underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
SENATE BILL 156
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Elizabeth "Liz" Stefanics and Kristina Ortez and Peter Wirth
and Andrea Romero
AN ACT
RELATING TO ENERGY; ALPHABETIZING DEFINITIONS AND ADDING A
DEFINITION FOR "LOW-INCOME CUSTOMER" TO THE PUBLIC UTILITY ACT;
EXEMPTING LOW-INCOME CUSTOMERS FROM RATE RIDERS FOR NEW
INTERCONNECTED CUSTOMERS; PROVIDING INSTRUCTIONS FOR THE
QUALIFICATION OF LOW-INCOME CUSTOMERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 62-3-3 NMSA 1978 (being Laws 1967,
Chapter 96, Section 3, as amended) is amended to read:
"62-3-3. DEFINITIONS.--Unless otherwise specified, when
used in the Public Utility Act:
A. "affiliated interest" means a person who
directly or indirectly, through one or more intermediaries,
controls or is controlled by or is under common control with a
public utility. Control includes instances when:
.228787.6 underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
(1) a person is an officer, director, partner,
trustee or person of similar status or function;
(2) a person owns directly or indirectly or
has a beneficial interest in ten percent or more of voting
securities of a person;
(3) a person has a level of ownership of
securities other than voting securities that the commission
establishes as creating a presumption of control; and
(4) the possession of the power to direct or
cause the direction of the management and policies of a person
exists in fact, notwithstanding the lack of ownership of ten
percent or more of the person's voting securities;
[B. "commission" means the public regulation
commission;
C. "commissioner" means a member of the commission;
D. "municipality" means a municipal corporation
organized under the laws of the state, and H-class counties;
E. "person" means an individual, firm, partnership,
company, rural electric cooperative organized under Laws 1937,
Chapter 100 or the Rural Electric Cooperative Act, corporation
or lessee, trustee or receiver appointed by any court.
"Person" does not mean a class A county as described in Section
4-36-10 NMSA 1978 or a class B county as described in Section
4-36-8 NMSA 1978. "Person" does not mean a municipality as
defined in this section unless the municipality has elected to
.228787.6
- 2 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
come within the terms of the Public Utility Act as provided in
Section 62-6-5 NMSA 1978. In the absence of voluntary election
by a municipality to come within the provisions of the Public
Utility Act, the municipality shall be expressly excluded from
the operation of that act and from the operation of all its
provisions, and no such municipality shall for any purpose be
considered a public utility;
F. "securities" means stock, stock certificates,
bonds, notes, debentures, mortgages or deeds of trust or
similar evidences of indebtedness issued, executed or assumed
by a utility;
G. "public utility" or "utility" means every person
not engaged solely in interstate business and, except as stated
in Sections 62-3-4 and 62-3-4.1 NMSA 1978, that may own,
operate, lease or control:
(1) any plant, property or facility for the
generation, transmission or distribution, sale or furnishing to
or for the public of electricity for light, heat or power or
other uses;
(2) any plant, property or facility for the
manufacture, storage, distribution, sale or furnishing to or
for the public of natural or manufactured gas or mixed or
liquefied petroleum gas for light, heat or power or other uses;
but "public utility" or "utility" shall not include any plant,
property or facility used for or in connection with the
.228787.6
- 3 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
business of the manufacture, storage, distribution, sale or
furnishing of liquefied petroleum gas in enclosed containers or
tank truck for use by others than consumers who receive their
supply through any pipeline system operating under municipal
authority or franchise and distributing to the public;
(3) any plant, property or facility for the
supplying, storage, distribution or furnishing to or for the
public of water for manufacturing, municipal, domestic or other
uses; provided, however, that nothing contained in this
paragraph shall be construed to apply to irrigation systems,
the chief or principal business of which is to supply water for
the purpose of irrigation;
(4) any plant, property or facility for the
production, transmission, conveyance, delivery or furnishing to
or for the public of steam for heat or power or other uses;
(5) any plant, property or facility for the
supplying and furnishing to or for the public of sanitary
sewers for transmission and disposal of sewage produced by
manufacturing, municipal, domestic or other uses; provided that
"public utility" or "utility" as used in the Public Utility Act
does not include any utility owned or operated by a class A
county as described in Section 4-36-10 NMSA 1978 either
directly or through a corporation owned by or under contract
with such a county; or
(6) any plant, property or facility for the
.228787.6
- 4 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
