Gas rates set to surge with significant increases ahead

During a recent government meeting, officials discussed significant changes to the gas budget for the upcoming fiscal years, highlighting a dedicated three-person gas team added to the 2025 budget and the implementation of new tracking software. The meeting revealed that fiscal year 2024 is projected to experience lower gas usage than previously anticipated, with current estimates indicating a positive cash balance of approximately $1.5 million, a notable recovery from a negative balance of nearly $900,000 the previous year.

Officials noted that both New Mexico Gas Company and ConocoPhillips have announced increases in transportation rates, which could impact future budgeting and costs. The cash reserve target for 2024 was set at $2.3 million, but as of last week, the balance had dropped to $1.5 million due to timing issues with capital expenditures.

The meeting also addressed the proposed changes to customer service charges, which are set to increase from $28.63 in 2024 to $33.80 in 2025, representing an 18% rise. Additionally, the cost for 65 therms of gas is projected to increase from $70.88 in 2024 to $81.90 in 2025, marking a 16% increase. These adjustments reflect the need to cover operational costs while managing the fluctuating cost of gas.

Overall, the discussions underscored the financial challenges facing the gas department and the measures being taken to ensure fiscal stability in the coming years.