Bill > HB296

This bill amends existing New Mexico law to allow gas and electric utilities to offer special "economic development rates" to customers, aiming to retain existing businesses, encourage expansion, and attract new ones. Previously, these special rates had to at least recover the direct costs of providing service, but this bill introduces new provisions allowing for contracts that fix rates for up to seven years, provided they recover at least the "incremental cost" of service, which includes fuel, purchased power, renewable energy costs, and direct transmission/distribution costs, but excludes system-wide expansion costs. To qualify for these rates, customers must either demonstrate that the rate is crucial for their decision to expand or retain load, meet specific requirements for contract demand (at least 1,000 kilowatts for new load or 4,000 kilowatts for retained load), commit to operating in New Mexico for at least ten years, show economic viability, and have at least 50% of their sales revenue from outside the state, or obtain a certificate of eligibility from the Economic Development Department. This certificate requires retaining or creating at least twenty full-time jobs with a minimum annual salary of $40,000, investing at least $5 million in fixed assets in New Mexico, and meeting the out-of-state sales revenue requirement. The bill also clarifies that customers who fail to meet their commitments will be liable for the difference in rates, and utilities can recover the revenue difference from these economic development rates through the ratemaking process. Importantly, "electric utility" in this context excludes entities regulated by the federal energy regulatory commission and rural electric cooperatives.