This story is republished from NM Political Report, a nonprofit news outlet, as a part of our commitment to bringing you the best in independent news coverage that matters to Albuquerque.
By Hannah Grover
State lawmakers are considering giving utility companies the option to create separate rates for low-income customers.
HB 91, public utility rate structures, cleared the House Government, Elections and Indian Affairs Committee on Friday and now heads to the House Energy, Environment and Natural Resources Committee.
The bill is sponsored by Reps. Kristina Ortez, D-Taos, and Patricia Roybal Caballero, D-Albuquerque.
Ortez said the bill would allow the New Mexico Public Regulation Commission to consider proposals for low-income rates brought by utilities. She said there are 20 other states that have enacted similar legislation, including Colorado and Arizona.
Rep. John Block, R-Alamogordo, expressed concerns about higher-income customers subsidizing low-income customers. AnnaLinden Weller with Western Resource Advocates, who served as an expert witness during the hearing, said HB 91 would allow the PRC to consider whether a low-income rate is just and reasonable. Weller said anytime one group of people pays less, other people do have to pay more.
“The question really is how much is that going to be, and that’s what the PRC is designed to evaluate,” she said.
Weller said in other states where there are low-income rates, there’s a bill impact to other residential customers of approximately 2 cents per month.
She said under HB 91 each utility could come to the PRC, if they choose, with a proposed low-income rate and the state regulators would evaluate those proposals.
“Yes, there are impacts, but they’re not that big and the PRC can prevent them from being too big,” she said.
Weller said utilities could also propose more than one rate or program, though it would require PRC approval every time. She said utilities could have one rate for “the poorest of the poor” and another for those who are making slightly more than the federal poverty level.
“Each utility will know their customers best in their service area,” Weller said.
Weller said subsidization happens in rate design due to both the way the electric grid functions and the policy choices the state makes. She said the Legislature has authorized subsidization in areas such as economic development rates that give businesses an incentive to locate in New Mexico.
“One of the jobs of the PRC is to prevent [subsidization] from happening too much. To keep it as balanced as possible, while still allowing for rate design to express the policy choices of the…state,” Weller said.
Representatives from both the Public Service Company of New Mexico and El Paso Electric expressed “enthusiastic support” for HB 91.
Ricardo Gonzales, regional vice president at El Paso Electric, said it will allow EPE’s New Mexico customers to access the same opportunities that the customers in Texas are given.
The New Mexico Gas Company also expressed support for the legislation.