|Incentive Type:||Public Benefits Fund|
|Eligible Efficiency Technologies:||Yes; specific technologies not identified|
The Efficient Use of Energy Act of 2005 allows public electric and natural gas utilities to implement cost-effective energy-reduction programs. The programs may be funded through a tariff rider for energy-efficiency and load management programs. The charges on the consumer cannot exceed the commission’s approved tariff for that customer’s bill or $75,000 per year. The Act also provides for monitoring, verification, and periodic reporting by the utility on its energy efficiency expenditures and overall program effectiveness. Public utilities must obtain Commission approval of energy efficiency and load management programs before they are implemented. All investor-owned utilities in New Mexico have now received approval for their energy efficiency programs.
A distribution cooperative may collect from its customers a renewable energy and conservation fee of no more than one percent of the customer's bill. Money collected through the renewable energy and conservation fee must be segregated in a separate renewable energy and conservation account from other distribution cooperative funds and can only be expended on programs or projects to promote the use of renewable energy, load management or energy efficiency.
Electric cooperatives must provide written submission of their energy-efficiency programs to the Commission, but approval for such programs shall reside with the governing body of each cooperative utility.
In 2007, SB 418 removed a requirement that consumer charges cannot exceed 1.5% of a consumer's energy bill and empowered the Commission to establish a new cap.