Distributed Generation Written Statement
The proposed legislation will modify the existing Distributed Generation Disclosure Act by introducing mandatory disclosure provisions aimed to protect consumers from potential misrepresentation or abuses within the market of distributed energy generation. By making it a requirement for sellers and marketers to provide clear and detailed information, SB233 serves to bolster consumer rights and create accountability within the industry. Failure to meet these disclosure stipulations will be classified as an unfair trade practice under the Unfair Practices Act, thereby enhancing the legal consequences for companies that do not comply.
Senate Bill 233 aims to enhance consumer protection in the context of distributed energy generation systems in New Mexico. The bill stipulates that any agreement related to the financing, sale, or lease of these systems must include a comprehensive written statement outlining critical details pertaining to the system, including system design assumptions, performance guarantees, purchase price, and any applicable fees. This requirement is intended to ensure transparency and facilitate informed decision-making by consumers entering into agreements concerning energy generation systems.
There are potential points of contention surrounding the bill, particularly with respect to the administration and enforcement of these new disclosure requirements. Some stakeholders may argue that the burden of compliance could deter smaller businesses from participating in the distributed energy market due to increased regulations and potential liabilities. Additionally, there may be concerns regarding how these disclosure mandates will be enforced and monitored by state authorities, raising questions about the effectiveness of the established regulatory framework for consumer protection in this rapidly evolving sector.