HB 303

                                1  HOUSE BILL 303
                                2     57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4        Raymundo Lara and Joseph L. Sanchez and Art De La Cruz
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                                10  AN ACT
                                11   RELATING TO PUBLIC UTILITIES; PROVIDING THAT NO PUBLIC UTILITY
                                12   SHALL PROVIDE SERVICE TO NEW MEXICO CUSTOMERS FROM ANY PUBLIC
                                13   UTILITY PLANT OR SYSTEM WITHOUT OBTAINING A CERTIFICATE THAT
                                14   PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE SERVICE; DECLARING
                                15   AN EMERGENCY.
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                                17   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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                                18        SECTION 1.     Section 62-9-1 NMSA 1978 (being Laws 1941,
                                19   Chapter 84, Section 46, as amended) is amended to read:
                                20        "62-9-1.     NEW CONSTRUCTION--RATEMAKING PRINCIPLES.--
                                21  A.   No public utility shall [begin the construction
                                22   or operation of] provide service to New Mexico customers from
                                23   any public utility plant or system or [of] any extension of any
                                24   plant or system without first obtaining from the commission a
                                25   certificate that public convenience and necessity require or
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                                1    will require [such construction or operation] the service.
                                2    This section does not require a public utility to secure a
                                3    certificate for an extension within any municipality or
                                4    district within which [it] the utility lawfully commenced
                                5    operations before June 13, 1941 or for an extension within or
                                6    to territory already served by [it] the utility, necessary in
                                7    the ordinary course of its business, or for an extension into
                                8    territory contiguous to that already occupied by [it] the
                                9    utility and that is not receiving similar service from another
                                10   utility.    If any public utility or mutual domestic water
                                11   consumer association in constructing or extending its line,
                                12   plant or system unreasonably interferes or is about to
                                13   unreasonably interfere with the service or system of any other
                                14   public utility or mutual domestic water consumer association
                                15   rendering the same type of service, the commission, on
                                16   complaint of the public utility or mutual domestic water
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                                17   consumer association claiming to be injuriously affected, may,
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                                18   upon and pursuant to the applicable procedure provided in
                                19   Chapter 62, Article 10 NMSA 1978, and after giving due regard
                                20   to public convenience and necessity, including reasonable
                                21   service agreements between the utilities, make an order and
                                22   prescribe just and reasonable terms and conditions in harmony
                                23   with the Public Utility Act to provide [for the construction,
                                24   development and extension] service to New Mexico customers
                                25   without unnecessary duplication and economic waste.
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                                1  B.    If a certificate of public convenience and
                                2    necessity is required pursuant to this section, [for the
                                3    construction or extension of a generating plant or transmission
                                4    lines and associated facilities] a public utility may include
                                5    in the application for the certificate a request that the
                                6    commission determine the ratemaking principles and treatment
                                7    that will be applicable for the facilities that are the subject
                                8    of the application for the certificate.     If such a request is
                                9    made, the commission shall, in the order granting the
                                10   certificate, set forth the ratemaking principles and treatment
                                11   that will be applicable to the public utility's stake in the
                                12   certified facilities in all ratemaking proceedings on and after
                                13   such time as the facilities are placed in service.     The
                                14   commission shall use the ratemaking principles and treatment
                                15   specified in the order in all proceedings in which the cost of
                                16   the public utility's stake in the certified facilities is
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                                17   considered.      If the commission later decertifies the
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                                18   facilities, the commission shall apply the ratemaking
                                19   principles and treatment specified in the original
                                20   certification order to the costs associated with the facilities
                                21   that were incurred by the public utility prior to
                                22   decertification.
                                23  C.    The commission may approve the application for
                                24   the certificate without a formal hearing if no protest is filed
                                25   within sixty days of the date that notice is given, pursuant to
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                                1    commission order, that the application has been filed.     The
                                2    commission shall issue its order granting or denying the
                                3    application within nine months from the date the application is
                                4    filed with the commission.     Failure to issue its order within
                                5    nine months is deemed to be approval and final disposition of
                                6    the application; provided, however, that the commission may
                                7    extend the time for granting approval for an additional six
                                8    months for good cause shown.
                                9  D.   Notwithstanding the time lines contained in
                                10   Subsection C of this section, for applications certified by the
                                11   economic development department pursuant to Subsection F of
                                12   Section 62-6-26 NMSA 1978, the commission shall issue an order
                                13   granting or denying the application within six months from the
                                14   date the application is filed with the commission.    Failure to
                                15   issue the commission's order within six months is deemed to be
                                16   approval and final disposition of the application; provided,
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                                17   however, that the commission may extend the time for granting
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                                18   approval for an additional three months for good cause shown.
                                19  E.   In an application for a certificate of public
                                20   convenience and necessity for an energy storage system, the
                                21   commission shall approve energy storage systems that:
                                22  (1)   reduce costs to ratepayers by avoiding or
                                23   deferring the need for investment in new generation and for
                                24   upgrades to systems for the transmission and distribution of
                                25   energy;
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                                1  (2)   reduce the use of fossil fuels for meeting
                                2    demand during peak load periods and for providing ancillary
                                3    services;
                                4  (3)   assist with ensuring grid reliability,
                                5    including transmission and distribution system stability, while
                                6    integrating sources of renewable energy into the grid;
                                7  (4)   support diversification of energy
                                8    resources and enhance grid security;
                                9  (5)   reduce greenhouse gases and other air
                                10   pollutants resulting from power generation;
                                11  (6)   provide the public utility with the
                                12   discretion, subject to applicable laws and rules, to operate,
                                13   maintain and control energy storage systems so as to ensure
                                14   reliable and efficient service to customers; and
                                15  (7)   are the most cost effective among feasible
                                16   alternatives.
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                                17  F.   As used in this section:
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                                18  (1)   "energy storage system" means methods and
                                19   technologies used to store electricity; and
                                20  (2)   "mutual domestic water consumer
                                21   association" means an association created and organized
                                22   pursuant to the provisions of:
                                23  (a)   Laws 1947, Chapter 206; Laws 1949,
                                24   Chapter 79; or Laws 1951, Chapter 52; or
                                25  (b)   the Sanitary Projects Act."
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                                1  SECTION 2.   EMERGENCY.--It is necessary for the public
                                2    peace, health and safety that this act take effect immediately.
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