Continuing our commitment to you.
On May 1, 2019, Southwest Gas Corporation (“SWG”) filed an application for a permanent gross revenue increase with the Arizona Corporation Commission (“ACC”). On October 24, 2019, the Company filed an amendment to its application, proposing a $93 million revenue increase. After careful consideration of SWG’s filing and the positions of the other parties in the case, the ACC authorized an increase of approximately $37 million, effective January 1, 2021, per Decision No. 77850 (Docket No. G-01551A-19-0055).
The residential basic service charge remains $10.70 per month. As reflected in the Decision, the $37 million increase is equivalent to a monthly bill increase of $3.50 (or 9.68%) for an average residential customer using 24 therms. Actual bills may be higher or lower than this amount, depending on customer usage and other rate adjustments.
The approved rate adjustment:
-
Reflects approximately $733 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
- Incorporates the benefits of tax reform in proposed rates
Day
This amounts to a $0.12 per-day increase on the average residential customer's bill.
Month
The adjustment increases the average residential customer's natural gas bill by $3.50 per month.
The average Arizona customer’s natural gas bill will remain approximately 28% 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 $3.50 a month.
When will I see this change on my bill?
Rates are effective January 1, 2021 , so you will see the change in the first billing cycle in 2021.
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 $733 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 $733 million in rate base in the Arizona gas distribution system since the last rate case.
1Southwest Gas: Estimated 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
