Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR
Sens. Stefanics and Wirth/Reps. Ortez,
Romero, A. and Roybal Caballero
LAST UPDATED
ORIGINAL DATE 2/12/2025
SHORT TITLE Low-Income Utility Users
BILL
NUMBER Senate Bill 156
ANALYST Rodriguez
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
PRC
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring General Fund
HCA
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Conflicts with Senate Bill 109
Relates with House Bill 91
Sources of Information
LFC Files
Agency Analysis Received From
Public Regulation Commission (PRC) Health Care Authority (HCA) Office of the Attorney General (NMAG)
SUMMARY
Synopsis of Senate Bill 156
Senate Bill 156 (SB156) defines low-income customer eligibility and qualifications, exempts
low-income customers from the new interconnected customer definition, and revises definitions
in the Public Utility Act.
SB156 defines the criteria for qualifying as a low-income customer. Acceptable proof to the
utility may include a signed self-attestation, proof of residence in low-income or affordable
housing facility, or proof of enrollment in low-income program facilitated by state or federal
government. The bill mandates that electric public utilities inform customers of the requirements
and instructions for qualifying as a low-income customer by December 31, 2025, and annually
thereafter. Once qualified, customers do not need to reapply for low-income status for five years.
SB156 also amends the definition of a “new interconnected customer”—customers who generate
their own electricity and connect to the grid—to exclude low-income customers. Additionally, it Senate Bill 156 – Page 2
adds a definition for low-income customers and revises the definition of a public utility.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
While difficult to determine, the changes in SB156 may cause utility companies to seek changes
in existing rates from the Public Regulation Commission (PRC). Additional rate cases or
adjustments may increase the agency’s workload.
The Health Care Authority (HCA) also notes SB156 may cause an additional workload for the
agency because the agency may see an increase in calls or visits from customers requesting
verification of enrollment in a public assistance program to qualify as a low-income customer.
The agency notes:
HCA administers [the Supplemental Nutrition Assistance Program, Temporary
Assistance for Needy Families, Medicaid, and the Low-Income Home Energy Assistance
programs]. SB 156 outlines that a customer can provide proof of enrollment in the low-
income programs to qualify as a low-income customer. HCA could see an increase in
phone calls or through the door numbers as the customers could be requesting this
verification. To prevent phone calls or in-person visits the customer could access the
proof of enrollment through Unified Portal (UP).
SIGNIFICANT ISSUES
Low-Income Eligibility
SB156 defines low-income customer as a residential customer of an electric public utility with an
annual household income at or below 80 percent of the county area median income, as published
by the U.S. Department of Housing and Urban Development (HUD).
As defined by HUD, below is a table of annual household incomes at 80 percent of the New
Mexico median income.
80 Percent of New Mexico Median Income
1 Person 2 Person 3 Person 4 Person 5 Person 6 Person
$44,200 $50,500 $56,800 $63,100 $68,150 $73,200
For the purposes of this analysis, LFC will use 80 percent of the median income of a four-person
household—$63.1 thousand. Based on the most recent U.S. Census data, approximately 40.6
percent, or 342.6 thousand, of New Mexico households make an income of at least $50 thousand.
Recovering Costs at Just and Reasonable Rates
The Public Utility Act allows utilities to recover prudent and reasonable costs through PRC-
approved tariff riders or base rates. Generally, utilities split costs among different customer
classes, such as residential, commercial, and industrial. Typically, utility rates are assigned to
different customer classes such that the rate each customer class pays reflects, as closely as
possible, the costs they are responsible for creating. PRC uses this cost-causation principle to Senate Bill 156 – Page 3
ensure rates are just and reasonable, as required by statute. Just and reasonable rates ensure,
among other things, that the entity responsible for causing the cost pays for it. Reducing the
amount of customers in a class, such as exempting low-income residential customers from rates
applied to the residential class for interconnection costs, would lead to higher costs and rates for
the remaining customers in the class.
