Decoupling and Delivery Charge Adjustment (DCA)

What is Decoupling

What is decoupling?

 
Decoupling is a rate design methodology that separates a utility’s fixed cost recovery from its sales. Decoupled utilities collect revenues according to a predetermined revenue requirement, or revenue per customer, established by the Arizona Corporation Commission (Commission).
 
With decoupling, the Commission establishes a fixed revenue per customer and adjusts the rate per therm to ensure that Southwest Gas never retains more or less revenue than what the Commission approved in its last rate case.
 
Southwest Gas’ decoupling mechanism (also referred to as the Delivery Charge Adjustment Provision or DCA) is an annual adjustment that adjusts rates to reflect any difference between Southwest Gas’ authorized revenues and actual revenues. The DCA ensures that Southwest Gas recovers no more than its Commission authorized revenue, which means if customer usage results in the company over or under-collecting its authorized revenue, the DCA rate will adjust to bring revenues back to authorized levels.
 
AZ Decoupling

More than 177 million Americans use natural gas to cook a hot meal, heat their water or warm their houses. Many parts of the country have felt the chill of winter and that means folks are using more natural gas. The American Gas Association has developed a video to explain what goes into your natural gas bill. 

What is the Delivery charge adjustment provision?

The Delivery Charge Adjustment Provision, or DCA, is a rate adjustment mechanism that limits the amount of revenue that Southwest Gas recovers in delivery charges to the revenue authorized by the Commission. Any difference in revenue between the amount authorized and the amount received are adjusted annually.
 
The revenue authorized by the Commission is the sum of all the costs associated with providing safe and reliable natural gas service to our customers. This amount is collected through the basic service charge and the delivery charge.

What benefits does the DCA offer customers?

The DCA helps align the interests of Southwest Gas and its customers. The DCA enables Southwest Gas to help its customers save money by using gas more efficiently and saving on the cost of gas, while at the same time allowing the Company to recover the fixed costs of providing gas service that have been approved by the Commission. For help on lowering the amount of gas you use visit  Energy Saving Tips

 

Where can I find more information on the DCA?

The DCA is discussed on Sheets 92 through 93 of Southwest Gas’ Arizona Gas Tariff and can be found at  Download here
 

Learn How Gas Rates Are Set

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The rates used by Southwest Gas are set by state regulatory commissions using a process called the "rate case cycle." Because of individual state regulations, the rate case cycle differs slightly for each state. See how rates are set for your state.
 

Request Rates & Tariff Information

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Use this form to request historical Rates and Tariff information not available on this website.  This form may also be used as a request to be placed on Southwest Gas' California Advice Letter Service List.  If you have any questions regarding your bill, please contact Customer Assistance at    
877-860-6020.
 

Commission Websites

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Check your state's Commission Office for more information about rates and regulations.