NEW MEXICO (KRQE) – The New Mexico Gas Company (NMGC) has applied to increase customer rates, stating that the company is “experiencing inflation and increasing costs in many areas.” According to the NMGC, if the request is approved, rates would increase by approximately $6.70 per month for residential bills starting in October 2024.
“We’re feeling a lot of pressure from inflation and rising costs in a lot of operational areas,” said Tim Korte, communications manager for New Mexico Gas Company.
The increase comes in at around an 11% increase when compared to current residential bills. NMGC sites “costs for retaining and attracting a skilled workforce,” as well as “costs to comply with expanding regulatory requirements” as reasons for the rate increase.
“We have increasing federal and state regulations that we have to keep up with,” Korte added.
The company is requesting additional revenues totaling $49 million. NMGC says the money will be used to make upgrades and improvements to its infrastructure and systems.
It’s something Kaila Boston and her family are not too thrilled about.
“I feel like they make enough money as it is,” Boston said. “We already have to plan for the winter and we’re already expecting a high gas bill.”
The proposal will be reviewed by the New Mexico Public Regulation Commission between now and late summer 2024; then, the commission will make a decision on the matter. “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,” says the gas company.
NMGC announced that they would be making this request last month. An NMGC rate hike already took effect back in January, raising customer charges by around $2.70 each month.