Commission OKs Southwest Gas rate reduction

Friday, Oct. 8, 1999 | 10:46 a.m.

Southwest Gas Corp. will reduce rates of Nevada customers for natural gas service beginning in November.

The Public Utilities Commission of Nevada Thursday adopted an order establishing a $20.9 million rate decrease for Southern Nevada customers.

The 12.4 percent decrease translates into an average monthly savings of $6 on a $50 residential gas bill. Southwest has 360,000 customers in homes and businesses in the Las Vegas area.

The rate reduction reflects lower costs for gas from companies that supply Southwest. Several companies transport gas to Southwest in pipelines from Wyoming and the Four Corners region.

Utilities are allowed to adjust rates annually based on purchase prices from the previous year. There is no profit or loss to the company as a result of the purchased gas cost adjustment.

"We are very pleased to be able to decrease customers' rates by so much, especially since the winter heating season is just starting," said Roger Montgomery, vice president of pricing for Southwest. "It demonstrates Southwest's determination to search for and buy the best priced gas for its customers."

The PUC voted unanimously without comment on the order.

The order also authorized a 6.4 percent, $3.9 million rate reduction for Northern Nevada customers.

In a separate action, the PUC ordered hearings to be conducted on the final rules for restructuring the electrical industry in the state.

Rules are being established on how utilities will recover costs on assets and services when the industry changes from regulated monopolies to deregulated competition. Many of the assets involve existing contracts the utilities have with suppliers.

Commissioners deferred action on establishing regulations on load profiling and providers of last resort.

Load profiling is posting information on electricity use to monitor how much suppliers provide and how much customers use so that distribution companies can be paid.

Regulations on providers of last resort are needed to assure that customers who don't choose a power company by March 1 when deregulation occurs will have a company to provide power to them.