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November 10, 2009

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LV utility takes $2 million charge

Wednesday, Feb. 9, 2000 | 10:57 a.m.

Southwest Gas Corp. of Las Vegas said today it is taking a $2 million pretax charge against its fourth-quarter earnings because of a settlement agreement with the town of Truckee, Calif.

The charge was recognized after the agreement was approved Feb. 3 by the California Public Utilities Commission.

The settlement is tied to Southwest's plans to extend service to Truckee. Southwest experienced cost overruns during the project, and began negotiations to reduce its financial exposure to the extra costs, estimated at $17 million.

Under the settlement between Southwest and Truckee, Southwest received the ability to recover its additional costs, but agreed not to file for a rate increase in California before 2002.

The company also agreed to provide a $2 million subsidy to assist customers in getting hooked up to Southwest's main lines. The subsidy was the charge recognized, and Southwest said it will not have any extra charges related to the Truckee project.

Southwest expects to complete its Truckee expansion by 2004.

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