ENERGY
New Mexico’s power grid hits all-time high amid punishing heat
PNM reported a peak load of 2,264 megawatts Monday
SANTA FE — Victoria Webb ushers moviegoers to their seats at Sky Cinemas, the multiplex in Santa Fe’s Railyard. Outside, there’s a cloud cover. But temperatures remain high.
A water bottle and small fan provide Webb some relief from heat that sweeps through the doors and windows of the lobby. To cool down, employees huddle in the keg room, she said.
“With ‘Spider-Man’ and ‘The Odyssey,’ we definitely have seen more traffic,” Webb, general manager of the theater, said in an interview Friday. “With the heat, I think it brings a lot more people to the theater because they want to be cool.”
Not so cool? The theater’s monthly electric bill. Webb estimates the last bill was somewhere between $1,000 and $1,500 — about 15% to 20% — higher than normal.
As triple-digit temperatures envelop areas of the state, New Mexico’s electric grid has been strained.
In an earnings call last week, TXNM Energy Inc., parent company of Public Service Company of New Mexico, reported record-high electricity demand.
That is why Don Tarry, TXNM’s president and CEO, said the utility is proposing to merge with Blackstone Inc. in a deal valued at $11.5 billion.
“Increased retail load at both PNM and (Texas-New Mexico Power Co.), including new all-time system peaks this summer, underscores the need for grid investment to support growing customer demand,” Tarry said in a statement.
In late May, PNM filed its 2029 to 2032 resource plan with the state Public Regulation Commission, the three-member body that approves utilities’ requests to build more infrastructure. PNM asked for approval to purchase 800 megawatts of wind power, 240 megawatts of solar and 610 megawatts of battery storage from renewable energy developers.
The company, like all investor-owned utilities in the state, must provide 100% carbon-free power by 2045 as part of Gov. Michelle Lujan Grisham’s 2019 Energy Transition Act. TXNM said during its earnings call that it would abandon the Four Corners Power Plant by 2031.
“Even during the hottest weeks of summer, New Mexico was powered by 62% renewable energy” in July, Lujan Grisham said in a Wednesday social media post. “Just five years ago, coal and natural gas generated about 83% of the electricity serving PNM customers in July.”
PNM officials say they are making great strides in building an electric grid free of carbon emissions, a product of burning fossil fuels like natural gas and coal. Even so, PNM asked the PRC to approve a 40-megawatt expansion of a natural gas plant in its resource plan.
In an interview Thursday, three PNM officials said the grid reached an all-time system high of 2,264 megawatts on Monday. That is 6% higher than the previous record set during a July 2023 heatwave, said Omni Warner, senior vice president of operations for PNM.
The peak occurred at 5 p.m., he said.
Around 5 p.m., people’s air conditioning, and need for energy, rises, Warner said. PNM has 500 megawatts of rooftop solar on its grid, he said. “So as the customers’ rooftop solar goes down, their solar isn’t producing, but we still have to supply to their HVAC, their load,” Warner said.
He added, “We are built, we are ready for it, and we met those needs without any concerns or issues on our system.”
A Yale Climate Connections of PNM’s grid released late last month said that in the Southwestern U.S., electricity is cheap during sunny days because solar panels are cranking out electrons at the same time.
“Summer evenings are hot, even as the sun eases toward the horizon and solar production wanes,” the study said. “That’s when PNM’s battery fleet comes to life, delivering the solar energy stored a few hours earlier.”
Still, Warner said, the company relies on its thermal generators — nuclear, gas and coal — during nighttime hours when renewables are not generating new energy.
Lisa Goodman, spokesperson for TXNM, said in the interview that the total capacity of the grid is roughly 4,900 megawatts. She added that PNM has seen customer growth of up to 1% annually.
Goodman said the utility has a number of programs to help customers stay cool and cut costs. The Good Neighbor Fund is the utility’s emergency utility assistance program for low-income households.
For residential customers, the Power Saver program allows PNM to adjust ratepayers’ thermostats for brief periods during the day when the utility needs more power. Peak Saver is a similar program for businesses. The utility also offers home energy checkups at no charge.
Kai Porter, another spokesperson for PNM, said a resident can save up to 4% on electricity for every degree higher a thermostat is set. He advised residents to crack windows if they have evaporative coolers to keep them operating efficiently. Closing the blinds during sweltering days also cools homes, he said.
“Obviously, we don’t want customers uncomfortably hot,” Porter said. “So we tell customers to just set the thermostat as high as comfort permits.”
Webb, the Sky Cinemas manager, said while the lobby might be hot for some, the thermostats in the theaters are set at 69 degrees.
“If it was up to me, I would go lower,” she said. “But all the older people are just like, ‘It’s freezing in there.’”
Justin Horwath covers tech and energy for the Journal. You can reach him at jhorwath@abqjournal.com.