SANTA FE, N.M. — New Mexico regulators have approved a $21.5 million rate increase for New Mexico Gas Co.
The Public Regulation Commission made its decision Tuesday after a two-hour meeting in which commissioners heard recommendations from a hearing examiner and the utility's attorneys.
The rate increase was $13 million less than what the utility initially requested. Commissioners say they approved the lower rate to ease the burden on low-income customers.
The rate hike will take effect Wednesday.
New Mexico Gas officials say residential customers will see their monthly bills increase by an average of $3.19, or about $38 a year.
The 6.4 percent rate increase stems from a settlement reached last fall by the utility, ConocoPhillips, an advocacy group and the U.S. Department of Energy.
The utility serves about 505,000 New Mexico customers.