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.
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 a bill looks like at this rate
The figures below apply the May 2026 New Mexico average to four usage levels. They are arithmetic, not quotes. A real bill also carries fixed customer charges, taxes and any rider specific to your utility.
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.
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.
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 a typical monthly electric bill in New Mexico?
At the May 2026 average rate of 14.12¢/kWh, a household using 900 kWh a month would pay about $127, and one using 1,500 kWh about $212. Actual bills vary with usage, rate schedule, fixed customer charges and taxes.
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.
Where does this New Mexico rate figure come from?
It is the residential-sector average revenue per kilowatt-hour reported by utilities to the U.S. Energy Information Administration on Form EIA-861M and published in the Electric Power Monthly, Table 5.6.A. It blends supply and delivery across every residential customer in the state, so it is a statewide average rather than a quote for any individual household.