New Mexico 2025 Regular Session

New Mexico Senate Bill SB156 Compare Versions

Only one version of the bill is available at this time.

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28	28	SENATE BILL 156
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Elizabeth "Liz" Stefanics and Kristina Ortez and Peter Wirth
48	48	and Andrea Romero
49	49	AN ACT
50	50	RELATING TO ENERGY; ALPHABETIZING DEFINITIONS AND ADDING A
51	51	DEFINITION FOR "LOW-INCOME CUSTOMER" TO THE PUBLIC UTILITY ACT;
52	52	EXEMPTING LOW-INCOME CUSTOMERS FROM RATE RIDERS FOR NEW
53	53	INTERCONNECTED CUSTOMERS; PROVIDING INSTRUCTIONS FOR THE
54	54	QUALIFICATION OF LOW-INCOME CUSTOMERS.
55	55	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
56	56	SECTION 1. Section 62-3-3 NMSA 1978 (being Laws 1967,
57	57	Chapter 96, Section 3, as amended) is amended to read:
58	58	"62-3-3. DEFINITIONS.--Unless otherwise specified, when
59	59	used in the Public Utility Act:
60	60	A. "affiliated interest" means a person who
61	61	directly or indirectly, through one or more intermediaries,
62	62	controls or is controlled by or is under common control with a
63	63	public utility. Control includes instances when:
64	64	.228787.6 underscored material = new
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91	91	(1) a person is an officer, director, partner,
92	92	trustee or person of similar status or function;
93	93	(2) a person owns directly or indirectly or
94	94	has a beneficial interest in ten percent or more of voting
95	95	securities of a person;
96	96	(3) a person has a level of ownership of
97	97	securities other than voting securities that the commission
98	98	establishes as creating a presumption of control; and
99	99	(4) the possession of the power to direct or
100	100	cause the direction of the management and policies of a person
101	101	exists in fact, notwithstanding the lack of ownership of ten
102	102	percent or more of the person's voting securities;
103	103	[B. "commission" means the public regulation
104	104	commission;
105	105	C. "commissioner" means a member of the commission;
106	106	D. "municipality" means a municipal corporation
107	107	organized under the laws of the state, and H-class counties;
108	108	E. "person" means an individual, firm, partnership,
109	109	company, rural electric cooperative organized under Laws 1937,
110	110	Chapter 100 or the Rural Electric Cooperative Act, corporation
111	111	or lessee, trustee or receiver appointed by any court.
112	112	"Person" does not mean a class A county as described in Section
113	113	4-36-10 NMSA 1978 or a class B county as described in Section
114	114	4-36-8 NMSA 1978. "Person" does not mean a municipality as
115	115	defined in this section unless the municipality has elected to
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144	144	come within the terms of the Public Utility Act as provided in
145	145	Section 62-6-5 NMSA 1978. In the absence of voluntary election
146	146	by a municipality to come within the provisions of the Public
147	147	Utility Act, the municipality shall be expressly excluded from
148	148	the operation of that act and from the operation of all its
149	149	provisions, and no such municipality shall for any purpose be
150	150	considered a public utility;
151	151	F. "securities" means stock, stock certificates,
152	152	bonds, notes, debentures, mortgages or deeds of trust or
153	153	similar evidences of indebtedness issued, executed or assumed
154	154	by a utility;
155	155	G. "public utility" or "utility" means every person
156	156	not engaged solely in interstate business and, except as stated
157	157	in Sections 62-3-4 and 62-3-4.1 NMSA 1978, that may own,
158	158	operate, lease or control:
159	159	(1) any plant, property or facility for the
160	160	generation, transmission or distribution, sale or furnishing to
161	161	or for the public of electricity for light, heat or power or
162	162	other uses;
163	163	(2) any plant, property or facility for the
164	164	manufacture, storage, distribution, sale or furnishing to or
165	165	for the public of natural or manufactured gas or mixed or
166	166	liquefied petroleum gas for light, heat or power or other uses;
167	167	but "public utility" or "utility" shall not include any plant,
168	168	property or facility used for or in connection with the
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197	197	business of the manufacture, storage, distribution, sale or
198	198	furnishing of liquefied petroleum gas in enclosed containers or
199	199	tank truck for use by others than consumers who receive their
200	200	supply through any pipeline system operating under municipal
201	201	authority or franchise and distributing to the public;
202	202	(3) any plant, property or facility for the
203	203	supplying, storage, distribution or furnishing to or for the
204	204	public of water for manufacturing, municipal, domestic or other
