Retail Unbundling - New Mexico


Status: All residential customers in the state are allowed to choose natural gas suppliers, but no one is participating.


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 2002, New Mexico had 487,607 residential and 44,936 commercial customers. They consumed 34 and 26 billion cubic feet of natural gas, respectively. The average prices paid for natural gas purchased from LDCs by residential and commercial customers were $7.71 and $6.19 per thousand cubic feet, respectively.


Eligibility/Participation in Retail Choice Programs:


Status as of December 2003: Number of Customers



Customer Type

Total 2002

Eligible

Participating

Total

Percent of 2001 Total

Total

Percent of Eligible

Percent of 2002 Total

Residential

487,607

487,607

100

0

0

0

Commercial*

44,936

44,936

100

1,100

2.4

2.4

Total

532,543

532,543

100

1,100

0.2

0.2

Sources: Total 2002: Energy Information Administration, Natural Gas Annual 2002 (January 2004). Participation: Estimated by the New Mexico Public Regulation Commission.

  

 

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File Last modified: 01/31/2004