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News Release
Dec. 30, 2003
PNM Moves To Keep January Natural Gas Price
Below 60 Cents Per Therm
Albuquerque: The January price of natural gas for
PNM customers will be 59.01 cents per therm, higher than the
January 2003 price but lower than forecasts from recent weeks
and months.
In an attempt to keep the January price below 60 cents per
therm, PNM today will make a filing with state regulators
that will drop the earlier expected January price of 62.17
cents per therm by 3 cents. PNM will collect any foregone
revenue during the warmer months of 2004, when both prices
and consumption are expected to be lower.
This technique, known as price leveling, is one method available
to PNM as it purchases what is expected to be more than $280
million in natural gas on behalf of customers this year. By
law, the price of natural gas is a pass-through for PNM. PNM
purchases natural gas on the wholesale market and passes the
cost along to customers with no markup.
Based on average residential consumption of 131 therms for
the month, the January price will produce an average household
bill of $113.39, up from last January's average of $95.98,
when natural gas cost 46.79 cents per therm.
Natural gas utilities and their customers throughout the
country are facing similarly high prices.
"If the market cooperates, we should be able to keep
the price below 60 cents for the remainder of winter through
smart purchases and price leveling," said Roger Flynn,
PNM executive vice president and chief operating officer.
"While 59 cents still represents a high price, it is
considerably lower than analysts predicted only a few months
ago."
Flynn said prices this winter are lower than they were during
the winter of 2000-2001, when customers saw a per-therm price
as high as 75 cents.
Assistance available for those
in need
Flynn urged customers having trouble paying their gas bills
to contact PNM regarding the PNM Good Neighbor Fund or state
government regarding the Low Income Home Energy Assistance
Program (LIHEAP).
The PNM Good Neighbor Fund helps low-income families, elderly
and disabled customers pay their energy bills. It is funded
by the generous contributions of PNM customers and employees
— and funds donated are matched dollar-for-dollar by
PNM shareholders. In most communities, the program is administered
by the Salvation Army.
More information on the PNM Good Neighbor Fund is available
at PNM.com or by calling PNM customer service at 246-5700
in the Albuquerque metropolitan area. Customers outside of
the area can refer to their monthly PNM bill or their local
phone book for the correct telephone number to call.
LIHEAP, administered by the Income Support Division of the
state's Department of Human Services, helps qualifying, low-income
families pay their heating bills. Applications are available
at any Department of Human Services field office or online
at www.state.nm.us/hsd/liheap.html. More information is available
by calling (800) 283-4465.
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