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HB 91

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2026 Regular Session

New Mexico allows the PRC to approve targeted rate designs and programs to reduce energy costs for low-income customers, potentially affecting all ratepayers.

Reported Out of Committee Second House
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Bill Summary · HB 91

HB 91 — Public Utility Rate Structures (New Mexico, 2025)

Status: Enacted (Ch. SL 2025-20). Effective date: July 1, 2025.
Statute amended: Section 62‑8‑6 NMSA 1978.

Main purpose

Allow the New Mexico Public Regulation Commission (PRC) greater flexibility to approve non‑traditional utility rate structures and related programs aimed at reducing energy cost burdens for low‑income customers.

Key provisions

  • Amends Section 62‑8‑6 (anti‑discrimination provision for utilities) to expressly permit the PRC to approve the following exceptions to otherwise uniform ratemaking:
    • A. Economic development rates.
    • B. Rates designed to retain load.
    • C. Rates and programs designed to reduce the burden of energy costs on low‑income customers.
    • D. Energy efficiency programs designed to reduce the burden of energy costs on low‑income customers (consistent with the Efficient Use of Energy Act).
  • The bill’s final language (after committee amendment) removed language that would have explicitly authorized a separate rate to help participating customers pay off arrears or increase payment frequency; instead it added “programs” as an explicit category the PRC may approve.

Who is affected

  • Public utilities (electric, gas, etc.) regulated by the PRC — may propose new rate designs or programs for PRC approval.
  • Low‑income customers — may receive targeted rate reductions or benefit from approved programs and efficiency initiatives.
  • Other ratepayers — potentially affected if costs of subsidized rates or programs are redistributed across customer classes.
  • PRC staff — may see increased workload from review/approval of additional rate cases and programs.

Fiscal and policy impacts

  • Fiscal impact on the PRC: indeterminate; could increase agency workload and associated costs if utilities file additional rate petitions.
  • Ratepayer impacts: indeterminate. The PRC and the New Mexico Attorney General have raised concerns that approving rates or programs that subsidize low‑income customers can redistribute costs to non‑participating customers, raising equity issues and increasing bills for some customers.
  • The bill does not appropriate funds to subsidize the programs; it authorizes rate and program structures that could shift costs within utility rate bases.
  • Commented alternatives: existing federal and state measures (e.g., LIHEAP, weatherization and energy‑efficiency programs) and utility charitable funds are noted as other means to address low‑income energy burdens without direct cross‑subsidization through rates.

Procedure / timeline

  • Introduced in 2025 session; committee amendments adopted to add “programs” and remove the arrearage‑repayment rate language.
  • Enacted as Session Law 2025‑20; signed by the Governor (June 26, 2025). Effective July 1, 2025.

Practical effect

Utilities may now seek PRC approval for targeted rate designs and programs explicitly intended to reduce energy costs for low‑income customers and for energy‑efficiency measures under the Efficient Use of Energy Act. The PRC retains discretion to evaluate such proposals under its regulatory standards, balancing affordability goals against traditional ratemaking principles (cost causation and just & reasonable rates).

Compiled from official sources — confirm details with the bill’s official record.

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