On May 28, PNM filed a proposal with the New Mexico Public Regulation Commission that will probably increase your electric bill and doesn’t help to bring about the changes that will enable the envisioned 100% carbon-free future that PNM claims to be working toward.
This proposal is called “decoupling” because it removes the link between the energy that PNM’s customers use and the amount of money that PNM receives from its customers. PNM’s methodology relies on a calculation based on an outdated rate case that determines how much money is “owed” to PNM by each customer in the residential and small commercial rate classes; if PNM doesn’t receive what it is “owed” from its customers, then a charge will be added to your bill.
Essentially, PNM is proposing an income guarantee from its residential and small commercial customers regardless of how much energy PNM sells and how much individual customers try to conserve or offset their usage with solar.
There are numerous problems with PNM’s decoupling proposal. It uses out-of-date costs and cost allocation methodologies. It was proposed during a pandemic in which many small businesses and residential customers are already facing increased financial stresses. The proposal may even be illegal and shows once again that PNM tries to interpret laws in ways that suit it.