Split PSC votes to combine Southwest Gas rate cases

Friday, March 21, 1997 | 11:59 a.m.

The five-member commission decided Thursday to consolidate the 2.3 percent rate reduction that Southwest requested for Southern Nevada in October with a second application in January for a 16.2 percent increase. It also will consider a related rate adjustment in northern Nevada in that case.

Commissioner Judy Sheldrew cited rate stability as the reason for combining the cases rather than possibly lowering rates and then boosting them later. A decision on the combined gas rate case is anticipated in August.

While Sheldrew won support from the commission on the case consolidation, she failed to persuade the commission to reject the special gas rate for residential air conditioning.

In a 3-2 vote, the commission approved the experimental two-year, discounted rate for customers who use gas-powered air conditioners, rather than electric units.

Gas air conditioning is a new technology, and Commissioner Don Soderberg said only 50 homes in Nevada have gas units for cooling. He said the situation was novel and he didn't want to refer the matter back to Southwest a third time.

Sheldrew urged the commission to send the air conditioning rate request back to Southwest because the utility failed to provide the required cost analysis.

She and Commissioner Tim Hay said the commission lacked legal authority to approve the special rate without the cost study.

The three-member majority also threw out Sheldrew's proposal to start a new investigation into gas adjustment case regulations. Commissioner Galen Denio wanted to delay commission review until the Legislature had a chance to adopt pending bills on the same subject.