Las Cruces approves decarbonization surcharge to reduce gas emissions

LAS CRUCES, NM – The Las Cruces City Council unanimously approved a resolution authorizing the full implementation of a decarbonization surcharge of 15 cents per dekatherm in the first year as part of the phased-in natural gas rate increase.

According to the City Council, the decarbonization fee will be used to fund Las Cruces Utilities’ (LCU) greenhouse gas emission reduction efforts, such as the energy transition plan, emission reduction technologies and energy efficiency projects.

It was also reported that the new rates are not expected to begin until an Emergency Commodity Recovery Surcharge is completed this summer.

Just last April 18, the Cabildo unanimously approved a resolution to allow an option for a phased implementation of the new natural gas rates over the next three years.

That approval was turned over to the Las Cruces Board of Utility Commissioners, who did an analysis of the proposal before approving the annual rate charges for the phase-in period at its May meeting.

Since December 2018, LCU has been reviewing the natural gas rate charges. The analysis ultimately determined that an additional $1.46 million in revenue is needed to ensure a safe and reliable natural gas utility system.

On December 9, 2021, the LCU Board formally recommended to the City Council a phased-in approach over three years for all customer classes. No new natural gas utility debt will be included with the tiered rates.

Source: MEXICONOW Staff