Hearing on Southwest rates draws little notice

Kevin Rademacher

Tuesday, Aug. 12, 2003 | 10:58 a.m.

Southwest Gas Corp. customers apparently are not very worried about their natural gas bills during these 108-degree summer days.

Two consumer sessions held on Monday to gather public opinion on Southwest Gas Corp.'s proposed $26.2 million rate increase drew just a handful of customers.

While officials with the state Public Utilities Commission and the Las Vegas-based utility did not expect large crowds, only about 30 people turned out.

Southwest Gas has about 470,000 customers in Southern Nevada.

The requested "purchased gas adjustment" rate increase -- which would cover the cost of natural gas for the 12 months ending July 31 -- could push gas bills 12.6 percent higher. The utility also is seeking permission from the PUC to make adjustments for higher or lower gas prices on a monthly basis, instead of the annual adjustments currently being made.

The gas company has argued that monthly adjustments would mean more, but smaller, swings in customers' gas bills. The current rate increase would call for a 9.4 percent increase if handled with the proposed rolling monthly average adjustment.

Consumers attending the sessions did get some positive news from the utility. When the initial rate increase request was filed with the PUC on June 1, Southwest Gas had estimated gas prices for 60 days.

Andy Bettewy, assistant general counsel for the company, told consumers Monday that the actual prices during those 60 days were lower than projected. That means rate increases will be smaller. Based on the 12 month rolling average, rates could rise only about 6 percent, instead of 9.4 percent.

"Our projections turned out to be worse than it really was," he said. "The reality changed a little bit."

That did little to soothe the 13 consumers that spoke out during the session.

Marlene Monteolivo, who said she spoke on behalf of all single parents, pointed out a mounting number of increasing bills facing local families.

"Our water bills went up, our electric bills went up, $3 here and $5 there, it adds up," she said.

Richard Bianco agreed.

"We just got done with the (state) government coming down on us for not paying enough taxes," he said. "It seems like the timing is wrong for Southwest Gas ... Market this, market that, who cares. Frankly, I don't care about your profit line."

Several of the speakers made similar comments that bills should not increase just to shore up profits for the company.

Bettewy made frequent attempts to steer consumers back to the topic at hand.

"This proceeding is not involved in increasing the revenue of Southwest Gas," he said. "It's simply the cost of buying gas."

Consumers criticized the company for everything from its television advertising to the monthly basic service charge that increased from $6 to $8 two years ago.

Based on a very few comments, Southwest Gas' monthly adjustment plan could be controversial. The PUC and the state Bureau of Consumer Protection both said before the consumer sessions that they were very interested in public comment on the topic. Only three speakers mentioned the proposal and Larry Spitler, associate state director for AARP Nevada, opposed the move.

"How on Earth do we have enough staff (with the PUC) to determine prudency 12 times a year when we have a tough time even proving it once a year?" he said. "We do feel an annual review is more appropriate."

State regulations only allow utilities to recover gas or electricity purchases deemed "prudent" by the PUC.

Formal PUC hearings on the Southwest Gas rate case are scheduled for Oct. 1-3 in Las Vegas.