Southwest Gas

Southwest Gas’ new rates will boost the average residential bill in the peak winter months by $5.47 per month. The ACC approved the new rates Wednesday on a 4-1 vote.

The public can weigh in on Southwest Gas Corp.’s request for a significant rate increase Monday during a telephonic meeting hosted by the Arizona Corporation Commission.

The public-comment meeting will begin at 10 a.m. Monday, Sept. 21, at 1-866-705-2554. The passcode to speak at the meeting is 241497; to listen only, use passcode 2414978.

Southwest Gas is seeking an annual revenue increase of about $81 million or 11.5%, which would raise the average residential bill by $6.23 per month or about 17%.

The company had raised its original $57 million revenue increase request in May 2019 to $93 million, after adding millions of dollars to pay for some more recent system improvement costs, adjust for deferred income taxes and recover costs from its program to replace customer-owned and antiquated gas lines.

That plan would have boosted the average home gas bill by more than 19%, but Southwest Gas trimmed its request after the commission's staff and a state consumer watchdog agency objected to some items and recommended a much smaller revenue hike.

The latest changes were prompted by updates to recently upgraded plant, items agreed to at hearing and stipulated items, including amortization of excess deferred income taxes, the company said.

Southwest Gas says it has invested more than $667 million in improvements to its Arizona system since its last rate case in 2016.

Hearings on the rate increase were held in June and July before a Corporation Commission administrative law judge, who will make a recommendation to the full commission.


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Contact senior reporter David Wichner at dwichner@tucson.com or 573-4181. On Twitter: @dwichner. On Facebook: Facebook.com/DailyStarBiz