The bill introduces new requirements for electric public utilities in New Mexico, focusing on distribution system planning, beneficial electrification, and the establishment of a virtual power plant program. It mandates that utilities conduct advanced planning and engineering to ensure timely customer energization and upgrade their distribution systems to comply with air quality and decarbonization standards. Utilities are required to file detailed distribution system plans with the Public Regulation Commission (PRC) every three years, which must include mapping of distribution capacity, proposed energization timelines, interconnection fees, and a ten-year planning horizon. Additionally, utilities must provide annual energization reports and can apply for cost recovery related to their distribution system plans.

The bill also emphasizes beneficial electrification, requiring utilities to file plans aimed at increasing the adoption of electric sources over non-electric fuels, with specific greenhouse gas emissions reduction targets. The PRC will evaluate the effectiveness and cost-efficiency of these plans. Furthermore, the bill establishes a virtual power plant program, mandating utilities to implement strategies that utilize distributed energy resources, with the PRC setting annual performance targets and incentives. Compensation for participants in these programs must reflect additional services provided, and provisions for stakeholder input and compliance with the Public Works Minimum Wage Act are included. Key definitions are provided to clarify the legislation's scope and intent.

Statutes affected:
introduced version: 62-17-4