Net metering rules developed by the New Mexico Public Regulation Commission (PRC) apply to the state's investor-owned utilities and electric cooperatives. Municipal utilities, which are not regulated by the commission, are exempt from the PRC rules but authorized to develop their own net metering programs.
Farmington Electric, a municipal utility, offers net metering to residential customers with systems up to 10 kilowatts (kW) in capacity. This option is available for photovoltaic (PV), wind, hydro and other (unspecified) non-carbon-based fuels. Any customer net excess generation (NEG) is credited to the customer's next monthly bill at the utility's retail rate. Accounts are trued-up at the end of twelve calendar months. At this point, the customer has the option of either receiving a payment for any remaining NEG or carrying the credits forward.