sale or furnishing to or for the public of goods or services to
reduce the consumption of or demand for electricity or natural
gas, and is either a public utility under the definitions found
in Paragraph (1) or (2) of this subsection, or is an
alternative energy efficiency provider as described in Section
62-17-7 NMSA 1978;
H. "rate" means every rate, tariff, charge or other
compensation for utility service rendered or to be rendered by
a utility and every rule, regulation, practice, act,
requirement or privilege in any way relating to such rate,
tariff, charge or other compensation and any schedule or tariff
or part of a schedule or tariff thereof;
I. "renewable energy" means electrical energy
generated by means of a low- or zero-emission generation
technology that has substantial long-term production potential
and may include, without limitation, the following energy
sources: solar, wind, hydropower, geothermal, landfill gas,
anaerobically digested waste biomass or fuel cells that are not
fossil fueled. "Renewable energy" does not include fossil fuel
or nuclear energy;
J. "service" or "service regulation" means every
rule, regulation, practice, act or requirement relating to the
service or facility of a utility;
K. "Class I transaction" means the sale, lease or
provision of real property, water rights or other goods or
.228787.6
- 5 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
services by an affiliated interest to a public utility with
which it is affiliated or by a public utility to its affiliated
interest;
L. "Class II transaction" means:
(1) the formation after May 19, 1982 of a
corporate subsidiary by a public utility or a public utility
holding company by a public utility or its affiliated interest;
(2) the direct acquisition of the voting
securities or other direct ownership interests of a person by a
public utility if such acquisition would make the utility the
owner of ten percent or more of the voting securities or other
direct ownership interests of that person;
(3) the agreement by a public utility to
purchase securities or other ownership interest of a person
other than a nonprofit corporation, contribute additional
equity to, acquire additional equity interest in or pay or
guarantee any bonds, notes, debentures, deeds of trust or other
evidence of indebtedness of any such person; provided, however,
that a public utility may honor all agreements entered into by
such utility prior to May 19, 1982; or
(4) the divestiture by a public utility of any
affiliated interest that is a corporate subsidiary of the
public utility;
M. "corporate subsidiary" means any person ten
percent or more of whose voting securities or other ownership
.228787.6
- 6 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
interests are directly owned by a public utility;
N. "public utility holding company" means an
affiliated interest that controls a public utility through the
direct or indirect ownership of voting securities of that
public utility;
O. "voting securities" means securities that carry
the present right to vote for the election of directors or
other members of the governing body ultimately responsible for
the management of the organization; and
P. "future test period" means a twelve-month period
beginning no later than the date a proposed rate change is
expected to take effect ]
B. "Class I transaction" means the sale, lease or
provision of real property, water rights or other goods or
services by an affiliated interest to a public utility with
which it is affiliated or by a public utility to its affiliated
interest;
C. "Class II transaction" means:
(1) the formation after May 19, 1982 of a
corporate subsidiary by a public utility or a public utility
holding company by a public utility or its affiliated interest;
(2) the direct acquisition of the voting
securities or other direct ownership interests of a person by a
public utility if the acquisition would make the utility the
owner of ten percent or more of the voting securities or other
.228787.6
- 7 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
direct ownership interests of that person;
(3) the agreement by a public utility to
purchase securities or other ownership interest of a person
other than a nonprofit corporation or contribute additional
equity to, acquire additional equity interest in or pay or
guarantee any bonds, notes, debentures, deeds of trust or other
evidence of indebtedness of a person other than a nonprofit
corporation; provided that a public utility may honor
agreements entered into by that utility prior to May 19, 1982;
or
(4) the divestiture by a public utility of any
affiliated interest that is a corporate subsidiary of the
public utility;
D. "commission" means the public regulation
commission;
E. "commissioner" means a member of the commission;
F. "corporate subsidiary" means a person with ten
percent or more of voting securities or other ownership
interests that are directly owned by a public utility;
G. "future test period" means a twelve-month period
beginning no later than the date a proposed rate change is
expected to take effect;
H. "low-income customer" means a residential