205	205	uses; provided, however, that nothing contained in this
206	206	paragraph shall be construed to apply to irrigation systems,
207	207	the chief or principal business of which is to supply water for
208	208	the purpose of irrigation;
209	209	(4) any plant, property or facility for the
210	210	production, transmission, conveyance, delivery or furnishing to
211	211	or for the public of steam for heat or power or other uses;
212	212	(5) any plant, property or facility for the
213	213	supplying and furnishing to or for the public of sanitary
214	214	sewers for transmission and disposal of sewage produced by
215	215	manufacturing, municipal, domestic or other uses; provided that
216	216	"public utility" or "utility" as used in the Public Utility Act
217	217	does not include any utility owned or operated by a class A
218	218	county as described in Section 4-36-10 NMSA 1978 either
219	219	directly or through a corporation owned by or under contract
220	220	with such a county; or
221	221	(6) any plant, property or facility for the
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250	250	sale or furnishing to or for the public of goods or services to
251	251	reduce the consumption of or demand for electricity or natural
252	252	gas, and is either a public utility under the definitions found
253	253	in Paragraph (1) or (2) of this subsection, or is an
254	254	alternative energy efficiency provider as described in Section
255	255	62-17-7 NMSA 1978;
256	256	H. "rate" means every rate, tariff, charge or other
257	257	compensation for utility service rendered or to be rendered by
258	258	a utility and every rule, regulation, practice, act,
259	259	requirement or privilege in any way relating to such rate,
260	260	tariff, charge or other compensation and any schedule or tariff
261	261	or part of a schedule or tariff thereof;
262	262	I. "renewable energy" means electrical energy
263	263	generated by means of a low- or zero-emission generation
264	264	technology that has substantial long-term production potential
265	265	and may include, without limitation, the following energy
266	266	sources: solar, wind, hydropower, geothermal, landfill gas,
267	267	anaerobically digested waste biomass or fuel cells that are not
268	268	fossil fueled. "Renewable energy" does not include fossil fuel
269	269	or nuclear energy;
270	270	J. "service" or "service regulation" means every
271	271	rule, regulation, practice, act or requirement relating to the
272	272	service or facility of a utility;
273	273	K. "Class I transaction" means the sale, lease or
274	274	provision of real property, water rights or other goods or
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303	303	services by an affiliated interest to a public utility with
304	304	which it is affiliated or by a public utility to its affiliated
305	305	interest;
306	306	L. "Class II transaction" means:
307	307	(1) the formation after May 19, 1982 of a
308	308	corporate subsidiary by a public utility or a public utility
309	309	holding company by a public utility or its affiliated interest;
310	310	(2) the direct acquisition of the voting
311	311	securities or other direct ownership interests of a person by a
312	312	public utility if such acquisition would make the utility the
313	313	owner of ten percent or more of the voting securities or other
314	314	direct ownership interests of that person;
315	315	(3) the agreement by a public utility to
316	316	purchase securities or other ownership interest of a person
317	317	other than a nonprofit corporation, contribute additional
318	318	equity to, acquire additional equity interest in or pay or
319	319	guarantee any bonds, notes, debentures, deeds of trust or other
320	320	evidence of indebtedness of any such person; provided, however,
321	321	that a public utility may honor all agreements entered into by
322	322	such utility prior to May 19, 1982; or
323	323	(4) the divestiture by a public utility of any
324	324	affiliated interest that is a corporate subsidiary of the
325	325	public utility;
326	326	M. "corporate subsidiary" means any person ten
327	327	percent or more of whose voting securities or other ownership
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356	356	interests are directly owned by a public utility;
357	357	N. "public utility holding company" means an
358	358	affiliated interest that controls a public utility through the
359	359	direct or indirect ownership of voting securities of that
360	360	public utility;
361	361	O. "voting securities" means securities that carry
362	362	the present right to vote for the election of directors or
363	363	other members of the governing body ultimately responsible for
364	364	the management of the organization; and
365	365	P. "future test period" means a twelve-month period
366	366	beginning no later than the date a proposed rate change is
367	367	expected to take effect ]
