New Mexico utility seeks to join western energy market

New Mexico’s largest electric utility is asking state regulators for approval to join a trading market that allows participants in several western states to buy and sell energy to better balance supply and demand.

The Los Angeles Department of Water and Power is among those expected to join the energy imbalance market by 2020 while large utilities in Arizona, Nevada and Utah already are on board.

Public Service Co. of New Mexico wants to join by 2021, saying the move could save an estimated $17 million annually and ensure more efficient use of the region’s renewable energy.

It would cost about $28 million to join. Annual expenses would be around $3 million.

The utility says it would seek to recover costs through customer rates but noted any savings would reflect on monthly bills.