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New Mexico

New Mexico

Incentives/Policies for Renewables & Efficiency

Printable Version
Energy Efficiency Resource Standard   

Last DSIRE Review: 07/02/2014
Program Overview:
State: New Mexico
Incentive Type: Energy Efficiency Resource Standard
Eligible Efficiency Technologies: Custom/Others pending approval
Applicable Sectors: Investor-Owned Utility, Gas Utilities
Electric Sales Reduction5% of 2005 total retail kilowatt-hour sales by 2014
8% of 2005 total retail kilowatt-hour sales by 2020
Authority 1:
N.M. Stat. ยง 62-17-1 et seq.
Authority 2:
Date Enacted:
Date Effective:
H.B. 267
04/02/2013
07/01/2013
Summary:

Investor-owned utilities are required to offer demand-side management and load management programs to their customers under the Efficient Use of Energy Act. The programs must be designed to achieve electricity savings totaling 5% of 2005 retail sales by 2014 and 8% of 2005 retail sales by 2020. In 2013, the compromise bill H.B. 267—which had revised the original standard of 10% of 2005 retail sales by 2020 down to 8%—also changed the cost-effectiveness test from Total Resource Cost test to Utility Cost test, making it easier for an energy efficiency program to pass the cost-effectiveness test.

All programs adopted by a utility must first be approved by the New Mexico Public Regulation Commission (PRC). To fund these programs, utilities are entitled to apply a surcharge to a customer’s utility bill in the amount of the lessor of 3% of the bill or $75,000 per year. The law also requires gas utilities to "acquire all cost-effective and achievable energy efficiency and load management resources" through an identical surcharge, but stops short of establishing a percentage-based savings target for them.

If a utility finds that they cannot meet the 5% and 8% electricity savings targets, they will report to the PRC and propose a new target based on what they determine to be their maximum cost-effective savings. If the PRC agrees with the utility, they may establish new, lower targets for the utility.

Distribution cooperative utilities, which are not regulated by the PRC, are required to develop their own self-imposed electricity reduction targets and to design demand side management programs to enable them to meet those targets. Each cooperative utility must submit a report to the PRC annually describing their demand side management efforts from the previous year.


 
Contact:
  John Reynolds
New Mexico Public Regulation Commission
PO Box 1269
Santa Fe, NM 87504
E-Mail: John.Reynolds@state.nm.us
Web Site: http://www.nmprc.state.nm.us/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.