Serving the High Plains
Serving the High Plains
New Mexico Gas Co. filed a request last week with state regulators to raise rates for natural gas by 4.2% in early 2021.
The utility, which serves 530,000 customers in New Mexico, stated in a news release it filed a $13.23 million rate case “to recover significant capital investments” between September 2017 and the end of 2021.
The company said the average residential bill of 50 therms would increase about $1.71 per month, from $40.61 to $42.32, which represents a 4.2% hike.
That increase would include a hike in the residential access fee from $11.65 to $12.70.
“Even with the proposed increase, NMGC residential bills will remain among the lowest in the region and have increased on average only 1.95% annually since 2009,” New Mexico Gas President Ryan Shell stated in the release.
The utility stated the capital investments it wished to partially recoup include a pipeline from the Permian Basin in southern New Mexico, computer system upgrades, safety and reliability improvements, acquiring its main office in Albuquerque it once leased and initiatives that would reduce greenhouse gases, including more compressed natural gas stations and more solar power investment.
New Mexico Gas stated it expects a decision from the New Mexico Public Regulation Commission on the request by fall.
If granted, it would take effect in January 2021.
Jefferson Byrd of rural Tucumcari represents District 2 of the commission, which encompasses much of the eastern half of New Mexico. An attempt to reach Byrd for comment was unsuccessful.