HB 13 — DISTRIBUTION SYSTEM AND ELECTRIFICATION PLANS

e(1) a n b 24 (2) is reasonably expecteddesigned to allowmaximize thebenefits u [ electric public utility to achieve the energization time .229192.3 - 4 - periods established by the commission pursuant to an electric public utility's proposed energization time periods and theminimize requirementscosts; of Subsection A of this section;

(2) is reasonably expected to allow the electric public utility to achieve the energization time periods established by the commission pursuant to an electric public utility's proposed energization time periods and the requirements of Subsection A of this section;

h H.

An electric public utility shall provide an g o t hr energization report to the commission at least annually that g e i k contains the following:

h r i s (1) the average, median and standard deviation h , t, time periods between receiving an application for energizing an e u g e b l e e h electrical service and achieving energization;

n d d i = = o h (2) explanations for energization time periods l ] b ,d i a º e that exceed the most recent maximum target energization time er i = r t 17e w d m a n o periods approved by the commission;

and w l n d 18m (3): a strategy for meeting any missed targets = = 19 a l in the future.

ib e d s º o t n = .229192.3AIC February 6, 2025 (4:07pm) s k m e - 5 - e a n e d r 20e I.l u [ A d (3) a strategy for meeting any missed targets in the future.

TheI. commission shall periodically update the a t m m 21 energization time periods and energization report requirements d r e 22 to reflect changed circumstances and new information.

cThe ecommission sshall kperiodically 23update J.the energization time periods and energization report requirements to reflect changed circumstances and new information.

TheJ. commission may require an electric public e a n b 24 utility to take the remedial actions necessary to achieve u [ energization time periods.

.229192.3The -commission 5may -require K.an electric public utility to take the remedial actions necessary to achieve energization time periods.

K.

(1) the minimum wages and fringe benefits to be paid to various classifications of laborers and mechanics shall be based upon the wages and benefits determined by the director of the labor relations division of the workforce solutions department pursuant to the Public Works Minimum Wage h Act;

and g o t hr (2) the electric public utility and any g e i k contractor or subcontractor to the contract shall follow the h r i s provisions of the Public Works Minimum Wage Act and any rules h , t, adopted pursuant to that act.

e u g e b l e e h L.

n d d i = = o h HENRCº (1) "beneficial electrification" means l ] b ,d i a º e converting the energy source of a customer's end use from a er ti 17= non-electricr fuelt sourcee to a high-efficiency electric source w l n d 18m ora avoidingn theo use of non-electric fuel sourcessource into new = = 19 a lhigh-efficiency constructionelectric orsource industriald applications;m :

ib e d s º o t n = .229192.3AIC February 6, 2025 (4:07pm) s k m e - 6 - e a n e d r 20e (2)l "distributedu energy[ resource"A meansd aor tavoiding mthe muse 21of non-electric fuel sources in new construction or industrial applications;»HENRC HENRCº(2)»HENRC HENRCº(1)»HENRC "distributed energy resource" means distributed generation, energy storage systems, electric d r e 22 vehicles, microgrids, fuel cells and demand-side management c e s k 23 measures, including energy efficiency, demand response and e a n b 24 demand flexibility that are deployed at the distribution grid u [ level on either the customer or utility side of the meter;

.229192.3HENRCº -(3)»HENRC 6HENRCº(2)»HENRC - (3) "electric public utility" means an electric public utility certified by the commission to provide retail electric service in New Mexico pursuant to the Public Utility Act that is not also a distribution cooperative utility;

(4)HENRCº (4)»HENRC HENRCº(3)»HENRC "energization" or "energize" means connecting new customers to h the electric distribution system, establishing adequate load u » r capacity to provide service for a new customer or upgrading t h g e l i electrical capacity to provide service to an existing customer.

h r i s "Energization" or "energize" does not mean activities relating h , e h to interconnecting electricity supply resources;

