Council Urges Large Power Users to Cover Grid Costs
A 13-member energy council released 22 recommendations to shift costs of new large electricity loads away from existing customers.
Updated on Nov. 11, 2026 in Utilities
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Gov. Michelle Lujan Grisham's Energy Affordability and Grid Reliability Council urged lawmakers to make large power users bear the costs attributable to serving them. The November 2026 report also proposed shifting the renewable-energy standard to a zero-carbon standard.
Why it matters
Industrial customers accounted for about 47% of New Mexico's 2025 electricity sales, so cost allocation decisions could shape bills across the state. Future energy demand is expected to grow, though its scale, timing and location remain uncertain.
Industrial customers accounted for about 47% of New Mexico's 2025 electricity sales, compared with 30% for commercial and 23% for residential users. The May 2025 PRC-approved PNM rate increase raised average monthly residential bills by roughly $12, and the scale of future demand growth remains uncertain.
The players
Michelle Lujan Grisham
The Democratic governor of New Mexico who appointed the council to address energy affordability and grid reliability.
Public Regulation Commission
New Mexico's utility regulator, which approved PNM's phased-in rate increase in May 2025.
The details
The council was established by executive order in April 2026 and includes 13 members. Its report recommends that large industrial customers bear costs attributable to serving them, that existing customers be held harmless from costs and financial risks caused by new large loads, and that the Energy, Minerals and Natural Resources Department develop a database of large electricity users.
Timeline
May 2025: The New Mexico Public Regulation Commission approved PNM's phased-in rate increase.
2019: The Energy Transition Act was signed, requiring carbon-free utilities by midcentury.
April 2026: Gov. Michelle Lujan Grisham established the 13-member council by executive order.
November 2026: The council released its report with 22 recommendations.
Market Landscape
The council's proposal to shift the renewable-energy standard to a zero-carbon standard builds on the 2019 Energy Transition Act, which required carbon-free utilities by midcentury. The cost-allocation recommendations address how the state pays for grid expansion under that mandate.
Residential bills rose by roughly $12 a month after the May 2025 PNM rate increase, and the council's recommendations would shift grid costs toward large industrial users. Households should watch whether lawmakers adopt the cost-allocation proposals.
The takeaway
Who pays for new grid capacity is becoming as consequential as how that capacity is generated. The council's push to make large users cover their own costs could determine whether household bills rise as demand grows.
Further reading
Explore more on utilities coverage for New Mexico.
Source note: This article includes information reported by Abqjournal.
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