New Mexico energy company PNM has outlined a six-year $344m modernisation plan for the company’s electricity grid.

The plan was detailed in a filing with the New Mexico Public Regulation Commission. PNM’s electricity grid serves more than 530,000 New Mexico users.

One of the cornerstones of this grid modernisation plan is the installation of smart meters. Smart meters, once fully implemented, will allow customers to monitor electricity rates and choose when to increase and decrease electricity usage, saving them money.

The smart meters should also allow faster response time to electricity outages, by notifying PNM of a lack of power.

The grid modernisation plan allows better integration of electricity generated from solar units at homes and businesses. And, it should enhance cyber threat anti-terrorism and hacking measures.

“This filing is a major step forward for New Mexico and our customers,” said Pat Vincent-Collawn, PNM’s CEO. “This programme is critical to enable PNM to move to a system where electricity is generated from different sources. We remain committed to providing reliable, sustainable energy to the people we serve.”

A statement from the company added: “Our aging grid just isn’t designed for increased power generation and distribution at the household level. What was state of the art 50 years ago, when generation happened in big power plants in remote areas, isn’t functional today for adding renewables. Our grid needs to be modernised to keep up with what our customers want today.”

However, the statement said the average customer would see a bill increase of about $1.20 per month as a result of the investments in the first year. It estimates the increase will not happen until at least September next year.

With headquarters in Albuquerque, PNM is the largest electricity provider in New Mexico, serving more than 530,000 customers in dozens of communities across the state. PNM says it strives to create enduring value for customers, communities and shareholders built on a foundation of environmental, social and governance principles. Its vision is to create a clean and bright energy future. PNM is a subsidiary of PNM Resources, an energy holding company also headquartered in Albuquerque.