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SB 621: PUBLIC UTILITY EFFICIENCY & COST RECOVERY

An Act Relating To The Public Peace, Health, Safety And Welfare.

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HIGH SB 621
PUBLIC UTILITY EFFICIENCY & COST RECOVERY

Legislative URL:
SB 621 on nmlegis.gov
Emergency Clause:
No
Germane:
N/A
Location:
Signed
Action:
[14] not prntd-SJC [24] DNP-CS/w/o rec - ref SCONC-SCONC [32] DP - PASSED/S (40-0) [39] HENRC/HJC-HENRC [50] w/drn-HJC [52] DP - PASSED/H (67-0) SGND (Apr.5) Ch.220.
Issue(s):

Companion Bills

Bills:
UTILITY ENERGY EFFICIENCY AND LOAD MANAGEMENT

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
SJC Committee Report
SCONC Committee Report
SJC Committee Substitute
Final Senate Vote
HJC Committee Report
Final House Vote
Fiscal Impact Report
Final Version
Summary

This bill, a Senate Judiciary Committee Substitute for a “dummy bill” (essentially a blank-slate placeholder), amends the Efficient Use of Energy Act as follows:

 

1.  It changes the definition of “cost-effective” so that energy efficiency or load management programs must meet the utility cost test rather than the total resource cost test.

 

2.  Adds a definition for “program costs” that provides in part that charges for incentives or the removal of regulatory disincentives are not included in program costs.

 

3.  Replaces the “total resource cost test” in the definitions with “utility test.” The difference between the two is that the total resource cost test includes the costs to the utility and to the participants in the energy efficiency or load management program whereas the utility cost test includes only the costs of the public utility. The test is used to determine the cost-effectiveness of programs and only cost-effective measures may be approved by the PRC.

 

4.  Utilities no longer would be required to obtain all cost-effective energy efficiency and load management resources available. And, the 2014 target for kilowatt-hours of electricity saved due to using such resources is reduced from 10% to 8% of its 2005 sales.

 

5.  The program costs for electric utilities will be funded at 3% of customer bills, or $75,000 per customer per calendar year, whichever is less. Funding for gas utility programs shall not exceed 3% of total annual revenues nor exceed $75,000 per customer per calendar year. As long as the programs remains cost-effective, at least 5% of the amount received by the public utility for program costs shall be specifically directed to energy-efficiency programs for low income customers.

 

The details of this complicated bill may raise some potential concerns but also some potential benefits with respect to energy usage and savings that will only become known over time, if ever. The utility cost test may be a benefit because energy efficiency and load management programs might be evaluated at a lower cost. On the other hand, the decrease in the 2014 target may be of concern.

 

This bill is a companion bill to the HBIC Committee Substitute for House Bill 267.

 

Date of Summary: 3/4/2013, Updated 3/7/2013