Southwest Gas Corp. asked its Nevada regulators to approve a roughly $32.5 million rate increase, largely to cover higher service costs and infrastructure replacement work.
In a request filed with the Public Utilities Commission of Nevada, the Southwest Gas Holdings Inc. utility proposed to raise revenues by $14.4 million, or about 3.8% in southern Nevada and 1.9% in northern Nevada, to account for changes in Southwest Gas' cost of service since it last filed a general rate case, according to a May 31 news release. Southwest Gas proposed an $18.1 million revenue increase, or about 5.2% in southern Nevada and 1.1% in northern Nevada, to cover the cost of gas infrastructure replacement projects that the commission already approved, the release said.
The company also asked the PUC raise base rates by $283 million in southern Nevada and $26 million for northern Nevada. About $163.6 million of that total increase is related to moving gas infrastructure replacement costs that were previously covered by a designated cost recovery mechanism into the main rate base.
Southwest Gas said its rate request incorporates reduced tax liability associated with the 2017 federal tax overhaul, which cut the corporate tax rate to 21%, among other changes. The tax cuts partially offset the rate increase the utility is requesting, the company said.
The utility said the PUC has 210 days to issue an order in the case, and the company expects new rates to take effect no later than Jan. 1, 2019.
In a separate proceeding, the PUC approved Southwest Gas' $28 million proposal to extend gas service to Mesquite, Nev. The extension will involve installing about 17 miles of approach main and another 20 miles of distribution pipeline, the release said.
Southwest Gas serves 2 million customers in Arizona, California and Nevada.
