Page 8 - SWGas Annual Report 2015
P. 8

As an example, in Nevada, pursuant to recently adopted       TRUST FOR TOMORROW
gas infrastructure replacement (GIR) regulations, South-     Our aim in the year ahead is to continue earning your
west Gas received approval from the Public Utilities Com-    trust by establishing a track record of achievement and
mission of Nevada to replace $43.5 million of plastic and    delivering on our strategies. We will advance that goal by
steel pipe on an accelerated basis. The Company also         remaining focused on the core elements of our business
received approval to implement rates to collect approxi-     including safety and customer satisfaction; maintaining
mately $3.8 million of annualized operating margin asso-     trusted relationships with regulators; retaining a work-
                                                             force of skilled and motivated employees; implementing
In Arizona, our Customer-Owned Yard Line program is          measures to control costs and increase productivity; and
entering its fourth year in 2016. This program is anoth-     fostering growth across our business segments.
er example of partnering with our regulators to enhance
safety and mitigate service disruptions to customers.        With increasingly positive economic conditions in our
The Company is currently recovering annual operating         service territories, which will yield continued investment
margin of $2.5 million based upon cumulative capital         opportunities, we believe the outlook is bright for South-
expenditures of $16 million through 2014.                    west Gas this year and into the future. The potential for
                                                             growth is significant for both our natural gas operations
                                                             and construction services business segments. We will
                                                             remain focused on a strong yet sustainable growth plan
                                                             that meets the needs of our expanding customer base,
                                                             while making prudent investment decisions. Looking
                                                             ahead, we remain confident in our Company’s perfor-
                                                             mance as we continue to bring to fruition the exciting
                                                             growth opportunities that the future holds.

                                                             Michael J. Melarkey
                                                             Chairman of the Board

                                                             John P. Hester
                                                             President and

April 2016 marks the end of the Arizona rate case filing                                                                                                                John P. Hester
moratorium, which creates the opportunity for rate relief
through a general rate case filing. Similar to our other re-  To access an online version of this report or to learn more about Southwest Gas,
cent rate case filings, we will be updating various oper-     visit
ating expenses and revenues to reflect current needs,
including updating our depreciation rates. We will also
be focused on expanding our existing infrastructure re-
covery mechanism to include other qualifying non-reve-

Southwest Gas Corporation
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