Serving the High Plains
Serving the High Plains
New Mexico Gas Co., which serves Tucumcari, requested from state regulators a rate increase of 11% that would take effect next fall.
The proposed rate hike was submitted to the New Mexico Public Regulation Commission, which will rule on the the application between now and late next summer.
According to a company news release, if the request is approved, the average monthly residential gas bill of 53 therms per month would rise about $6.70, or 11%, compared to current bills.
The new rates would take effect no earlier than October 2024.
New Mexico Gas is requesting additional revenue of $49 million to pay for upgrades and improvements to its gas delivery infrastructure, replacement of its customer billing and account information system and higher operating expenses.
The company stated that most of the gas infrastructure spending is required to keep pace with expanding federal and state regulations related to pipeline reliability and safety.
“We strive to keep costs as low as possible, but we are experiencing inflation and increasing costs in many areas, including costs to comply with expanding regulatory requirements as well as costs for retaining and attracting a skilled workforce to serve our customers,” New Mexico Gas President Ryan Shell stated. “We understand any rate increase is challenging, but we believe it is needed so we can continue to meet our obligation for safely providing reliable natural gas service to New Mexicans.”
New Mexico Gas Co. serves more than 545,000 homes and businesses throughout the state and is New Mexico’s largest natural gas distribution utility. The company employs more than 700 people in 26 offices.