Alamogordo NM
10-23-2026 10:29am

Regulators move PNM billing probe forward; final order due Nov. 5

LAS CRUCES — The New Mexico Public Regulation Commission on Thursday unanimously moved ahead with a formal investigation into Public Service Company of New Mexico's estimated and delayed electric bills this summer, sending the order that would authorize the probe back for revisions before a final vote at its Nov. 5 meeting.

The item — Case No. 26-0000176, a petition from the commission's own Public Interest Advocacy Staff — came up during the PRC's Oct. 22 regular open meeting at Guthrie Hall on the New Mexico State University campus.

Rather than simply approving or denying the draft order, the three commissioners voted to rework its language so investigators have clearer direction on how far the probe should reach.

What commissioners changed

  • Scope: The investigation will concentrate on the Alamogordo and Ruidoso areas of Otero and Lincoln counties, where complaints were most severe, but investigators will not be barred from examining whether overbilling happened elsewhere in PNM's statewide territory.
  • Meter testing: Commissioner Greg Nibert was assigned to revise the order so that results of independent meter tests are reported to the commission.
  • Rate tiers: Commissioner Gabriel Aguilera asked staff to look at whether inflated catch-up bills pushed some households into a higher-priced usage tier, compounding their costs.

Nibert said the agency needed to show residents of the two counties that "we're concerned about their particular plight." He added that while the problem surfaced in those counties, staff remain free to determine whether it occurred elsewhere, and said he hoped the issue was not widespread but wanted the investigation to find out.

Commissioners also noted that although Otero and Lincoln county customers make up only about 5 percent of PNM's customer base, residents there have no alternative provider for electric service.

How it started

Customers in the Alamogordo area began complaining in July that PNM was estimating their usage instead of reading meters, a problem the utility attributed largely to a shortage of meter readers. The mayor encouraged PNM to host meetings and listening sessions due to concerns being raised. Independent New Mexico House Rep District 51 Candidate pushed a call to hear from constituents and attended meetings to give constituents answers attending multiple PNM and PRC meetings on behalf of constituents concerned with high power bills. 

A group was formed and organized PNM Customers United. The Mayor of Alamogordo, Sharon McDonald, pushed for local public dialogue and hosted a PRC discussion and a PRC town hall in Alamogordo on Sept. 29. At that event some residents said monthly bills that normally ran $150 to $200 had jumped as high as $1,700, according to the staff filing.

PNM issued 28,472 estimated bills in August alone — about 5.5 percent of the bills it scheduled that month — and the shortage spread beyond southern New Mexico to other parts of its service area.

PRC staff filed their petition in early October asking the commission to authorize a formal investigation, independent testing of a sample of meters in Alamogordo and Ruidoso, monthly status reports and a final public report. Staff proposed that PNM pay for the meter testing and that the sample be chosen with help from PNM Customers United, a grassroots group that attended the Alamogordo town hall. The petition said the affected communities "deserve a full accounting."

Staff said they intend to start with four questions:

  1. What caused the situation?
  2. Were customers overcharged as a result?
  3. Did PNM comply with all applicable statutory and regulatory requirements?
  4. What regulatory measures or lessons could prevent it from happening again?

The state Department of Justice also pressed PNM over the high bills last month, hand-delivering a letter to PNM President and CEO Don Tarry.

PNM's response

PNM spokesperson Eric Chavez said the company understands customers' concerns, remains committed to supporting those affected, and will fully cooperate with the investigation, including providing information on what happened, how customers were affected and what the utility has done in response.

Advocates welcome the vote

PNM Customers United, which formed in August and says it now has more than 2,100 members on Facebook, brought the four investigation questions to regulators at the Alamogordo town hall.

"This is great news for Otero and Lincoln counties," said Rebekah Garcia Stewart Thorp, an advocate with the group who spoke at Thursday's meeting. "We won't stop until there is an acceptable resolution on this issue," she added.

According to the group, once the final order is approved, PRC staff will have 120 days to complete their investigation and prepare a report.

What's next

The commission is expected to take up the final wording of the order at its next regular open meeting, Thursday, Nov. 5, at 10 a.m. in Room 309 of the State Capitol in Santa Fe. The meeting is open to the public in person and will be livestreamed on YouTube; public comment sign-up is through public.comment@prc.nm.gov or 505-490-7910.

Customers with billing concerns are advised to contact PNM first. Unresolved complaints can be filed with the PRC's Consumer Relations Division at 1-888-427-5772 or online at prc.nm.gov.

Watch the hearing

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