Southwest Gas’ second-quarter loss better than last year

Local natural gas utility Southwest Gas posted a loss in the second quarter, but that loss narrowed compared with the same quarter a year earlier.

The company lost $594,000, or 1 cent a share, in the quarter that ended June 30, compared with a loss of $2.7 million, or 6 cents a share, in the second quarter of 2008.

The company said in a statement that the “seasonal nature” of its business makes net losses common in the second and third quarters, when consumers don’t need to heat their homes.

Jeffrey Shaw, chief executive officer of Southwest Gas, said the smaller loss resulted mostly from increased returns on investment. Those returns dropped in the second quarter of 2008.

Southwest Gas had revenue of $387.6 million in the second quarter, down from $447.3 million a year earlier.

Southwest Gas has two rate cases pending before the state Public Utilities Commission. The first, a general rate case through which the company would recoup operating and business costs, would boost residential rates 6.9 percent, or $5.53 a month, in winter, and 6.7 percent, or $2 a month, in summer. The second is a deferred-energy filing to account for purchased-fuel expenses, which the company must pass directly to consumers without taking a profit. It would cut the typical monthly bill by 1.3 percent a month, or 89 cents, in winter, and 1 percent, or 31 cents a month, in summer.

Company officials also said in July that they would file two more cases in coming weeks. The four cases combined would decrease the average bill $1.95 a month over a year, or $3.20 a month in winter.

All four cases are scheduled to take effect Nov. 1, pending Public Utilities Commission approval.

Southwest Gas released its results after the markets closed. Shares were down 35 cents, or 1.41 percent, closing Tuesday at $24.39 on the New York Stock Exchange.

Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.