BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA
Application of Southwest Gas Corporation for authority to establish the Accumulated Deferred Interest rate in Southern Nevada pursuant to the Variable Interest Expense Recovery mechanism, Unrecovered Gas Cost Expense rates, system shrinkage rates, excess Imbalance Commodity and Reservation Charges, Renewable Energy Program Rates, General Revenues Adjustment rates, Conservation and Energy Efficiency rates, Mesquite Infrastructure Expansion Rates, Spring Creek Infrastructure Expansion Rates, Contract Transition Adjustment Provision rate, and establish the SGTC Volumetric Charge for Southern Nevada transportation customers. _______________________________________________ | ) ) ) ) ) ) ) ) ) ) ) ) ) | Docket No. 24-11005 |
NOTICE OF CONSUMER SESSION
On November 15, 2024, Southwest Gas Corporation (“Southwest Gas”) filed with the Public Utilities Commission of Nevada (“Commission”) its Annual Rate Adjustment (“ARA”) Application (also known as an “Application for Deferred Energy Accounting Adjustment”), designated as Docket No. 24-11005, for authority to establish: (1) the Accumulated Deferred Interest (“ADI”) rate in Southern Nevada pursuant to the Variable Interest Expense Recovery (“VIER”) mechanism; (2) Unrecovered Gas Cost Expense (“UGCE”) rates; (3) system shrinkage rates for transportation customers; (4) Imbalance Commodity and Reservation Charges used to calculate transportation customer excess imbalance charges; (5) Renewable Energy Program Rates (“REPR”); (6) General Revenues Adjustment (“GRA”) rates; (7) Conservation and Energy Efficiency (“CEE”) rates; (8) Mesquite Infrastructure Expansion rates (“IERs”); (9) Spring Creek IERs; (10) Contract Transition Adjustment Provision (CTAP) rates; and (11) the Southwest Gas Transmission Company (“SGTC”) Volumetric Charge. Southwest Gas filed the Applications pursuant to the Nevada Revised Statues (“NRS”) and the Nevada Administrative Code (“NAC”) Chapters 703 and 704, including, but not limited to, NRS 704.110 and NAC 701B.245, 703.535, 704.116, and 704.953 through 704.9718.
In its Application, Southwest Gas further seeks an order: (i) finding that its gas procurement practices are reasonable; (ii) finding that its gas purchases were reasonable and prudent; and (iii) finding that, during the applicable test period, the transportation costs it first incurred and its management and performance of its previously contracted resources were both reasonable and prudent; and (iv) establishing July 1, 2025, as the effective date for the requested rate adjustments.
Southwest Gas is seeking to implement an average variable interest rate (“AVIR”) of $0.00057. Southwest Gas is proposing a change to the ADI rate of $0.01477 per therm in Southern Nevada, as it relates to the VIER mechanism.
Southwest Gas proposes a $0.02852 per therm UGCE rate in Southern Nevada and a $0.01387 per therm UGCE rate in Northern Nevada.
Southwest Gas proposes a shrinkage rate of $0.00005 per therm for high pressure service transportation customers in Southern Nevada and a shrinkage rate of $0.00143 per therm for low pressure service transportation customers in Southern Nevada. In Northern Nevada, Southwest Gas proposes a shrinkage rate of $0.00111 per therm.
In Southern Nevada, Southwest Gas proposes Imbalance Commodity and Reservation Charges of $0.36084 and $0.04361 per therm, respectively. In Northern Nevada, Southwest Gas proposes Imbalance Commodity and Reservation Charges of $0.36867 and $0.36674 per therm, respectively.
Southwest Gas is not proposing any changes to the REPR in this instant docket. Consistent with the Commission’s Order in 22-11017, Southwest Gas states that it has updated its Northern and Southern Statement of Rate to reflect a REPR of $0.00000 effective as of January 1, 2024.
In Southern Nevada, Southwest Gas proposes: (1) a single-family residential GRA rate of $0.05168 per therm; (2) a multi-family residential GRA rate of $0.01849 per therm; (3) a General Gas Service – 1 GRA rate of ($0.10398) per therm; (4) a General Gas Service – 2 GRA rate of ($0.01558) per therm; (5) a General Gas Service – 3 GRA rate of ($0.02002) per therm; and (6) a General Gas Service – 4 GRA rate of ($0.01631) per therm.
In Northern Nevada, Southwest Gas proposes: (1) a single-family residential GRA rate of $0.01096 per therm; (2) a multi-family residential GRA rate of ($0.01183) per therm; (3) a General Gas Service – 1 GRA rate of $0.03162 per therm; (4) a General Gas Service – 2 GRA rate credit of $0.01230 per therm; (5) a General Gas Service – 3 GRA rate of $0.04749 per therm; and (6) a General Gas Service – 4 GRA rate of $0.00560 per therm.
