Lower PNM bills start today

New Mexicans can expect cheaper electricity bills through the Public Service Co. of New Mexico starting Monday.

Bills should drop by about $6.50 a month on average.

That’s based on an annualized monthly estimate for the average residential customer using 600 kilowatt-hours per month, according to PNM.

The change comes after the New Mexico Public Regulation Commission decided PNM should decrease its customers rates, rather than increase them as the utility wanted.

The state regulators largely followed recommendations from their hearing examiners on how to proceed with the rate case. The hearing examiners’ decision proposed about a 3% decrease for residential customers. Under the final PRC decision, bills will drop 5%.

As of December, the annualized monthly bill for the average customer was $80.50, according to PNM. With the new rates that kick in on Monday, the utility expects the average monthly bill will be $73.95.

Rates are slightly higher in the summer than in other seasons.

The new lower rates take into account bill credits, including savings from the Palo Verde nuclear generating station.

As a result of what regulators ruled were poor business decisions by PNM, including investing in the Arizona-based power plant, state regulators earlier this month ordered PNM to return about $38.4 million to New Mexicans in the form of bill credits over two years.

The bill credit should be $1.47 per month per customer, according to PNM.

PNM asked to delay the start of the bill credits until Feb. 16. The PRC hadn’t responded — granting or denying the order — as of Friday afternoon.

If the PRC allows the postponement, billing prices will still decrease, though slightly less until mid-February.

PNM plans to file another rate change application sometime this year with a request for the new rates to start in 2025.