The bill amends existing laws to enhance the integration of advanced grid technology projects in applications for grid modernization submitted by public utilities to the Public Regulation Commission. It allows utilities to recover costs associated with these projects from customers and mandates their inclusion in utility integrated resource plans and annual reports from distribution cooperative utilities. The legislation defines "advanced grid technology" and "advanced grid technology projects," which focus on improving the efficiency, capacity, and reliability of electric transmission and distribution systems. It also establishes criteria for the commission's review of modernization applications, emphasizing system efficiency, renewable energy integration, and cost-effectiveness for ratepayers.

Additionally, the bill introduces regulations for self-source generation resources and qualified microgrids in New Mexico. It specifies that energy generated and sold from a self-source generation resource owned by a qualified microgrid will not be classified as retail sales until 2035, with a requirement that all energy produced by these microgrids must come from net-zero carbon resources by 2045. Operators of qualified microgrids must report to the Public Regulation Commission to demonstrate compliance with this standard. The bill also clarifies definitions for key terms such as "electric public utility," "net-zero carbon resource," and "qualified microgrid," with an effective date for the provisions set for July 1, 2025. Overall, the legislation aims to promote sustainable energy practices and clarify the regulatory framework surrounding microgrids and self-source generation in the state.

Statutes affected:
introduced version: 62-17-4, 62-17-10, 62-17-11
GE substitute: 62-8-13, 62-17-4, 62-17-10, 62-17-11
Final Version: 62-8-13, 62-17-4, 62-17-10, 62-17-11