1. A. Every energy efficiency and load management program shall be independently evaluated at least every three years.

2. B. A public utility shall submit to the commission with its annual report for that year, a comprehensive measurement, verification, and program evaluation report prepared by an independent program evaluator.

   1. (1) Commission staff shall select and direct an independent program evaluator to prepare and submit a comprehensive measurement, verification, and program evaluation report to the commission.

   2. (2) Commission staff shall:

      1. (a) undertake a competitive bid process and abide by State purchasing rules and commission policies in selecting an independent program evaluator;
      2. (b) develop an RFP, including the scope, terms of work, and evaluation process to score the RFP responses;
      3. (c) receive, review, score, and rank the RFP responses;
      4. (d) rank and recommend competitive qualified bidders to the commission;
      5. (e) negotiate a contract with the competitive bidder who is awarded the bid; and

      6. (f) administer the contract, including:

         1. (i) confirming that contract deliverables are met;
         2. (ii) reviewing invoices and related contract performance; and
         3. (iii) approving utility invoices after review.
   3. (3) Commission staff shall consult with the public utility and other interested stakeholders in the selection of the independent program evaluator.

3. C. An independent program evaluator shall:

   1. (1) measure and verify energy and demand savings;
   2. (2) determine program cost-effectiveness by utilizing the data contained in the utility’s approved triennial plan;
   3. (3) assess the public utility’s performance in implementing its triennial plan;

4. (4) assess whether the utility has complied with its requirements under the Efficient Use of Energy Act and this rule, and whether it has operated in good faith;

   1. (5) provide recommended improvements for program performance;
   2. (6) confirm that programs were implemented, meet reasonable quality standards, and are operating fully and correctly;
   3. (7) utilize applicable international performance measurement and verification protocols, describe any deviation from those protocols, and explain the reason for such deviation;
   4. (8) evaluate self-directed programs, expenditures, credits, and exemptions using the same measurement and verification standards applied to utility measures and programs by the utility or commission-approved self-directed program administrator; and
   5. (9) fulfill any other measurement and verification duties required by law.
5. D. The independent program evaluator shall provide all information and documentation at the portfolio and program levels, and all assumptions utilized in its evaluation.
6. E. The public utility shall cooperate with the independent program evaluator and commission staff in making information and personnel available to facilitate the independent program evaluator’s report.
7. F. Upon written request by a large customer, the information provided by the large customer to the utility or program administrator, independent program evaluator, or others, shall remain confidential except as otherwise ordered by the commission.
8. G. The independent evaluation process, including net-to-gross and free-ridership calculations, should be independent of other state and federal incentives as to not penalize a public utility for stacking incentives or programs.

[17.7.2.15 NMAC - Rp, 17.7.2.15 NMAC, 8/26/2025]