Grid Modernization Plan Finally Taking Hold in New Mexico
Image courtesy of Ken Teegardin under Attribution-ShareAlike 2.0 Generic Deed, resized to 700 x 391 pixels.
It’s certainly no secret that the U.S. power grid is old, which means that grid modernization efforts should be front and center for most – if not all – U.S. states. Unfortunately, some states are lagging behind the pack. But luckily, one such laggard – New Mexico – is finally coming around!
Details of New Mexico’s Grid Modernization Plan
After 18 long years, in August 2024, New Mexico regulators finally approved utility modernization efforts.
The state’s largest electric utility, Public Service Company of New Mexico (PNM), will be investing in advanced metering infrastructure (AMI), an advanced distribution management system (ADMS), smart meters, smart grid cybersecurity, and similar things over the next 6 years as part of the utility’s $344 million grid modernization plan.
It appears the New Mexico regulators have finally seen the light. In the past, state regulators have rejected similar grid modernization proposals as being too novel. But with the Aug. 2024 approval of the PNM plan, the New Mexico Public Regulation Commission finally acknowledged that the state’s electric utilities, especially PNM, need to “catch up.”
Over half of the modernization funds ($171 million) will be allocated toward AMI / smart meter deployments, with full deployment expected to be completed in 3.5 years. The AMI network will offer customers as well as the utility itself the ability to access near-real-time energy use data to make more intelligent decisions. As of the time of this writing, PNM is still in the process of identifying an AMI vendor to help facilitate the implementation.
Additionally, just over $15 million will be allocated for the ADMS platform, and another $4.7 will be allocated to cybersecurity efforts.
I suppose the phrase, “better late than never” might apply here, but I can’t help but think about all the time wasted to get to this point, and the negative impact this has had on the people of New Mexico. Nonetheless, implementation of PNM?s grid modernization plan is absolutely critical, and the fact that New Mexico as well as a few other lagging states are finally coming around is truly a blessing.
