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 related to these projects from customers and mandates their inclusion in utility integrated resource plans and annual reports of distribution cooperative utilities. The legislation defines "grid modernization" and "advanced grid technology," specifying qualifying improvements such as advanced metering infrastructure, automated control systems, and energy storage systems.

Additionally, the bill introduces regulations for self-sourced power generation, allowing individuals and entities to use qualified microgrids for electricity service with an agreement from the electric public utility. It establishes that energy generated from these microgrids will not be classified as retail sales until 2035, with a requirement that all energy produced must come from net-zero carbon resources by 2045. Operators of qualified microgrids must report to the Public Regulation Commission to ensure compliance with this standard. The bill also clarifies that self-source generation sales to employees or tenants do not classify as electric public utilities. The effective date for these provisions is set for July 1, 2025, promoting sustainable energy practices and defining the regulatory framework for microgrids and self-source generation in New Mexico.

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