Consumer session slated on proposed gas-rate increase
The Public Utilities Commission of Nevada has scheduled a Thursday consumer session to let local ratepayers have their say in a proposed natural-gas rate increase.
Southwest Gas Corp. has requested a rate jump to cover rising operating costs. The 6.2 percent rate hike would push up the average local monthly gas bill by $3.75, from $45.30 to $49.05.
Southwest Gas officials say current rates don't allow enough revenue to provide a fair and reasonable return on investment. The company faces changes in the cost of capital and its number of customers, as well as increases in costs from capital investment, wages, benefits and inflation.
The utility hasn't had a general rate increase since 2009, when the portion of rates that covers operational costs jumped 4 percent. But the commission's final ruling that year actually led to a 2.5 percent decline in gas bills after the agency factored in falling natural-gas prices.
In a separate filing, Southwest Gas is asking to recover costs of speeding up pipeline replacement in Nevada. Annual costs of the seven-year program scheduled to start in 2013 will range from $12.5 million to replace plastic pipe to $27.5 million to change out older steel pipe. The company proposes paying for the pipeline through a surcharge that would start at 14 cents a month, or $1.73 a year, in 2013 and go up to $2.31 a month, or $27.67 a year, in 2020. The commission will also accept ratepayer comments on pipeline replacement at the consumer session.
The consumer session is scheduled for 6 p.m. Thursday inside the commission's local office, at 9075 W. Diablo Drive, Suite 250.
The commission has scheduled a Sept. 10 hearing on Southwest Gas' filings. Any rate changes the commission approves would take effect Nov. 1. To see the filings, visit puc.nv.gov. Select "Docket Info" on the menu, and click on "All Dockets." Scroll to docket numbers 12-04005 or 12-02019.
Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512. Follow @J_Robison1 on Twitter.