(5)t u g e b l e e , gh HENRCº (5)»HENRC HENRCº(4)»HENRC n d d i = = o h "energization time period" means the elapsed time beginning l ] b ,d i a º r when the electric public utility receives a substantially e r = t e w d m a n o complete energization project application and when the electric serviced ism installed: and e t 17 energized;

wb lr n d 18 (6) "flexible interconnection or energization = = 19 a l tariff" means a way to energize a new load or interconnect a i a e rt 20º distributedo energy resource to an electric public utility's a t mn m= 21.229192.3AIC distributionFebruary system6, that2025 is(4:07pm) governed by a set of rules and d r e 22 requirements and includes an agreement for curtailing the c e s k 23m importe or- export7 of- electricity from and to the distribution e a n be 24d systemr ate certainl times or operation conditions by use of u [ certifiedA powerd controlservice systemsis orinstalled otherand loadenergized; management .229192.3 - 7 - technologies;

(7)HENRCº "hosting(6)»HENRC capacity"HENRCº(5)»HENRC "flexible interconnection or energization tariff" means thea amountway ofto generationenergize thata cannew beload interconnectedor interconnect a distributed energy resource to thean electric public utility's distribution system atthat is governed by a givenset timeof rules and atrequirements aand givenincludes locationan underagreement existingfor electricalcurtailing gridthe conditionsimport andor operationsexport withoutof adverselyelectricity impactingfrom safety,and powerto quality,the reliabilitydistribution system at certain times or otheroperation operationalconditions criteriaby anduse withoutof requiringcertified electricpower infrastructurecontrol upgrades;systems or other load management technologies;

andHENRCº (8)(7)»HENRC "loadHENRCº(6)»HENRC "hosting capacity" means the amount of loadgeneration that can be addedinterconnected to the electric public utility's distribution system at a given time and at a given location under existing electrical grid conditions and operations without adversely impacting safety, power quality, reliability or other h operational criteria and without requiring electric infrastructureu upgrades» subjectr toinfrastructure transmissionupgrades; system constraints." SECTION 2.

Sectionand 62-17-4t NMSAh 1978g (beinge Lawsl 2005,i HENRCº (8)»HENRC HENRCº(7)»HENRC "load h r i s capacity" means the amount of load that can be added to the h , e h distribution system at a given time and at a given location t 17u Chapterg 341,e Sectionb 4,l ase amended)e is, amendedgh under existing grid conditions and operations without adversely n d d i = = o h impacting safety, power quality, reliability or other l ] b ,d i a º r operational criteria and without requiring electric e r = t e w d m a n o infrastructure upgrades subject to read:transmission system d m :

wb lr e t º o t n = .229192.3AIC February 6, 2025 (4:07pm) s k m e - 8 - e a n e d 18r "62-17-4.e l u [ A d constraints." SECTION 2.

DEFINITIONS.--AsSection used62-17-4 inNMSA the1978 Efficient(being UseLaws of2005, =Chapter =341, 19Section a4, las Energyamended) Act:is amended to read:

i"62-17-4. a e r 20 A.

"achievable"DEFINITIONS.--As meansused thosein energy efficiency or a t m m 21 load management resources available to the utilityEfficient usingUse itsof dEnergy rAct: e 22 best efforts;

cA. e s k 23 B.

"beneficial"achievable" electrification" means convertingthose e a n b 24 the energy sourceefficiency ofor aload customer'smanagement endresources useavailable from a non-electric u [ fuel source to a high-efficiency electric source or avoiding .229192.3 - 8 - the useutility ofusing non-electricits fuelbest sourcesefforts; in new construction or industrial applications;

C.B.

"beneficial electrificationelectrification" plan" means anconverting electricthe publicenergy utility'ssource planof a customer's end use from a non-electric fuel source to increasea beneficialhigh-efficiency electrificationelectric insource theHENRCºor residential,avoiding»HENRC commercial,HENRCº;»HENRC industrialHENRCºthe oruse agriculturalof sectorsnon-electric forfuel purposessources otherin thannew transportation;construction or industrial applications;»HENRC C.

