New Mexico Gas Company proposes rate increase for next fall

By KOB

ALBUQUERQUE, N.M. — New Mexico Gas Company officials said Thursday they applied for a double-digit percent rate increase that could start next fall.

If approved, an 11% rate increase would take effect no earlier than October 2024. Officials say the average residential bill would increase $6.70 per month.

Still, the New Mexico Public Regulation Commission needs to review and rule on the application before approving the increase.

“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 attracting a skilled workforce to serve our customers. We understand any rate increase is challenging. However, we believe it is needed so we can continue to meet our obligation for safely providing reliable natural gas service to New Mexicans,” said Ryan Shell, the president of NMGC.

The company is reportedly requesting additional revenues of $49 million. Officials say that would pay for upgrades and improvements to:

Gas delivery infrastructure
Replacing customer billing and account information system
Increasing operating expenses