Over the past 50 years, the electric grid has transformed from a one-way power source into a dynamic, multifunctional system. Grid modernization not only powers homes but also gives customers greater control over their energy use and bills, while supporting more renewable energy.

Grid modernization focuses on delivering better service, enhanced reliability, increased customer value, and a safer, more flexible electric system. By upgrading aging infrastructure, PNM can better meet customers' evolving energy needs while maintaining a stable and reliable grid as renewable energy grows.

The current grid, designed decades ago for centralized power plants, cannot meet today's demands for distributed generation and customer-driven energy solutions. Modernizing the grid is essential to keep pace with what customers want: reliability, flexibility, affordability and clean energy.

AMI stands for Advanced Metering Infrastructure. It is a system of Smart Meters, communication networks, and data management systems that enable two-way communication between utilities and customers.

Smart Meters are a smart choice for New Mexico, and they are an important part of grid modernization. They are digital electric meters, attached to a home or business, that provide customers the ability to access energy usage information, as well as their solar generation data.

Additionally, distribution upgrades on the grid in the future will allow faster responses to outages, sometimes allowing power to be restored remotely without sending a crew. Thanks to Smart Meters, PNM will know if there's an outage in any given area much faster than ever before, which means we can respond faster than before.

Residential and business customers will be able to monitor their electrical consumption in near real-time, allowing them to adjust their usage and avoid unexpected costs. Customers with Smart Meters will also be able to enroll in email or text 'Budget Alerts' that provide updates on their consumption before their bill is issued. These alerts will notify customers when they reach 75% and 100% of their self-selected budget amount during a billing cycle. These alerts will become available in late 2026 with the enhanced My Energy Usage portal.

Yes. Grid modernization is an essential step to making our carbon-free commitment a reality. By modernizing the grid, PNM will be able to integrate more solar capacity into our energy mix. The improved technology more seamlessly connects renewable energy generated by homeowners through the system.

PNM's Grid Modernization Plan will bring Smart Meters and distribution system upgrades to communities across its service territory. Deployment will begin in an area with a high percentage of lower-income customers and then expand to a broad range of communities as the rollout continues.

Grid modernization supports New Mexico's economy by helping provide the reliable, flexible electric grid needed to meet the evolving needs of customers and businesses. These investments also help support the state's transition to cleaner energy and create a stronger foundation for future economic growth.

Maintaining affordability while implementing the Grid Modernization program is important to PNM. To minimize customer bill impact, costs of Grid Modernization will be spread over several years. For the first year, the average residential customer is expected to see an increase of about 77 cents per month beginning no earlier than April 2026, and only after approval by the New Mexico Public Regulation Commission. That surcharge will be adjusted annually for the first six years of PNM's Grid Modernization Plan.

Energy consumption refers to the amount of electricity you use in your home or business over a given period of time. With Smart Meters, you'll soon have access to detailed, more frequent information about your energy usage. This will allow you to better understand when and how you're using electricity and identify opportunities to save energy and reduce costs.

Customers with Smart Meters will also be able to enroll in email or text 'Budget Alerts' that provide updates on their consumption before their bill is issued. These alerts will notify customers when they reach 75% and 100% of their self-selected budget amount during a billing cycle. These alerts will become available in late 2026 with the enhanced My Energy Usage portal.

Smart Meters will collect energy usage data at regular intervals throughout the day, sending that data to PNM every 4 hours. The data is securely transmitted to PNM and will allow us to provide you with more frequent updates to help you view and manage your energy consumption.

You have two options:

• Option 1: Open the PNM Mobile App and select 'Usage' from the bottom navigation menu. From there, you can view your usage history, explore savings tips, complete a home survey, and manage usage notifications.
• Option 2: Open your monthly PNM Energy Usage email and click the link provided to access My Energy Usage.

Visit our website, PNM.com/MyEnergyUsage, to learn more about My Energy Usage and its available features.

Visit our website, PNM.com/SmartMeter, to learn more about how PNM is modernizing New Mexico's electrical grid to meet the evolving needs of our customers and to support a sustainable energy future.

A Smart Meter is a digital electric meter with two-way communication capabilities. Unlike traditional meters that require manual, on-site readings, Smart Meters automatically collect and send usage data to PNM (typically every 4 hours). Certain alerts, such as outage notifications, can be sent much sooner - enabling PNM to respond more quickly to service issues and improve overall reliability and efficiency. Additionally, Smart Meter data empowers you to better understand and manage your energy use over time.

Smart Meters provide detailed energy consumption data more frequently than traditional meters. This includes things like seeing the projected amount of your next bill. This functionality will be available to you through your online account dashboard and in the PNM Mobile App.

Customers with Smart Meters will also be able to enroll in email or text Budget Alerts that provide updates on their consumption before their bill is issued. These alerts will notify customers when they reach 75% and 100% of their self-selected budget amount during a billing cycle. These alerts will become available in late 2026 with the enhanced My Energy Usage portal.

Smart Meter deployment will begin in September 2026 by designated zones in New Mexico starting in the Albuquerque area. All zones are expected to be completed by the end of 2028.

You will receive notifications 60 and 30 days before your scheduled installation date via mail or email based on customer preferences. These notices will include details on what to expect during the installation process. Additionally, approximately 1 week before your installation date, you should receive a phone call reminding you of the upcoming installation.

Smart Meters are being deployed to our customers in different areas over the span of two years. As such, workers may be in a specific area for a long period of time, to install all the meters. You will only receive a notification ahead of your own installation date.

Approximately 12 weeks prior to entering an area, we will work with community and tribal leaders to notify them of the upcoming work in your area.

Your Smart Meter communications will explain what to expect before and during the installation, how to prepare, who will be performing the work and how to identify the technician. They will also provide information about Smart Meter benefits and where you can learn more.

