State approves rate decrease

Friday, Nov. 30, 2001 | 10:31 a.m.

Rate relief is on the way this weekend for customers of Las Vegas-based Southwest Gas Corp., after the Public Utilities Commission of Nevada approved a $44.1 million rate decrease Thursday.

Effective Saturday, average rates in Southern Nevada will decline 11.7 percent. For the average residential customer, this will lower winter bills by $9.64 per month.

The decrease is a combination of a general rate increase and a fuel cost decrease. The company received a $19.4 million annual increase in general rates -- those that compensate the company for infrastructure costs, and generate a profit for the company. But this was more than offset by a $63.5 million decrease in fuel rates, which are the rates meant to reimburse Southwest for the cost of purchasing natural gas, rather than generating profit.

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