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Committee hears HB 13 on grid modernization and beneficial electrification; sponsors seek interim work
Summary
House Bill 13 would require utilities to submit forward-looking distribution plans and adopt beneficial electrification plans subject to Public Regulation Commission review. Supporters called it an economic development and reliability measure; utilities urged further work in the interim.
House Bill 13, titled “Power Up New Mexico” by its sponsor, Representative Huckman v. Hill, received a detailed hearing on Feb. 28 in the Senate Tax, Business and Transportation Committee. The bill would require electric utilities to plan distribution-system upgrades with multi-year horizons and file distribution plans for review by the Public Regulation Commission (PRC). It also directs utilities to prepare beneficial electrification plans — intended to help customers transition to efficient electric appliances such as heat pumps — subject to PRC review.
Representative Huckman v. Hill said the measure is designed to modernize local distribution infrastructure so the state can meet increasing electric demand and support economic growth. “Proactively upgrading the grid to accommodate future demand yields cost savings because building it once the right size costs half as much as multiple incremental upgrades,” she told the committee.
Supporters including Xcel Energy, the Renewable Energy Industry Association, Bernalillo County economic development staff and Advanced Energy United testified in favor, saying the planning and transparency provisions would help utilities and communities prepare for load growth, electric vehicle charging, and job creation. Xcel Energy’s Mike D’Antonio said the bill “streamlines the distribution planning portion of this work” and supports tailored programs to reduce emissions.
Opponents and concerned stakeholders — including New Mexico Gas Company, Public Service Company of New Mexico and Occidental Petroleum — urged additional work during the interim because the bill contains multiple technical definitions and policy choices (for example, around “beneficial electrification”) that will affect ratepayers and gas customers. They said the PRC and utility regulatory framework may be a more appropriate venue to resolve some details.
Representative Huckman v. Hill and witnesses described a package of proposed amendments from the PRC and stakeholders to give the PRC more time and discretion to review plans and to preserve rate-making protections. Committee members and stakeholders agreed that further interim work would be constructive; the committee did not take a final vote on HB 13 and sponsors said they will return with refinements.
Ending: The committee closed the hearing but took no final action; sponsors and stakeholders urged additional drafting and stakeholder engagement during the interim to resolve technical and regulatory issues before the bill returns.
