The bill establishes the "Energy Affordability and Grid Reliability Council" in New Mexico, tasked with evaluating strategies to maintain affordable utility rates while ensuring investments in grid modernization and reliability. The council will assess various mechanisms to balance cost containment, reliability, emissions reduction, and sustainability, while considering the impacts on different customer demographics, including residential, rural, tribal, and small business customers. It will also identify best practices from other states and develop recommendations for legislative, regulatory, or administrative actions. The council will consist of members appointed by the governor and representatives from the energy, minerals, and natural resources department, as well as advisory members from investor-owned utilities.

Additionally, the bill appropriates $2 million from the general fund to the public regulation commission for the fiscal year 2027 to cover costs associated with the council's operations. Any unspent funds at the end of the fiscal year will revert to the general fund. The council will be administratively attached to the public regulation commission, which will provide staffing support.