[B.]"beneficial D.electrification plan" means an electric public utility's plan to increase beneficial h electrification in the residential, commercial, industrial or g o t hr agricultural sectors for purposes other than transportation;

"commission"g meanse thei publick regulation[B.] commission;D.

[C.]"commission" E.means the public regulation h r i s commission;

"cost-effective"h means, thatt, thee energyu efficiencyg or[C. load management program meets the utility cost test;

[D.]] F.E.

"customer""cost-effective" means athat utilitythe customerenergy ate ab single,l contiguouse field,e locationh efficiency or facility,load regardlessmanagement ofprogram meets the numberutility ofcost metersn atd thatd field,i location= or= facility;o h test;

l ] b ,d i a º e [D.

] F.

"customer" means a utility customer at a r i = r t e w d m a n o single, contiguous field, location or facility, regardless of d m :

b e d s º o t n = .229192.3AIC February 6, 2025 (4:07pm) s k m e - 9 - e a n e d r e l u [ A d the number of meters at that field, location or facility;

"distribution cooperative utility" means a utility with distribution facilities organized as a rural e t 17 electric cooperative pursuant to Laws 1937, Chapter 100 or the w l n d 18 Rural Electric Cooperative Act or similarly organized in other = = 19 a l states;

i a e r 20 H.

"electric public utility" means an electric a t m m 21 public utility certified by the commission to provide retail d r e 22 electric service in New Mexico pursuant to the Public Utility c e s k 23 Act that is not also a distribution cooperative utility;

e a n b 24 [F.] I.

"energy efficiency" means measures, u [ including energy conservation measures, or programs that target .229192.3 - 9 - consumer behavior, equipment or devices to result in a decrease in consumption of electricity and natural gas without reducing the amount or quality of energy services;

"large customer" means a customer with h electricity consumption greater than seven thousand megawatt- u » r hours per year or natural gas use greater than three hundred t h g e l i sixty thousand decatherms per year;

h r i s K.

"low-income customer" means a residential h , e h customer of an electric public utility with an annual household t u g e b l e e , gh income at or below eighty percent of area median income, as n d d i = = o h published by the United States department of housing and urban l ] b ,d i a º r development, or who is enrolled in a low-income program e r = t e w d m a n o facilitated by the state or a low-income energy program led by thed qualifyingm utility: or as determined by the commission;

b r e t º o t n = .229192.3AIC February 6, 2025 (4:07pm) s k m e - 10 - e a n e d r e l u [ A d the qualifying utility or as determined by the commission;

"load management" means measures or programs that target equipment or devices to result in e t 17 decreased peak electricity demand or shift demand from peak to w l n d 18 off-peak periods;

=[I. = 19 a l [I.] M.

"program] costs"M. means the prudent and i a e r 20 reasonable costs of developing and implementing energy a t m m 21 efficiency and load management programs, but "program costs" d r e 22 does not include charges for incentives or the removal of c e s k 23 regulatory disincentives;

e"program acosts" nmeans bthe 24prudent [J.]and N.reasonable costs of developing and implementing energy efficiency and load management programs, but "program costs" does not include charges for incentives or the removal of regulatory disincentives;

"public[J. utility" means a public utility u [ that is not also a distribution cooperative utility;

and] .229192.3N. - 10 - [K.] O.

"utility"public costutility" test" means a standard that is met if the monetary costs that are borne by the public utility and that areis incurrednot toalso develop, acquire and operate energy efficiency or load management resources on a life-cycledistribution basiscooperative areutility; less than the avoided monetary costs associated with developing, acquiring and operating the associated supply-side resources." SECTION 3.

