The Microgrid Oversight Act establishes a regulatory framework for microgrids in New Mexico, granting authority to the Public Regulation Commission (PRC) to oversee their operation and compliance. The Act defines key terms such as "microgrid," "renewable energy," and "zero carbon energy," and mandates that microgrids must meet specific renewable energy portfolio standards. These standards require that a minimum of 40% of a microgrid's total annual energy generation comes from renewable sources by 2028, increasing to 50% by 2030, 80% by 2040, and 100% zero carbon energy by 2045. Additionally, microgrid operators are required to report their energy generation and compliance status to the PRC annually.

The Act also includes provisions to protect ratepayers by prohibiting public utilities from increasing rates due to power purchases from microgrids. It allows microgrid owners to purchase energy from electric public utilities, provided that such purchases do not adversely affect existing customers' rates. Furthermore, the Act amends existing laws to clarify the definitions and roles of electric public utilities and self-source generation resources, ensuring that microgrids can operate effectively while adhering to the state's renewable energy goals.

Statutes affected:
introduced version: 62-17-12