Committee clears utility amendment allowing optional pre‑CCN construction; utilities say they bear risk

The House Commerce committee approved, as amended, a substitute that would allow certain utilities to begin construction before receiving final approval of a Certificate of Public Convenience and Necessity (CCN). Supporters told the committee the change is optional for utilities and is intended to speed project timelines while preserving regulatory review.

Utility witnesses including Rico Gonzalez (El Paso Electric), Mike D'Antonio (Xcel Energy), and Carlos Lucero (Public Service Company of New Mexico) told the committee the measure would let companies start construction while the PRC process continues, but that the utilities would assume the financial risk if the commission later denied certification.

"It’s an option for us to use. We don't have to use it," Mike D'Antonio of Xcel Energy said, adding that "all the risk is on the utility." He and other witnesses emphasized the statute and PRC review remain in place and that there is no guaranteed rate recovery for construction costs if a project is later denied by the PRC.

El Paso Electric’s Rico Gonzalez said the bill would allow his company to include New Mexico projects in federal tax‑credit investments that span its Texas and New Mexico service areas and estimated customer savings tied to the projects presented.

The committee adopted an amendment developed with utilities and NGOs (amendment number 233988.1) and then voted to pass the committee substitute as amended; the transcript records an 11‑0 final tally on the "do pass as amended" motion.

Committee members pressed witnesses on whether ratepayers could be charged for projects that ultimately fail to receive certification; utility witnesses consistently told the committee that the utility would bear the cost and that the PRC process, including the 16‑month CCN timeline referenced in testimony, remained unchanged.

The committee’s action moves the substitute to the next legislative stage.