Committee advances SB170 to shorten utility approval timelines for site-ready projects

The Appropriations & Finance Committee voted to give Senate Bill 170 a do-pass recommendation after extended testimony from utilities, economic-development professionals and chambers of commerce.

Senate Bill 170 would create an expedited Public Regulation Commission (PRC) review for utility approvals tied to sites certified by the Economic Development Department (EDD). The bill sets a six-month review period, allows a single extension of up to three months in narrow circumstances, and creates a path for public utilities to pre-build and recover prudent and reasonable costs for infrastructure tied to certified economic-development projects.

Sponsor Sen. Michael Pavia said the measure is the “utility portion” of a site-readiness package and is intended to shorten multi-year timelines that can last 9 to 36 months today. He told the committee the change aims to keep companies from “hanging out” and looking elsewhere while approvals proceed.

Utility and economic-development witnesses told the committee SB170 would add predictability and speed decisions that matter to firms deciding whether to expand or locate in New Mexico. Rico Gonzalez of El Paso Electric said the bill helps New Mexico compete with neighboring Texas; Jason Espinosa of New Mexico IDEA said site-readiness and utility certainty are top priorities for economic-development professionals; Bernard Treat of Southwestern Public Service (Xcel) and a PNM representative also voiced support. Allison Riley, public policy director at the New Mexico Chamber of Commerce, and representatives from Mesa del Sol and the Greater Albuquerque Chamber of Commerce urged passage.

Committee members pressed how the bill would affect future rates and other PRC dockets. The sponsor and a PRC chief-of-staff (identified in the hearing record as responding to members’ questions) said the shortened timeline applies only to projects certified by EDD; it would not change the PRC’s processes for grid modernization or other generation approvals, nor would it automatically alter future rate-making reviews. The sponsor told Rep. Duncan that any future rate adjustments still would have to follow the PRC’s regular rate process.

Markita Russell of the New Mexico Finance Authority said SB170 modestly expands eligibility for certain NMFA programs to electric co-ops, giving those entities greater access to capital under the program referenced in the hearing.

The committee moved SB170 as amended; Representative Sanchez made the motion and Representative Duncan seconded. Committee leadership recorded no opposition at the time of the vote and the measure received a do-pass recommendation.

The committee discussion and witnesses focused on shortening approval timelines for a narrow subset of projects certified by EDD, the limits of PRC authority and how cost recovery would be handled through established rate-making processes.

Looking ahead, supporters said the bill pairs with SB169 (site readiness) and is designed to make predevelopment work and utility deployment more predictable for prospective employers and expanding firms.