Committee advances HB 13 to streamline distribution planning, adopts amendment removing virtual power plant regulation

Representative Day Hockman Vigil urged the committee to support HB 13, a package called PowerUp New Mexico that would require electric utilities to file distribution system plans and support beneficial electrification, saying the measure grew from a 64-stakeholder consortium formed after utilities and economic development leaders identified gaps in available power.

The bill’s sponsor told the committee the measure is meant to “create a modernized and augmented grid for the state that will allow us to grow and allow us to continue on our mission of reducing carbon emissions and also fostering economic development throughout the state.”

A committee amendment (labeled 0.2302320.3 in the packet) was adopted before the committee vote. Representative Hockman Vigil explained the amendment removes the bill’s section that would have created a regulatory framework for virtual power plants (VPPs) and instead inserts language allowing utilities to use aggregated distributed energy resources and performance‑based compensation “which may include performance based compensation for aggregated distributed energy resources.” She said the change leaves VPP deployment to utilities and federal grant programs for now and preserves flexibility for later rulemaking.

Public testimony was mixed. Glenn Weichel, a power systems engineer who monitors Public Regulation Commission (PRC) activity for Third Act, said the bill “supports the spirit of HB 13, but not the language in front of you today,” urging more explicit consumer protections and cautioning that certain cost‑recovery language could raise rate risks. Mike D’Antonio of Xcel Energy said Xcel supports the bill’s effort to streamline distribution planning and help serve load more quickly for customers and economic development. Jim Deschardins of the Renewable Energy Industries Association praised requirements such as hosting capacity analysis and flexible interconnection, and urged a due‑pass vote. Mark Trujillo of IBEW Local 611 also voiced support.

Representative Montoya repeatedly pressed the sponsor on consumer protections and the potential for costs to be recovered from existing ratepayers, noting utilities are already pursuing rate recovery to comply with the Energy Transition Act and asking who among consumer advocates participated in the stakeholder process. Representative Hockman Vigil said many utilities and municipal providers participated and that AARP and other advocates were involved at points; she added that cost‑recovery decisions must still go through the PRC’s approval process and that the PRC’s review limits how much cost can be passed to customers.

Committee members also asked about the bill’s staffing and timeline requirements for PRC review. Sponsor and witnesses said the bill will increase PRC workload, that the PRC has requested additional FTEs in budgeting, and that some reporting can be incorporated into existing filings to reduce added burden. Witnesses said the bill is designed to bring transparency to distribution system planning, so stakeholders can see where utilities forecast constraints and where upgrades will be required.

After debate, Representative Sarajana moved a do‑pass as amended. The committee voted 6‑4 on a do‑pass recommendation. The amendment removing the VPP regulatory section had been adopted earlier by voice vote.

Why it matters: supporters say clearer distribution planning and hosting‑capacity analysis will speed connections for businesses, data centers and EV charging, and help avoid last‑minute expensive upgrades; critics — including some consumer advocates and committee members — said the bill needs clearer consumer protections and tighter limits on cost recovery to protect current ratepayers.

Votes at a glance: the committee recorded a do‑pass recommendation, 6 yes, 4 no. The recorded yes votes produced a committee recommendation to advance HB 13 to subsequent committees.