New Mexico (NM) electricity and natural gas rates
Electricity
16.09¢
per kWh
Natural gas
$1.27
per therm
Gas and electricity in the same unit
A therm is 29.3 kilowatt hours of energy, so New Mexico's gas works out at 4.35¢ per kWh against 16.09¢ for electricity.
That compares the energy you buy, not the heat you get. A furnace throws away a fifth of every therm up the flue, while a heat pump delivers two to three times the heat in a kilowatt hour — so the cheaper unit here is not automatically the cheaper way to heat a house.
Residential sector, US Energy Information Administration, 2026-07. Updated monthly.
How New Mexico compares
At 16.09¢ per kWh, New Mexico is below the national average of 19.26¢, making it the 25th cheapest of the 51 states we track.
What a typical New Mexico household uses
Electricity a month
678 kWh
Bill a month
$104
Households in New Mexico use 21% less electricity than the national average and pay 31% less than average. Light use and a below-average rate together, which is the cheapest position a state can be in. The climate is fairly balanced — 4,200 heating degree days against 1,600 cooling ones — so neither season dominates the bill.
More on this: the average electric bill in New Mexico, including how far it swings between seasons.
Averaged over twelve months across 931,598 residential accounts in New Mexico. Source: EIA.
What this means for heating
New Mexico sees around 100 freezing nights a year. Whether a heat pump beats a furnace here depends on the gap between those two prices above — not on the equipment.
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