Leslie Graham, general manager of Zia Natural Gas, told the Hobbs City Commission that the utility’s integrated resource plan (IRP) shows current supply and system capacity are sufficient to meet projected growth in Lee County while inviting local input on future large gas customers and development.

The IRP, a commission filing required every four years, examines load forecasts, supply sources, and potential resource additions over a 10-year planning horizon. Graham said Zia serves about 39,500 customers statewide and roughly 10,980 (about 11,000) in Lee County and sells nearly 3.5 billion cubic feet of gas a year systemwide and almost 0.9 BCF in Lee County.

“Right now I do believe that we still have sufficient capacity to meet the needs for growth here in the Hobbs area,” Graham said, adding that Hobbs connects to a nearby DCP gas plant with interstate transmission backup. The utility is continuing to monitor population and housing trends, new large commercial loads such as data centers, and potential loss of demand if new builds omit gas service.

Why it matters: Zia’s planning affects local development, business recruitment and household energy costs. Commissioners and the public pressed the utility for more information about why customer counts in Hobbs appear flat despite recent housing growth.

Key details and discussion:
- Customers and sales: Graham reported about 11,000 customers in Lee County and roughly 0.9 BCF of annual sales there, noting customer counts have been effectively flat over the last decade. She attributed some of that to new construction choosing all‑electric homes or developers opting not to extend gas laterals where builders do not request gas service.
- Supply and reliability: Zia’s primary supply near Hobbs comes from the DCP plant west of town, with automatic backup from interstate transmission if needed. Graham described that arrangement as “a very steady, reliable source of natural gas for the system.”
- New loads and economic development: Graham said the utility has been approached by potential large gas customers, including data centers, and asked the commission and staff to flag any impending projects, schools, or economic developments that could change demand projections.
- Alternative gas sources: The IRP evaluates potential supply options such as biomass or dairy-based renewable natural gas and hydrogen pilots, but Graham said scale, startup costs, supply consistency and gas quality present challenges for small utilities.
- Energy efficiency: Zia runs an energy-efficiency program with rebates and a contractor working on low-income multifamily retrofits; Graham said the program helps moderate demand growth.

Comments from commissioners highlighted concern that new construction may be bypassing gas service. “I was a little surprised the slide where you showed your customer count is flat,” said Commissioner Mills, asking whether developers are choosing electric-only houses. Graham replied that builders sometimes avoid gas piping to reduce upfront costs and that Zia will install service lines at no cost when appropriate.

Decisions and next steps: The IRP remains in the public advisory stage. Graham said Zia will file the formal IRP with the regulatory commission and welcomes information from Hobbs staff and developers about planned projects that might change demand. No formal commission action was required.

Ending: The utility requested that city staff and commissioners notify Zia of any planned large projects or housing developments so Zia can refine forecasts and ensure pipeline capacity where needed.