Governor Bill Richardson today signed HB 305, strengthening the Efficient Use of
Energy Act, sponsored by Speaker Ben Lujan. The bill directs electric and gas
utilities to provide cost-effective and achievable energy efficiency resources
to their customers.
“This bill is good
for the environment and good for New
Mexico's energy consumers,” said Governor Bill
Richardson. “We will now guarantee that utilities will provide more energy
efficiency to New
Mexico consumers. In the long-run, this requirement will
be less costly than building and operating new power
plants.”
Energy efficiency programs that New Mexico’s energy
utilities could fund and implement under HB 305 include: rebates for energy
efficient appliances, compact fluorescent light (CFL) bulb exchanges, and home
weatherization assistance.
“This bill is of critical importance to New Mexico’s energy
consumers,” said Speaker Ben Lujan. “As the price of traditional energy sources
continues to skyrocket, energy efficiency is a proven means to keep citizens’
utility bills as low as possible.”
Electric utilities must achieve a minimum of five
percent energy efficiency savings from 2005 electricity sales by 2014, and 10
percent by 2020. The Public Regulation Commission (PRC) can set alternative
energy efficiency requirements if the electric utility demonstrates it cannot
meet the minimum requirements.
“I supported this bill because it could lower consumer
utility bills and delay the building of expensive power generation plants,”
stated Senator John C. Ryan, who sponsored the bill on the Senate
Floor.
HB 305 authorizes the PRC to approve energy efficiency
programs designed to reduce the burden of energy costs on low-income customers.
The bill also declares that it is necessary to provide financial incentives for
energy efficiency and load management resources. It maintains and clarifies that
PRC-approved energy efficiency programs must be cost effective, and less
expensive than pursuing new sources of supply.
“HB 305 just makes sound fiscal sense for New Mexico’s citizens and
businesses,” said Joanna Prukop, Cabinet Secretary for New Mexico Energy,
Minerals and Natural Resources Department. “Experience around the country
demonstrates that energy efficiency can be delivered to customers at less than
half the cost of building and operating new power
plants.”
HB 305 allows the PRC to require utilities to solicit
competitive bids from third party contractors for energy efficiency services;
maintains the existing total per customer cost impact cap; strengthens the
energy efficiency measurement and verification requirement; and requires a
detailed assessment of the utility’s energy efficiency programs every three
years by an independent program evaluator.
HB 305 was negotiated and supported by a broad coalition
of environmental groups, consumer advocates, electric utilities, and elected
officials.
Under Governor Richardson’s leadership, New Mexico has pursued an aggressive agenda to become the
Clean
Energy State.