368	368	B. "Class I transaction" means the sale, lease or
369	369	provision of real property, water rights or other goods or
370	370	services by an affiliated interest to a public utility with
371	371	which it is affiliated or by a public utility to its affiliated
372	372	interest;
373	373	C. "Class II transaction" means:
374	374	(1) the formation after May 19, 1982 of a
375	375	corporate subsidiary by a public utility or a public utility
376	376	holding company by a public utility or its affiliated interest;
377	377	(2) the direct acquisition of the voting
378	378	securities or other direct ownership interests of a person by a
379	379	public utility if the acquisition would make the utility the
380	380	owner of ten percent or more of the voting securities or other
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409	409	direct ownership interests of that person;
410	410	(3) the agreement by a public utility to
411	411	purchase securities or other ownership interest of a person
412	412	other than a nonprofit corporation or contribute additional
413	413	equity to, acquire additional equity interest in or pay or
414	414	guarantee any bonds, notes, debentures, deeds of trust or other
415	415	evidence of indebtedness of a person other than a nonprofit
416	416	corporation; provided that a public utility may honor
417	417	agreements entered into by that utility prior to May 19, 1982;
418	418	or
419	419	(4) the divestiture by a public utility of any
420	420	affiliated interest that is a corporate subsidiary of the
421	421	public utility;
422	422	D. "commission" means the public regulation
423	423	commission;
424	424	E. "commissioner" means a member of the commission;
425	425	F. "corporate subsidiary" means a person with ten
426	426	percent or more of voting securities or other ownership
427	427	interests that are directly owned by a public utility;
428	428	G. "future test period" means a twelve-month period
429	429	beginning no later than the date a proposed rate change is
430	430	expected to take effect;
431	431	H. "low-income customer" means a residential
432	432	customer of an electric public utility with an annual household
433	433	income at or below eighty percent of the county area median
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462	462	income, as published by the United States department of housing
463	463	and urban development;
464	464	I. "municipality" means a municipal corporation
465	465	organized under the laws of the state and H-class counties;
466	466	J. "person" means an individual, a firm, a
467	467	partnership, a company, a rural electric cooperative organized
468	468	under Laws 1937, Chapter 100 or the Rural Electric Cooperative
469	469	Act, a corporation or a lessee, a trustee or a receiver
470	470	appointed by any court. "Person" does not mean a class A
471	471	county as described in Section 4-36-10 NMSA 1978 or a class B
472	472	county as described in Section 4-36-8 NMSA 1978. "Person" does
473	473	not mean a municipality as defined in this section unless the
474	474	municipality has elected to come within the terms of the Public
475	475	Utility Act as provided in Section 62-6-5 NMSA 1978. In the
476	476	absence of voluntary election by a municipality to come within
477	477	the provisions of the Public Utility Act, the municipality
478	478	shall be expressly excluded from the operation of that act and
479	479	from the operation of all its provisions, and the municipality
480	480	shall not be considered a public utility for any purpose;
481	481	K. "public utility" or "utility" means every person
482	482	not engaged solely in interstate business and, except as stated
483	483	in Sections 62-3-4 and 62-3-4.1 NMSA 1978, that may own,
484	484	operate, lease or control a plant, property or facility for
485	485	the:
486	486	(1) generation, transmission or distribution,
487	487	.228787.6
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515	515	sale or furnishing to or for the public of electricity for
516	516	light, heat or power or other uses;
517	517	(2) manufacture, storage, distribution, sale
518	518	or furnishing to or for the public of natural or manufactured
519	519	gas or mixed or liquefied petroleum gas for light, heat or
520	520	power or other uses; but "public utility" or "utility" shall
521	521	not include a plant, property or facility used for or in
522	522	connection with the business of the manufacture, storage,
523	523	distribution, sale or furnishing of liquefied petroleum gas in
524	524	enclosed containers or tank trucks for use by others than
525	525	consumers who receive their supply through a pipeline system
526	526	operating under municipal authority or franchise and
527	527	distributing to the public;
528	528	(3) supplying, storage, distribution or
529	529	furnishing to or for the public of water for manufacturing,
530	530	municipal, domestic or other uses; provided that nothing
