Regulators reject New Mexico Gas Company’s plans for gas storage facility
RIO RANCHO, N.M. (KRQE) – In a setback for the New Mexico Gas Company, regulators have denied its application to build a liquefied natural gas (LNG) storage facility outside Rio Rancho. The decision comes after months of public opposition, although the reasons cited by regulators differ from the concerns raised by community groups.
While environmental impact and safety were among the concerns voiced by opponents, the New Mexico Public Regulation Commission (PRC) pointed to overall cost as the primary reason for the denial. “It just doesn’t seem to me that the cost justifies the benefits,” remarked one PRC commissioner during Thursday’s hearing.
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During the hearing, commissioners acknowledged the need for the gas company to ensure sufficient gas supply, affordability, and reliability, especially considering the current storage facility’s location in Texas. The gas company had argued that storing gas closer to home would lower rates for customers, particularly in the aftermath of extreme weather events like the 2011 winter storm, which left 30,000 New Mexicans without access to natural gas.
However, commissioners emphasized that such extreme events are rare and that there may be more cost-effective alternatives to achieve the same goals. “It seems like a fairly hefty price tag to pay for something that should occur on a relatively infrequent basis,” noted one commissioner.
In response to the decision, the New Mexico Gas Company expressed disappointment, saying that the facility would have benefited customers in terms of reliability and costs. When asked about a possible appeal, the company stated that they are reviewing the commission’s decision.
