Committee backs bill letting utilities seek low‑income rates or programs

Representative Ortez introduced House Bill 91, which would authorize the Public Regulation Commission (PRC) to consider and approve low‑income rate offerings or programs proposed by investor‑owned utilities.

The sponsor said the bill does not prescribe a single model; instead it gives utilities the option to request either a low‑income rate design or a program and empowers the PRC to evaluate those requests under the commission’s existing rate‑making standards. “This bill empowers the PRC to consider proposals for low income utility rates by investor owned utilities, which we hope will reduce the energy burden for our most vulnerable populations,” Representative Ortez said.

Investor‑owned utilities including El Paso Electric, Public Service Company of New Mexico (PNM) and New Mexico Gas Company testified in support. Rico Gonzalez of El Paso Electric said different utilities have different customer profiles and that the bill simply provides the PRC authority to approve tailored approaches. Carlos Lucero of PNM and Amy Barabee for New Mexico Gas Company said their companies had worked with the sponsor and stakeholders to craft the measure.

Consumer and community advocates supported the bill in testimony. Felicia Guillen of WE ACT/YC (witness identified as Yucca in the transcript) and representatives from New Mexico Native Vote described high energy burdens on low‑income households and said targeted rate designs or programs could keep families from having to choose between energy and medicine or food.

Opponents said the bill shifts costs onto other ratepayers. Carla Sontag, president and CEO of the New Mexico Business Coalition, said the measure “requires a utility to provide lower gas and electric utility rates for low income residential customers” and warned that subsidizing rates for one group could raise costs for those barely above the eligibility line. Athena Cristadulu, an energy and environmental engineer, said she opposed subsidizing gas bills and urged caution.

Committee members asked technical questions about how utilities and the PRC would define “low income” and how the PRC would review proposed programs. Representative Ortez said utilities would propose the eligibility thresholds and program design, and the PRC would determine whether the proposal is “just and reasonable” under existing rate‑making rules.

The committee approved the bill on a party‑line/attendance vote shown in the record with 8 votes in favor and 4 no votes; the official roll call in the transcript records the committee’s action as a do‑pass. The PRC and legislators will retain discretion over the shape, eligibility and cost recovery mechanisms for any approved low‑income rates or programs.

Why it matters: Supporters say targeted rate designs or programs can reduce the energy burden for low‑income households without imposing a one‑size‑fits‑all mandate on utilities. Opponents say the state already offers LIHEAP and worry the measure could shift costs to middle‑income households.

What’s next: House Bill 91 passed the committee and will move to the next committees designated by the Speaker for consideration and potential floor action.