Southwest Gas seeks 5.9 percent rate hike

Southern Nevada customers would see rate hike on Nov. 1

Friday, April 3, 2009 | 6:21 p.m.

Southwest Gas sees profit fall on weather, foreclosures (2-26-2009)

Southwest Gas Corp.

Southwest Gas Corp. said Friday it’s seeking a rate hike of 5.9 percent effective Nov. 1 for its Southern Nevada customers.

The request comes less than two months after the company, citing its strong financial position, increased the amount of profit it pays out quarterly to shareholders.

The utility, based in Las Vegas, said it would file a General Rate Case with the Public Utilities Commission of Nevada.

“It has been five years since Southwest Gas last submitted a (general rate case) to the PUCN to increase its base rates to recover increased costs of operating its system,” Roger Montgomery, vice president of pricing, said in a statement.

In Northern Nevada the company is requesting to increase its authorized operating revenue by $1.7 million or 1.4 percent. In Southern Nevada, the request is for $28.8 million, or 5.9 percent, and would increase an average monthly bill of $53.97 by $3.78 to $57.75.

Montgomery also said that Southwest Gas anticipates that recently lower prices for natural gas will result in the company passing on some of those savings, potentially offsetting the increase from the general rate case.

Southwest Gas also will propose new initiatives to help consumers save energy.

The request follows a decision, announced Feb. 27, by the company’s board of directors to increase the company’s quarterly dividend to shareholders by 6 percent from 22.5 cents per share to 23.75 cents per share.

"While economic turmoil at the national level has clouded the forecast for near-term customer growth, the financial condition of Southwest is solid," Chief Executive Jeffrey Shaw said at the time. "In addition to improved cash flows and capital structure, our financing needs have decreased and our liquidity remains strong. The dividend increase is an important ingredient to facilitate our continued favorable access to the capital markets to fundongoing infrastructure needs.”

In the fourth quarter, Southwest Gas said it earned $31.2 million, or 71 cents per share, on revenue of $509 million.

Discussion: 4 comments so far…

By NLVResident

4/3/09 at 8:57 p.m.

Suggest removal

I hope the PUCN does a thorough examination of the company's expenses. Given these financial times, the PUCN should start disallowing some of the perks given to management, such as cars where the company pays for a personal car (that can be used by the employee's family, including teenagers), car insurance, maintenance, and gas. They should also do a thorough examination of travel and business expenses to ensure that the company is conserving at all levels.
By redsoxwin

4/3/09 at 9:52 p.m.

Suggest removal

I know a guy who works for S/W gas, and he says they are hurting because 25% of their customers use 5 or less therms a month. God knows what a therm is, but I guess our weather means we use very little gas. I usually pay $30 in the winter, because I use space heaters, and, since I shut off the water heater in the garage in the summer, about $20 a month. So I say "Go gettem' girls". No problem.. Now let's pick on the Enron rate locked-in fools at NV Power-now that's a monopoly that is out of control and run by thieving AIG type execs.
By vegashawk

4/3/09 at 10:34 p.m.

Suggest removal

SW Gas and Nevada Power have systematically raped the people of las vegas.... Food prices rise to a point that individuals can not aford to eat, I care for a 92 year old mother and can not get food stamps I am an unemployed computer professional and am a diabetic eating all the wrong foods because the power company raises their rates during the summer months when you use the air conditioning and power the most and the gas company has done the same in the past during the winter months both with a total disregard to the fact that we are in a "DEPRESSION" regardless what the government wants to call it. we are a city with the highest rate of forclosures... The bottom line is we won't need to worry about paying for gas or electricity because we will all be living on the streets in tent city out in north town.... and will be on food lines like the people back in the 1929 depression, because the markets like the gas and electric companies are looking at their profits, not at the well being of the people of this nation or healing the nation as a whole.
We are in trouble...and they keep dipping deeper into the already empty pockets of a city with 10-12% unemployment. How much more can the people of las vegas and america absorb.They raise the Gas taxes so we can't aford fuel, they raise the gas .. the electric rates, and we continue to pay for the mis management and rising profits of the banks...the utilities, the supermrkets and the credit card compaies..and we don't even have jobs or incomes to survive off of..... this is not biblical fairy tale where you can feed the masses wiwtwh fishes and loaves.... please get in touch with reality......
By afveteran

4/4/09 at 2:29 p.m.

Suggest removal

Both NV Energy and Southwest Gas Company have bad executive managers, and their constant trek to the Nevada PUC to file for rate hikes is pathetic to us ratepayers. The bad thing is that Nevada PUC personnel are ex-employees of both utilities. Nothing ever gets rectified in this state.