Summer is coming—and so are higher PNM rates under NM’s Green New Deal
New Mexico residents served by Public Service Company of New Mexico (PNM) will soon pay more for electricity, following the New Mexico Public Regulation Commission (PRC) approval of a phased rate increase. As reported by KOAT News 7, the average residential customer will see their monthly bill rise by $6.23, split between two increases—one in July 2025 and another in April 2026.
PNM says the rate hikes are necessary to support infrastructure upgrades and meet the demands of New Mexico’s state-imposed energy mandates. “This outcome ensures we can continue investing in the infrastructure and technologies necessary to meet our customers’ needs and support New Mexico’s clean energy future,” said Don Tarry, PNM’s president and CEO. “We are grateful to the other parties who worked with us to reach a fair settlement.”
The rising costs are directly tied to the state’s Energy Transition Act (ETA)—legislation passed in 2019 and signed into law by Governor Michelle Lujan Grisham. The ETA mandates that New Mexico’s utilities shift to 50% renewable electricity by 2030 and 100% carbon-free generation by 2045. As a result, utilities like PNM have shuttered affordable baseload power sources, such as coal-fired plants like the San Juan Generating Station, and replaced them with higher-cost solar, wind, and battery storage infrastructure.
These new technologies require substantial upfront investment, which PNM is now possibly recouping through customer rate increases. The costs of building new transmission lines, acquiring battery storage systems, and integrating intermittent power sources have added billions to utility budgets—burdens that are now being passed on to ratepayers.
According to filings with the PRC, utilities are justifying rate hikes by using them to fund capital investments in renewable resources and “grid modernization.” But for many New Mexicans, this green energy push has translated into growing monthly expenses, even as the reliability of the electric grid faces new challenges.
The Energy Transition Act also allows utilities to recover costs through a mechanism known as “securitization,” in which utilities are allowed to issue bonds backed by ratepayer obligations. This financial structure was promoted as a way to lower the cost of transition, but in practice, it has contributed to long-term repayment obligations that lock consumers into decades of higher bills.
In effect, New Mexico’s attempt to implement its version of the “Green New Deal” is coming at a steep price. While PNM and the state tout environmental progress, ratepayers are being forced to fund the transition, regardless of whether they can afford it.
To make matters worse, during the 2025 Legislative Session, Democrats passed legislation that would also permit utilities to have socialist rate structures for low-income consumers to have low rates that middle-class and higher-income New Mexicans would be forced to pay with higher rates, further increasing the cost of utilities in the state.
The first PNM rate hike will hit in July 2025, offering New Mexicans an unwelcome reminder of how state-mandated energy policy directly impacts their pocketbooks. For PNM rate information, click here.
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