Energy (Energy Resilience)

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.

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.