The proposed "Virtual Power Plant Act" mandates electric public utilities in New Mexico to establish virtual power plant programs, which will aggregate distributed energy resources to provide grid services. The Public Regulation Commission is granted the authority to create rules governing these programs, including performance requirements and compensation structures for distributed energy resource aggregators. The act outlines specific definitions related to the program, such as "distributed energy resource," "grid service," and "performance-based compensation," and sets a deadline for utilities to submit their program applications by February 1, 2027.

Additionally, the act stipulates that owners or end-users of energy storage systems with a capacity of one megawatt or higher must comply with minimum wage and benefit rate requirements. The distributed energy resource aggregator is responsible for filing affidavits to confirm compliance with these requirements. Furthermore, the act allows electric public utilities to recover reasonable costs associated with implementing virtual power plant programs through approved cost recovery mechanisms, covering foundational, operating, and technology-related expenses.