Retail Unbundling - New Mexico


Status: The state has a comprehensive unbundling program available for residential customers.


Overview: New Mexico has allowed unbundled gas service for all consumers since the late 1980s. However, all residential customers still purchase their gas from local distribution companies (LDCs), in large part because marketers have been unable to compete with the LDCs' prices. According to the New Mexico Public Regulation Commission, about 1,100 small commercial customers currently purchase gas from non-LDC suppliers. A customer choice pilot program by the Public Service Company of New Mexico (PNM) was approved by the Commission in August 1997. The program, "EnergyWise Options" and "Gas Choice Program," offered PNM's 400,000 customers a choice of gas suppliers with deliveries starting in December 1997. Even after the Public Regulation Commission encouraged marketers to advertise, customers still did not switch suppliers. Enron did have several hundred customers sign up for service, but the numbers were so small that Enron discontinued the project by September 1998.


EIA State Data: In 2001, New Mexico had 485,969 residential and 44,701 commercial customers. They consumed 37 and 24 billion cubic feet of natural gas, respectively. The average prices paid for natural gas purchased from LDCs by residential and commercial customers were $7.32 and $6.77 per thousand cubic feet, respectively. The average city gate price in the state was $3.99 per thousand cubic feet.


Eligibility/Participation in Retail Choice Programs:


Status as of December 2002: Number of Customers



Customer Type

Total 2001

Eligible

Participating

Total

Percent of 2001 Total

Total

Percent of Eligible

Percent of 2001 Total

Residential

485,969

485,969

100

0

0

0

Commercial*

44,701

44,701

100

1,100

2.5

2.5

Total

530,670

530,670

100

1,100

0.2

0.2

Sources: Total 2001: Energy Information Administration, Natural Gas Annual 2001 (February 2003). Participation: Estimated by the New Mexico Public Regulation Commission.


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File Last modified: 01/31/2003