New Mexico Gas Company customers could see their rates rise next fall.
NMGC has applied to increase the rates customers are charged. If the application is approved by the New Mexico Public Regulation Commission, the increased rates would go into effect no earlier than October 2024.
If approved, the average monthly residential bill (gas usage of 53 therms per month) would increase by approximately $6.70, an expected 11% increase compared to current bills.
NMGC President Ryan Shell said inflation is to blame for the application to increase rates.
“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,” Shell said in a release. “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.”
NMGC is also requesting additional revenues of $49 million for upgrades and improvements to its gas delivery infrastructure, replacement of its customer billing and account information system, and increasing operating expenses.
According to NMGC, most of the gas infrastructure investments are required to keep pace with expanding federal and state regulations related to pipeline reliability and safety.