2023 Rate Adjustment Request
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 pay for increasing operating costs as well as investments in our system and our people. Our focus is to make sure our customers have safe, uninterrupted access to natural gas for their homes and businesses.
On May 20, NMGC reached a settlement agreement with all of the interested parties, or intervenors. All supported the settlement, which remains subject to review by PRC hearing examiners and final approval by PRC Commissioners.
If the settlement is approved, the bill for an average residential customer (using 53 therms of natural gas a month) would increase by $2.67 a month. That represents a 4.3% increase over current rates. The actual change would depend on each customer’s specific circumstances and usage. If approved, the proposed rates will take effect in January 2023.
The settlement, if approved, would represent a $19.3 million increase in cost-of-service revenues for 2023, which would pay for higher costs to operate our business. This will cover everythng from inflation and labor costs to insurance, taxes and medical expenses, as well as system investments to enhance reliability across the state.
NMGC has agreed to conduct further testing of hydrogen blending and engagement with stakeholders before proceeding with future approval for blending hydrogen with natural gas on our distribution system, to study electric options for fleet vehicles and compressor stations and to work with several parties to the settlement on the issue of energy costs for low-income customers.
We do understand that any increase in rates is challenging. We will continue to work with customers who need help on payment options and to provide them with access to assistance programs. As always, customers seeking assistance can call us weekdays from 7:30 a.m. to 6 p.m. at 1-888-664-2726, visit one of our many walk-in payment centers or visit our assistance page on our website.
If you have questions, please contact us.