Southwest Gas reports $8.3 million loss for third quarter

Thursday, Nov. 5, 2009 | 6:49 p.m.

Southwest Gas Corp. on Thursday said its third-quarter loss narrowed from a year earlier.

The Las Vegas company lost $8.3 million or 18 cents per share compared to a loss in 2008's third quarter of $16.7 million or 38 cents.

Revenue of $317.5 million was down from $374.4 million.

Losses in the second and third quarters are normal because of the seasonal nature of the business.

"Third quarter results improved compared to the same period last year primarily due to positive returns on investments this quarter versus negative returns in the corresponding prior-year quarter. In addition, we have successfully minimized cost increases through the effective use of technology and selectively filling employee vacancies. We have also reduced capital expenditures due to the current low-growth environment, but we continue to upgrade and expand the distribution system as necessary," Chief Executive Jeffrey Shaw said in a statement.

The company said it expects operating income to grow $19.1 million annually thanks to its latest rate adjustment in Nevada effective this month.

Southwest Gas petitioned to raise general rates to bring in an additional $28.8 million. The state Public Utilities Commission last month instead allowed the company to increase rates by $19.3 million per year.

But in a second decision, the commission said Southwest Gas is paying less for its fuel, so the rates associated with fuel costs should be lowered. That means Southwest Gas overall will reduce its rates by 1.6 percent or 85 cents a month for homeowners.