531	531	contained in this paragraph shall be construed to apply to
532	532	irrigation systems, the chief or principal business of which is
533	533	to supply water for the purpose of irrigation;
534	534	(4) production, transmission, conveyance,
535	535	delivery or furnishing to or for the public of steam for heat
536	536	or power or other uses;
537	537	(5) supplying and furnishing to or for the
538	538	public of sanitary sewers for transmission and disposal of
539	539	sewage produced by manufacturing, municipal, domestic or other
540	540	.228787.6
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568	568	uses; provided that "public utility" or "utility" as used in
569	569	the Public Utility Act does not include any utility owned or
570	570	operated by a class A county as described in Section 4-36-10
571	571	NMSA 1978 either directly or through a corporation owned by or
572	572	under contract with such a county; or
573	573	(6) sale or furnishing to or for the public of
574	574	goods or services to reduce the consumption of or demand for
575	575	electricity or natural gas and is either a public utility under
576	576	the definitions found in Paragraph (1) or (2) of this
577	577	subsection or is an alternative energy efficiency provider as
578	578	described in Section 62-17-7 NMSA 1978;
579	579	L. "public utility holding company" means an
580	580	affiliated interest that controls a public utility through the
581	581	direct or indirect ownership of voting securities of that
582	582	public utility;
583	583	M. "rate" means every rate, tariff, charge or other
584	584	compensation for utility service rendered or to be rendered by
585	585	a utility and every rule, regulation, practice, act,
586	586	requirement or privilege in any way relating to the rate,
587	587	tariff, charge or other compensation, including a relating
588	588	schedule or tariff or a part of a schedule or tariff;
589	589	N. "renewable energy" means electrical energy
590	590	generated by means of a low- or zero-emission generation
591	591	technology that has substantial long-term production potential
592	592	and may include, without limitation, the following energy
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621	621	sources: solar, wind, hydropower, geothermal, landfill gas,
622	622	anaerobically digested waste biomass or fuel cells that are not
623	623	fossil fueled. "Renewable energy" does not include fossil fuel
624	624	or nuclear energy;
625	625	O. "securities" means stock, stock certificates,
626	626	bonds, notes, debentures, mortgages or deeds of trust or
627	627	similar evidences of indebtedness issued, executed or assumed
628	628	by a utility;
629	629	P. "service" or "service regulation" means every
630	630	rule, regulation, practice, act or requirement relating to the
631	631	service or facility of a utility; and
632	632	Q. "voting securities" means securities that carry
633	633	the present right to vote for the election of directors or
634	634	other members of the governing body ultimately responsible for
635	635	the management of the organization ."
636	636	SECTION 2. Section 62-13-13.2 NMSA 1978 (being Laws 2010,
637	637	Chapter 102, Section 2 and Laws 2010, Chapter 103, Section 2)
638	638	is amended to read:
639	639	"62-13-13.2. INTERCONNECTED CUSTOMERS--UTILITY COST
640	640	RECOVERY.--
641	641	A. Upon request of an investor-owned utility in any
642	642	general rate case, the commission shall approve interconnected
643	643	customer rate riders to recover the costs of ancillary and
644	644	standby services pursuant to this section only for new
645	645	interconnected customers, except that a utility may seek
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674	674	approval of interconnected customer rate riders in the
675	675	utility's renewable energy procurement plan filing before
676	676	January 1, 2011, to be in effect until the conclusion of the
677	677	utility's next general rate case. In establishing
678	678	interconnected customer rate riders, the commission shall
679	679	assure that costs to be recovered through the rate riders are
680	680	not duplicative of costs to be recovered in underlying rates
681	681	and shall give due consideration to the reasonably determinable
682	682	embedded and incremental costs of the utility to serve new
683	683	interconnected customers and the reasonably determinable
684	684	benefits to the utility system provided by new interconnected
685	685	customers during each three-year period after which new
686	686	interconnected customer rate riders go into effect. The
687	687	benefits to the utility system, as applicable, include avoided
688	688	renewable energy certificate procurement costs, reduced capital
689	689	investment costs resulting from the avoidance or deferral of
690	690	capital expenditures, reduced energy and capacity costs and
691	691	line loss reductions.
