How much have PNM bills gone down this year?

New Mexicans enjoy one of the most reliable power grids and some of the lowest monthly energy bills in the entire U.S. Most importantly, the proposed PNM energy increase won't change either of these facts. Thanks to recent fuel cost reductions, current April bills are more than 13 percent lower than the average 2015 PNM bill of $77.80.

Last August, we told you that the "Fuel cost Adjustment" charge on PNM bills would be going down in early 2016. Those savings have taken place. Here are the two changes that made it happen.

1. In December 2015, we finished collecting the fuel cost which was deferred as part of the last PNM rate change in 2010. With that cost removed, the fuel charge was lower on January bills.
2. Last year, PNM negotiated a new coal contract, lowering the cost of coal at San Juan Generating Station near Farmington. As a result, the fuel charge was reduced even further beginning February 6, 2016.

The Fuel Cost Adjustment is a per-kWh credit or a charge, depending on whether the fuel cost to generate electricity is higher or lower than the fuel costs that are included in base electricity rates. It is set annually and updated quarterly, with NM Public Regulation Commission approval, and it varies a little by rate class.

We are doing all we can to keep our cost down and pass on the savings to you.

Average residential bills were $77.80 per month. They are currently $67.60, a decrease of more than 13 percent, mainly thanks to the reduction in fuel cost. 

* Calendar year 2015 bill source: Energy Information Administration