Franchise Fees - pnmprod
Understanding Franchise Fees
Some cities and counties in New Mexico charge a franchise fee. This fee allows utilities like PNM to use public rights of way like streets, alleys, and other public land to safely deliver electricity to homes and businesses.
Because not all communities charge this fee, only customers who live in areas with a franchise agreement will see a franchise fee line item on their PNM bill. PNM does not keep any portion of this fee; it is passed directly to the city or county that requires it.
Franchise fees help local governments maintain the public spaces and infrastructure that make it possible for utilities to serve customers reliably. These fees vary by location and are set by each city or county through their own local processes.
Frequently Asked Questions
A franchise fee is a charge that cities and counties assess to utilities for using public rights of way to deliver services. These rights of way allow PNM to place, maintain, and repair equipment needed to provide safe and reliable electricity.
If your local government charges a franchise fee, it appears as a separate line item on your PNM bill. PNM does not keep this money; it is passed directly to the city or county.
No. Only customers who live in areas where the city or county has adopted a franchise fee will see it on their bill.
Customers who live within incorporated municipalities, cities, towns, or villages, may see a different franchise fee set by that municipality. Customers in areas without a franchise fee will not see this charge at all.
Possibly. Each utilityelectric, gas, water, cable, or telecommunicationshas its own franchise agreements with local governments. If a city or county charges a franchise fee for that service, the utility may pass it through to customers just as PNM does.
Franchise fees are set by local governments, not by PNM. Cities and counties determine:
- Whether to adopt a franchise fee.
- The percentage or amount of the fee.
- How long the franchise agreement lasts.
Changes to franchise fees typically require approval by the city council or county commission and may involve public hearings or voter approval, depending on local rules.