customer of an electric public utility with an annual household
income at or below eighty percent of the county area median
.228787.6
- 8 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
income, as published by the United States department of housing
and urban development;
I. "municipality" means a municipal corporation
organized under the laws of the state and H-class counties;
J. "person" means an individual, a firm, a
partnership, a company, a rural electric cooperative organized
under Laws 1937, Chapter 100 or the Rural Electric Cooperative
Act, a corporation or a lessee, a trustee or a receiver
appointed by any court. "Person" does not mean a class A
county as described in Section 4-36-10 NMSA 1978 or a class B
county as described in Section 4-36-8 NMSA 1978. "Person" does
not mean a municipality as defined in this section unless the
municipality has elected to come within the terms of the Public
Utility Act as provided in Section 62-6-5 NMSA 1978. In the
absence of voluntary election by a municipality to come within
the provisions of the Public Utility Act, the municipality
shall be expressly excluded from the operation of that act and
from the operation of all its provisions, and the municipality
shall not be considered a public utility for any purpose;
K. "public utility" or "utility" means every person
not engaged solely in interstate business and, except as stated
in Sections 62-3-4 and 62-3-4.1 NMSA 1978, that may own,
operate, lease or control a plant, property or facility for
the:
(1) generation, transmission or distribution,
.228787.6
- 9 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
sale or furnishing to or for the public of electricity for
light, heat or power or other uses;
(2) manufacture, storage, distribution, sale
or furnishing to or for the public of natural or manufactured
gas or mixed or liquefied petroleum gas for light, heat or
power or other uses; but "public utility" or "utility" shall
not include a plant, property or facility used for or in
connection with the business of the manufacture, storage,
distribution, sale or furnishing of liquefied petroleum gas in
enclosed containers or tank trucks for use by others than
consumers who receive their supply through a pipeline system
operating under municipal authority or franchise and
distributing to the public;
(3) supplying, storage, distribution or
furnishing to or for the public of water for manufacturing,
municipal, domestic or other uses; provided that nothing
contained in this paragraph shall be construed to apply to
irrigation systems, the chief or principal business of which is
to supply water for the purpose of irrigation;
(4) production, transmission, conveyance,
delivery or furnishing to or for the public of steam for heat
or power or other uses;
(5) supplying and furnishing to or for the
public of sanitary sewers for transmission and disposal of
sewage produced by manufacturing, municipal, domestic or other
.228787.6
- 10 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
uses; provided that "public utility" or "utility" as used in
the Public Utility Act does not include any utility owned or
operated by a class A county as described in Section 4-36-10
NMSA 1978 either directly or through a corporation owned by or
under contract with such a county; or
(6) sale or furnishing to or for the public of
goods or services to reduce the consumption of or demand for
electricity or natural gas and is either a public utility under
the definitions found in Paragraph (1) or (2) of this
subsection or is an alternative energy efficiency provider as
described in Section 62-17-7 NMSA 1978;
L. "public utility holding company" means an
affiliated interest that controls a public utility through the
direct or indirect ownership of voting securities of that
public utility;
M. "rate" means every rate, tariff, charge or other
compensation for utility service rendered or to be rendered by
a utility and every rule, regulation, practice, act,
requirement or privilege in any way relating to the rate,
tariff, charge or other compensation, including a relating
schedule or tariff or a part of a schedule or tariff;
N. "renewable energy" means electrical energy
generated by means of a low- or zero-emission generation
technology that has substantial long-term production potential
and may include, without limitation, the following energy
.228787.6
- 11 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
sources: solar, wind, hydropower, geothermal, landfill gas,
anaerobically digested waste biomass or fuel cells that are not
fossil fueled. "Renewable energy" does not include fossil fuel
or nuclear energy;
O. "securities" means stock, stock certificates,
bonds, notes, debentures, mortgages or deeds of trust or
similar evidences of indebtedness issued, executed or assumed
by a utility;
P. "service" or "service regulation" means every
rule, regulation, practice, act or requirement relating to the
service or facility of a utility; and
Q. "voting securities" means securities that carry
the present right to vote for the election of directors or
other members of the governing body ultimately responsible for
the management of the organization ."
