Committee backs Power Up New Mexico bill to require utility planning for grid modernization

The House Judiciary Committee voted to recommend a do pass on House Bill 13 as amended, a bill that would require investor-owned utilities to file multi-year distribution system plans (DSPs) and beneficial electrification (BE) plans with the New Mexico Public Regulation Commission (PRC) and create processes to speed grid modernization and energization.

Sponsor Representative Hochman Vigil said the bill grew from a months‑long stakeholder process with more than 60 participants and is intended to bridge the gap between the state’s clean-energy objectives and limited distribution‑grid capacity. “Our electric grid is nowhere near capable of supporting” the projected growth in electric vehicles, data centers and electrified industry, she said, describing the legislation as foundational for economic development and emissions reduction.

What the bill does: HB13 directs regulated electric utilities to file distribution system plans and hosting-capacity analyses that identify where upgrades, transformers and line extensions are needed to interconnect new loads. Utilities would also submit beneficial electrification plans that propose programs to support customer transitions to electric enduses; the statute sets a floor for BE program funding and requires targeting low-income households. The bill allows the PRC to suspend tariff riders tied to companion filings and establishes timelines intended to reduce equipment and permitting delays.

Support and concerns: Supporters ranged from renewable-energy and clean-tech industry groups to labor unions and utilities that testified they need clearer planning processes and faster permitting to serve new demand. Bernard Treat of Xcel Energy (SPS service territory) said the bill would help with preordering transformers and reducing delays. Environmental groups and the New Mexico Federation of Labor emphasized climate and job-creation benefits.

Opposition focused on cost and customer impacts. Gerald Boussine of New Mexico Gas told the committee the bill could shift costs to electric customers for programs that encourage customers to abandon existing non-electric appliances and cautioned that nonparticipating customers could shoulder higher system costs. Committee members asked about timing, affordability, and how the PRC’s rulemaking would protect consumers.

Committee action: Representative Romero moved a do-pass on HB13 as amended; Representative Abeta seconded. The clerk called the roll and the committee recorded the recommendation; the transcript lists recorded yes and no votes and the chair announced a do pass on house bill 13 as twice amended.

Implementation notes: The bill is limited to investor-owned utilities subject to the Public Utilities Act; municipal utilities and some other suppliers are not in scope. The measure also requires workforce-targeted provisions and annual reporting tied to plan filings. Sponsors said the PRC rulemaking will provide the consumer‑protection reviews for any proposed rate riders tied to program cost recovery.