The bill amends existing law to deny this cost-recovery mechanism for utilities abandoning generating facilities while developing new natural gas infrastructure. This directly affects utilities seeking to transition away from certain power sources while expanding natural gas operations.

HB 254 modifies New Mexico's utility cost test to allow investor-owned electric utilities to include the value of avoided greenhouse gas emissions when determining if energy efficiency programs are cost-effective. This change directly affects investor-owned utilities by enabling them to count reduced emissions as a financial benefit in cost-benefit analyses for energy-saving programs. The bill amends definitions and procedures in the Efficient Use of Energy Act, requiring the Public Regulation Commission to consider avoided emissions when evaluating whether utility programs meet the "utility cost test" standard. It does not mandate new emissions reductions but changes how existing programs are assessed for cost-effectiveness. The bill is currently pending before the House committees.