Study: NM boasts lowest energy costs

Despite New Mexico residents spending more money to run climate-control systems to counter a typically hot summer, a recent report shows the Land of Enchantment having the lowest energy costs of all 50 states.

WalletHub reported New Mexico residents’ average monthly energy bill was $376, which was $24 cheaper than the lowest-cost runner-up, Arizona.

The report accounts for costs for electricity, natural gas, motor fuel and home heating oil.

Breaking down the numbers from WalletHub, New Mexico’s average monthly electricity cost was $103, second-lowest in the U.S. Natural gas costs were $76, which was fourth-lowest. Home heating oil cost was $11, also fourth-lowest.

Wes Reeves, senior media relations representative at Xcel Energy that serves Tucumcari, noted its electrical rates are more than 16% lower than the state average and 30% lower than the national average. He also said residential rates fell by an additional 7.7% since May.

“First, the price of fuel for the company’s area generating plants continues to drop, primarily because of the abundance and low cost of natural gas that fuels about 30% of the region’s electricity production,” he stated in an email.

“Additionally, the company has invested heavily in high-voltage transmission infrastructure that has boosted imports of low-cost electricity from the Southwest Power Pool. The company has also invested in renewable energy and has passed along hundreds of millions of dollars in production tax credits and avoided fuel cost savings directly to area customers.”

Monthly motor fuel costs in New Mexico averaged $186, which was eighth-highest.

Other low-cost energy states listed by WalletHub were Kansas, Texas, Nebraska, Mississippi, Florida, Colorado, Louisiana, California and Oklahoma.

Wyoming had the highest energy cost, at an average of $1,591 a month. North Dakota was second-highest, at $840.

All the high-cost states endure long and cold winters.

Wyoming’s high cost was driven by home heating oil, which costs an average of $1,087 a month, by far the highest in that sector.

Wyoming also had the highest monthly cost — $278 — in motor fuels.

“Coupled with relatively high prices for heating oil and natural gas, this makes Wyoming a particularly costly state,” WalletHub stated. “Considering Wyoming’s extremely cold winters, however, this isn’t too much of a surprise. Residents also may not have as many heating options as other states, given that many residents live in more remote areas.”

Other high-cost energy states were Iowa, Montana, Minnesota, Massachusetts, Connecticut, Alaska, South Dakota and Virginia.

WalletHub collected the data on June 3 from several federal agencies and the American Automobile Association.