New Mexico Gas Company has applied to increase the rates we charge our customers. The New Mexico Public Regulation Commission is reviewing our application. If approved, new rates would take effect in October 2024.
In early March, the Company reached a settlement with all of the interested parties in the case, and the agreement proposes to reduce the increase the Company had originally requested. The settlement, if approved, would mean an average residential bill (a budget bill customer using 53 therms of natural gas a month) would go up by about $4.21 a month, a 7.1% increase compared to current bills. For customers who are not signed up for budget billing, the summer bill average impact would be an increase of 6.3% while the winter bill average impact would be an increase of 7.3%. The actual change would depend on each customer's specific usage.
We are asking for this increase for several reasons, primarily related to the cost of capital investments to operate our system and provide safe and reliable service. A driver in these costs is federal and state regulations regarding pipeline safety and operations.We are also planning to replace our customer billing and account information system, as well as retaining and attracting a skilled workforce to serve our customers.
For customer information, the Public Regulation Commission has scheduled a hearing on Thursday, May 16, to receive public input about the Company's request. The hearing will be held from 3 p.m. to 6 p.m. at the PRC officein the Bokum Building located at 142 W. Palace Avenue in Santa Fe. The PRC's order regarding the public comment hearingcan be viewed here.
More information is available on the Regulatory Page of our website.
Although bills are not increasing now, you may be interested in signing up for budget billing, a program that averages your annual gas usage and then bills you equally over 12 months. To learn more about budget billing, click here.
Also, a reminder that New Mexico Gas Company has bill assistance programs for those who need help. Customers can call weekdays from 7:30 a.m. to 6 p.m. at 1-888-664-2726, visit one of our 22 walk-in payment centers or visit the assistance pageon our website.
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