Regulatory Information

Rules and Regulations

As a regulated utility, New Mexico Gas Company (NMGC) operates under rules and regulations set by the New Mexico Public Regulation Commission (NMPRC).

NMGC has adopted standard rates and rules to govern our relations with customers. These have been approved by the NMPRC.

Cases Before the New Mexico Public Regulation Commission

NMPRC Case No. 21-00267-UT: 2021 Rate Case

Notice to NMGC Customers

On December 13, 2021, New Mexico Gas Company submitted a request to the New Mexico Public Regulation Commission for a rate increase in 2023 to allow recovery of planned investments by the Company, and for the recovery of increasing operating costs. 

The request to the Public Regulation Commission, if approved in the second half of next year, would result in an average-use residential customer paying an additional $5.63 on an average monthly bill. This represents a 9.1% increase on that average monthly bill. Actual increases for each customer would depend on their actual usage. If approved, the requested new rates are anticipated to take effect in January 2023. The requested increase is for the Company’s services and does not reflect increased costs of natural gas. The cost of the gas delivered by New Mexico Gas Company is passed through to customers, at cost and without markup.

The requested rate change reflects a revenue increase of approximately $40.7 million compared to the Company’s current forecast for cost-of-service revenues in 2023. 

Much of the requested increase is related to the Company’s ongoing investments for its pipeline integrity program, cybersecurity programs, maintenance to ensure the reliability of its statewide system, customer service and technology, and initiatives to reduce greenhouse gas emissions, including some of the cost of a pilot project where hydrogen will be blended with natural gas. The request also addresses increasing operating costs resulting from inflation and requirements from various regulatory agencies regarding system operations.

PDF Downloads:

Press Release

Executive Summary Application

Comparison of Present and Proposed Rates

For access to the entire New Mexico Gas Company, Inc. 2021 rate case filing, please click here (zip file download) or visit: https://www.nm-prc.org/case-lookup-e-docket/

 

NMPRC Case No. 21-00095-UT: 2021 Winter Event

In the Matter of New Mexico Gas Company, Inc.’s Application for an Expedited Variance Approving its Plan for Recovery of the Gas Costs Related to the 2021 Winter Event

New Mexico Gas Company requested expedited Commission approval for a variance from the cost of gas rules of services to change the methodology by which it may recover the increased cost of gas incurred by the Company during February 2021 and collect these amounts over a longer period, thereby reducing the monthly bill impact to customers.

On June 15, 2021, the New Mexico Public Regulation Commission issued its Final Order authorizing New Mexico Gas Company to implement its Gas Cost Recovery Plan to recover the costs related to the 2021 Winter Event.

Application

Exhibit 1 – Chronology of Events

Exhibit 2 – Direct Testimony of Ryan A. Shell

Exhibit 3 – Direct Testimony and Exhibit of Joshua J. Tilbury

Exhibit 4 – Regional Average Pricing February 10 through February 22, 2021

Exhibit 5 – NMGC’s Weighted Average Cost of Gas (WACOG) February 10, 2021 through February 22, 2021

Exhibit 6 – NMGC’s Intraday Gas Purchases February 14, 15 and 17, 2021

Exhibit 7 – NMGC’s Calculation of Extraordinary Gas Costs Incurred During the 2021 Winter Event February 13 through February 18, 2021

Exhibit 8 – Direct Testimony and Exhibits of Daniel P. Yardley

Proposed Form of Notice

Press Release -- April 20, 2021

Notice of Proceeding -- May 3, 2021

Filings

Integrated Resource Plan

NMGC hosted five Integrated Resource Plan public advisory meetings throughout New Mexico in 2019 and early-2020. These meetings were hosted in Albuquerque, Santa Fe and our offices in Anthony, Roswell and Farmington to receive public input, feedback and ask questions about our company-plans.

Our Integrated Resource Plan, that is required by the NMPRC, is a four-year resource and system planning report developed with consideration from the public advisory meetings. The public advisory meetings and subsequent plan provides information on load forecasts, evaluation of existing gas supply and customer demand, identification of resource options, examination of price volatility and general attributes of potential resources, and modeling and risk assumptions leading to the development of a cost-effective portfolio of gas utility resources. See below for our slide deck which was presented at the public advisory meetings, the applicalbe IRP rule and the plan.

Energy Efficiency Programs

NMGC offers a host of cost-effective energy efficiency programs approved by the NMPRC. The program year for these offerings begins on April 1 and ends on March 31 each year. Annually, we file with the PRC both a Measurement and Verification Report and an Energy Efficiency Program Annual Report.

Prior-Year Energy Efficiency Reporting

2020 Energy Efficiency Notice of Hearing and Proceeding

2020 Annual Energy Efficiency/Measurement and Verification Report