Southwest Gas rate cut proposed

Tuesday, Nov. 20, 2001 | 9:18 a.m.

Southwest Gas Corp. has proposed an 11.7 percent decrease in rates for Southern Nevada customers, effective Dec. 1.

The proposal filed with the Public Utilities Commission of Nevada would reduce residential rates in the Las Vegas area by 12.5 percent, or about $9.64 per month in the winter, said Southwest spokesman Roger Buehrer. The proposal has been approved by the state's Bureau for Consumer Protection and the PUCN staff; the commission will consider the request Nov. 29.

Southwest had originally asked for a decrease of 4 percent to 5 percent.

The proposal combines two requests by the Las Vegas natural gas utility. Southwest is seeking an increase in rates under a general rate increase, which sets the level of profit the company earns from its infrastructure. The second request is an adjustment in the rate Southwest charges its customers for natural gas. This rate is adjusted according to the wholesale market rate for natural gas, and is not meant to change the company's profit margin.

Southwest is seeking a general rate increase that will result in $19.4 million in additional annual revenues from Nevada customers. However, this is more than offset by purchased gas rate reductions totaling $63.5 million per year.

"Natural gas prices around the country have been dropping," Buehrer said. "If the market continues its current trend, we would anticipate another decrease before the end of the winter."