Energy (Electric Grid)

HB 329 creates the Energy Affordability and Grid Reliability Council to evaluate strategies for keeping electricity and natural gas rates affordable while modernizing the grid. The council, composed of 5 appointed members (including utility, consumer advocacy, and economic development experts) plus utility representatives, will assess regulatory approaches, examine impacts on residential, rural, tribal, and small business customers, and identify best practices. It will develop recommendations for legislative or regulatory action to balance cost containment, reliability, emissions reduction, and grid resilience. The bill appropriates $2 million from the general fund for the council’s operations in fiscal year 2027.

HB 303 requires New Mexico public utilities to obtain a certificate from the Public Regulation Commission before providing new service or extending systems, with limited exceptions for existing service areas or routine business expansions. It specifically mandates that energy storage projects be approved if they reduce costs, cut fossil fuel use during peak demand, improve grid reliability with renewables, and lower emissions. The bill sets strict deadlines for commission decisions (six months for energy storage projects, nine months otherwise), with automatic approval if deadlines are missed. The law takes immediate effect as an emergency measure.

This Senate Memorial (SM 26) requests the New Mexico Senate formally support utilities participating in **voluntary energy markets** as a step toward regional grid coordination. It directly affects New Mexico's electricity utilities and their customers by encouraging participation in regional energy markets to improve grid reliability and potentially lower costs. The key mechanism is the Senate’s endorsement of this approach under Public Regulation Commission oversight, aiming to advance state energy transition goals while maintaining transparency and accountability. (Note: This is a non-binding memorial, not a bill.)

HB 337 amends New Mexico's grid modernization grant program to require that the energy department explicitly consider how proposed projects help meet the state's Renewable Portfolio Standards (RPS) when evaluating applications. The bill directly affects entities applying for grants, including municipalities, schools, universities, tribal nations, and rural communities. It adds RPS compliance as a specific evaluation factor alongside other criteria like grid efficiency, technology innovation, and economic development. This change ensures grant-funded projects actively support New Mexico's renewable energy goals without altering the existing RPS requirements. The amendment integrates RPS considerations into the grant program's assessment process for grid modernization initiatives.

SB 235, the Microgrid Oversight Act, requires microgrids (systems generating at least 20 megawatts that can operate independently or connected to the grid) to transition to 100% zero-carbon electricity by 2045 through a renewable portfolio standard. Microgrid owners must report annually on energy generation (by source), water use, and compliance status, while electric utilities cannot raise rates to cover microgrid infrastructure costs. The law directly affects microgrid operators and electric utilities, imposing new reporting obligations and prohibiting rate increases tied to microgrid development. It creates a framework for oversight by the Public Regulation Commission, ensuring microgrids meet renewable energy targets without passing infrastructure costs to customers.

SB 39, the Microgrid Oversight Act, establishes new regulations for microgrids in New Mexico. It requires microgrids to meet renewable energy targets (40% by 2028, 50% by 2030, 80% by 2040, and 100% zero-carbon by 2045) through annual reporting on energy generation and compliance. The bill prohibits electric utilities from raising customer rates when purchasing power from microgrids and grants the Public Regulation Commission oversight authority, including rulemaking and fee collection. This directly affects microgrid operators, electric utilities, and the commission, with compliance deadlines starting in 2027.