692	692	B. In a filing made pursuant to Subsection [G ] H of
693	693	Section 62-8-7 NMSA 1978, a rural electric cooperative may
694	694	implement rates or rate riders by customer class, giving due
695	695	consideration to reasonably determinable costs and benefits of
696	696	interconnected systems, that are specifically designed to
697	697	recover from interconnected customers the fixed costs of
698	698	providing electric services to those customers.
699	699	.228787.6
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727	727	C. Nothing in this section shall be interpreted as
728	728	preventing the utility from charging rates designed to recover
729	729	all of its reasonable costs of providing service to customers.
730	730	D. As used in this section:
731	731	(1) "ancillary and standby services" means
732	732	services that are essential to maintain electric system
733	733	reliability and are required by or are a consequence of
734	734	interconnecting distributed generation facilities to a
735	735	utility's system and may include, among other services,
736	736	regulation and frequency response, regulation and voltage
737	737	support, spinning reserves and supplemental reserves;
738	738	(2) "interconnected customer" means a utility
739	739	customer that is also interconnected to non-utility distributed
740	740	generation facilities; and
741	741	(3) "new interconnected customer" means a
742	742	customer that became an interconnected customer after December
743	743	31, 2010 or a customer whose renewable energy certificate
744	744	purchase agreement entered into prior to January 1, 2011 is no
745	745	longer in effect, but does not include a low-income customer ."
746	746	SECTION 3. A new section of the Public Utility Act is
747	747	enacted to read:
748	748	"[NEW MATERIAL] QUALIFICATION AS A LOW-INCOME CUSTOMER--
749	749	NOTICE.--
750	750	A. A customer of an electric public utility may
751	751	qualify as a low-income customer by providing to the utility
752	752	.228787.6
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780	780	that provides the customer's service:
781	781	(1) a signed self-attestation that the
782	782	customer's household income and household size qualify the
783	783	customer as a low-income customer;
784	784	(2) proof of residence in a low-income or
785	785	affordable housing facility; or
786	786	(3) proof of current enrollment in a low-
787	787	income program facilitated or administered by the state or
788	788	federal government, including:
789	789	(a) the federal medicaid program;
790	790	(b) the federal supplemental nutrition
791	791	assistance program;
792	792	(c) the federal low income home energy
793	793	assistance program;
794	794	(d) a state or federal first-time
795	795	homeowner or housing rehabilitation program;
796	796	(e) the federal temporary assistance for
797	797	needy families program;
798	798	(f) the federal supplemental security
799	799	income program;
800	800	(g) the federal special supplemental
801	801	nutrition program for women, infants and children;
802	802	(h) the federal food distribution
803	803	program on Indian reservations;
804	804	(i) the federal section eight housing
805	805	.228787.6
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833	833	choice voucher program;
834	834	(j) the federal solar for all program;
835	835	or
836	836	(k) any other state or federal program
837	837	that provides assistance for people who would qualify as low-
838	838	income customers, as determined by the commission.
839	839	B. By December 31, 2025 and in the month of
840	840	December of each year thereafter, an electric public utility
841	841	shall notify its customers of the requirements to qualify as a
842	842	low-income customer and instructions on how to submit any
843	843	required documentation. An electric public utility shall not
844	844	require a customer who has qualified as a low-income customer
845	845	to requalify as a low-income customer within five years of the
846	846	customer's last qualification."
847	847	- 16 -
848	848	.228787.6