Aand new[K. section of the Efficient Use of Energy Act is enacted to read:

"[NEW] MATERIAL]O. BENEFICIAL ELECTRIFICATION PLANS-- PROGRAMS--APPLICATIONS--RULES--REPORTING--COST RECOVERY.-- A.

On"utility orcost beforetest" Januarymeans 30,a 2026,standard that is met if the commissionmonetary shallcosts directthat electricare borne by the public utilitiesutility and that are incurred to filedevelop, beneficialacquire electrificationand plansoperate thatenergy supportefficiency voluntaryor customerload adoptionmanagement ofresources measureson fora beneficiallife-cycle electrificationh andbasis adoptare rulesless tothan establishthe beneficialavoided electrificationmonetary targetscosts forassociated 2032with thatg eo t 17hr maximizedeveloping, greenhouseacquiring gasand emissionsoperating reductionsthe whileassociated maintainingsupply-side wg le ni dk 18resources." fairh andr reasonablei ratess andSECTION system3. reliability.

TheA =new =section 19of a l commission shall consider the customerEfficient baseUse withinof eachEnergy ih a, et, rAct 20is electricenacted publicto utilityread: that may adopt heat pumps when a t m m 21 determining reasonable targets.

Thee commissionu shallg establishe db rl e 22e ah schedule"[NEW byMATERIAL] whichBENEFICIAL beneficialELECTRIFICATION electrificationPLANS-- targetsn willd bed ci e= s= ko 23h setPROGRAMS--APPLICATIONS--RULES--REPORTING--COST forRECOVERY.-- eachl subsequent] six-yearb period.,d i a º e A.

BeneficialOn eor abefore nJanuary b30, 242026, electrificationthe targetscommission shallr bei consistent= withr anyt greenhousee uw [d gasm emissionsa reductionsn adoptedo byshall thedirect stateelectric bypublic ruleutilities orto law.file beneficial d m :

.229192.3b e d s º o t n = .229192.3AIC February 6, 2025 (4:07pm) s k m e - 11 - B.e a n e d r e l u [ A d electrification plans that support voluntary customer adoption of measures for beneficial electrification and adopt rules to establish beneficial electrification targets for 2032 that maximize greenhouse gas emissions reductions while maintaining fair and reasonable rates and system reliability.

AtThe leastcommission everyshall threeconsider yearsthe orcustomer asbase directedwithin byeach the commission, an electric public utility shallthat filemay anadopt applicationheat withpumps thewhen commissiondetermining forreasonable atargets. beneficial electrification plan in conjunction with other plans filed with the commission pursuant to rules adopted pursuant to Section 62-17-5 NMSA 1978.

BeneficialThe electrificationcommission programs shall beestablish offereda toschedule residentialby andwhich commercialbeneficial customerselectrification andtargets maywill also be availableset tofor industrialeach andsubsequent agriculturalsix-year customers.period.

AnBeneficial electricelectrification publictargets utility shall incorporatebe aconsistent publicwith stakeholderany processgreenhouse togas informemissions thereductions programadopted designby ofthe astate beneficialby electrificationrule plan.or law.

C.B.

WhenAt consideringleast every three years or as directed by the commission, an electric public utility shall file an application with the commission for a beneficial electrification plan applicationsin forconjunction approval,with other plans filed with h the commission shallpursuant evaluateto whetherrules theadopted plan:pursuant to Section u » r 62-17-5 NMSA 1978.

(1)Beneficial demonstrates that the proposed beneficial electrification programs maximizeshall electrict publich utilityg and e tl 17i customerbe benefitsoffered atto theresidential lowestand reasonablecommercial costcustomers whileand wmay lalso nh dr 18i maintainings fairbe available to industrial and reasonableagricultural rates;customers.

