Continuing our commitment to you.
Arizona is a critical market for Southwest Gas, and as part of our continued investment in the communities we serve, a proposed rate adjustment has been filed with the Arizona Corporation Commission.
The proposed rate adjustment:
-
Reflects approximately $667 million in rate base investments Southwest Gas has made since 2015 to ensure the continued safety and reliability of our system to best serve customers’ energy needs
- Provides $57 million in revenue to recoup the changes in the Company’s cost of service since 2015
- Incorporates the benefits of tax reform in proposed rates
Day
This amounts to a $0.16 per-day increase on the average residential customer's bill.
Month
The adjustment increases the average residential customer's natural gas bill by $4.75 per month.
The average Arizona customer’s natural gas bill will remain approximately 20% lower than in 2007.
When compared with other residential utilities, Arizona customers will continue to enjoy significantly lower natural gas bills.
Frequently Asked Questions
How will this proposal affect my bill?
Under the proposed increase, we estimate that the average residential customer that uses 24 therms per month will experience an increase of approximately $4.75 a month.
When will I see this change on my bill?
At this time, the new rates are expected to be in place sometime during the first half of 2020. This proposal will be thoroughly examined by the Arizona Corporation Commission Staff, Commissioners, the Residential Utility Consumer Office and others prior to approval.
Why does Southwest Gas need to adjust my rates?
There are three primary reasons: to start recovering the costs associated with the increase in rate base of approximately $667 million since 2015; to update authorized revenues so that they reflect changes in the level of operating expenses since 2015; and to incorporate the benefits of tax reform in rates.
When was the last time Southwest Gas requested a base rate adjustment in Arizona?
In May 2016.
How much has Southwest Gas invested in its Arizona distribution system since the last rate case?
We have invested approximately $667 million in rate base in the Arizona gas distribution system since the last rate case.
Additional Information
1Southwest Gas: Proposed Average Arizona Residential Bill
2U.S. Energy Information Administration (EIA): 2018 Arizona Electricity Data eia.gov
3Circle of Blue: 2018 Water Pricing - Phoenix (family of 4 using 150 gallons per person daily) circleofblue.org
4NerdWallet: 2018 National Cell Phone Plan Comparison nerdwallet.com
5Fortune Media: 2018 National Cable and Satellite Bill fortune.com
