New Mexico electricity rates
As of May 2026, the average residential electricity rate in New Mexico is 14.12 cents per kilowatt-hour, 23.4% below the U.S. average of 18.44¢. That is the 44th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▼ -2.6% from 14.50¢ in May 2025
- Vs. U.S. average
- -23.4% U.S. average 18.44¢
- National rank
- #44 of 51 · #8 cheapest
- Supply market
- Western Interconnection Regulated monopoly
Why New Mexico pays what it pays
New Mexico has an exceptional solar resource and has been building it at scale, together with wind in the east of the state. The Energy Transition Act set an accelerated schedule for retiring coal, and the replacement portfolios procured for the San Juan and Four Corners retirements came in at prices low enough that the transition reduced costs rather than raising them.
The Act also allowed the utility to securitise the undepreciated cost of retiring coal plants, refinancing that stranded cost with low-interest bonds rather than recovering it at a utility's higher cost of capital. That mechanism is a significant part of why New Mexico's rate went down while most states went up.
New Mexico still has a dispersed rural population and long distribution lines, which keeps it from being as cheap as its neighbours in the Mountain West.
Where New Mexico power comes from
New Mexico generated 39 TWh in 2025, the 37th largest output of any state. Wind supplied 36.3% of it. Renewables accounted for 52.5%, against 23.8% nationally, which ranks New Mexico #10 of 51.
- Wind 36.3% 14 TWh
- Natural gas 26.8% 11 TWh
- Coal 20.9% 8 TWh
- Solar 15.6% 6 TWh
- Hydroelectric 0.5% 185 GWh
Source: U.S. Energy Information Administration, Electric Power Operational Data, net generation, all sectors. Net generation across all sectors. Nuclear counts as carbon-free but not renewable, so the two shares differ.
How New Mexico compares
New Mexico ranks #44 of 51 jurisdictions by residential price, making it the 8th cheapest. Within the Mountain division, 3 of 7 neighbouring states are cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Idaho | 12.35 | +4.0% | #51 |
| Utah | 12.96 | +2.9% | #50 |
| Nevada | 13.60 | +2.3% | #47 |
| New Mexico | 14.12 | -2.6% | #44 |
| Montana | 14.67 | +13.9% | #39 |
| Wyoming | 14.80 | +7.1% | #38 |
| Arizona | 15.23 | -3.1% | #32 |
| Colorado | 16.16 | +3.7% | #28 |
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.
What New Mexico households actually pay
New Mexico looks more expensive on paper than it is in practice. Its rate ranks #44 of 51, but the average bill ranks only 51st, because households there use 642 kWh a month against a national average of 871. See how every state compares on bills.
Estimate your New Mexico bill
Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.
Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.
Heating in New Mexico: gas, heat pump or resistance
Residential natural gas in New Mexico averaged $9.05 per thousand cubic feet in 2024, about $0.87 per therm, against a national average of $14.50. Put on the same scale as the state's electricity rate, the cost of delivering one million BTU of heat works out as follows.
In New Mexico, gas remains cheaper to run than a heat pump by about $4.09 per million BTU at these assumptions, roughly $245 over a 60 million BTU season. A heat pump can still be the better purchase once cooling, equipment age and incentives are counted, but not on heating cost alone.
Gas price: U.S. Energy Information Administration, Natural Gas Prices, price delivered to residential consumers, 2024. Assumptions are adjustable in the heating cost guide, and every state is compared on the gas price page.
What each New Mexico utility charges
The statewide average hides a wide spread. Across the 19 New Mexico utilities reporting to the EIA, rates run from 8.91¢ at Central Valley Elec Coop, Inc to 24.09¢ at Southwestern Electric Coop Inc . Together they serve 888,233 residential customers.
| Utility | ¢/kWh | Bill | kWh | Customers |
|---|---|---|---|---|
| Public Service Co of NM | 15.57 | $89 | 574 | 492,945 |
| Southwestern Public Service Co | 11.98 | $119 | 996 | 100,540 |
| El Paso Electric Co | 10.16 | $75 | 740 | 94,760 |
| City of Farmington | 12.69 | $83 | 652 | 35,990 |
| Jemez Mountains Elec Coop, Inc | 15.36 | $89 | 581 | 28,093 |
| Kit Carson Electric Coop, Inc | 18.18 | $90 | 492 | 26,097 |
| Continental Divide El Coop Inc | 16.02 | $98 | 611 | 20,415 |
| Central New Mexico El Coop, Inc | 17.16 | $100 | 585 | 19,126 |
| Otero County Electric Coop Inc | 17.65 | $101 | 574 | 16,448 |
| Farmers Electric Coop, Inc | 12.87 | $107 | 833 | 10,258 |
| Navajo Tribal Utility Authority | 16.53 | $85 | 513 | 9,834 |
| Los Alamos County | 14.15 | $94 | 661 | 7,742 |
| Lea County Electric Coop, Inc | 10.07 | $114 | 1,131 | 7,217 |
| Central Valley Elec Coop, Inc | 8.91 | $105 | 1,176 | 6,150 |
| Roosevelt County Elec Coop Inc | 12.07 | $126 | 1,043 | 3,918 |
| Sunrun Inc. | 13.59 | $104 | 762 | 3,320 |
| Springer Electric Coop, Inc | 19.01 | $97 | 510 | 2,453 |
| Navopache Electric Coop, Inc | 14.94 | $68 | 453 | 1,493 |
| Southwestern Electric Coop Inc | 24.09 | $133 | 551 | 1,434 |
Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.
Who sells electricity in New Mexico
Public Service Company of New Mexico serves Albuquerque, Santa Fe and much of the state. El Paso Electric serves the south and Xcel Energy's Southwestern Public Service the east. Co-operatives serve much of the rural north and west.
There is no residential retail choice. The New Mexico Public Regulation Commission sets rates.
New Mexico sits in The Mountain West. Cheap legacy coal and abundant sun, with costs decided by how fast each state is retiring one and building the other. Read the regional analysis.
What you can actually do about it
New Mexico's securitisation is a genuine, if unglamorous, model for other states. The savings are real and permanent rather than a deferral.
Evaporative cooling is common in New Mexico and uses far less electricity than refrigerated air. Where the humidity allows it, it remains the cheapest cooling available.
Closest states by price
These jurisdictions charge within a fraction of a cent of New Mexico, which is useful if you are comparing a move or a multi-state operating cost.
New Mexico electricity rates: common questions
What is the average electricity rate in New Mexico?
The average residential electricity rate in New Mexico is 14.12 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -23.4% relative to the national average of 18.44¢/kWh.
How much is the average monthly electric bill in New Mexico?
The average New Mexico household paid $98 a month across the twelve months to May 2026, using an average of 642 kWh. That is -37.0% against the U.S. average bill of $155, and it ranks 51st highest of the 51 jurisdictions. Your own bill depends on the size of your home, your heating and cooling equipment and your rate schedule.
Why is the New Mexico bill ranking different from its rate ranking?
A bill is the rate multiplied by usage, and usage varies between states more than price does. New Mexico ranks #44 of 51 on price but 51st on the actual bill, because households there use about 642 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.
Have electricity rates in New Mexico gone up?
New Mexico rates fell 2.6% over the year to May 2026, from 14.50¢ in May 2025 to 14.12¢.
Can I choose my electricity supplier in New Mexico?
Regulated monopoly. New Mexico households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.