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News Release
Sept. 1, 2003
Price of Electricity To Drop 4 Percent Starting Today
Albuquerque: In the face of rising gasoline prices
and other cost-of-living increases, PNM electric customers
can look forward to smaller electricity bills as a planned
4 percent rate decrease goes into effect today.
The rate decrease is the first of a two-part reduction resulting
from a stipulated agreement approved by the New Mexico Public
Regulation Commission in January. The agreement, which was
negotiated with staff of the PRC, Attorney General Patricia
Madrid and other parties, also includes a second rate decrease
of 2.5 percent set to happen Sept. 1, 2005.
The rate decrease will apply to all electricity used on or
after Sept. 1 and will be fully reflected in October bills.
All PNM customer groups, from residential to both small and
large businesses, will see the benefits of the two-step, 6.5
percent rate reduction.
"We are not only pleased to pass this cost savings to
our customers, we are proud to be able to do it," said
Cindy McGill, PNM Vice President of Customer and Market Services.
"The rate reduction is possible because PNM has been
successful in increasing efficiency and decreasing its cost
of doing business. This saves customers money at the same
time that they enjoy a record level of electric reliability."
PNM last year was found to have the most reliable electric
service in the nation, according to the Edison Electric Institute.
When the 2005 rate decrease combines with the present decrease,
retail prices for electricity will be what they were for PNM
customers back in 1982. Under the stipulated agreement, the
lowered rates will remain in effect until Jan. 1, 2008.
With the new rates, the average residential PNM electric bill
will drop from $47.16 to $45.28 – an average savings
of $1.88 per month. Combined with the next rate reduction
coming Sept. 1, 2005, the average monthly savings will grow
to $3.07 a month. PNM has not had an electric rate increase
in more than 17 years, while lowering residential rates by
more than 17 percent since 1994.
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