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MESILLA -- Guillermo Montoya, who has lived in Mesilla for 30 years, still hasn't quite figured out his family's monthly gas bill.
Montoya also has a lot of questions about the new company trying to acquire the only gas company he has ever dealt with.
"I don't know much about those guys," said Montoya, of Zia Natural Gas Co., which has filed an application with the New Mexico Public Regulation Commission to take over Rio Grande Natural Gas Association (RGNGA). "I've heard where they're supposedly going to raise our rates, but I don't know yet exactly how much that's going to be. Until now, I didn't even know that Rio Grande Natural Gas was going out of business."
Mesilla Mayor Nora Barraza wasn't aware, either, of an apparent change in the town's natural gas utility. But Leslie Graham, division manager of Zia Natural Gas Co., met with the Mesilla board of trustees last week to explain and outline the impending changes.
"We were told our gas rates are probably going to go up 5 percent," Barraza said. "We've had Rio Grande Natural Gas for as long as I can remember, but the change in utilities caught us all a little by surprise. Even before all of this happened, nobody
But for at least the past two years, the Las Cruces City Council and the Hatch Board of Trustees have been talking about dissolving their joint ownership of RGNGA, which was beset with growing financial problems. Earlier this year, an agreement was reached where Hatch became the sole owner of the utility, and approximately 6,700 RGNGA customers on Las Cruces' East and West mesas were brought into the city's natural gas system.
The remainder of RGNGA's approximately 11,000 customers -- particularly those in Mesilla and Hatch -- stayed in the utility, which Hatch has offered to sell to Zia.
"We've always kind of been tied with (Las Cruces) when it came to natural gas service, and it's kind of strange that now we're not," Barraza said. "I, for one, would be interested in exploring the possibilities of becoming part of the city's system, if that's even possible."
Las Cruces Utilities Director Jorge Garcia said that Mesilla will have to stay with RGNGA, soon to be Zia Natural Gas Co.
"For at least the time being, the agreement stipulated that the city could only get the 6,700 customers that were actually already within the city limits," Garcia said. "... It's understandable that Mesilla might be interested in coming into the city's gas system, but there would be a cost associated with that."
Graham said Zia Natural Gas Co. currently serves more than 24,000 customers in New Mexico, mostly on the east side of the state.
"We're especially excited about serving these approximately 11,000 customers here in southern New Mexico," Graham said. "Zia Natural Gas is working to promote energy efficiency and energy conservation both in the home and as a nation. We strive to operate and maintain our natural gas system to a higher standard and work to implement the best and most effective technology available."
Graham added the company is in the process of setting up an office at 3700 W. Picacho Ave. But the office will not open until the PRC grants formal approval of the acquisition of RGNGA. A hearing before the PRC is scheduled Jan. 12.
If the PRC grants Zia's application, Graham said it would be several months before the company assumed full control of RGNGA.
"We don't anticipate taking over until sometime in late spring," Graham said. "Customers in Mesilla will pay the same rates they have been paying for the rest of the winter."
Garcia said Mesilla customers shouldn't worry about the switch in natural gas providers.
"Zia is a very good company," he said. "They have a solid reputation for providing quality service."
Steve Ramirez can be reached at (575) 541-5452.
New gas utility
• Zia Natural Gas Co. is seeking approval from the New Mexico Public Regulation Commission (PRC) to acquire Rio Grande Natural Gas Association from the village of Hatch.
• RGNGA has provided natural gas service to Do-a Ana County residents for more than 40 years.
• Earlier this year, the city of Las Cruces divested itself of its interest in RGNGA.
• Hatch became the sole owner of RGNGA and entered into an agreement to sell the utility to Zia Natural Gas Co.
• RGNGA has approximately 11,000 customers, including residents in Hatch and Mesilla and as far south as Vado.
• With the potential change in ownership, natural gas rates for RGNGA customers could increase 5 percent in Mesilla, and 12.6 percent for Hatch residents.
• A 5 percent increase in Mesilla would cost customers an additional $22.63 a year, and a 12.6 percent increase would cost Hatch residents an extra $53.49 a year.
• A hearing before the PRC is scheduled Jan. 12 in Santa Fe.
• If the PRC approves the acquisition, Zia would formally take over RGNGA sometime in late spring.
