Serving the High Plains
Serving the High Plains
A spokesman for New Mexico Natural Gas Company, which serves the Tucumcari area, said gas prices will rise this winter but was “impossible” to say how much.
Natural gas utilities around the country are warning customers about price hikes, according to USA Today Network and other media outlets.
“For your question about how much the prices will go up this winter, I can't speculate because it's impossible for anyone to know exactly what will happen,” Tim Korte, a spokesman for New Mexico Gas, wrote to the Quay County Sun in a recent email.
“However, the prices started to rise in Fall 2020 because of increasing demand from national and worldwide markets, and most forecasters expect this trend to continue at least through Spring 2022.”
Korte referred to a page on the company’s website that explains the higher costs of gas and what customers can do about it.
“First, gas prices worldwide have been rising because of a shortage of natural gas and an increased demand for natural gas around the world,” the page stated. “When demand exceeds supply, prices go up. These worldwide price increases are affecting the United States and New Mexico, and because the Permian Basin -- one of the basins that supplies New Mexico Gas Company with its gas -- is more interconnected than ever with world markets, companies such as NMGC, which competes for natural gas, must pay higher prices.”
The company also cited the extreme cold snap in February in the Southwest for price increases.
“NMGC was authorized to begin recovering these gas costs in bills beginning in July 2021 and continuing through December 2023. This recovery has been reflected in your bill since July,” the page stated.
“It's important to understand that New Mexico Gas Company by regulation does not make a profit on the natural gas we purchase on behalf of our customers,” Korte added in his email. “We are continually monitoring markets to purchase gas for our customers at the lowest possible rate. Like other natural gas utilities, we pay market prices, which fluctuate.”
The company recommended these actions to help blunt the price increases:
• Turn down thermostats.
• Use our the company’s free Home Energy Analyzer for recommendations that could help save hundreds of dollars through energy efficiency measures.
• Weatherize the home to save energy and money and to improve the comfort. Home weatherization includes sealing air leaks and adding insulation.
• Clean or replace filters on furnaces more often -- even once a month -- or as recommended by the manufacturer.
• Clean warm-air registers, vents, baseboard heaters and radiators as needed. Make sure they're not blocked by furniture, carpeting or drapes.
• Open drapes and shades on south-facing windows during the day to allow sunlight to enter. Close them at night to reduce the chill from cold windows.
New Mexico Gas has payment plan or assistance information available at nmgco.com/en/assistance.
During last week’s New Mexico Public Regulation Commission meeting, Commissioner Theresa Becenti-Aguilar requested that New Mexico Gas have more public outreach regarding resources available to consumers in the face of natural gas hikes. She said she does not always see all the notices included in her gas bill and called for a special prepayment plan for customers.
“We agree with the request from Commissioner Theresa Becenti-Aguilar and we support her call for public outreach to highlight the increased natural gas costs our customers are seeing,” Korte stated in an email after being forwarded the PRC news release.
“In fact, we are currently working with the Commissioner and the Public Regulation Commission staff to organize outreach meetings in the coming weeks.”