The state Public Regulation Commission has set a May 3 hearing regarding this month's gas-service interruption that left thousands of New Mexico Gas Co. customers without fuel during bitterly cold weather.

The hearing will examine the causes of the gas curtailments and whether they could have been avoided, how the company determined which customers to cut off and whether the decisions complied with regulations.

The investigation also will include whether three electric utilities — Public Service Company of New Mexico, El Paso Electric and Southwestern Public Service Company — curtailed or interrupted service to New Mexico, and if so whether that contributed to New Mexico Gas Co.'s curtailments.

Meanwhile, the gas utility is asking regulators for more time to file a planned rate increase request because its staff is too busy dealing with the fallout from the recent outage.

The Taos News reported that company is asking the PRC to extend the deadline for filing a rate increase by 30 days — from Feb. 25 to March 29.

"Many of those who are working on preparing the rate case filing are focused on addressing the circumstances and effects of the February 2011 Gas Curtailment, including assuring that services are restored, investigating the cause of the system emergency and establishing a fund and claims procedure to pay certain claims relating to the February 2011 Gas Curtailment," said a statement filed with the PRC.

PRC rules give the commission 15 days to respond to the request for an extension.

The gas company is also preparing to settle claims filed by customers who were adversely affected by the outage. Early last week, New Mexico Gas said it would set aside $1 million to pay customer claims. Spokeswoman Monica Hussey told The Taos News this week that revenue from a rate increase would not be put toward costs incurred by the company during the gas outage.

Though the request for a rate increase might be coming at an inopportune time, the utility said it is something it has been considering for a while. At the end of 2008, when New Mexico Gas acquired its assets from PNM, New Mexico Gas agreed to freeze rates for three years. According to Hussey, the existing rates were put in place in July 2007, and were based on data from 2005.

Hussey said the rate freeze will end Jan. 30, 2012, and that the company has been preparing a rate case for several months. Hussey declined to give specifics about how much of an increase the company will seek.

With regard to the PRC hearing on the service outage — which affected Española, Taos and other Northern New Mexico communities — any person wishing to intervene and testify must file an original and five copies of a motion to intervene no later than Feb. 28. The motions should be sent to: NMPRC, Records Management Division, 1120 Paseo de Peralta, Santa Fe, NM 87501.

The motions should reference Case No. 11-0039-UT. For questions, call the PRC at 1-888-427-5772.