This week, the Arizona Corporation Commission voted 4-1 to approve the application from Southwest Gas Corporation (SWG) for an increase in the retail natural gas utility service rates for service to Arizona customers. Citing increasing economic burdens on Arizonans, Commissioner Anna Tovar was the lone no vote.
Under the approved rates, a single-family residential customer with an average annual usage of 24 therms will see a bill increase of $2.98, or 6.73%, from $44.28 to $47.26.
The Commission also approved the continuation of SWG’s existing rate design; modifications to SWG’s Low Income Ratepayer Assistance program that would increase eligibility for the discount, increase the timeframe for the discount, and streamline regulatory reporting; and inclusion of 12 months of post-test year plant. Further, the Commission denied implementation of SWG’s Move2Zero Program and the proposals of intervenor Southwest Energy Efficiency Project, including implementation of a gas Infrastructure Investment Plan, elimination of construction allowances, and elimination of the Customer Owned Yard Lines program for non-LIRA customers.
SWG is a Class A utility that provides gas utility service across 10 counties in Arizona to approximately 1.1 million customers.
Chairman O’Connor’s amendment to share the cost of Director and Officer insurance between shareholders and ratepayers was adopted, as was Commissioner Marquez Peterson’s and Commissioner Myers’ amendments to share the costs of Board of Director fees and the Employee Education program, respectively.
Commissioner Tovar’s amendments to clarify the Recommended Order and Opinion were also adopted.