Electricity Rate in New Mexico (2026): 14.12c/kWh Average
The EIA residential electricity price in New Mexico is 14.12 cents per kWh as of May 2026, 4.32c below the US average of 18.44c/kWh. The New Mexico commercial rate is 10.18c/kWh and the industrial rate is 4.45c/kWh (EIA Electric Power Monthly, Table 5.6.A).
New Mexico Electricity Rate: What You Need to Know
New Mexico electricity averages 14.12 cents per kWh for residential customers as of May 2026, according to the EIA Electric Power Monthly. This is 4.32c below the US average of 18.44c/kWh. The average monthly bill for New Mexico households is $98 based on typical usage of 650 kWh.
New Mexico's 14.12c/kWh rate (May 2026) is below the US average of 18.44c, and its grid has transformed faster than almost any other state's. Wind is now the single largest source - roughly 36% of in-state generation - having overtaken natural gas (around 27%) and coal (around 21%), with utility-scale solar near 15% and still growing; renewables together supply more than half the state's electricity. The market is regulated with no residential retail choice. The Public Service Company of New Mexico (PNM), a TXNM Energy subsidiary, is the largest utility, serving the Albuquerque-Santa Fe corridor; El Paso Electric serves the south around Las Cruces, Xcel Energy's Southwestern Public Service unit serves the eastern plains, and rural cooperatives cover much of the rest, all overseen by the New Mexico Public Regulation Commission (PRC). The coal exit drives the current story: PNM closed the San Juan Generating Station in 2022 and is leaving the Four Corners plant, replacing that baseload with wind, solar, and storage under the state's 2019 Energy Transition Act (100% carbon-free electricity by 2045). In a settlement the PRC approved a roughly $105 million revenue increase (down from the $174.5 million PNM requested), phased in two steps - a smaller rise in July 2025 and a larger one effective April 1, 2026 - adding about $6 to $10 a month to the typical residential bill while funding the transition.
Generation mix: Wind 36%, natural gas 27%, coal 21%, solar 15%. The fuel mix is a primary driver of electricity rates - states with abundant hydro or nuclear tend to have lower rates, while states dependent on imported petroleum (Hawaii) or natural gas pay more.
Year-over-year change: New Mexico rates fell 2.6% year-over-year as of May 2026. This compares to the US average increase of 6.2% over the same period.
Regulated: You Cannot Switch Electricity Suppliers
PNM / Xcel Energy NM operates as the regulated utility in New Mexico. Retail electricity choice is not available for residential customers. Options for reducing your bill include: time-of-use rate optimization, energy efficiency upgrades, and rooftop solar.
Your New Mexico Electricity Bill Components
State pre-selected in our full bill calculator with TOU and commercial modes.
Open Bill Calculator ->