=An =h 19, e h electric public utility shall incorporate a lpublic (2)stakeholder providest everyu affectedg customere classb il ae e r, 20gh withprocess to inform the opportunityprogram todesign participateof anda benefit;beneficial n d d i = = o h electrification plan.

al t] mb m,d 21i (3)a complementsº applicable local, county, d r eC. 22 state and federal incentives or tax credits for similar c e s k 23 measures;

eWhen aconsidering nbeneficial belectrification 24plan (4)e isr reasonably= expectedt toe achievew thed um [a beneficialn electrificationo targetsapplications andfor projectedapproval, greenhousethe gascommission .229192.3shall -evaluate 12d -m emissions: reductions;

(5)b includesr beneficiale electrificationt programsº targetedo tot low-incomen households= with.229192.3AIC atFebruary least6, twenty2025 percent(4:07pm) ofs thek electricm publice utility's- total12 beneficial- electrificatione programa fundingn designatede ford programsr thate servel low-incomeu households;[ A d whether the plan:

(6)(1) includesdemonstrates projectedthat reductionsthe inproposed greenhousebeneficial gaselectrification emissionsprograms andmaximize avoidedelectric costspublic ofutility greenhouse gas emissions, using the cost of methane and carboncustomer dioxidebenefits emissionsat from the mostlowest recentreasonable assessment of global social cost ofwhile methanemaintaining fair and carbonreasonable dioxiderates; by the federal government;

provided(2) thatprovides theevery costaffected shallcustomer notclass bewith less than those adopted as of December 31, 2024, and using a discount rate from the assessmentopportunity ofto globalparticipate social cost of two and one-halfbenefit; percent or less;

(7)(3) includescomplements programsapplicable orlocal, ratescounty, reasonablystate e t 17 expected to improve the electric public utility's electrical w l n d 18 system efficiency, the integration of variable resources, = = 19 a l operational flexibility and systemfederal utilizationincentives during off-peak i a e r 20 hours, such as load management programs or dynamictax ratecredits afor tsimilar mmeasures; m 21 designs, or other programs and policies, with appropriate d r e 22 documentation;

c(4) eis sreasonably kexpected 23to (8)achieve includesthe budgets,beneficial projectedelectrification numbertargets of e a n b 24 installations and projected fuelgreenhouse savingsgas includingemissions toreductions; natural u [ gas, propane and other fuels;

and(5) .229192.3includes -beneficial 13electrification -programs (9)targeted incorporatesto nonbindinglow-income recommendationshouseholds fromwith stakeholdersat onleast thetwenty potentialpercent designof andthe implementationelectric ofpublic utility's total beneficial h electrification program funding designated for programs priorthat tou filing» ther plan.serve low-income households;

t h g e l i (6) includes projected reductions in h r i s greenhouse gas emissions and avoided costs of greenhouse gas h , e h emissions, using the cost of methane and carbon dioxide t u g e b l e e , gh emissions from the most recent assessment of global social cost n d d i = = o h of methane and carbon dioxide by the federal government;

l ] b ,d i a º r provided that the cost shall not be less than those adopted as e r = t e w d m a n o of December 31, 2024, and using a discount rate from the d m :

b r e t º o t n = .229192.3AIC February 6, 2025 (4:07pm) s k m e - 13 - e a n e d r e l u [ A d assessment of global social cost of two and one-half percent or less;

(7) includes programs or rates reasonably expected to improve the electric public utility's electrical system efficiency, the integration of variable resources, operational flexibility and system utilization during off-peak hours, such as load management programs or dynamic rate designs, or other programs and policies, with appropriate documentation;

(8) includes budgets, projected number of installations and projected fuel savings including to natural gas, propane and other fuels;

and (9) incorporates nonbinding recommendations from stakeholders on the potential design and implementation of beneficial electrification programs prior to filing the plan.

The commission may adopt rules to provide h additional application criteria to ensure prompt u » r determinations.

t h g e l i E.

The commission shall take final action within h r i s one hundred eighty days of the submission of a beneficial h , e h electrification plan and any relating rate recovery mechanism t u g e b l e e , gh included with the plan.

n d d i = = o h F.

