PNM: Taking Critical Steps for a Stronger, Cleaner Energy Future

Delivering reliable, affordable and cleaner power

 

So that our rates reflect our actual costs, including changes we are making that will lead to a smaller carbon footprint for our energy production, PNM has filed a rate increase with the New Mexico Public Regulation Commission (PRC). This filing is part of the landmark stakeholder agreement regarding the San Juan Generating Station Plan and was approved by numerous consumer and environmental groups. It should be noted that this current rate case does not, in any way, include costs that were not approved by the PRC during the last rate case.

If approved as submitted, this increase will take place in two phases, beginning with phase one in 2018 and phase two in 2019.

PNM has spent millions of dollars over the years to improve our systems to provide our customers with affordable, reliable power. These system upgrades include reducing our dependence on fossil fuels while increasing our care for the environment in compliance with federal EPA regulations. As we continue to power progress in New Mexico, we are committed to providing our customers with industry leading service and support.

Customers may ask "why now?" since PNM just recently had a rate increase approved by the PRC. This current rate increase request has been in the works for two years, since the agreement regarding the San Juan Generating Station was being planned and approved. This rate case will help us cover the costs associated with meeting federal EPA requirements at the generating station. Additionally, the rate increase helps cover a portion of the costs for new emissions control upgrades at the Four Corners Power Plant so that it too can meet federal EPA requirements.

Our commitments to our customers include our commitment to the environment and our natural resources. That's why PNM has invested heavily in shutting down two coal-fired units at the San Juan Generating station and installing state of the art emissions control upgrades both there and at the Four Corners Power Plant. The work at the San Juan Generating Station will help cut our coal and water use by approximately half. The emissions control upgrades we've installed will allow us to meet EPA regulations and improve quality of life for area residents and visitors. In the last six years, we've invested more than $900 million to improve our customer service and reliability.

What PNM is requesting with this current rate case:

  • Rate increases for each customer class: residential, commercial and industrial to help us recover approximately $99 million dollars in upgrades to the system grid, infrastructure (facilities, poles, wires), increased use of lower emission and, increased energy efficiency by customers and federally mandated upgrades we have made to the San Juan Generating Station and the Four Corners Power Plant.

What this means to our customers: 

  • No changes to rates until 2018.
  • Customers will continue to pay on average among the lowest electric bills in the state nationally.
  • Keeping rates affordable not only helps customers but also helps retain businesses and improve economic development.
  • On average, compared to their current monthly bill, residential customers will see an increase of $5.82 per month for phase one and $4.67 per month for phase two.
  • Continued reliability - Over the years, our continued investments into upgrading our systems and facilities has kept us in the top 25% of most reliable utilities across the country.
  • Commitment to the environment - By upgrading emissions controls and shutting down two units at the San Juan Generating Station, we are reducing coal and water use by approximately 50% and drastically reducing the amount of CO2 and other chemicals in compliance with the federal Clean Air Act.
  • Commitment to the environment. 
  • Continued support for solar customers who rely on the PNM electric grid for 24/7 service.

At PNM, we understand that every dollar counts right now and we work every day to ensure that the energy that powers your homes and businesses is reliable and affordable. Our efforts to keep bills low and encourage growth in New Mexico's economy have resulted in our customers paying among the lowest average rates in the country.

The proposed rate increase would result in an overall bill impact to the residential customer rate class of 12.79%. The system average bill impact for all rate classes is slightly more than 11%.