Southwest Gas Test Year 2026 General Rate Case Application
Southwest Gas filed a general rate case application (A.24-09-001) with the Commission on September 6, 2024, seeking authority to increase revenues within the Company’s three California service territories or rate jurisdictions. On May 14, 2026, the Commission approved Southwest Gas’ Settlement Agreement authorizing revenue increases as follows:
| Jurisdiction | Proposed Increase | Authorized Increase/(Decrease) |
|---|---|---|
| Southern California | $38.5 million | $33.83 million |
| Northern California | $2.5 million | ($3.18) million |
| South Lake Tahoe | $7.7 million | $9.45 million |
Southwest Gas rates incorporating the above authorized increases are effective, July 1, 2026. The typical monthly bills for residential customers are:
| Jurisdiction | Average Number of Therms | %Increase/ (Decrease) |
Average Residental Monthly Bill Impact |
|---|---|---|---|
| Southern California | |||
| non-CARE | 36 | 18.19% | $14.01 |
| CARE | 36 | 20.39 | $11.15 |
| Northern California | |||
| non-CARE | 66 | (5.57%) | ($7.50) |
| CARE | 66 | (5.58%) | ($4.83) |
| South Lake Tahoe | |||
| non-CARE | 64 | 28.46% | $26.05 |
| CARE | 64 | 28.54% | $19.38 |
*Bill impacts consider all rates and charges.
Southwest Gas is authorized to make Post-Test Year Margin adjustments of 2.75% for years 2027 through 2030 in each of its three rate jurisdictions.
Southwest Gas requested these increases:
- To recover the cost of the significant investments made in its gas distribution system required to provide safe and reliable service to its California customers.
- To reflect the current cost of providing safe and reliable service in rates, including increases in operating expenses due to inflation.
- Due to continued customer growth and the demand for natural gas service and the associated costs to provide service to these customers.
Consolidation of Northern California and South Lake Tahoe Rate Jurisdictions
Southwest Gas was authorized to consolidate its Northern California and South Lake Tahoe Rate Jurisdictions into a single Northern California rate jurisdiction. Beginning August 1, 2026, South Lake Tahoe customers will transfer to the appropriate Northern California rate schedule and the new rate schedule will appear on customer bills. Existing Northern California customers’ rate schedules will remain the same.
Conservation and Energy Efficiency (CEE) Programs
Southwest Gas is authorized to continue its existing CEE programs for years 2026-2030. The CEE programs are:
- Residential Equipment Rebates Program
- Commercial Equipment Rebates Program
- Residential Equipment Direct-Install (REDI) Program
- New Homes Rebates Program
- Solar Thermal Rebates Program
Risk-Informed Decision-Making Process
Southwest Gas is authorized to continue its existing three risk-based programs and add a fourth program.
Meter Protection Program (Existing Program) – includes a suite of safety options that are aimed at enhancing the protection of existing meters in heavy snow load areas that currently do not have an adequate form of meter protection against snow load. The options include:
- Retrofitting meter sheds for current customers without such protection
- Evaluating and installing an Excess Flow Valve on certain service lines
- Upgrading the meter encoder receiver transmitter (ERT) device to allow for daily meter usage monitoring
Total Authorized Program Budget (2026-2030): $44 million.
School Customer-Owned Yard Line (COYL) Program (Existing Program) – a COYL is the primary customer-owned and maintained gas piping that is downstream of the meter. Through the COYL Program, Southwest Gas proposes to replace all known School COYLs in its California jurisdictions by offering schools the option to relocate their meters and replace the COYL with facilities that are owned and maintained by Southwest Gas.
Total Authorized Program Budget (2026-2030): $21.6 million.
Targeted Pipe Replacement Program (Southern California only; Existing Program)
- 9 miles per year of pre-1961 vintage distribution steel pipelines
- 1.2 miles per year of pre-1961 vintage distribution high-pressure steel pipelines
- 27 miles per year of DriscopipeTM 700 distribution plastic pipelines
Total Authorized Program Budget (2026-2030): $94.3 million.
Annual Leak Survey Program (New Program) – Investment in new equipment and personnel to establish and facilitate annual leak surveys utilizing Advanced Mobile Leak Detection equipment.
Total Authorized Program Budget (2026-2030): $10 million.
The revenue requirement associated with the four risk-based programs are proposed to be recovered through the Infrastructure Reliability and Replacement Adjustment Mechanism (IRRAM) surcharge.
Additional Resources
Application
