How proposed gas company settlement would change rates
Business customers served by New Mexico Gas Co. could see increased gas prices later this year if state regulators approve a settlement in an ongoing rate case.
The proposed settlement would have monthly gas rates for businesses increase on average from 2.7% to 4.5% on bills, that would mean about $12 more a month to $10,750 more a month, depending on the size of the business.
A majority of businesses would fall under the rate increase of about $12 more a month.
The updated rates would start in October, if approved.
New Mexico Gas Co. has different prices for different types of customers. Businesses can fall into small, medium and large volume gas usage categories.
A small volume customer generally uses less than 1,000 therms of gas a month, and that category includes churches and multi-unit residences. Small volume customers using an average of 317 therms per month would see a 4.5% monthly billing increase. Their bills would increase from about $266 to $278, or $12 more a month.
Medium volume customers that use from around 10,000 to 100,000 therms, with an approximate usage average of 35,424 therms a month, would see a 2.7% monthly billing increase. Their bills would raise from $24,760 to $25,428, which is an increase of $868.
Large volume customers use more than 200,000 therms a month, generally ranging in usage from 300,000 to 1.5 million therms. Bills for those customers, using an average of 604,837 therms a month, would increase 2.7% as well. That would hike up monthly bills from $391,680 to $402,434, an increase of $10,754.
The size of the building, number of appliances and time of year and weather affect billing and prices, New Mexico Gas Co. spokesperson Tim Korte said.
Most businesses fall under the small volume class, he said, with about 41,000 customers categorized in that rate class. Korte said the gas company has about 100 medium volume customers and 10 large volume customers.
The proposed rate case settlement would also increase prices for residential customers, which are customers in single-family residential units served through a single meter. The average residential bill with a 53 monthly therm usage would increase by 7.1%, which is $4.21 more a month.
The gas company has other rate classes, too, including for irrigation, transportation and water and sewage pumping.
The rates that could go into effect are based on an agreed settlement filed March 1 by parties involved in the case — New Mexico Gas Co., the New Mexico Department of Justice, the Federal Executive Agencies, the New Mexico Affordable Reliable Energy Alliance, New Energy Economy, the Coalition for Clean Affordable Energy, Western Resource Advocates and the New Mexico Public Regulation’s utility division staff.
A public hearing on New Mexico Gas Co’s ongoing rate case starts April 1. State regulators will also schedule a public comment hearing at some point.