Understanding Terms on My Bill
We appreciate the opportunity to serve you. Below are terms that appear on your PNM bill and definitions for them. We hope this answers any questions you may have about them.
kWh – This is an abbreviation for kilowatt hour, which is 1000 watts of electricity used for one hour. It’s important to know because it is the basis for how your electricity consumption is calculated.
For example, a 1000-watt heater uses 1 kWh in one hour (1,000 watts X 1 hour = 1,000 watts). A 100-watt light bulb uses 1 kWh in 10 hours (100 watts X 10 hours =1,000 watts). Appliances that use more energy like refrigerated air conditioning or refrigerators should be kept at peak efficiency and thermostats should be set no higher than necessary.
Palo Verde Refinancing Credit – This credit is one of the benefits of lower borrowing costs associated with the refinancing of debt for the Palo Verde Nuclear Generating Station, located outside of Phoenix, AZ.
Service Charge – This charge includes the cost for electric line maintenance, meter reading, billing and other services to help keep your electric service reliable.
Fuel Cost Adjustment – This charge is per kWh used. It is reviewed annually and adjusted July 1. It reflects the changing cost of fuel to produce electricity.
City/County Franchise Fee – This fee is imposed by cities and counties for the use of public rights-of-way to bring electricity to your home or business. None of this amount is paid to PNM. It is passed through to cities and counties.
Cost-Effective Energy Saving Prog. – This fee covers the cost of energy efficiency programs approved by the N. M. Public Regulation Commission. The fee, which is applied to all customers, is based on a percentage of the total bill.
Renewable Energy Rider - This fee pays for renewable resources used by PNM to help meet state renewable energy requirements.
Returned Check Charge - A $15 fee is assessed by PNM when a paper or electronic check is submitted to PNM and returned due to insufficient funds.
Synergy Savings Credit – This credit is the result of estimated savings associated with the 2005 PNM acquisition of TNMP. PNM is passing along $4.6 million of savings to its electric customers.
Consolidation Adjustment – Electric rates for customers in Alamogordo, the Ruidoso area, Silver City, Lordsburg and Bayard were combined with other PNM customers. The adjustment helps make sure that all customer groups got a similar increase when rates changed in August 2011. For the first 450 kWh/month the charge is $0.0138612 per kWh. Above 450 kWh, it is a credit for residential customers.
Credit: PNM SO2 allowance sales – PNM is permitted to produce a certain amount of sulfur dioxide (SO2) as part of the electricity generation process. When we produce less than the amount allowed, PNM is permitted to sell the remaining allowances to others. Customers receive the benefit of these sales through a credit on the bill.
Due Date – Your payment is due when you receive your bill. If it is not received within 20 calendar days from the mail date, the bill becomes delinquent. A late payment charge of 0.667% per month will be assessed on past due amounts that remain outstanding when the next month’s bill is calculated. In the event of non-payment, electric service may be disconnected. A reconnect fee and a security deposit may be required.
PNM Good Neighbor Fund – The money you contribute is used to help low-income customers pay their PNM bills. This fund is made possible through your tax-deductible contributions matched by PNM shareholders.
Thank you for considering a contribution. Please indicate the amount you are contributing on the return stub. You can also choose “Round Up,” where your bill is rounded up the nearest dollar and PNM matches that amount. Or you can choose to have a set amount added to your bill each month, which is also matched. Contact us if you would like either of these options.
Rate – There are many different ways customers are charged for electricity usage based on how it is used, when it is used, whether you are a residential or business customer, etc. Rate 1A is the most common residential rate. If you would like more details about the different rates approved by the NM Public Regulation Commission, please visit PNM.com/regulatory/electricity_legacy.htm.
Still have questions?