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Senate committee backs bill letting PRC consider voluntary low‑income rates
Summary
The Senate Conservation Committee recommended a 'do pass' on House Bill 91, which would allow the Public Regulation Commission to approve voluntary utility rates or programs aimed at reducing energy burden for low‑income New Mexicans; supporters said it provides ongoing assistance, critics warned of cost‑shifting to other customers.
Senators voted to recommend House Bill 91, the Public Utility Rate Structures Act, after a day of testimony that split supporters and opponents along concerns about affordability and cost allocation.
Sponsor Senator Mimi Stewart told the committee HB 91 would give the Public Regulation Commission, for the first time, authority to evaluate and approve voluntarily proposed rates or programs from investor‑owned utilities aimed at reducing energy burdens for vulnerable populations. "This bill allows the PRC to consider approving rates or programs that aim to reduce energy burden on our most vulnerable populations," Stewart said.
Dr. Anna Linden Weller, senior clean energy policy adviser at Western Resource Advocates, said utilities would propose any low‑income rate or program in a public PRC proceeding and would have to define eligibility and justify that the proposal is "just and reasonable." Weller cited other states’ examples, saying the movement of costs to other customers has tended to be small in past programs: in one Colorado example she cited, the impact to other customers amounted to about 50 cents a month in the reported case.
Utility companies and advocacy groups testified in support. Carlos Lucero of Public Service Company of New Mexico said many customers are low income or on fixed incomes and that an authorized low‑income rate or program could help maintain service and affordability. Representatives for New Mexico Gas Company, El Paso Electric and Xcel Energy also expressed support, emphasizing the bill’s voluntary and flexible structure.
Business and resident opponents warned the bill could shift costs to households just above eligibility thresholds. "When you set a rate ... everybody below that's gonna be subsidized by those above it," said Carla Sontag, president and CEO of the New Mexico Business Coalition, urging reliance on existing programs such as LIHEAP instead of rate design changes. Several residents and online commenters urged caution, saying the bill lacked definitions (for example, of "low income" and "participating customers") and that PRC rulemaking would be the forum for detailed structure.
Senators questioned the likely impact on rate design and the degree to which cost causation principles would be preserved. Senator Townsend asked whether reduced rates for a defined group would raise rates for others; Weller replied that rate cases must demonstrate effectiveness and reasonableness and that interveners could challenge proposed allocations in public proceedings.
The committee recorded a 'do pass' recommendation on HB 91 and the chair said sponsors would receive the committee's comments before the bill proceeds to the next committee.
