Analysis of electricity sales growth for Public Service Company of New Mexico (PNM)

Electricity sales growth in New Mexico was severely impacted by the Great Recession of 2008–2009. Slower growth in sales resulted in under-recovery of revenue for PNM and put upward pressure on electric rates. Dr. Faruqui examined the reasons for the slowdown in sales by analyzing the company’s sales forecast, and cross-validating the forecast using a hybrid model that integrates econometrics with end use analysis.