SECTION 2. Section 62-13-13.2 NMSA 1978 (being Laws 2010,
Chapter 102, Section 2 and Laws 2010, Chapter 103, Section 2)
is amended to read:
"62-13-13.2. INTERCONNECTED CUSTOMERS--UTILITY COST
RECOVERY.--
A. Upon request of an investor-owned utility in any
general rate case, the commission shall approve interconnected
customer rate riders to recover the costs of ancillary and
standby services pursuant to this section only for new
interconnected customers, except that a utility may seek
.228787.6
- 12 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
approval of interconnected customer rate riders in the
utility's renewable energy procurement plan filing before
January 1, 2011, to be in effect until the conclusion of the
utility's next general rate case. In establishing
interconnected customer rate riders, the commission shall
assure that costs to be recovered through the rate riders are
not duplicative of costs to be recovered in underlying rates
and shall give due consideration to the reasonably determinable
embedded and incremental costs of the utility to serve new
interconnected customers and the reasonably determinable
benefits to the utility system provided by new interconnected
customers during each three-year period after which new
interconnected customer rate riders go into effect. The
benefits to the utility system, as applicable, include avoided
renewable energy certificate procurement costs, reduced capital
investment costs resulting from the avoidance or deferral of
capital expenditures, reduced energy and capacity costs and
line loss reductions.
B. In a filing made pursuant to Subsection [G ] H of
Section 62-8-7 NMSA 1978, a rural electric cooperative may
implement rates or rate riders by customer class, giving due
consideration to reasonably determinable costs and benefits of
interconnected systems, that are specifically designed to
recover from interconnected customers the fixed costs of
providing electric services to those customers.
.228787.6
- 13 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
C. Nothing in this section shall be interpreted as
preventing the utility from charging rates designed to recover
all of its reasonable costs of providing service to customers.
D. As used in this section:
(1) "ancillary and standby services" means
services that are essential to maintain electric system
reliability and are required by or are a consequence of
interconnecting distributed generation facilities to a
utility's system and may include, among other services,
regulation and frequency response, regulation and voltage
support, spinning reserves and supplemental reserves;
(2) "interconnected customer" means a utility
customer that is also interconnected to non-utility distributed
generation facilities; and
(3) "new interconnected customer" means a
customer that became an interconnected customer after December
31, 2010 or a customer whose renewable energy certificate
purchase agreement entered into prior to January 1, 2011 is no
longer in effect, but does not include a low-income customer ."
SECTION 3. A new section of the Public Utility Act is
enacted to read:
"[NEW MATERIAL] QUALIFICATION AS A LOW-INCOME CUSTOMER--
NOTICE.--
A. A customer of an electric public utility may
qualify as a low-income customer by providing to the utility
.228787.6
- 14 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
that provides the customer's service:
(1) a signed self-attestation that the
customer's household income and household size qualify the
customer as a low-income customer;
(2) proof of residence in a low-income or
affordable housing facility; or
(3) proof of current enrollment in a low-
income program facilitated or administered by the state or
federal government, including:
(a) the federal medicaid program;
(b) the federal supplemental nutrition
assistance program;
(c) the federal low income home energy
assistance program;
(d) a state or federal first-time
homeowner or housing rehabilitation program;
(e) the federal temporary assistance for
needy families program;
(f) the federal supplemental security
income program;
(g) the federal special supplemental
nutrition program for women, infants and children;
(h) the federal food distribution
program on Indian reservations;
(i) the federal section eight housing
.228787.6
- 15 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
choice voucher program;
(j) the federal solar for all program;
or
(k) any other state or federal program
that provides assistance for people who would qualify as low-
income customers, as determined by the commission.
B. By December 31, 2025 and in the month of
December of each year thereafter, an electric public utility
shall notify its customers of the requirements to qualify as a
low-income customer and instructions on how to submit any
required documentation. An electric public utility shall not
require a customer who has qualified as a low-income customer
to requalify as a low-income customer within five years of the
customer's last qualification."
- 16 -
.228787.6