An electric public utility shall recover its l ] b ,d i a º r prudent and reasonable costs for beneficial electrification e r = t e w d m a n o programs conducted pursuant to a commission-approved beneficial electrificationd plan.m :

b r e t º o t n = .229192.3AIC February 6, 2025 (4:07pm) s k m e - 14 - e a n e d r e l u [ A d electrification plan.

Program costs may be deferred for future e t 17 recovery through the creation of a regulatory asset.

w l n d 18 G.

Funding levels for beneficial electrification = = 19 a l program costs shall be no less than one-half percent of i a e r 20 customer electric bills or electric public utility retail a t m m 21 revenues from customers eligible for beneficial electrification d r e 22 programs, as determined by the commission.

The utility may c e s k 23 propose, and the commission may approve, higher levels of e a n b 24 funding.

For the purposes of determining the funding levels in u [ this subsection, only the base rate portion of customer bills .229192.3 - 14 - or utility retail revenues shall be considered.

Unless otherwise ordered by the commission, an electric public utility shall provide language on customer h bills or through other established customer communications g o t hr explaining beneficial electrification program benefits.

g e i k I.

An electric public utility shall submit to the h r i s commission an annual report that provides information relating h , t, to the actions taken by the electric public utility to comply e u g e b l e e h with this section.

n d d i = = o h (1) documentation of program expenditures;

l ] b ,d i a º e (2) customer participation levels, including r i = r t e w d m a n o the proportion of low-income households served;

(3)d estimatedm fuel: savings;

(4)b improvementse maded tos theº electrico publict utility'sn electrical= system.229192.3AIC efficiencyFebruary and6, greenhouse2025 gas(4:07pm) s k m e t- 1715 emission- reductionse resultinga fromn programs;e d r e l u [ A d (3) estimated fuel savings;

and(4) wimprovements lmade nto d 18 (5) any other information the commissionelectric maypublic =utility's =electrical 19system aefficiency land require."greenhouse igas aemission ereductions rresulting 20from SECTIONprograms; 4.

Aand new(5) sectionany ofother information the Publiccommission Utilitymay Actrequire." isHENRCº aSECTION t4. m m 21 enacted to read:

dA rnew esection 22of "[NEWthe MATERIAL]Public VIRTUALUtility POWERAct PLANTis PROGRAM--RULES--enacted cto eread: s k 23 EXCEPTIONS.-- e a n b 24 A.

No"[NEW laterMATERIAL] thanVIRTUAL FebruaryPOWER 1,PLANT 2026,PROGRAM--RULES-- theEXCEPTIONS.-- commissionA. u [ shall adopt rules to establish a virtual power plant program .229192.3 - 15 - and require an electric public utility to file an application to implement a virtual power plant program.

No later than February 1, 2026, the commission shall adopt rules to establish a virtual power plant program and require an electric public utility to file an application to implement a virtual power plant program.

h g (1) establish annual cost-effective capacity o t hr procurement and performance targets for the virtual power plant g e i k program that take into account the capabilities of the h r i s h distribution system and distributed energy resource deployment.

, t, e u g The commission may establish corresponding performance e b l e e h incentives for achieving the target established for each year n d d i = = o h l ] b ,d of the performance period;

i a º e r i = r (2) consider how a virtual power plant program t e w d m a n o would interact with or complement other programs;

