Serving the High Plains
Serving the High Plains
New Mexico Gas Co. last week submitted a request to state regulators to raise rates in 2023 that would increase residential bills an average of $5.63 a month.
The company, which serves Tucumcari, brought the request for a 9.1% rate increase to the New Mexico Public Regulation Commission so it can cover higher operating costs and planned investments.
If approved, the 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 is passed through to customers, at cost and without markup.
The requested rate change reflects a revenue increase of about $40.7 million.
“If our requested rate adjustment is approved, we will continue to have among the lowest rates for natural gas utilities in our region. We do know any increase is challenging, and we will continue to work with customers who need help with payment options or assistance programs,” company President Ryan Shell stated in a news release.
“The company is always focused on managing controllable operating costs,” Shell added. “Our operations and maintenance costs have remained relatively stable over the past 12 years, and the new employee positions we’re proposing are important in meeting customer needs.”
Much of the rate request is related to the company’s ongoing investments for its pipeline integrity program, cybersecurity programs, maintenance to its statewide system, customer service, 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.
In addition to system and reliability improvements, the request includes new employee positions focused on customer service and the opening of a new walk-in customer service center in Albuquerque.
New Mexico Gas provides service to 540,000 homes and businesses and about 1.3 million people in New Mexico.