Nov. 26 – The Public Service Company of New Mexico has agreed to a lower rate increase than what the company requested from state regulators earlier this year.
If approved, the settlement would increase the average monthly electric bill for PNM customers by $9.79 by 2026, up from the more than $23 the utility initially requested. The increase would take place in two phases, with an average increase of $2.79 in July and $7 in April 2026.
The settlement would give PNM a $105 million increase in annual revenue, up from the $174.5 million PNM requested in its initial rate increase filing in June. The settlement would also increase the utility’s return on equity – which guarantees higher profits for shareholders – from the current 9.26% to 9.45%.
A settlement agreement signed by the utility and more than a dozen parties — including environmentalists, trade groups and the Justice Department — was filed Tuesday with the New Mexico Public Regulation Commission. The agreement requires consideration and approval by the commissioners before the company can change rates.
PNM spokesman Jeff Buell said the company is “grateful for the hard work of the parties to our rate review to reach an agreement and reach an unhindered agreement.”
He said the agreement supports “continued reliable service, safety, wildfire risk management and new energy sources needed to continue the transition to a zero-carbon future.”
The agreement also requires PNM to make a $1.5 million shareholder-funded contribution to the utility’s Good Neighbor Fund, which provides bill payment assistance to some customers.
The settlement was signed by staff from the Public Regulation Commission and the Department of Justice, as well as several renewable energy trade groups and advocacy groups New Energy Economy and Western Resource Advocates.
The agreement reduces cost burdens on residential and small commercial ratepayers and includes terms related to the Four Corners Power Plant near Farmington, AnnaLinden Weller, a spokesperson for Western Resource Advocates, said in a statement.
“We have made commitments that the utility will inform the Public Regulation Commission of any changes to their planned withdrawal” from the coal-fired power plant, also called Four Corners Generating Station, Weller wrote.
The committee also agreed to hold wildfire mitigation workshops in 2025 to better prepare to deal with the deadliest impacts of climate change, she wrote.
