What drives electric bills in New Mexico
Residential electricity in New Mexico averaged 15.1¢ per kWh in January–July 2026, up 2.8% from 14.7¢ in the same months a year earlier (the U.S. average went up 6.9%). In July 2026, the latest month available, it was 16.1¢. The typical home here used 654 kWh a month in 2024, 24% less than the U.S. average, so a high bill usually points to the price per kWh or to one big appliance.
- The coal-to-clean transition. PNM closed the San Juan coal plant, and bills now include charges to pay off the plant and help the communities around it, along with the cost of new solar and batteries.
- Summer cooling in the south. In Las Cruces and southern New Mexico, A/C use drives summer bills.
- Evaporative coolers. Many homes use swamp coolers, which use much less power than central A/C, but their pumps and fans still add up.
Who supplies your power
PNM serves Albuquerque, Santa Fe and much of the north. El Paso Electric serves Las Cruces and the south, and Southwestern Public Service (Xcel Energy) serves the east. Co-ops serve rural areas.
Ways to pay less in New Mexico
- If you have an evaporative cooler, service it every spring and replace the pads. A well-tuned swamp cooler is one of the cheapest ways to cool a home in dry climates.
- PNM and El Paso Electric offer rebates on efficient appliances, heat pumps and insulation, and free upgrades for income-eligible homes.
For example, a 1,500 W space heater running 8 hours a day costs about $55 a month at New Mexico prices. Check what your appliances cost to run in New Mexico.
Help paying your bill in New Mexico
- LIHEAP: New Mexico’s program, through the Human Services Department, helps with heating and cooling bills.
- PNM Good Neighbor Fund: emergency bill help for PNM customers facing a crisis.
Statewide help is in addition to the federal programs, such as LIHEAP and weatherization, that the bill checker above lists. Call 211 to find the agency that handles them near you.
Is solar worth it in New Mexico?
A typical 7 kW rooftop system in New Mexico produces roughly 11,550 kWh a year, about 100% of what an average home here uses. At the state’s average price of 15.1¢, that power is worth about $1,742 a year. What you actually save depends on your roof, the price you pay for the system, the 30% federal tax credit rules in effect when you buy, and how your utility credits the power you send to the grid. Get at least three quotes before you decide.
How New Mexico compares with nearby states
| State | Price per kWh | kWh a month | Typical bill |
|---|---|---|---|
| New Mexico | 15.1¢ | 654 | $99 |
| Utah | 13.2¢ | 774 | $102 |
| Oklahoma | 13.6¢ | 1,079 | $147 |
| Arizona | 15.4¢ | 1,075 | $166 |
| Texas | 16.1¢ | 1,096 | $176 |
| Colorado | 16.7¢ | 674 | $113 |
| U.S. average | 18.2¢ | 863 | $157 |
Price: average residential price, January–July 2026, U.S. Energy Information Administration (Electric Power Monthly, tables 5.6.A and 5.6.B). Usage: average monthly consumption per home, 2024, EIA form EIA-861. Typical bill = typical usage × current average price. Solar output is a rough estimate for a south-facing roof.