Rate cut proposed

Thursday, Dec. 27, 2001 | 10:58 a.m.

Southwest Gas Corp. on Wednesday asked state regulators for permission to lower rates in Southern Nevada by $29.2 million, or 11.1 percent, the second such rate decrease in a month.

The Public Utilities Commission of Nevada was asked to cut rates effective Feb. 1.

If approved, the decrease would reduce the bill for a residential customer using 79 therms a month in the winter from $67.79 to $60.41, or 10.89 percent.

The request follows a 12.5-percent decrease that took effect Dec. 1, reflecting lower natural gas costs last summer.

Southwest spokesman Roger Buehrer said the decreases demonstrate the volatility of the natural gas marketplace.

"A year ago, Southwest and its customers experienced unprecedented high prices, but those costs have moderated since spring," Buehrer said.

Commission procedures allow for a dollar-for-dollar pass-through to the nearly 420,000 Southwest customers of the cost it pays for gas. There is supposed to be no profit for the company on the cost of gas.

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