The proposed 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 to ensure timely customer energization and upgrade distribution systems to meet air quality and decarbonization standards. Utilities are required to file detailed distribution system plans with the Public Regulation Commission (PRC) every three years and develop plans for beneficial electrification that promote the transition from non-electric fuel sources to high-efficiency electric sources, including specific targets for greenhouse gas emissions reductions and provisions for low-income households.

Additionally, the bill outlines the framework for virtual power plant programs, requiring utilities to file applications and meet performance targets set by the PRC. It allows for cost recovery associated with beneficial electrification programs and mandates annual compliance reports. The legislation emphasizes transparency and stakeholder engagement, ensuring that utilities make certain information publicly accessible and incorporate stakeholder feedback. It also establishes performance targets and compensation structures for virtual power plant participants, ensuring fair compensation for additional services provided and compliance with the Public Works Minimum Wage Act for larger energy storage projects. Overall, the bill aims to enhance the efficiency and sustainability of electric utility services while ensuring equitable access for all customer classes.

Statutes affected:
introduced version: 62-17-4