After an installation attempt, our technician will leave a door hanger with you. The door hanger will indicate whether the Smart Meter installation was successful or not and if any actions are needed from you to complete the exchange.

No. You do not need to be home for the Smart Meter installation as long as your meter is accessible.

Before your Smart Meter installation, please make sure that pets are secured or indoors and that the technician has clear access to your meter so the work can be completed safely and efficiently.

The installation typically takes 10-15 minutes on average. During this time, there may be a brief interruption to your powerusually lasting only a few minutesas the old meter is replaced with the new Smart Meter. Our technicians work efficiently to minimize any inconvenience and ensure the process is quick and seamless.

For complex and larger customers: PNM will work to minimize the interruption, if any.

Our technicians will knock or attempt to notify you when they arrive. Before they leave your residence, they will leave a door hanger with information about your meter exchange.

No. You will not receive a separate charge for the Smart Meter or its installation. These costs are supported through the Grid Modernization rider on customer bills.

No. The Smart Meters should be compatible with your home's current electrical wiring and devices.

Through the use of Smart Meters, PNM will be automatically notified if a customer's home or business loses power. This near real-time data allows PNM to quickly identify, isolate, and respond to outages. Additionally, the data from Smart Meters will help PNM detect failing electrical equipment early, which can reduce the likelihood of outages caused by equipment failure.

Modernizing the grid will strengthen cyberattack defense efforts. The North American Electric Reliability Corp. (NERC) has identified cybersecurity as a major concern. PNM is committed to protecting our customers' data and complying with industry guidelines.

No. Smart Meters do not connect to or use your home Wi-Fi to send meter data to PNM. They communicate with PNM through a separate secure network.

Smart Meters will not change how you normally use electricity in your home or business. They allow PNM to read meters and perform certain service functions remotely.

Yes. Data from a Smart Meter is sent over a private network with multiple layers of security controls and stored on PNM secure controlled servers. In addition, Smart Meters are not used to transmit any customer personal information, such as names and addresses.

Yes. Safeguarding your privacy is important to us. PNM never sells or shares your account or usage information with third parties without your permission. We invest in robust information technology designed to protect your data and voluntarily follow the U.S. Department of Energy's DataGuard Energy Data Privacy Program Guidelines.

Independent research, including studies by The California Council on Science and Technology, found that wireless Smart Meters result in much smaller levels of radio frequency (RF) exposure than many existing household electronic devices, particularly cell phones and microwave ovens. And unlike these devices, Smart Meters emit RF only when they transmit data, which typically totals less than one minute per day.

Over the past 50 years, reputable, independent parties have researched this technology and determined that the energy absorbed from Smart Meter radio frequency is significantly lower than the Federal Communications Commission (FCC) safety guidelines.

The Smart Meters PNM is utilizing are manufactured by Itron in South Carolina with globally-sourced components. These meters are designed with multiple layers of encryption and advanced security protocols to ensure the protection of the data they collect. PNM prioritizes both quality and security in selecting Smart Meters to provide reliable service and safeguard customer information.

Yes. Grid modernization is an essential step to making our carbon-free commitment a reality. By modernizing the grid, PNM will be able to integrate more solar capacity into our energy mix. The improved technology more seamlessly connects renewable energy generated by homeowners through the system.

More than 30,000 PNM customers have installed solar/PV systems in their homes or businesses, and interest is growing. Between 2020 and 2021, applications increased by 20% and solar/PV system connections increased by 35%. As more customers evaluate whether solar/PV systems are right for them, Smart Meter data can help in this decision.

Once fully implemented, customers will be able to review their Smart Meter data to see when they use electricity the most and whether installing solar/PV and storage would align with their daily usage patterns in a way that makes financial sense.

Grid modernization helps improve how the electric grid is monitored and managed. This makes it easier for PNM to support community solar by ensuring the grid can reliably handle and distribute energy from community solar projects to participating customers.

As more customers choose electric vehicles (EVs), Smart Meter data will help ensure the grid can support the new demand.

PNM has also introduced a Whole Home Electric Vehicle rate to encourage customers to charge their vehicles when there is an abundant supply of electricity rather than during periods when electricity demand is high.

Vehicle-to-home is a relatively recent technology that uses a hybrid or fully electric truck (e.g., Ford F-150 Lightning) or SUV (e.g., Kia & Hyundai) as a backup battery or generator to power your home during an outage. Connecting the vehicles to your home involves opening the main breaker; therefore, please consult a licensed electrician and local building permits department for the requirements and permits.

An emerging idea known as vehicle-to-grid (V2G) involves a vehicle sending energy to the grid during normal conditions to provide flexibility. While this technology is still being tested around the U.S., PNM's Grid Modernization investments provide the foundational capabilities to help support this and other energy technologies in the future.

No. The installation and new equipment come at no additional upfront cost to you. The Grid Modernization rider on your bill helps support Smart Meters and other improvements to the electrical grid that benefit all customers.

If you opt out of having a Smart Meter installed and keep your current meter, you will need to pay to have your monthly meter read manually and maintained once all Smart Meters in New Mexico are exchanged. This charge will include a one-time non-refundable charge to opt out ($18.60) and then an ongoing monthly charge ($9.95). Charges are subject to change depending on the number of customers that choose to opt out and annual public regulatory filings.

Current Opt-Out Charges in 2026 (subject to change in future filings)

• One-time opt-out charge prior to Meter Exchange $18.60
• One-time opt-out charge after Meter Exchange $49.17
• Monthly opt-out charge $9.95

Yes. If you opt out now, you can change your mind and call the Contact Center to request a Smart Meter to be installed. However, the opt-out fees already applied are non-refundable and additional fees may apply.