(3) require the filing of a tariff establishing performance requirements and performance-based compensation for virtual power plant programs that may vary e t 17 depending upon applicable technologies and may allow for w l n d 18m customers: to opt-out of participation in events that exceed the = = 19 a l requirements;

ib a e rd 20s (4)º prescribeo thet methodn or= methods.229192.3AIC forFebruary a6, t2025 m(4:07pm) s k m 21e setting- performance-based16 compensation- thate reflecta then fulle d r e 22l valueu of[ gridA servicesd to(3) require the extentfiling of a tariff establishing performance requirements and performance-based compensation for virtual power plant programs that may vary depending upon applicable technologies and practicablemay callow efor scustomers kto 23opt-out providedof byparticipation ain virtualevents powerthat plant;exceed the requirements;

e(4) aprescribe nthe bmethod 24or (5)methods allowfor bothsetting third-partiesperformance-based andcompensation electric u [ public utilities to serve as distributed energy resource .229192.3 - 16 - aggregators, while ensuring that utilitiesreflect servingthe asfull distributedvalue energyof resourcegrid aggregatorsservices do not have a competitive advantage over third-party aggregators based on access to customerthe data,extent marketingapplicable orand otherpracticable exclusiveprovided electricby publica utilityvirtual advantages;power plant;

(6)(5) ensureallow thatboth potentialthird-parties virtualand powerelectric plantpublic programutilities participantsto areserve notas disqualifieddistributed fromenergy participationresource inaggregators, awhile commission-approvedensuring virtualthat powerutilities plantserving programas ordistributed performance-basedenergy compensationresource dueaggregators todo receiptnot ofhave othera incentives,competitive includingadvantage up-frontover incentivesthird-party oraggregators performancebased paymentson foraccess energy,to capacitycustomer data, marketing or other gridexclusive serviceselectric thath arepublic distinctutility fromadvantages; the virtual power plant program;

andu (7)» considerr operational,t reliabilityh or(6) marketensure guidelinesthat andpotential requirementsvirtual establishedpower byplant theg Newe Mexicol renewablei energyprogram transmissionparticipants authorityare tonot whichdisqualified thefrom utilityparticipation belongsin andh byr thei federals energya regulatorycommission-approved virtual power plant program or h , e h t 17u commission.g performance-based compensation due to receipt of other e b l e e , gh incentives, including up-front incentives or performance n d d i = = o h l ] b ,d payments for energy, capacity or other grid services that are i a º r e r = distinct from the virtual power plant program;

and t e w ld m a n o d 18m C.:

Theb compensationr providede byt anº electrico publict =n = 19.229192.3AIC aFebruary l6, utility2025 to(4:07pm) customerss participatingk inm thate utility's- program17 i- a e ra 20n shalle bed commensurater withe additionall servicesu provided[ asA ad a(7) tconsider moperational, mreliability 21or resultmarket ofguidelines participationand inrequirements aestablished virtualby powerthe plantNew program,Mexico drenewable renergy etransmission 22authority beyondto thosewhich servicesthe providedutility asbelongs aand resultby ofthe participationfederal inenergy cregulatory ecommission. s k 23 other programs.

TheC. participants shall not be compensated for e a n b 24 providing the same service more than once.

uThe [compensation D.provided by an electric public utility to customers participating in that utility's program shall be commensurate with additional services provided as a result of participation in a virtual power plant program, beyond those services provided as a result of participation in other programs.

The commissionparticipants shall providenot opportunitiesbe compensated for .229192.3providing - 17 - stakeholders to provide input on the virtualsame powerservice plantmore programsthan proposedonce. by each electric public utility under this section.

E.D.

The commission mayshall approve,provide denyopportunities orfor orderstakeholders revisions to aprovide publicinput electricon utility'sthe proposed virtual power plant programprograms orproposed slateby ofeach programs,electric includingpublic applicableutility tariffunder terms.this section.

F.h E.

NothingThe incommission thismay sectionapprove, shalldeny affector anorder electricu » r t h revisions to a public electric utility's netproposed meteringvirtual programpower forg energye thatl isi exportedplant outsideprogram or slate of aprograms, commission-approvedincluding virtualapplicable powertariff planth program.r i s terms.

G.h , e h t u g F.

