Natural Gas Conversions FAQ Question: Answer: Why should I convert to natural gas? Propane may have been an easy choice – or the only choice – for heating when you first moved into your home. But now has never been a better time to convert to clean, convenient, low-cost natural gas. Natural gas is economical, reliable and versatile. When used properly, natural gas is an extremely safe fuel choice. Natural gas can be used for a variety of indoor and outdoor applications including space heating, water heating, clothes drying, fireplaces, outdoor grills and more. Natural gas is a clean-burning fossil fuel, so it is less harmful to the environment. Natural gas is a reliable domestic resource, piped directly to your home or building with no need to rely on scheduling deliveries or maintaining fuel storage tanks. Question: Answer: How much does a conversion cost? To get natural gas to your home or building, we would need to extend a gas main along the road or approved right of way near your home or building. Then NMGC crews would install a service line. The final cost would depend on the length of the mainline extension, length of service line and other factors such as landscaping and driveway crossings. A detailed cost estimate will be provided for each customer before conversion work is begun. The cost for converting furnaces and other appliances is typically a homeowner expense. Question: Answer: Did pricing for converting to natural gas change? Yes! Revised Rule No. 16 was recently approved by the New Mexico Public Regulation Commission (NMPRC) that makes it more affordable for potential customers to convert to natural gas. In the revised rule, Revenue and Lot Credits have been enhanced: Revenue Credits relate to a new customer’s annual gas usage. Revenue credits are determined from an estimate of the customer’s annual Therm usage or actual propane usage converted to therms. Lot Credits have been improved to give customers an upfront credit for any lots passed along the Line Extension. Lot credits are figured individually for each Line Extension request and determined by the number of platted lots, filled and recorded with the County Clerk’s office. Potential customers will not receive Lot Credits for any lots receiving Revenue Credits. Question: Answer: How do I pay for the conversion? NMGC designed the Advantage Program to increase the availability of funds for installing reliable natural gas service to homes and small businesses. In accordance with NMGC Rule No. 16, customers may be provided an advance to apply towards the cost of the Line Extensions and/or new Service Lines. The Advantage Program is available to potential residential and small commercial sales customers. Anyone requesting natural gas service at the address will be responsible for repaying the advance as a condition of receiving natural gas service. Payment obligation will remain with the premise, not the customer. Question: What is the minimum/maximum amount and time allowed for the advance? Page | 1 Natural Gas Conversions FAQ Answer: The Advantage Program is available from a minimum of $100 to a maximum of $5,000 for qualifying customers. The advance will be paid back to NMGC over a period of time not to exceed 120 months. Customers can pay-off the outstanding balance at any time, without penalty. The minimum monthly payment is $20.00. Question: Answer: Can I save money by switching to natural gas for my home? Yes, you can significantly lower your fuel costs by converting from propane to natural gas. NMGC natural gas prices remain relatively low and stable, while propane prices tend to be more volatile. Since the current price of propane is comparatively much higher than natural gas, you’ll save every month on energy costs. Click here to calculate how much you could save. Question: Answer: Do you offer any rebates or incentives? Rebates offered through our Energy Efficiency program are available for qualifying equipment. Question: Answer: How do I start the process to convert to natural gas? Complete the online form or call New Mexico Gas Company at 888-NM-GAS-CO (888-664-2726) and a representative will help you start the conversion process and answer any questions you may have. Page | 2
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