UTILITY CERTIFICATE OF PUBLIC CONVENIENCE

HB0303

HOUSE BILL 303

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Raymundo Lara
and
Joseph L. Sanchez
and
Art De La Cruz

AN ACT

RELATING TO PUBLIC UTILITIES; PROVIDING THAT NO PUBLIC UTILITY
SHALL PROVIDE SERVICE TO NEW MEXICO CUSTOMERS FROM ANY PUBLIC
UTILITY PLANT OR SYSTEM WITHOUT OBTAINING A CERTIFICATE THAT
PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE SERVICE; DECLARING
AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 62-9-1 NMSA 1978 (being Laws 1941,
Chapter 84, Section 46, as amended) is amended to read:

"62-9-1. NEW CONSTRUCTION--RATEMAKING PRINCIPLES.--

A. No public utility shall [
begin the construction
or operation of
]
provide service to New Mexico customers from

any public utility plant or system or [
of
] any extension of any
plant or system without first obtaining from the commission a
certificate that public convenience and necessity require or
will require [
such construction or operation
]
the service
.
This section does not require a public utility to secure a
certificate for an extension within any municipality or
district within which [
it
]
the utility
lawfully commenced
operations before June 13, 1941 or for an extension within or
to territory already served by [
it
]
the utility
, necessary in
the ordinary course of its business, or for an extension into
territory contiguous to that already occupied by [
it
]
the
utility
and that is not receiving similar service from another
utility. If any public utility or mutual domestic water
consumer association in constructing or extending its line,
plant or system unreasonably interferes or is about to
unreasonably interfere with the service or system of any other
public utility or mutual domestic water consumer association
rendering the same type of service, the commission, on
complaint of the public utility or mutual domestic water
consumer association claiming to be injuriously affected, may,
upon and pursuant to the applicable procedure provided in
Chapter 62, Article 10 NMSA 1978, and after giving due regard
to public convenience and necessity, including reasonable
service agreements between the utilities, make an order and
prescribe just and reasonable terms and conditions in harmony
with the Public Utility Act to provide [
for the construction,
development and extension
]
service to New Mexico customers

without unnecessary duplication and economic waste.

B. If a certificate of public convenience and
necessity is required pursuant to this section, [
for the
construction or extension of a generating plant or transmission
lines and associated facilities
] a public utility may include
in the application for the certificate a request that the
commission determine the ratemaking principles and treatment
that will be applicable for the facilities that are the subject
of the application for the certificate. If such a request is
made, the commission shall, in the order granting the
certificate, set forth the ratemaking principles and treatment
that will be applicable to the public utility's stake in the
certified facilities in all ratemaking proceedings on and after
such time as the facilities are placed in service. The
commission shall use the ratemaking principles and treatment
specified in the order in all proceedings in which the cost of
the public utility's stake in the certified facilities is
considered. If the commission later decertifies the
facilities, the commission shall apply the ratemaking
principles and treatment specified in the original
certification order to the costs associated with the facilities
that were incurred by the public utility prior to
decertification.

C. The commission may approve the application for
the certificate without a formal hearing if no protest is filed
within sixty days of the date that notice is given, pursuant to
commission order, that the application has been filed. The
commission shall issue its order granting or denying the
application within nine months from the date the application is
filed with the commission. Failure to issue its order within
nine months is deemed to be approval and final disposition of
the application; provided, however, that the commission may
extend the time for granting approval for an additional six
months for good cause shown.

D. Notwithstanding the time lines contained in
Subsection C of this section, for applications certified by the
economic development department pursuant to Subsection F of
Section 62-6-26 NMSA 1978, the commission shall issue an order
granting or denying the application within six months from the
date the application is filed with the commission. Failure to
issue the commission's order within six months is deemed to be
approval and final disposition of the application; provided,
however, that the commission may extend the time for granting
approval for an additional three months for good cause shown.

E. In an application for a certificate of public
convenience and necessity for an energy storage system, the
commission shall approve energy storage systems that:

(1) reduce costs to ratepayers by avoiding or
deferring the need for investment in new generation and for
upgrades to systems for the transmission and distribution of
energy;

(2) reduce the use of fossil fuels for meeting
demand during peak load periods and for providing ancillary
services;

(3) assist with ensuring grid reliability,
including transmission and distribution system stability, while
integrating sources of renewable energy into the grid;

(4) support diversification of energy
resources and enhance grid security;

(5) reduce greenhouse gases and other air
pollutants resulting from power generation;

(6) provide the public utility with the
discretion, subject to applicable laws and rules, to operate,
maintain and control energy storage systems so as to ensure
reliable and efficient service to customers; and

(7) are the most cost effective among feasible
alternatives.

F. As used in this section:

(1) "energy storage system" means methods and
technologies used to store electricity; and

(2) "mutual domestic water consumer
association" means an association created and organized
pursuant to the provisions of:

(a) Laws 1947, Chapter 206; Laws 1949,
Chapter 79; or Laws 1951, Chapter 52; or

(b) the Sanitary Projects Act."

SECTION 2.
EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect immediately.

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