The bill amends existing laws to enhance the integration of advanced grid technology projects in public utilities' applications for grid modernization submitted 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 from distribution cooperative utilities. The legislation introduces definitions for key terms such as "advanced conductor," "dynamic line ratings," and "grid enhancing technology," which are crucial for modernizing the electrical system. Additionally, it permits the generation and distribution of self-sourced power through qualified microgrids, provided there is an agreement with the electric public utility, while emphasizing the need for improved grid reliability and access to clean energy, especially for low-income and underserved communities.

Furthermore, the bill establishes regulations for self-source generation resources and qualified microgrids in New Mexico, stating that energy generated and sold from these resources will not be classified as retail sales until 2035. By 2045, all energy from qualified microgrids must be sourced from net-zero carbon resources, with operators required to report compliance to the Public Regulation Commission. The bill clarifies that individuals selling self-source generation exclusively to employees or tenants will not be classified as electric public utilities. Key definitions are provided, including "electric public utility," "net-zero carbon resource," and "qualified microgrid," with the provisions set to take effect on July 1, 2025. Overall, the bill aims to promote sustainable energy practices and establish clear operational guidelines for microgrids and self-source generation resources 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