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PNM joins Western day-ahead energy market, citing $20 million in annual savings
The West Side PNM substation, shown here. PNM on Tuesday announced it's joining a Western U.S. day-ahead market and will start participating in 2027.
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It’s official: New Mexico’s largest electricity provider is joining a Western U.S. financial energy market.
Public Service Company of New Mexico on Tuesday announced its commitment to the California Independent System Operator’s extended day-ahead market, or EDAM.
The utility plans to begin participating in the fall of 2027, shortly after the company expects to have three-quarters of its power portfolio made up of carbon-free resources.
Day-ahead energy markets allow companies to sell and purchase electricity at financially binding prices for the next day. The benefit is that buyers and sellers can hedge against real-time price changes and volatility, according to national substation packager Peak Substation Services.
The Western U.S. extended day-ahead market launches in 2026, and New Mexico is the seventh entity to formally join it, according to the California Independent System Operator.
The cost for PNM to join the market is a little more than $1 million, Kelsey Martinez, PNM’s director of regional markets and transmission strategy, told the Journal in November, when PNM announced its intent to join. She also said the utility’s participation will result in around $20 million of annual savings for PNM.
PNM already participates in the Western Energy Imbalance Market, which is a real-time supply and demand balance market. That market has saved PNM customers nearly $170 million since the company joined in 2021, according to PNM.
“Participating in the extended day-ahead market is a great next step for our customers and the state of New Mexico,” said PNM CEO Don Tarry in a statement. “The EDAM will integrate our state’s renewable energy potential while helping us continue to serve our customers with clean and reliable service at the lowest cost.”
