Southwest Gas looks for extra $31.5 million

Thursday, Oct. 16, 1997 | 9:40 a.m.

Jaime Ramirez, senior manager of rates for the Las Vegas-based utility, testified Wednesday the money would be collected over two years instead of one to soften the blow on consumers.

If approved, the plan would mean an 18.1 percent increase, or $23.1 million, for 300,000 customers in Clark County. That's an extra $5.11 per month for a residential customer using 45 therms of natural gas.

In northern Nevada, 83,000 customers in rural counties would pay 16.9 percent more, or $8.3 million. That's an increase $7.72 for a homeowner who uses an average of 70 therms.

Southwest says the extra money would pay off higher charges by its suppliers - El Paso Natural Gas and Kern River Gas Transmission Co. for southern Nevada, and Paiute Pipeline and Northwest Pipeline for northern Nevada. There's no extra profit for Southwest.

The staff of the PUC has recommended the rate increase for southern Nevada be trimmed by $4.2 million and by $2.4 million in northern Nevada.

Chris Van Dyck, senior deputy attorney general with the Bureau of Consumer Protection, said his agency is joining with the PUC staff in asking for many of the reductions.

A decision by the commission is due before the end of December.

The request comes after the PUC authorized Southwest Gas to boost rates by 9.2 percent or $10.1 million in Clark County in September. And the utility was authorized to boost rates by 14.2 percent to northern Nevada customers.

A key argument in the new application is whether Southwest used prudent practices in trying to buy the lowest-priced gas available.

The staff of the PUC believes Southwest should have negotiated some long-term contracts rather than following a short-term strategy in buying natural gas.