The Local Choice Energy Act is designed to enhance competition in the electricity market, potentially leading to lower prices and increased renewable energy adoption in New Mexico. It sets a renewable portfolio standard for local choice energy providers, requiring them to gradually increase their reliance on renewable sources, aiming for zero carbon resources by 2045. The act also includes provisions for opting out of local choice programs, ensuring customer autonomy in energy choices and protection from incurring liabilities from the local choice energy provider.
Senate Bill 165, titled the Local Choice Energy Act, allows customers within municipalities, counties, or tribal jurisdictions in New Mexico to aggregate their electric loads through local choice energy providers. This bill empowers local governments to create energy programs that enable residents to purchase and potentially sell electricity within their communities, effectively creating a local energy market. The Act mandates that local choice energy providers maintain authority over service rates and procurement while public utilities retain control over transmission and distribution services.
While the bill aims to promote local energy solutions and customer choice, advocates express concerns over the implications for existing public utilities and the regulatory landscape. Critics worry that local energy programs might compromise the established public utility framework, potentially leading to inequities in energy access or service quality. Moreover, there may be pushback regarding how local governments will be able to implement such energy programs, particularly those with limited resources or expertise in energy management.