FAQs: PNM Sky Blue

1. Why does renewable energy cost more?
2. How do I know if I'm getting renewable energy?
3. What will happen if PNM does not have adequate wind energy to fill subscriptions?
4. How do I sign up for PNM Sky Blue?
5. Do I have to sign a contract?
6. Who is eligible to participate?
7. What additional rates will subscribers pay?
8. What processes are involved in subscribing or canceling subscriptions?

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1. Why does renewable energy cost more?

The cost per kilowatt of producing wind energy is higher than traditional sources due to the intermittent nature of the wind. Traditional energy plants' output is predictable and controllable, making it easier to distribute costs.

Our purchase agreement, which was approved by the New Mexico Public Regulation Commission, allows PNM to provide renewable energy at cost — meaning there is no profit markup. The purchase agreement is with FPL Energy, the owner of the New Mexico Wind Energy Center. Renewable energy still costs more due to the purchase agreement, but we are providing our customers with the lowest renewable energy rate in the state.

Learn more about the New Mexico Wind Energy Center

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2. How do I know if I'm getting renewable energy?

Energy produced at the New Mexico Wind Energy Center is sent onto the electricity grid along with energy produced by all other power plants. All of that electricity is then combined and distributed to homes and businesses. Power produced by a particular plant can't be traced once it's on the grid.

One way to understand this process is to think of the electricity grid as a pool that is filled from several different sources. Each participant in PNM Sky Blue contributes to a cleaner pool of energy.

Power plant output on the grid is mixed together so that no business or home is dependent on any one power plant. That translates into dependable, consistent electricity service.

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3. What will happen if PNM does not have adequate wind energy to fill subscriptions?

Should we not have adequate wind energy to fill subscriptions due to calm winds at the New Mexico Wind Energy Center, we will procure enough renewable energy on the wholesale electricity market to meet demand.

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4. How do I sign up for PNM Sky Blue?

You have several options: Call PNM or subscribe online. You also can call us any time before then to find out about your participation options or if you would like to let us know that you want to subscribe.

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5. Do I have to sign a contract?

There are no contracts. You may come and go from the program as often as you like.

Participation will be for entire monthly billing cycles. You will need to sign up or discontinue participation at least 10 days prior to a new billing cycle for your choice to be reflected in that new billing cycle. If you make your change less than 10 days prior to the new billing cycle, the change will be reflected in the following billing cycle.

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6. Who is eligible to participate?

Both business and residential customers taking permanent retail metered service under the rate schedules below are eligible to voluntarily participate.

• Residential and small business customers: Rate schedules 1A, 1B, 2A, 2B
• Commercial and large customers: Rate schedules 3B, 4B, 5B, 11B, 14B, 15B, 17B, 30B, 4000B

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7. What additional rates will subscribers pay?

Residential and small business customers may choose one of two options in the renewable program:

• Option 1: $0.52 per month for each 100 kilowatt-hour block of renewable energy purchased.
• Option 2: 90 percent maximum subscription level of 0.52 cents applied to all metered energy.

Commercial and large customers may choose one of several subscription levels, each of which are applied to all metered energy. The subscription levels are 1 percent, 2 percent, 3 percent, 5 percent, 10 percent, 50 percent, or 90 percent.

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8. What processes are involved in subscribing or canceling subscriptions?

You may voluntarily join or leave the renewable energy program without a contract. When a customer subscribes to the program, the customer's account will be charged until the customer contacts PNM to cancel the subscription.

An exception to the subscription/cancellation rule exists for customers whose renewable energy subscription is estimated to be greater than or equal to 14,855,160 kilowatt-hours per year. An average home or business uses signficantly less electricity and should not be affected by the exception.

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