Actions: HPREF [2] HGEIC/HCEDC-HGEIC [4] DNP-CS/DP-HCEDC
Scheduled: Not Scheduled
House Bill 93 (HB 93) provides for the filing of advanced grid technology plans by public utilities to the Public Regulation Commission; provides for cost recovery through tariff riders or base rates; includes advanced grid technologies in utility integrated resource plans and annual reports of distribution cooperative utilities.Legislation Overview:
House Bill 93 (HB 93) enacts a new section of Chapter 62, Article 9 NMSA 1978 to stipulate the following: • A public utility will be required to file an advanced grid technology plan along its integrated resource plan. Such plans must include the following related to the public utility's transmission system: (1) a discussion of transmission-line congestion frequency and identification of congestion points; (2) an implementation plan for using advanced grid technologies to alleviate congestion points, including a cost-effectiveness analysis; (3) identification of specific projects that the utility intends to implement during the three-year plan period; (4) the utility's cost estimates for each project; and (5) any other information requested by the commission. • Grid technology plans are not to be exempt from the requirements of Sections 62-9-1 and 62-9-3 NMSA 1978, and applications must be filed pursuant to this law, as applicable. • When considering advanced grid technology plans for approval, the Public Regulation Commission must review the reasonableness of the projects proposed and whether the investments, programs and expenditures of the plan would: (1) reduce costs to ratepayers; (2) assist with ensuring grid reliability; (3) support the diversification of energy resources and enhance grid security; (4) reduce greenhouse gases and other air pollutants; (5) be reasonably expected to increase access to and the use of clean and renewable energy; (6) be consistent with the state's grid modernization planning and priorities; and (7) be the most cost effective among feasible alternatives. • With certain exceptions, a public utility that undertakes a project of a commission-approved advanced grid technology plan may recover the utility's reasonable costs through an approved tariff rider or through base rates, or a combination of the two. Costs incurred by a utility to complete a project in a commission approved advanced grid technology plan must be presumed reasonable up to the maximum cost amount approved by the commission. • Prior to imposing a tariff rider, a public utility must propose the tariff rider to the commission for approval. A proposed tariff rider will go into effect thirty days after filing and be deemed approved as a matter of law, unless within that thirty-day period the commission rejects the tariff rider or suspends the tariff rider for a period not to exceed one hundred eighty days. If the commission does not approve or disapprove a suspended tariff rider by the end of the one hundred-eighty-day suspension period, the tariff rider will be deemed approved as a matter of law. • The commission will only allow a utility to recover costs associated with an advanced grid technology plan or project to the extent that the cost recovery is not under the jurisdiction of the federal energy regulatory commission. • The provisions of the new section do not apply to a distribution cooperative organized pursuant to the Rural Electric Cooperative Act. • As used in this section, "project" means a project in a utility's advanced grid technology plan filed pursuant to this section. An additional new section of Chapter 62, Article 9 NMSA provides the following definitions: • "advanced conductor" means a conductor that has a direct current electrical resistance at least ten percent lower than existing conductors of a similar diameter while simultaneously increasing capacity on a utility's system by at least seventy-five percent and includes, in a project, rebuilding support structures or other associated facilities; • "advanced grid technology" means hardware or software technology that increases the efficiency, capacity or reliability of existing or new electric transmission and distribution systems and includes advanced conductors, grid enhancing technology and technology determined by the Public Regulation Commission or the Federal Energy Regulation Commission to increase the efficiency, capacity or reliability of an existing or new transmission facility; • "advanced power flow controllers" means hardware or software technology used to push or pull electric power in a manner that balances overloaded lines and underused corridors within a distribution or transmission system; • "dynamic line ratings" means hardware or software technology used to appropriately update the calculated thermal limits of existing distribution or transmission lines based on real-time and forecasted weather conditions; • "grid enhancing technology" means hardware or software technology that reduces congestion or enhances the flexibility of electric transmission and distribution systems by increasing the capacity of a line or rerouting electricity from overloaded to uncongested lines while maintaining industry safety standards and includes dynamic line ratings, advanced power flow controllers and topology optimization; and • "topology optimization" means hardware or software technology that identifies reconfigurations of the distribution or transmission grid and can enable the routing of power flows around congested or overloaded distribution or transmission elements. Section 62-17-4 NMSA 1978 is amended to provide the following definitions used in the Efficient Use of Energy Act: • "advanced conductor" means a conductor that has a direct current electrical resistance at least ten percent lower than existing conductors of a similar diameter while simultaneously increasing capacity on a utility's system by at least seventy-five percent; • "advanced grid technology" means hardware or software technology that increases the efficiency, capacity or reliability of existing or new electric transmission and distribution systems and includes advanced conductors, grid enhancing technology and technology determined by the Public Regulation Commission or the Federal Energy Regulation Commission to increase the efficiency, capacity or reliability of an existing or new transmission facility; • "advanced power flow controllers" means hardware or software technology used to push or pull electric power in a manner that balances overloaded lines and underused corridors within a distribution or transmission system; • "dynamic line ratings" means hardware or software technology used to appropriately update the calculated thermal limits of existing distribution or transmission lines based on real-time and forecasted weather conditions; • "grid enhancing technology" means hardware or software technology that reduces congestion or enhances the flexibility of electric transmission and distribution systems by increasing the capacity of a line or rerouting electricity from overloaded to uncongested lines while maintaining industry safety standards and includes dynamic line ratings, advanced power flow controllers and topology optimization; and • "topology optimization" means hardware or software technology that identifies reconfigurations of the distribution or transmission grid and can enable the routing of power flows around congested or overloaded distribution or transmission elements. Section 62-17-10 NMSA 1978 is amended to require that public utilities filing integrated resource plans including advanced grid technologies with the Public Regulation Commission. Section 62-17-11 NMSA 1978 is amended to require that each distribution cooperative utility must include advanced grid technologies in its report on all of the distribution cooperative utility's programs or measures that promote energy efficiency, conservation, or load management.Current Law:
Current law does not include the additional references and requirements related to advanced grid technologies.Committee Substitute:
Committee Substitute February 7, 2025 in HGEIC: HGEICcs/HB 93: The House Government, Elections and Indian Affairs Committee substitute for HB 93 allows utilities to recover from consumers costs for advanced grid technology projects, under the following terms: A public utility that undertakes grid modernization projects approved by the commission may recover its reasonable costs through an approved tariff rider or in base rates, or by a combination of the two. Costs that are no greater than the amount approved by the commission for a utility grid modernization project are presumed to be reasonable. A tariff rider proposed by a public utility to fund approved grid modernization projects will go into effect thirty days after filing, unless suspended by the commission for a period not to exceed one hundred eighty days. If the tariff rider is not approved or suspended within thirty days after filing, it will be deemed approved as a matter of law. If the commission has not acted to approve or disapprove the tariff rider by the end of the suspension period, it will be deemed approved as a matter of law. Costs for a grid modernization project that only benefits customers of an electric distribution system may not be recovered from customers served at a level of one hundred ten thousand volts or higher from an electric transmission system in New Mexico, except for advanced grid technology plans.