In some parts of New Mexico, some low-income utility customers pay more than a quarter of their earnings to keep the lights on or to heat their houses.
A bill now awaiting Gov. Michelle Lujan Grisham’s signature aims to lower the burden those customers face. House Bill 91 passed the Senate on a 26-16 vote Thursday.
HB 91 would allow investor-owned utilities such as the Public Service Company of New Mexico, El Paso Electric, Southwestern Public Service Company and New Mexico Gas Company to develop and propose low-income rate structures or programs. Those proposals would require the New Mexico Public Regulation Commission’s approval before they go into effect. Utilities would not be required to propose such rates or programs.
The utilities would also set the criteria for which customers are eligible to participate in the programs or qualify for the low-income rates.
“It’s heartbreaking to see some low-income New Mexicans spend as much as 26% of their income on electricity bills,” bill sponsor Rep. Kristina Ortez, D-Taos, said in a statement. “That’s a significant challenge for many families who are already struggling with higher costs of groceries and housing, and the Public Utility Rate Structures Act will offer real relief to those needing it the most.”
Opponents argued that the legislation could shift the cost burden from low-income customers to those who are in the middle class and may also be struggling to pay their utility bills.
“The consequence of this piece of legislation will be to increase those rates on those that are actually paying their bills as opposed to the folks that are not,” Sen. Larry Scott, R-Hobbs, said.
Bill sponsor Senate President Pro Tempore Mimi Stewart, D-Albuquerque, said there are already special rate structures, including rates intended to incentivize economic development.
Stewart said the lower rates could help improve the quality of life for low-income customers and would have a minor impact on other customers’ bills. She said in Colorado other customers saw a 50 cent increase on their monthly bills after low-income utility rates were implemented.
Stewart said when households pay “reasonable” rates for utility service, the families are better able to care for their children.
“They’re healthier. They don’t have to worry so much about [having money to pay for] food,” she said.
If signed, New Mexico would join more than 20 other states including the neighboring states of Arizona and Colorado that have implemented low-income utility rate programs.
“Passing the Public Utility Rate Structures Act is a victory for low-income New Mexicans who deserve fair and equitable electricity bills,” Tammy Fiebelkorn, New Mexico government affairs manager at Western Resource Advocates, said in a statement. “I’m proud that New Mexico will soon join the ranks of states that proactively empower their utility regulators to better serve low-income customers.”
The legislation would only apply to investor-owned utilities, not to electric cooperatives such as Kit Carson Rural Electric Cooperative, which serves some of the areas that Stewart highlighted as places where low-income customers face high energy burdens.
Sen. David Gallegos, R-Eunice, highlighted this discrepancy during floor debate. While Kit Carson customers may not fall under HB 91, some of them are also customers of the New Mexico Gas Company and could still benefit from potential low-income rates or programs.
“This bill makes sense for the most vulnerable New Mexicans who need our help, those who need to keep the lights on so they have the money to continue living,” Sen. Leo Jaramillo, D-Española, said.
