You might have to dig a little deeper into your pockets next summer to pay the bills. That’s because PNM is looking to raise its rates again.

The power company asked state regulators on Monday to approve a $123.3 million increase in electric rates, which translates into an 18 percent hike.

The Public Regulation Commission will conduct a public hearing on the increase early next year. If the increase is approved, the average residential customer’s bill would increase approximately $13 a month — or 23.5 percent. The rates would go into effect next August.

“New Mexico’s economy and population are growing rapidly, and so is the need for more electricity,” said Pat Vincent-Collawn, president and chief executive officer of PNM. “These proposed rates are part of our larger effort to prepare for New Mexico’s energy future, which includes new sources of power, reduced emissions at our main power plant and increased investment in renewable energy and energy efficiency.”

Vincent-Collawn understands that scrounging up a few extra dollars can be difficult.

“We know customers are feeling the pinch of rising energy costs,” Vincent-Collawn said. “In this rising-price environment, it is more important than ever for us to work together to help manage monthly bills.”

In order to compensate, PNM has new and expanded energy efficiency programs. The company recently proposed energy efficiency programs that would increase energy savings from existing programs by 110 percent and, over their lifetime, save enough electricity to power nearly 80,000 homes for a year.

The proposed programs would provide discounts for 900,000 compact fluorescent light bulbs a year, result in the recycling of 12,000 older-model refrigerators a year and provide rebates and other incentives for businesses to use energy more efficiently.

A PNM news release estimates that electricity needs in PNM’s service territory are expected to grow by 2.1 percent per year between now and 2013. That is 50 percent faster than the national forecast of 1.4 percent per year. That’s because of new customers joining the PNM system and moderate increases in average per-customer consumption.

According to the release, the proposed $123.3 million rate increase is driven largely by several factors including expansions to two existing, clean-burning, natural gas-fired power plants in southern New Mexico to meet the growing energy needs of PNM customers; a major environmental upgrade at the coal-fired San Juan generating station that will reduce emissions by more than 24,000 tons annually.

“Customers have told us that electric reliability, cleaner energy and energy efficiency are high priorities,” Vincent-Collawn said. “Our recent filings, including the rate case filed recently, move us further down that path and will strengthen the company’s ability to meet these important customer needs.”

PNM plans on spending 63 percent more on capital projects over the next five years than it did the previous five years.

To meet growing customer needs, and maintain electric reliability, PNM expects to spend $1.3 billion on power plants, power lines and other infrastructure in the next five years.

In addition to the base rate increase, PNM also wants to continue use of a fuel and purchased power cost adjustment clause. This allows the company to pass along to customers changes in fuel and purchased power costs incurred to provide electricity to customers without adding a profit.

PNM filed an electric integrated resource plan with state regulators.

The plan is a roadmap of the resources on which it will rely to meet the growing electric needs of its customers and is the result of a year-long public collaboration process.

The plan includes a new customer-owned solar photovoltaic program for those who want to install photovoltaic systems larger than 10 kilowatts in size, more aggressive energy efficiency programs and the addition of the most cost effective renewable resources chosen through two current requests for proposal initiatives.