New Mexico Gas Company submits rate increase case

Posted 1/14/20

New Mexico Gas Company filed a $13.23 million future-test-year rate case Dec. 23 to recover significant capital investments made by NMGC between September 2017 and the end of 2021, according to a public statement. NMGC anticipates a decision on this request from the New Mexico Public Regulation Commission in the fall of 2020.

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New Mexico Gas Company submits rate increase case

Posted

New Mexico Gas Company filed a $13.23 million future-test-year rate case Dec. 23 to recover significant capital investments made by NMGC between September 2017 and the end of 2021, according to a public statement. NMGC anticipates a decision on this request from the New Mexico Public Regulation Commission in the fall of 2020.

If this request is approved, it's anticipated that new rates will take effect for customers in January 2021. NMGC will continue to charge for the services it provides in delivering gas. The cost of the gas itself will continue to appear on your bill as a pass-through to customers without markup by NMGC.

An average monthly residential bill of 50 therms will increase by approximately $1.71 from $40.61 to $42.32, a 4.2 percent bill increase. This will include an increase in the residential customer access fee from $11.65 to $12.70.

"Even with the proposed increase, NMGC residential bills will remain among the lowest in the region," said NMGC President Ryan Shell. "They have increased on average only 1.95 percent annually since 2009."

According to the gas company, key drivers for the requested rate increase include the Santa Fe mainline project, which will supplement the existing mainline from Bernalillo to Santa Fe to enhance the reliability of natural gas service to communities in north-central New Mexico; a pipeline project in the Permian Basin that will enhance the supply of natural gas to NMGC's system, facilitate the beneficial use of natural gas in the state and help alleviate the need to flare or vent natural gas during its production; IT and telecom projects to enhance NMGC's computer system reliability; smaller ongoing capital projects that enhance the integrity and safety of the pipeline system; acquisition of NMGC's current headquarters building in Albuquerque, which has been leased for the past 10 years and which recently became available for purchase; and initiatives to reduce greenhouse gas emissions associated with NMGC's system.

NMGC is also proposing modifications to its rate design that include a cost-recovery mechanism to facilitate the timely recovery of amounts expended on pipeline integrity, safety and reliability programs; and a modified compressed natural gas rate to help develop fueling stations to promote the use of compressed natural gas by vehicle fleets throughout the state, such as municipal solid waste trucks.

As the largest natural gas distribution utility in the state, NMGC serves 530,000 customers throughout the state. NMGC is a subsidiary of Emera Inc. For more information, visit nmgco.com

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