A bill that requires investor-owned electric utilities to file long-range distribution system plans and "beneficial electrification" plans won final passage in the New Mexico House after several hours of debate. House Bill 13, sponsored on the floor by the Representative (Bernalillo) and branded in debate as “Power Up New Mexico,” passed the House by a vote of 36-23.

Supporters said the measure aims to make the state’s electric distribution grid more transparent and ready for new demands — notably electric vehicle charging, industrial customers and workforce-driven economic development. "None of these goals — emissions reductions, economic development and energy production — can actually happen without access to a robust, modern and resilient energy grid," the bill sponsor said on the floor. The sponsor told colleagues the legislation is primarily about how utilities plan and report expansion, not about setting new emissions limits.

The bill requires utilities that serve most of New Mexico’s customers to submit right-sized distribution system plans (DSPs) covering a multi-year trajectory and to file beneficial electrification plans describing how the utility proposes to support emissions-reduction goals. The legislation directs the Public Regulation Commission (PRC) to review the filings and sets deadlines in the statute for plan submittal and PRC action. Utilities may seek cost recovery for grid investments through tariff riders or base rate proceedings under PRC review; the bill does not itself raise rates but authorizes a regulatory path by which utilities can recover prudent costs.

Critics repeatedly warned the legislation will lead to higher bills for ratepayers. Representative Dow (Sierra County) and other opponents questioned how much distribution-system modernization would cost and how much of that cost would be passed on to residential customers. Critics pointed to prior rate increases tied to the Energy Transition Act and pressed the sponsor on whether the bill effectively subsidizes conversions from gas to electric for households. The sponsor and several supporters said the bill is voluntary for end users, that energy efficiency measures can reduce consumption, and that over time economies of scale from a modernized grid could lower per-unit costs.

Key technical and policy details raised in floor debate:
- Utilities must file DSPs and beneficial electrification plans; the bill sets statutory timing and requires PRC review and rulemaking to implement the DSP requirements.
- The bill allows cost recovery for capital investments via PRC-approved tariff riders or base rate increases; the PRC retains final authority over whether to approve rate changes.
- The statute references existing legal obligations under the Public Utilities Act and the state’s emissions laws (discussed in debate as the Energy Transition Act) and asks utilities to report projected greenhouse gas reductions using a federal social-cost metric as of Dec. 31, 2024, unless state standards dictate otherwise.
- Rural electric cooperatives are exempt from portions of the bill focused on investor-owned utilities, though debate noted many rural areas still lack reliable distribution access.

Floor action: A House floor amendment that would have removed union labor references was offered by a member and was tabled on a roll call (38-21). The bill then passed on final passage 36-23.

Why it matters: Supporters say modernized distribution planning is a prerequisite for economic development tied to clean energy — for example, high-power fast charging for electric trucks at trade-port sites — and for meeting state climate goals. Opponents said the bill shifts too much financial risk to ratepayers by embedding cost-recovery mechanisms in statute and by setting timelines that might pressure regulators. The PRC and utilities will have central roles implementing the law.

What’s next: The bill passed the House and will proceed to the Senate for consideration. Implementation depends on PRC rulemaking and utility filings; the PRC’s staffing and budget were discussed on the floor as material to timely review and process filings.