NM Gas Co. boosts its rebate program

New Mexico Gas Co. rebates for energy-efficient water and space heaters are so popular that state regulators have approved a 45 percent increase in annual spending on those programs.

The New Mexico Public Regulation Commission granted a utility request this week to spend up to $992,000 on commercial and residential rebates in both 2013 and 2014. Thats up from $686,000 previously approved for each year.

Those programs have been so well received by customers that we needed to fund additional rebates, said Steve Casey, energy efficiency program manager.

When the PRC originally approved the utility budget for 2013 and 2014, the company had estimated about 600 customers per year would request rebates for water heaters and 600 for furnaces. But now, the utility expects to pay about 1,200 rebates per program each year.

By the end of November, we had already reached our original participant estimates, and we still have four months left in the current year, Casey said. In addition, its winter now, which is when demand spikes.

Under the programs, the utility pays up to $375 to residential customers who change out old water and space heaters for energy-efficient ones, and up to $300 to commercial builders who install them in new homes.

We pay a higher incentive for retrofits because theres more costs involved to change them out and haul away the old appliances, said Dru Jones, senior program developer.

Apart from water heater and furnace rebates, the company offers five other programs:

With the PRC budget boost, the utility is now authorized to spend $4.26 million per year in both 2013 and 2014, up from $3.9 million per year the PRC had approved last spring.

A current rate rider that amounts to about 1 percent of the average monthly residential bill pays for those programs. Despite the budget increase, that rider wont be adjusted until after April, when the 2014 budget year begins.

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NM Gas Co. boosts its rebate program