Bill to regulate utilities clears committee

SANTA FE — A measure aimed at saving customers money when utilities opt to close power plants and recover the lost investments has narrowly cleared its first legislative hurdle.

The Senate Conservation Committee voted 5-4 Thursday to advance the bill, which faces a long road through the Legislature as lawmakers hit the midway mark of the 60-day session.

Supporters of the legislation, Senate Bill 156, say it would clear the way for other utilities to use the same financing mechanism that was afforded Public Service Company of New Mexico under the state’s landmark 2019 Energy Transition Act.

In the case of the coal-fired San Juan Generating Station, PNM was allowed to recover its lost investments with $361 million in low-cost bonds that will be paid for by ratepayers.

Sen. Bill Soules, D-Las Cruces, the legislation’s sponsor, said the goal is to give state regulators another tool when deciding how a utility can recover assets that will be stranded when a power plant closes.

But some lawmakers raised questions about potential risks in the bond market overall, while others said the bill could conflict with existing state laws that deal with bankruptcy and property rights.