Energy Transition Act
New Mexico · Electric, Gas and Water Utilities · §§ 62-18-1 to 62-18-9 · 23 sections
Overview
The act governs how a qualifying utility finances the costs associated with abandoning an energy resource, authorizing the utility commission to issue a financing order that lets the utility impose energy transition charges and issue energy transition bonds backed by the resulting energy transition property and revenues. It sets out the mechanics of that securitization — how energy transition property is created, sold as a true sale, and pledged; how security interests attach and take priority; how the charges are adjusted over time; and when a financing order becomes irrevocable, remains in effect, or may be challenged on rehearing and judicial review — while providing that the bonds are not public debt and adding a state pledge not to impair the arrangement. It also assesses fees and directs money into dedicated funds for displaced workers, affected communities and economic development, and Indian affairs, with a community advisory committee, and addresses where replacement resource development may be located after abandonment.
Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.
Sections covered
- § 62-18-1 NMSA 1978Short title
- § 62-18-10 NMSA 1978Qualifying utility duties
- § 62-18-11 NMSA 1978Commission treatment of energy transition bonds
- § 62-18-12 NMSA 1978Energy transition property; energy transition revenues
- § 62-18-13 NMSA 1978Security interests; creation of security interest; priority over other liens; attachment on filing with secretary of state
- § 62-18-14 NMSA 1978Sale of energy transition property; perfecting interests; absolute transfer and true sale requirements
- § 62-18-15 NMSA 1978Fee assessments
- § 62-18-16 NMSA 1978Energy transition Indian affairs fund; energy transition economic development assistance fund; energy transition displaced worker assistance fund; community advisory committee
- § 62-18-17 NMSA 1978Energy transition bonds not public debt
- § 62-18-18 NMSA 1978Energy transition bonds as legal investments
- § 62-18-19 NMSA 1978State pledge not to impair
- § 62-18-2 NMSA 1978Definitions
- § 62-18-20 NMSA 1978Choice of law
- § 62-18-21 NMSA 1978Conflicts
- § 62-18-22 NMSA 1978Validity on actions if act held invalid
- § 62-18-23 NMSA 1978Applicability
- § 62-18-3 NMSA 1978Location of resource development after abandonment
- § 62-18-4 NMSA 1978Financing order; application contents; pending applications
- § 62-18-5 NMSA 1978Financing order; issuance; terms of bonds; reports to commission of disbursement of bond proceeds; review and audit of records
- § 62-18-6 NMSA 1978Adjustment mechanism; adjustment procedures; hearing procedures if commission determines adjustment made in error
- § 62-18-7 NMSA 1978Financing order; irrevocability; amendments
- § 62-18-8 NMSA 1978Aggrieved parties; request for rehearing; judicial review
- § 62-18-9 NMSA 1978Conditions that keep financing orders in effect and energy transition charges imposed
Enacted in other states
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