Gas bills to increase in October
Jul. 25—New Mexicans can expect to see their gas bills get slightly more expensive later this year.
The New Mexico Public Regulation Commission on Thursday approved New Mexico Gas Co.'s rate increase request, as outlined in an agreed-upon settlement.
The average residential bill that uses 53 therms of gas per month will increase by $4.21, or 7%, starting Oct. 1.
It's less than New Mexico Gas Co. initially requested. The utility agreed to a settlement March 1 with environmental advocacy organizations, PRC staff and the New Mexico Department of Justice that lessened the company's rate increase request.
The now-approved rate settlement covers a $30 million revenue deficiency for the gas company, which is $19 million less than the utility originally requested.
"I'm happy here with how the parties were able to reach an agreement," Commissioner Gabriel Aguilera said during the PRC's open meeting on Thursday.
The utility will sit at 52% equity and 48% debt, and the company's approved return on equity will be 9.375%.
Under the settlement, New Mexico Gas Co. also removed costs for a liquefied natural gas, or LNG, storage facility the utility wanted to build in Rio Rancho. The PRC denied the LNG facility earlier this year.
Commissioners on Thursday briefly discussed the frequency of stipulations the gas company has, as opposed to undergoing fully litigated cases.
Commissioner James Ellison said New Mexico Gas Co. has had at least four stipulations in a row, and litigated cases have more scrutiny. Aguilera said he's not sure the outcome of a litigated case would have varied much from this settlement.
Commissioner Pat O'Connell agreed that the settlement works in this case, though it's good to consider full litigation in other situations.
The three commissioners unanimously approved the uncontested settlement.
"In this instance, the stipulation appears to have worked," O'Connell said.