As is, Section 62-13-13.2 NMSA 1978 allows utilities to recover costs from customers who
generate their own electricity and connect to the grid. It allows PRC to approve interconnected
customer rate riders when requested by utility companies and specifies that rate riders can only
apply to new interconnected customers, or customers who interconnected after 2010, or whose
renewable energy certificate agreement is no longer in effect. SB156 proposes excluding low-
income customers from “new interconnected customers,” which, as noted by PRC, aims to
reduce costs for low-income electric utility customers by exempting them from rate riders
associated with new interconnection costs when they install distributed generation, such as solar
panels, to generate some or all their own electricity on-site. However, PRC raises concerns this
change would likely increase costs for all other residential customers. PRC writes:
This would likely increase costs to all other residential customers in order to pay for the
low-income new interconnection costs. Therefore, the benefit to low-income customers
applies only to low-income customers that newly interconnect their distributed generation
(solar) to the public utility. Other low-income customers and other residential customers
are not benefited and are subject to the same rate riders as other customers.
Current statutes aim to prevent subsidization within a rate class unless subsidization is
expressly allowed, such as by the Community Solar Act. By exempting low-income
residential customers from the costs of newly interconnected distribution generation,
other residential customers within the same rate class would bear costs that benefit
certain low-income customers in that class and that would be a subsidization by the other
residential customers.
Reducing Energy Costs for Low-Income Customers
There are other options to help reduce energy costs to low-income households without increasing
the bills of other customers. For example, the federally funded Low-Income Home Energy
Assistance Program (LIHEAP), administered by the state Health Care Authority, provides
financial assistance to eligible individuals to cover heating and colling costs. Utility companies
also manage internal programs to help reduce costs, such as PNM’s Good Neighbor Fund that
assists low-income families with electric bills during peak cold months.
Additionally, Section 62-8-6 NMSA 1978 already allows PRC to approve energy efficiency
programs designed to reduce the burden of energy costs on low-income customers pursuant to
the Efficient Use of Energy Act. Examples of such programs include weatherization assistance,
such as insulation and air sealing; energy saving tools, such as LED light bulbs and advanced
power strips; and rebates for energy-efficient appliances. An analysis by the National Renewable
Energy Laboratory found that cost-effective energy efficiency measures can help reduce
consumption of electricity and other fuels in low-income households by 13 percent to 31 percent.
The report found, in New Mexico, the savings could be between 21 percent and 25 percent for
low-income households.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP Senate Bill 156 – Page 4
SB156 conflicts with Senate Bill 109, which cleans language in the Public Regulation
Commission Act. The Office of the Attorney General (NMAG) raises concerns with proposed
definitions of “commission.” NMAG writes:
The definition of “Commission” as used in Section 1 (amending 62-3-3 NMSA) conflicts
with the proposed amendments in SB109. SB109 proposes changing the definition of
“Commission” in 62-19-2 NMSA to mean “the public regulation commission, which is
the three-member-appointed regulatory and adjudicatory body.” This bill, SB156,
proposes keeping the existing definition of “Commission,” in 62-3-3 NMSA, meaning
“the public regulation commission.” SB 109 may result in conflicting definitions of
“Commission” between the Public Utilities Act and the Public Regulation Commission
Act.
SB156 relates to House Bill 91 (HB91), which amends the Public Utility Act to allow different
rates for low-income customers. As noted by PRC, if both bills were signed into law, the new
definition of low-income customers provided in SB156 would apply to HB91.
OTHER SUBSTANT IVE ISSUES
SB156 could benefit from using similar definitions already provided in other sections of the
Public Utilities Act. As noted by NMAG, the proposed definition of “low-income customer” in
SB156 varies with definitions provided in other sections of the Public Utility Act. NMAG
provides the following examples:
The proposed definition of “low-income customer” is slightly different than the definition
used in 62-8-12 NMSA, which is a subsection of the Public Utilities Act, and relates to
applications to expand transportation electrification. 62-8-12(E) defines low income,
specifically for the purposes of that section, as “annual household adjusted gross income,
as defined in the Income Tax Act [Chapter 7, Article 2 NMSA 1978], of equal to or less
than two hundred percent of the federal poverty level.”
62-17A-2 NMSA, Community Energy Efficiency Development Block Grant Act, which
defines a low-income person as “an individual, couple or family whose annual household
adjusted gross income, as defined in Section 62 of the federal Internal Revenue Code of
1986, as that section may be amended or renumbered, does not exceed two hundred
percent of the federal poverty level.”
