News Release

Nov. 27, 2002

Customer Focus on Consumption Is Best Way
To Control December Heating Bills, PNM Says

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NEWS MEDIA CONTACT Susan Sponar Telephone: (505) 241-2768

Albuquerque: While natural gas prices will be higher in December than in November, much of the increase in December heating bills will be driven by substantially higher consumption caused by colder weather – a trend that should alert customers to the importance of using natural gas more efficiently.

In fact, PNM’s typical residential customer uses nearly twice as much natural gas in December as in November. As temperatures dip, typical residential consumption rises from 62 therms of gas in November to 113 therms in December.

“It’s important for customers to know where natural gas prices are headed, but it’s just as crucial that they focus on where and how they use natural gas in the home or in their business,” said PNM Vice President Melvin Christopher. “’Is the home properly weatherized? Are there ways to use heating more efficiently at work?’ These are questions we urge our customers to consider.”

Christopher said a few dollars invested now can pay big dividends in a short period of time. Some of the most common home weatherization items cost less than $10, including weather stripping materials for door jams, caulk for window joints, insulating material for single-paned windows, and insulation blankets for hot-water heaters.

December’s issue of Energy Works, the PNM bill supplement, includes three money-saving coupons for products from Lowe’s Home Improvement Warehouse. One of these coupons is good for 25 percent off furnace filters manufactured by 3M. PNM recommends customers replace filters on forced-air furnaces once or twice during the heating season in order to ensure efficient operation.

Measures that cost nothing can also reap benefits for customers. For example, every degree a thermostat is lowered can reduce an overall heating bill by an estimated three percent.

Christopher also said the monthly PNM bill can also be an important tool for managing heating costs. At the bottom of the bill’s last page, PNM gives an estimate of what the customer’s next gas bill will be, based on expected gas prices as well as the customer’s personal gas use from the same month the previous year.

Like other natural gas utilities, PNM does not make a profit from the sale of natural gas to retail customers and passes the wholesale costs through to customers. If wholesale prices are high, those costs are passed on to customers. Similarly, lower prices are passed on to customers when wholesale prices dip.