ALBUQUERQUE, NM — The New Mexico Gas Company (NMGC) was approved for a rate increase on July 26, the decision will result in a 7.1 percent rise in the average monthly residential gas bill.
The New Mexico Public Regulation Commission unanimously approved a rate increase for New Mexico Gas Company (NMGC) at their meeting on July 26, allowing for the increase which is set to take effect on October 1.
Despite the increase in rates, the fixed monthly access fee for residential customers will remain unchanged at $12.40. For those enrolled in the budget billing program and using an average of 53 therms of gas per month, this change translates to an additional $4.20 on their monthly bills.
The approval follows NMGC’s initial rate request submitted in September 2023. After several months of negotiations, an uncontested settlement was reached in March 2024, agreeing on a $30 million revenue increase. This figure is significantly lower than 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,' said NMGC President Ryan Shell.
The new rates are intended to cover the rising costs associated with expanding federal and state regulatory requirements in the industry. They will also support infrastructure improvements and the replacement of the company’s customer billing and information systems.