New Mexico residents face potential $174M electric rate increase

Published on June 18, 2024 by Chris Galford

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In a request filed last week by the Public Service Company of New Mexico (PNM), the company sought regulatory approval for a base rate with a $174.3 million increase in retail revenues.

PNM – a subsidiary of PNM Resources, Inc. – cited several factors leading to the request: investments in transmission and distribution infrastructure, updated cost of capital and capital structure, battery storage resources approved in prior cases, alignment of Four Corners rate base recovery, wildfire mitigation and insurance costs. To mitigate the immediate impacts, the company also proposed a phased-in approach to cost rollout.

If approved by the New Mexico Public Regulation Commission (NMPRC), the plan would see 50 percent of a $92.2 million non-fuel rate impact implemented July 1, 2025. The remainder would go into effect on Jan. 1, 2026. Alongside this would be an $82.1 million increase in pass-through fuel requests. This would cover the extent of the retail revenue hike, and was based on a future test year with projected costs running from July 1, 2025 through June 30, 2026.

The request was founded on a total rate base of $3 billion.