62-16B-2 NMSA, Community Solar, which defines low-income customer as “a
residential customer of a qualifying utility with an annual household income at or below
eighty percent of area median income, as published by the United States department of
housing and urban development, or that is enrolled in a low income program facilitated
by the state or a low income energy program led by the qualifying utility or as determined
by the commission.”
17.7.2.7 NMAC, Energy Efficiency Programs, which defines low-income customer as “a
customer with an annual household income at or below two hundred percent of the
federal poverty level, as published annually by the United States department of health and
human services.”
The Health Care Authority raises similar concerns and suggests amending the definition of low- Senate Bill 156 – Page 5
income customers to include financial requirements that correlate with the Low-Income Home
Energy Assistance Program (LIHEAP). HCA writes:
Being that this bill focuses on a low-income-based program, HCA suggests amending the
definition of “low-income customer” to include financial requirements that correlate with
the existing similar program, Low-Income Home Energy Assistance Program (LIHEAP).
LIHEAP provides home energy cost assistance to customers whose income is at or below
150% of the Federal Poverty Guidelines.
ADMINISTRATIVE IMPLICATIONS
As noted by HCA, there are additional resources that utility companies could use to very low-
income eligibility. HCA writes:
There is a web-based service that exists that provides information on Medicaid and
SNAP enrollment for the Universal Service Administrative Company (USAC) Lifeline
program for low-cost cell phone and internet service. If there is a future need to allow
public electric utility companies to query this information, detailed discovery sessions
would be required to estimate the cost and timeline for the needed IT changes.
JR/hj/hg Senate Bill 156 – Page 6
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Bernalillo County 86,400$ 48,400$ 55,300$ 62,200$ 69,100$ 74,650$ 80,200$
Catron County 58,700$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Chaves County 65,000$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Cibola County 65,400$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Colfax County 66,600$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Curry County 68,800$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
De Baca County 81,700$ 41,950$ 47,950$ 53,950$ 59,950$ 64,750$ 69,550$
Dona Ana County 65,800$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Eddy County 101,800$ 53,150$ 60,750$ 68,350$ 75,900$ 82,000$ 88,050$
Grant County 71,900$ 40,150$ 45,900$ 51,600$ 57,350$ 61,950$ 66,550$
Guadalupe County 51,600$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Harding County 72,300$ 39,800$ 45,450$ 51,150$ 56,800$ 61,350$ 65,900$
Hidalgo County 67,400$ 39,550$ 45,200$ 50,850
$ 56,500$ 61,050$ 65,550$
Lea County 73,800 $ 41,350$ 47,250$ 53,150$ 59,050$ 63,800$ 68,500$
Lincoln County 63,600$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Los Alamos County 168,500$ 68,500$ 78,250$ 88,050$ 97,800$ 105,650$ 113,450$
Luna County 54,800$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
McKinley County 49,800$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Mora County 54,100$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Otero County 78,600$ 39,800$ 45,450$ 51,150$ 56,800$ 61,350$ 65,900$
Quay County 53,100$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Rio Arriba County 69,400$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Roosevelt County 73,000$ 40,350$ 46,100$ 51,850$ 57,600$ 62,250$ 66,850$
Sandoval County 86,400$ 48,400$ 55,300$ 62,200$ 69,100$ 74,650$ 80,200$
San Juan County 61,600$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
San Miguel County 56,500
$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Santa Fe County 91,500$ 51,250$ 58,600$ 65,900$ 73,200$ 79,100$ 84,950$
Sierra County 61,900$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Socorro County 55,000$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Taos County 74,300$ 39,800$ 45,450$ 51,150$ 56,800$ 61,350$ 65,900$
Torrance County 86,400$ 48,400$ 55,300$ 62,200$ 69,100$ 74,650$ 80,200$
Union County 55,200$ 39,550$ 45,200$ 50,850$ 56,500$ 61,050$ 65,550$
Valencia County 86,400$ 48,400$ 55,300$ 62,200$ 69,100$ 74,650$ 80,200$
Source: U.S. Department of Housing and Urban Development (HUD)
Persons in Family
80 Percent Median Family IncomeMedian
Family
Income