NM Gas to hike rates this fall

Customers of New Mexico Gas Co. will see an average increase of 7% in their bills this fall after state regulators approved a rate-hike increase from the company, which serves Tucumcari.

According to a news release from the company, the New Mexico Public Regulation Commission unanimously approved the change in the natural gas company’s rates, effective on Oct. 1.

The company stated the average month residential bill will rise by 7.1%. Residential customers’ fixed monthly access fee will remain unchanged at $12.40.

“For a residential customer who participates in our budget billing program and uses an average of 53 therms of gas per month, this would mean an increase of about $4.20 per month,” the company stated in a news release Friday.

“Customers can check their usage and determine estimated bill impacts by going to https://www.nmgco.com/en/new_rates.”

New Mexico Gas Co. submitted its original rate-hike request in September 2023.

The parties involved reached an uncontested settlement in March that provided for a revenue increase of $30 million, compared to the company’s original request of $49 million.

“We appreciate the work by all parties to engage in positive discussions and reach a resolution that ensures the company can continue to safely provide reliable natural gas service to our customers,” New Mexico Gas Co. President Ryan Shell said.

The new rates will help pay for higher costs the company is experiencing from expanding federal and state regulatory requirements throughout the industry, while supporting improvements to gas delivery infrastructure and replacement of the its customer billing and information system.

New Mexico Gas Co. offers payment assistance programs for customers, a budget billing program and energy-efficient programs.

New Mexico Gas provides service to more than 545,000 homes and businesses in New Mexico. It employs 740 people in 26 offices and operates more than 12,000 miles of pipeline.