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Retail Unbundling - New Mexico
Status: All residential customers in the State are allowed to choose natural gas suppliers, but almost no one is participating.
Overview: New Mexico has allowed unbundled gas service for all consumers since the late 1980s. However, almost 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 14 residential customers and 1,796 small commercial customers were purchasing gas from non-LDC suppliers in December 2006. 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 2005, New Mexico had 530,277 residential and 47,745 commercial customers. They consumed 33 and 24 billion cubic feet of natural gas, respectively. The average prices paid for natural gas purchased from local distribution companies by residential and commercial customers were $11.14 and $9.31 per thousand cubic feet, respectively.
Eligibility and Participation in Retail Choice Programs:
Eligibility and Participation by Customer Class, December 2006

Customer Type

2005 Customer Total

Eligible December 2006

Participating December 2006

Total

Percent of 2005 Customer Total

Total

Percent of Eligible

Percent of 2005 Customer Total

Residential

530,277

530,277

100

14

(*)

(*)

Commercial**

47,745

38,885

100

1,796

4.6

3.8

Total

578,022

569,162

100

1,810

0.3

0.3

     (*) = Less than 0.05 percent.

**2005 data include all commercial customers, while the 2006 data include only small-volume commercial customers.

Sources: Customer Total 2005: Energy Information Administration, Natural Gas Annual 2005 (November 2006). Eligibility and Participation: New Mexico Public Regulation Commission.