Senate approves voluntary utility programs aimed at easing low‑income energy burden; critics warn of cross‑subsidies

The New Mexico Senate approved the Public Utility Rate Structures Act (House Bill 91), a measure that authorizes the Public Regulation Commission to approve rates or programs proposed by investor‑owned utilities that aim to reduce energy costs for low‑income customers.

Sponsor Senator Stewart described the bill as a voluntary tool for utilities to propose targeted rates or programs — examples cited during floor debate included percentage‑of‑income payment plans and monthly bill caps used in other states. Stewart said programs in states such as Colorado and Arizona provide models and noted that Colorado estimates a roughly $0.50 per month cost to other ratepayers to underwrite low‑income affordability programs.

Opponents and questioners raised equity and oversight concerns. Senator Scott proposed a floor amendment to define a low‑income household as below 400% of the federal poverty level; the amendment failed on the floor. Several senators warned the measure could redistribute costs from participating low‑income customers to other ratepayers and asked whether the bill contains sufficient guardrails and transparency to prevent unreasonable rate impacts.

Supporters said the policy mirrors programs used elsewhere and complements federal LIHEAP assistance; they emphasized the PRC would review and approve any utility proposals for “just and reasonable” rates. The investor‑owned utilities voiced support for a voluntary framework during the floor debate.

Outcome: The Senate passed House Bill 91 by a recorded vote of 26 in the affirmative and 16 in the negative.

Next steps: The PRC will evaluate proposed utility programs or rate designs on a case‑by‑case basis under its existing authority to determine whether a proposal is just and reasonable.