Average Electric Bill in New Mexico

We dug into the U.S. Energy Information Administration’s data[1] to look at the average monthly electric bill for New Mexico residential households. These averages are for the full year of 2018, not any specific month of 2019, given that electricity usage & prices fluctuate month-to-month.

$81.08
average monthly residential electric bill in New Mexico
*This is 31.1% less than the United States national average, which is $117.65.
12.68¢/kWh
average residential electric rate for households in NM
*This is 1.5% less (20th highest) than the U.S. average, which is 12.87¢/kWh.
639 kWh
average monthly residential electricity consumption in NM
*This is 30.1% less than the national average (914 kWh) & the 10th lowest in the U.S..
2nd
New Mexico ranking for the lowest electric bill in the United States
*Relative to average monthly household income (2.08%), NM has the 38th lowest bill.

Why Are Electric Bills in New Mexico Comparatively Low?

The two factors that make up the cost an electric bill are (1) cost and (2) consumption. Looking at each, the cost of electricity in New Mexico doesn’t stand out, only costing 1.5% less than the national average. However, what does stand out is the electricity consumption of New Mexico residents; New Mexico residents consume 30.1% less electricity than the national average.

Reasons for High Electricity Rates in New Mexico

Even though electricity rates are only 1.5% lower in New Mexico than the national average, it’s important to understand what makes electricity more or less expensive. The factors affecting this number are:

  1. Supply – an increase in the supply of energy brings costs down. For example, weather events such as high amounts of rain or high wind speeds can temporarily increase the supply of energy where there are hydropower plants or wind turbines to take advantage, and as a result, lower electricity rates.
  2. Demand – an increase in the demand for energy causes costs to rise. This is because the use of more costly fuels, such as natural gas, help “fill in” for the rise in demand. For example, a heat wave might temporarily increase the demand for cooling and the subsequent need for fuels, and as a result, raise electricity rates.

Additional factors that impact electricity rates include state & federal regulations, global markets and even financial speculation.

Reasons for Low Electricity Consumption in New Mexico

Given that New Mexico residents consume 30.1% more electricity than the national average, it’s important to understand exactly what electricity is used for. The EIA looked at the end uses of electricity in the average American household and found the following breakdown:

NOTE

“Other uses” includes small electric devices, heating elements, exterior lights, outdoor grills, pool and spa heaters, backup electricity generators, and motors not listed above. Does not include electric vehicle charging.

Tips for Lowering Electric Bill

  • Reduce space heating/cooling – given that heating & cooling make up a large part of the average electric bill, increasing energy efficiency in this area can have arguably the biggest impact on your bill. Here are some things you can do to reduce your usage in this area:
    • Use a programmable thermostat (can reduce heating/cooling by ~10%)
    • Use extra insulation
    • Dress up/down to the temperature
    • Replace your air filter more often
    • Check seals on windows/doors/appliances for openings/leaks
  • Reduce water heating – one of the next biggest portions of the average electric bill is from water heating, which can be reduced by showering at lower temperatures, taking shorter hot showers and by lowering the temperature on the water heater itself (ideally to 120 degrees Fahrenheit).
  • Adjust fridge & freezer temperatures – ideally, your fridge should be at 38 degrees and your freezer at 5 degrees Fahrenheit.

Where Does New Mexico Get Its Electricity From?

The state of New Mexico depends on natural gas and coal as its two main sources of electricity generation. However, that’s not to say the state doesn’t have any renewable energy sources that it uses. In fact, 14% of the state’s electricity generation was made possible due to the state’s 1,000+ wind turbines.

Along with wind, New Mexico does incorporate biomass, but there aren’t any other sources of renewable energy in the state.

[1] Data from: https://www.eia.gov/electricity/data.php#sales 

Read About Electric Bills in Other States