NM Stat § 62-17-6 (2021)
2021 New Mexico Statutes|Chapter 62 - Electric, Gas and Water Utilities|Article 17 - Efficient Use of Energy|Section 62-17-6 - Cost recovery.

A. A public utility that undertakes cost-effective energy efficiency and load management programs shall have the option of recovering its prudent and reasonable costs along with commission-approved incentives for demand-side resources and load management programs implemented after the effective date of the Efficient Use of Energy Act through an approved tariff rider or in base rates, or by a combination of the two. Program costs and incentives may be deferred for future recovery through creation of a regulatory asset. Funding for program costs shall be as follows:(1) for investor-owned electric utilities, no less than three percent and no more than five percent of customer bills, excluding gross receipts taxes and franchise and right-of-way access fees, or seventy-five thousand dollars ($75,000) per customer per calendar year, whichever is less, for customer classes with the opportunity to participate; and(2) for gas utilities, no more than five percent of total annual revenues or seventy-five thousand dollars ($75,000) per customer per calendar year. B. Provided that the public utility's total portfolio of programs remains cost-effective, no less than five percent of the amount received by the public utility for program costs shall be specifically directed to energy-efficiency programs for low-income customers. C. Unless otherwise ordered by the commission, a tariff rider approved by the commission shall: (1) require language on customer bills explaining program benefits; and(2) be applied on a monthly basis.D. A tariff rider proposed by a public utility to fund approved energy efficiency and load management programs shall 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 shall 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 an ordered suspension period, it shall be deemed approved as a matter of law. The commission shall approve utility reconciliations of the tariff rider annually. History: Laws 2005, ch. 341, § 6; 2007, ch. 4, § 14; 2008, ch. 24, § 7; 2013, ch. 124, § 3; 2013, ch. 220, § 3; 2019, ch. 202, §. ANNOTATIONSThe 2019 amendment, effective June 14, 2019, revised cost recovery percentages; in Subsection A, after "Funding for program costs", deleted "for investor-owned electric utilities", and after "shall be", deleted "three" and added "as follows", added paragraph designations "(1)" and "(2)", in Paragraph A(1), added "for investor-owned electric utilities, no less than three percent and no more than five", after "opportunity to participate", deleted "Funding for annual program costs", in Paragraph A(2), after "gas utilities", deleted "shall not exceed three" and added "no more than five", after "total annual revenues", deleted "nor shall charges exceed" and added "or"; added new subsection designations "B" and "C", and redesignated former Subsection C as Subsection D; and in Subsection C, added paragraph designations "(1)" and "(2)", in Paragraph C(1), after "benefits; and", deleted "The tariff rider shall", and in Paragraph C(2), after "monthly basis", deleted "unless otherwise allowed by the commission".The 2013 amendment, effective July 1, 2013, limited public utility cost recovery options; and in Subsection A, deleted the former third sentence, which provided for a limit of seventy-five thousand dollars per year to the tariff rider and the customer impact for utility customers and added the third, fourth and fifth sentences. The 2008 amendment, effective May 14, 2008, in Subsection A, permitted a utility to recover costs and incentives for demand-side resources and load management resources through a tariff rider or base rates, or both and deletes the prohibition of cross subsidies of energy efficiency and load management activities and supply side activities. The 2007 amendment, effective July 1, 2007, in Subsection A, changed the limitation that the tariff rider not exceed the lower of one and one-half percent to the limitation that the tariff rider not exceed the commission's approved tariff.