ISSUE 06-25-22 ENERGY GROUP SETTLES RATE CASE WITH NM GAS COMPANY

On May 20, the Coalition for Clean Affordable Energy, Western Resource Advocates, the N.M. Public Regulation Commission, the New Mexico Attorney General, New Mexico Affordable Reliable Energy Alliance, New Energy Economy, and Incorporated County of Los Alamos reached an agreement with New Mexico Gas Company on its rate case, which had included plans to charge customers for a pilot to blend hydrogen into its gas supply and for compressed-natural-gas (CNG) fueling stations. 

The settlement included: 

• Agreement that NM Gas will not provide any customers a blend of hydrogen and natural gas without seeking the PRC’s approval in a future case;
• Agreement that the utility will share testing results of a pilot it is conducting to study the impacts and potential hazards of hydrogen on household appliances, and that shareholders, not ratepayers, will pay for that pilot; 
• Agreement to analyze electric options when the company purchases passenger vehicles and trucks and to “show a preference” for electric passenger vehicles and trucks when feasible;
• Agreement to end an offer to finance, construct, and operate compressed natural gas fueling stations for customers on the customers’ property; and
• Agreement to analyze the feasibility of electrifying some or all of the company’s compressor stations.

Although not included in the settlement, the utility also agreed to work with WRA, CCAE, NEE and others on a legislative proposal to enable reduced utility rates for lower-income New Mexicans.