Public Service Company of New Mexico, or as it’s better known as PNM has announced plans to seek a rate increase for 2024.
PNM says the increase should cost customers an extra $.75 per month if it's approved by state regulators.
This rate hike proposal was shared with the media on Monday afternoon.
PNM Senior Vice President for Public Policy Ron Darnell said in the press conference that several factors played into this decision.
“There are several key points that I would like to emphasize this afternoon. Today, PNM filed for 2024 rate change. Our request was significantly offset by the transition out of coal with the closure of the San Juan Generating Station. This request was further offset by our management to our transition to sustainable energy.”
The savings PNM got from the shutdown of the San Juan Generating Station is reflected in the minimal impact to customer’s monthly bills.
The shutdown lowered PNM’s annual recovery rate by about $260 million.
Still, PNM is seeking $336 million in additional annual funds to help recoup $2.6 billion they either spent on investments to the grid in 2019 or additional ones it will make over the next year.
If approved by the Public Regulations Commission, these new rates would take effect in January of 2024 and would represent almost a 9% rate hike for all PNM residential, commercial and industrial customers.