By Miguel Suazo and Jacob Everhart
The New Mexico Public Regulation Commission (“PRC”) recently initiated a formal rulemaking process to consider extensive amendments to the Community Solar Rule under 17.9.573 NMAC (the “Rule”). The proposed amendments are the result of multiple stakeholder working groups and include both primary proposals and identified alternatives across core elements of the Community Solar Program.
Why it Matters
The proposed amendments represent the most comprehensive revision of New Mexico’s Community Solar framework since initial program launch. Many proposals, if implemented, would materially affect project economics, selection competitiveness, interconnection risk, and compliance obligations. Because the Commission is expressly considering alternatives in parallel with project selection proposals generated in work groups, early participation and targeted comments have considerable potential to meaningfully influence the final rule.
Overview of Proposed Rule Changes
The PRC proposes amendments to 10 existing sections of the Community Solar Rule covering topics such as definitions, facility requirements, statewide capacity program caps, process selection, interconnection and administrative costs, subscriber organization registration and protections, and solar credit rates, among others.
Additionally, the PRC proposes to add new rule sections to address the calculation of the three-percent limit on subsidization, consolidated billing, and the relocation of community solar facilities.
Key Substantive Proposals
1. Statewide Capacity Caps Under Section 11 of the Rule
- The rule continues the 300 MW post-November 1, 2024, statewide cap, layered on top of the original 200 MW cap, for a total program cap of 500 MW, allocated proportionally by utility service territory.
- The NOPR proposes shifting from annual to triennial reviews of the capacity cap and megawatt allocation beginning January 1, 2026.
2. Project Selection & Capacity Allocation Under Section 12 of the Rule
- Competing rule amendment proposals would materially revise the project selection framework, including:
- Expanding non-price scoring criteria to include: permitting status, developer experience, financing readiness, interconnection proximity, low-income commitments, local economic benefits, and site characteristics.
- Revising developer concentration caps to generally limit any subscriber organization and affiliates to 20% of utility-specific capacity, with separate waitlist limits for each qualifying utility.
- Changes to waitlist mechanics, including vacancy of prior waitlists at the close of bid windows and rolling forward unused capacity.
- The PRC is considering both a “Project Selection Proposal” and an “Alternative Project Selection Proposal,” with certain elements (e.g., location restrictions and interconnection cost rules) capable of being combined with either approach.
3. Interconnection & Cost Sharing Under Section 13 of the Rule
- Proposed revisions to the existing rules would:
- Expand eligibility for pro rata interconnection cost sharing for certain distribution system upgrades including new or upgraded substation transformers and switchgear, smart meters, and advanced control systems.
- Establish mobilization thresholds, reimbursement limits, and timelines.
- Clarify when costs may be allocated among developers versus ratepayers, and the procedural mechanism for cost-sharing petitions.
4. Subscriber Organization Registration & Compliance Under Section 14 of the Rule
- Under the proposals, subscriber organizations would be required to:
- Register with the Commission by a specified future date.
- Demonstrate ongoing compliance with low-income subscription requirements.
- Certify and materially fulfill bid commitments that were relied upon in project scoring.
- Submit annual compliance attestations, subject to audit and enforcement.
5. Low-Income Participation & Subscriber Protections Under Sections 15 and 16 of the Rule
- The NOPR provides for expanded provisions governing:
- Low-income subscriber pre-qualifications.
- Disclosure requirements and uniform disclosure forms.
- Advertising restrictions and compliance with local solicitation laws.
- Insurance requirements tied to facility size.
6. Bill Credit Rate & Subsidization Under Section 20 of the Rule
- The NOPR includes significant proposed revisions to the Community Solar Bill Credit Rate, including:
- New methodologies for valuing renewable energy attributes (“VREAs”) for the purpose of calculating the total aggregate retail rate (“TARR”) including the integration of environmental, public health, and societal benefits.
- The NOPR also adds Rule Section 22 that would formalize calculation of the statutory 3% subsidization cap, specifying how costs and benefits are quantified over the useful life of community solar facilities.
7. Consolidated Billing Under Section 23 of the Act
- The PRC is considering two alternative consolidated billing frameworks, including:
- Mandatory consolidated billing by a future date; or
- Utility-specific design specifications, implementation plans, cost recovery mechanisms, and reporting obligations.
- Under both approaches, subscriber organizations would ultimately bear consolidated billing costs.
8. Relocation of Community Solar Facilities Under Section 24 of the Act
- This new section would allow limited relocation of approved projects, subject to strict conditions regarding:
- Point of interconnection (“PCC”),
- Distance to three-phase lines,
- Ownership consistency,
- Cost neutrality, and
- No increase in impacts to other queued projects.
Procedural Schedule & Deadlines
Initial written comments may be filed no later thanFebruary 27, 2026, under Docket No. 24-00258-UT or by sending them electronically to PRC.Records@prc.nm.gov. Written response comments may be filed no later March 20, 2026. The PRC will post comments on the PRC’s e-docket website within three days of receipt.
The public comment hearing on the proposed rule amendments will be held on March 25, 2026, at the New Mexico State Capitol, Room 309, 490 Old Santa Fe Trail, Santa Fe, NM 87501. The hearing will begin at 1:00 p.m. MST.
Practical Takeaways
If you are interested in the rulemaking and potential amendment outcomes, Beatty & Wozniak recommends participating in the rulemaking process by either submitting comments individually or through a trade association. We are happy to assist you in reviewing the rulemaking and preparing effective comments.
For more information on either provision, contact Miguel Suazo.
