NM SB235

Requires the Public Regulation Commission to create a renewable portfolio standard for microgrids by July 1, 2027, with incremental benchmarks culminating in 100% zero carbon electricity generation by 2045

Defines microgrids as electric systems capable of generating at least 20 megawatts that can operate independently or connected to the grid

Mandates annual reporting from microgrid owners/operators beginning January 1, 2029, including total energy generation, renewable energy generation by technology type, water use, and compliance status

Prohibits public utility rate increases to cover costs associated with microgrid infrastructure development, including when utilities acquire self-source generation resources or when microgrids purchase energy from utilities

Authorizes the commission to collect oversight fees and prohibit operation of microgrids that fail to meet renewable portfolio standard requirements