May 15—Most New Mexicans' monthly electricity bills will rise by roughly $12.50 within the next year.
The New Mexico Public Regulation Commission on Thursday approved a phased-in rate increase request from Public Service Company of New Mexico to help cover the costs of system expansions, including renewable energy equipment, and upgrading old equipment.
The increases — a $6.23 bump in July and another $6.23 hike in April 2026 — come as the utility's parent company, TXNM Energy Inc., is reportedly entertaining a sale offer from the global private equity firm Blackstone Inc. It also follows the announcement that TXNM Energy plans to promote PNM CEO and President Don Tarry to the head of TXNM as current CEO and Chair Pat Collawn transitions to executive chair.
PNM filed the rate case request with the PRC in June 2024, initially seeking to increase the bill of the average monthly residential customer using 600-kilowatt-hours by $23.60 by early 2026. However, under a settlement filed in November, the rate increase was halved.
The higher monthly bills to come will add up to about $12.46 through next year. A two-part implementation of the rate increase is designed to minimize impacts on customers, according to PNM.
In all, it equates to $105 million in new revenue.
"This outcome ensures we can continue investing in the infrastructure and technologies necessary to meet our customers' needs and support New Mexico's clean energy future," Tarry said in a statement.
Commissioner Pat O'Connell in the Thursday meeting acknowledged "things are getting more expensive," including electricity, which is why rate increases are necessary.
The additional revenue will also help address price increases due to inflation, as well as help the utility expand its systems overall to meet increasing energy needs.
The now-approved rate case went smoother for PNM than its last one, which ended a year ago with the PRC rejecting many of the company's requests.