Summary:

 Senate Bill 170 revises definitions in the New Mexico Finance Authority Act; amends permitted uses for money in the Public Project Revolving Fund; revises economic development rates for gas and electric utilities; and provides for expedited ratemaking orders.
 

Legislation Overview:

 Senate Bill 170 in Section 1, Definitions makes changes to the New Mexico Finance Authority Act (Act). 
Subsection E is amended to include electric utilities in the definition of “public project.” 
Subsection F adds rural electric cooperative in the definition of “qualified entity”.
SECTION 2 amends the Public Project Revolving Fund’s (Fund) Subsections B, C, and D to remove “authorized specifically by law”.
Subsection L is inserted to require that after June 30, 2035, only public projects referenced in Subsection D of this section that are specifically authorized by law shall be eligible for funding from the Fund. 
SECTION 3 amends Economic Development Rates for Gas and Electric Utilities to insert Subsections E and F as follows:
Subsection E provides the commission shall allow public utilities to recover reasonable costs incurred by a public utility for the ongoing development, construction or maintenance of owned or contracted resources for economic development projects that provide incremental capacity, within the economic development project's service area.
For economic development projects implemented after 2025: 
- the reasonable costs of economic development projects shall be recoverable in rates through a rate rider, base rates or a combination thereof, when the facilities begin serving the new load associated with the economic development project or the utility demonstrates that the economic development project provides benefits to existing customers. 
- a public utility shall be allowed to defer costs incurred for economic development projects that are not included in rates to a regulatory asset. 
- the commission shall review a public utility's application for an economic development project and issue a final order approving, modifying or denying the application within six months of the application filing date; except, the commission may extend the time for granting approval for an additional three months for good cause. 
- all projects shall be certified by the Economic Development Department (EDD) and approved by the commission prior to a ten-year sunset of this section. All projects approved by the commission pursuant to this section shall be allowed to be fully constructed even if the full construction of the required facilities takes place after this section has been discontinued.
 F. The EDD shall certify whether the economic development project will support reasonably anticipated economic development within the state. The department shall issue a certification letter within 60 days of a request from a public utility or project developer, and the certification letter shall be included in a public utility's application filed pursuant to Subsection E of this section.
G. Provides definitions as used in this section. Definition are inserted:
(1) economic development project; 
(2) incremental capacity
(4) incremental load growth; and 
(5) recycled energy. 
SECTION 4 amends Economic Development Rates for Gas and Electric Utilities to insert Subsection D, which provides that applications certified by the EDD shall issue an order regarding 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 — except the commission may extend the time for three months for good cause. 

Current Law:

 Senate Bill 170 would amend the Public Finances Sections and Electric, Gas and Water Utilities Sections listed here to add definitions and direction not currently included: 
Public Finances Section 6-21-3 NMSA 1978 (being Laws 1992, Chapter 61, Section 3, as amended) and 
Public FinancesSection 6-21-6 NMSA 1978 (being Laws 1992, Chapter 61, Section 6, as amended)
Electric, Gas and Water Utilities Section 62-6-26 NMSA 1978 (being Laws 1989, Chapter 5, Section 1, as amended)
Electric, Gas and Water Utilities Section 62-9-1 NMSA 1978 (being Laws 1941, Chapter 84, Section 46, as amended). 

Amendments:

 Senate Bill 170 is amended by the Senate Tax, Business and Transportation Committee as follows:
In Section 1, in Definitions as used in the New Mexico Finance Authority Act, Subsection E is amended to strike “electric utilities”, which had been added to the definition of public projects.
In Section 3 titled Economic Development Rates for Gas and Electric Utilities, Subsection G(2) is amended in the definition of “incremental capacity” to insert “a public utility’s total system”. It now reads:
(2) "incremental capacity" means the increase in capacity attributable to new or expanded facilities up to ten percent of a public utility’s total system peak load per calendar year;