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House advances Power Up New Mexico after hours of debate over costs and pace of grid upgrades

March 08, 2025 | House of Representatives, Legislative, New Mexico


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House advances Power Up New Mexico after hours of debate over costs and pace of grid upgrades
Representative Hockman B. Hill introduced House Bill 13, called Power Up New Mexico, telling the House the measure aims to ‘‘right‑size distribution planning’’ and spur grid modernization to support electric vehicle charging, industrial development and beneficial electrification.

The bill requires investor-owned utilities to submit 10‑year distribution system plans to the New Mexico Public Regulation Commission and to file ‘‘beneficial electrification’’ plans showing how they would support emissions reductions while reporting where new distribution is needed. Supporters said the transparency and planning would attract businesses and allow the state to deploy charging and other infrastructure; critics warned the proposals could raise utility rates and shift costs to current ratepayers.

‘‘Power Up New Mexico does just that,’’ Representative Hockman B. Hill said in opening remarks, describing the bill as a tool to expand a ‘‘modernized, resilient energy grid’’ for economic development. She said distribution system plans would be subject to streamlined regulatory review and that utilities could seek cost recovery through the Public Regulation Commission (PRC) for projects tied to those plans.

Opponents pressed sponsors on several technical and budgetary questions. Representative Dow (Sierra County) asked for a definition of ‘‘beneficial electrification’’ and whether ratepayers or taxpayers would bear the cost of conversions from gas to electric appliances. Sponsors said the measure creates rebate and program frameworks administered by utilities and subject to PRC approval, and that cost recovery would go through tariff or base‑rate processes under PRC oversight. Representative Dow said the bill’s repeated references to tariff, rider and cost recovery made it read — in practice— as a permission slip for future rate increases.

Members also disputed whether the legislation would meaningfully speed up projects. Representative Pettigrew (Lee County) said transmission and generation approvals can take years and that distribution planning alone would not deliver megawatts to communities that say they lack capacity today. Sponsors answered that the bill primarily standardizes filing, increases transparency around distribution system planning and asks the PRC to adopt related rules on an expedited schedule.

Other questions focused on specifics in the text: the bill references the federal government’s ‘‘social cost of carbon’’ assessment as of Dec. 31, 2024, and includes provisions that prioritize low‑income households for parts of the beneficial‑electrification program. Sponsor responses said those references provide a common measurement for cost‑benefit analyses utilities would submit to the PRC.

Supporters, including representatives from rural and industrial districts, argued the state needs to resolve grid bottlenecks to recruit employers and to support plans for trade ports and fast chargers. Opponents warned of probable rate increases, citing past rate changes tied to large energy transitions and urging caution in expanding the state’s regulatory and fiscal obligations.

Representative Hockman B. Hill moved final passage on the House floor after extended debate. The House recorded a roll‑call tally on final passage during the session.

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Scribe from Workplace AI
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