In Southern Nevada, Southwest Gas proposes a CEE rate of $0.00399 per therm for sales customers. In Northern Nevada, Southwest Gas proposes a CEE rate of $0.00443 per therm for sales customers.
Southwest Gas proposes a Southern Nevada IER rate of ($0.00267) and a Mesquite Expansion Area IER of ($0.02255).
Southwest Gas is not proposing any changes to the Spring Creek IERs in this ARA Application, but notes that it may seek to change the Spring Creek IERs in future ARA applications.
Southwest Gas proposes a CTAP rate of $0.00082 per therm in Southern Nevada.
Southwest Gas proposes to implement a SGTC Volumetric Charge of $0.014847 per therm throughout Period I, and a SGTC Volumetric Charge of $0.001283 per therm for Period II applicable to all Southern Nevada transportations customers’ scheduled quantities that flow through SGTC. Any SGTC Volumetric Charges that are collected from Southern Nevada transportation customers would be credited to the Southern Nevada rate jurisdiction Federal Energy Regulatory Commission Account 191 – Unrecovered Purchased Gas Costs.
Southwest Gas states that the overall effect of the proposed rate changes is an increase in annualized revenues of $21,513,446 or 3.44 percent in Southern Nevada and an increase in annualized revenues of $5,546,882 or 4.08 percent in Northern Nevada. Under Southwest Gas’s proposal, Southwest Gas states that the customer bill impacts are as follows
Southern Nevada Rate Jurisdiction Annual Average Monthly Bills
Under Current Rates | Under Proposed Rates | Change | |
Single-Family Residential | $58.54 | $61.59 | $3.05 |
Multi-Family Residential | $34.98 | $36.20 | $1.22 |
General Service – 1 | $129.36 | $131.82 | $2.46 |
General Service – 2 | $1,087.45 | $1,128.29 | $40.84 |
General Service – 3 | $5,178.42 | $5,399.39 | $220.97 |
General Service – 4 | $48,226.60 | $47,346.46 | ($880.14) |
Northern Nevada Rate Jurisdiction Annual Average Monthly Bills
Under Current Rates | Under Proposed Rates | Change | |
Single-Family Residential | $83.98 | $87.75 | $3.77 |
Multi-Family Residential | $51.84 | $53.46 | $1.62 |
General Service – 1 | $151.65 | $160.06 | $8.41 |
General Service – 2 | $1,289.11 | $1,332.74 | $43.63 |
NOTICE IS HEREBY GIVEN that the Commission has scheduled a CONSUMER SESSION in this Docket to be held in-person and telephonically as follows:
TUESDAY, MARCH 11, 2025
6:00 P.M.
Hearing Room A
Public Utilities Commission of Nevada
1150 E. William Street
Carson City, Nevada 89701
VIA VIDEOCONFERENCE TO:
Hearing Room A
Public Utilities Commission of Nevada
9075 West Diablo Drive, Suite 250
Las Vegas, Nevada 89148
and TELEPHONICALLY:
Phone Conference Dial-in: 775-321-6111
Phone Conference ID: 450 234 171#
Interested persons may appear in-person and be heard regarding the above-captioned matter and the effect this matter may have on their utility service. Interested persons may also appear by telephone to be heard regarding the above-captioned matter and the effect these matters may have on their utility service. A representative from the Regulatory Operations Staff of the Commission, the Nevada Bureau of Consumer Protection, and Southwest Gas will be present at the Consumer Session to answer questions. Public comments may be limited to three minutes per person. The Commission will endeavor to make reasonable accommodations for members of the public who are disabled and wish to attend the Consumer Session. If special arrangements for the Consumer Sessions are necessary, please notify the Commission Secretary at (775) 684- 6167 (Carson City) or (702) 486-2600 (Las Vegas) at least two business days prior to a Consumer Session.
Interested persons may also submit written comments instead of or in addition to participating in the Consumer Session for this docket electronically through the Electronic Filing System on the Commission’s website, by hand-delivery, or via U.S. Mail addressed to either of the Commission’s offices: 1150 East William Street, Carson City, Nevada 89701 or 9075 West Diablo Drive, Suite 250, Las Vegas, Nevada 89148.
The Commission is not responsible for providing clerical or administrative assistance or materials to parties during Commission proceedings. If such assistance is necessary, parties must make other arrangements for this type of assistance.
The Application is available for public viewing at the Commission’s website at:
https://puc.nv.gov and at the offices of the Commission: 1150 East William Street, Carson City, Nevada 89701 and 9075 West Diablo Drive, Suite 250, Las Vegas, Nevada 89148. A person must request in writing to be placed on the service list for this proceeding to receive any further notices in this matter.
By the Commission,
_________________________________
TRISHA OSBORNE,
Assistant Commission Secretary
Dated: Carson City, Nevada
12/27/24
(SEAL)
Pub Date: January 8, 2025
Ad # 49125
