Opponents of gas rate hike sound off

Kevin Rademacher

Thursday, Aug. 25, 2005 | 11:19 a.m.

Citing everything from high gasoline prices to insurance rates, a handful of Southwest Gas Corp. customers turned out on Wednesday to let utility officials and state regulators know they adamantly oppose another rate increase proposal.

In May Southwest Gas asked the state Public Utilities Commission for a 2.8 percent residential rate increase in order to recover $11.3 million in past gas costs. That increase would push the average customer's winter bill higher by about $1.37 a month.

In order to meet higher natural gas costs in future months, however, the company would need to increase annual revenue by $53.5 million, pushing the average residential winter bill up by $6.50, or 13.4 percent.

"I moved here because I could no longer afford to live in (California's) Bay Area," said customer David Paul Goldsmith after listening to a presentation on conservation. "I'm already doing everything I can, but I can't afford you and I can't afford to move."

He also questioned whether or not regulators would take the comments of customers seriously when deliberating over the utility's request.

"I want you to hear our side even if we can't do anything about it," Goldmith said. "Never have I seen them result in one-tenth of 1 percent of change. ... I think these hearings are perfunctory. ... Nobody in America cares about seniors anymore."

PUC Commissioner Jo Ann Kelly, who will preside over the Southwest Gas rate case, fired back at Goldsmith's comments.

"We do listen," she said. "These are important. You are heard. It's not because people don't care. I take tremendous exception to that."

Kelly also told the small crowd that we, unfortunately, live in an era in which natural gas prices are soaring, emphasizing the need for conservation.

"I know none of you want to hear it," she said.

Kelly told the crowd that one of the major factors in higher natural gas prices -- which are traditionally associated with heating -- is the flood of new gas-fired electric power plants. She pointed out that 90 percent of the new electric generation in the Western United States is now gas-fired.

"In these times it's not very fun to be in the business that I am in," said Erik Witkoski, senior deputy attorney general for the state Bureau of Consumer Protection. "It hasn't been for the last few years because energy prices have been going up. ... It's going to be a tough winter."

In November, regulators approved a $30.6 million rate increase for Southwest Gas. It was the fifth jump in Southern Nevada natural gas bills in 12 months.

In that case, the PUC elected to favor projected rates proposed by PUC staff instead of historical rates proposed by the utility. The move nearly doubled Southwest Gas' original request for a rate increase of $16.3 million, or 4.9 percent.

Johnnie Perkins, another Southwest Gas customer, also said his plans for an affordable retirement in Southern Nevada have been derailed.

"I thought things were high as heck in California," said Perkins, who moved here from Orange County. "They're not, compared to here. We're going to have to cut back some place because we have to have gas."

"I would not come back again," Perkins added. "They have problems there, but we're doing the same thing here."

Joseph Graziose Jr. said someone needs to step in and ease the rising costs.

"You just can't afford to live anymore," he said. "This is not anything against you guys," he said, directing the statement to Southwest Gas officials. "The government needs to step in and help us all. ... This is why everybody is so bitter. How much can we take?"

John Tabor challenged regulators to control the situation.

"We are rather demanding now that you fulfill your responsibility and keep these guys in line," he said.