Senate hears PowerUp New Mexico plan to modernize distribution grid; amendment tying PRC deadlines fails 4-4

House Bill 13 ("PowerUp New Mexico") would require investor-owned utilities to file distribution system plans with the Public Regulation Commission (PRC), expand planning horizons to 10 years (with five-year budget windows) and create a process for voluntary beneficial-electrification programs designed to encourage high-efficiency electric end uses.

Sponsor testimony described the bill as a distribution-focused measure. "PowerUp New Mexico only deals with the distribution part of that process ... it would create new requirements and disclosure of that information publicly, to help us better understand where we have power right now and ... where utilities intend to extend power," the sponsor said. The bill aims to let utilities preorder equipment such as transformers and plan buildout to reduce wait times for industrial and economic-development connections.

The committee considered an amendment (intended to match a House Judiciary change) that removed a 180-day PRC deadline to act on beneficial-electrification plans and otherwise adjusted filing language. The amendment was the subject of extensive explanation and debate and resulted in a 4–4 tie on the committee floor, leaving the amendment unresolved. Several senators raised a substantive concern about language in the amendment that allows a tariff rider proposed to fund a beneficial-electrification plan to go into effect 30 days after filing "unless suspended by the commission," a formulation senators said shifts the practical burden to the PRC and could allow automatic collection unless the PRC acts.

Supporters included organized labor and renewable-industry trade groups, who said grid upgrades and clearer planning would unlock economic development and jobs. "We view this as a great opportunity to provide very good, high-paying jobs," said John Lipschutz of the New Mexico Federation of Labor. RenewableEnergy Industries Association representatives told the committee the bill would help enable needed distribution upgrades.

Opponents raised concerns about guaranteed cost recovery and the potential for unnecessary or accelerated utility capital spending to be passed to ratepayers. Marielle Nannasi of New Energy Economy warned that the bill as drafted could permit recovery that encourages wasteful capital expenditures and urged guardrails on administration and program parameters.

Committee members exchanged technical questions about the interaction between tariff riders, budget years and program implementation. Witnesses said tariff collections would be tied to specific budgets and not automatically retained if unspent, but senators remained divided over the phrasing that allows a tariff rider to take effect unless the PRC suspends it.

Because the committee did not finish action on the amendment and the bill hearing continued with testimony, the measure remains under committee consideration; the tied amendment failed to adopt and sponsors and stakeholders agreed to continue discussions and technical work.