Immediate gas rate reduction is rejected

Thursday, Nov. 1, 2001 | 10:56 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- The state Public Utilities Commission today refused to order Southwest Gas Corp. to immediately reduce natural gas rates by $51.6 million, or about 14 percent, for residential customers in Clark County.

The commission decided to go forward with its schedule to hold a hearing Nov. 13 to hear evidence on the application of Southwest, which says the decrease is due to lower prices of natural gas it purchased.

State Consumer Advocate Tim Hay last month urged the PUC to issue an interim order putting the reduced rates into effect today and then go through the normal hearing and decision process.

Hay said the winter months are here and consumers face higher bills. And he said current economic conditions in Nevada have left many of Southwest's customers in tough financial shape.

But Southwest opposed the immediate reduction, noting it has another rate case pending that would increase rates.

Southwest said it's concerned that if its customers were forced to experience the roller coaster effects of a rate decrease one month and then a rate increase a month or two thereafter, it would be confusing and send mixed price signals.