Nothing in this section shall affect an electric e b l e e , gh public utility's net metering program for energy that is n d d i = = o h l ] b ,d exported outside of a commission-approved virtual power plant i a º r e r = program.

t e w d m a n o d m :

b r e t º o t n = .229192.3AIC February 6, 2025 (4:07pm) s k m e - 18 - e a n e d r e l u [ A d G.

The distributed energy resource aggregator administering the virtual power e t 17 plant program shall file an affidavit under penalty of perjury w l n d 18 with the commission and the workforce solutions department = = 19 a l stating that all energy storage systems with a usable energy i a e r 20 capacity of one megawatt or higher participating in the virtual a t m m 21 power plant program are in compliance with this section.

The d r e 22 commission may ask the electric public utility to obtain c e s k 23 additional information or documentation from the distributed e a n b 24 energy resource aggregator if the commission deems it necessary u [ to ensure compliance with this section.

After the initial .229192.3 - 18 - filing of the affidavit with the commission and the workforce solutions department, if a distributed energy resource h aggregator adds an individual additional storage system u » r t h capacity of one megawatt or higher, the distributed energy g e l i resource aggregator shall file another affidavit with the h r i s commission and the workforce solutions department.

h , e h t u g H.

An electric public utility may recover e b l e e , gh reasonable costs to facilitate a commission-approved virtual n d d i = = o h l ] b ,d power plant program, including foundational technology costs or i a º r e r = investments, operations and maintenance expenses, operating technologyt costse orw investmentsd andm informationa technologyn costso ord investments.m :

b r e t º o t n = .229192.3AIC February 6, 2025 (4:07pm) s k m e - 19 - e a n e d r e l u [ A d technology costs or investments and information technology costs or investments.

Notwithstanding the provisions of Subsection H of this section, an electric public utility shall recover the cost of virtual power plant program performance payments and any other payments made to program participants through cost e t 17 recovery mechanisms approved by the commission.

w l n d 18 J.

= = 19 a l (1) "distributed energy resource" means i a e r 20 distributed generation, energy storage systems, electric a t m m 21 vehicles, microgrids, fuel cells and demand-side management d r e 22 measures, including energy efficiency, demand response and c e s k 23 demand flexibility that are deployed at the distribution system e a n b 24 level on either the customer or utility side of the meter;

u [ (2) "distributed energy resource aggregator" .229192.3 - 19 - means a company or an organization that manages customer h enrollment, participation and compensation in a virtual power u » r t h plant program and ensures the performance of the aggregated g e l i distributed energy resources in a virtual power plant;

h r i s (3) "grid service" means a capacity, energy or h , e h t u g ancillary service that supports grid operations;

e b l e e , gh (4) "performance-based compensation" means n d d i = = o h l ] b ,d monetary payments made in return for, and in proportion to, the i a º r e r = provision of grid services by a virtual power plant;

(5)t "performancee requirements"w meansd them terms by which the provision of grid services by distributed energy resource aggregators participating in a virtualn powero plantd programm shall: be eligible for performance-based compensation;

andb (6)r "virtuale powert plant"º meanso ant aggregationn of= distributed.229192.3AIC energyFebruary resources6, that2025 are(4:07pm) orchestrateds viak m e t- 1720 software- toe providea gridn services,e reducingd orr shiftinge w l nu d[ 18A customerd load(5) or"performance exportingrequirements" powermeans asthe needed."terms =by =which 19the aprovision lof -grid 20services -by idistributed aenergy eresource raggregators 20participating in a tvirtual mpower mplant 21program dshall rbe eeligible 22for cperformance-based ecompensation; s k 23 e a n b 24 u [ .229192.3

and (6) "virtual power plant" means an aggregation of distributed energy resources that are orchestrated via software to provide grid services, reducing or shifting customer load or exporting power as needed."»HENRC - 21 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , gh n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

b r e t º o t n = .229192.3AIC February 6, 2025 (4:07pm) s k m e e a n e d r e l u [ A d