Gas Costs are Decreasing, Southwest Gas Nevada Customers Can Expect to See Savings on Their Bills
Category: Corporate
March 01, 2024
LAS VEGAS – Southwest Gas Corporation (“Southwest Gas” or “Company”) recently filed its Nevada quarterly gas cost filing, which proposes an approximate 15% reduction in the Gas Cost component of bills beginning April 1, 2024. This is the third decrease in a row in the Company’s quarterly gas cost filings, and the utility anticipates that trend to continue through 2024, predicting an additional approximate 50% reduction in July. This filing will be made with the Public Utilities Commission of Nevada (PUCN) in May, to become effective July 1, 2024.
Southwest Gas does not profit from gas costs and does not have control over the market prices for natural gas, which are affected by supply and demand. The Company saw a 75% increase in gas costs over the past two years. However, the cost of gas has gone down and Southwest Gas expects customers to continue to see these lower prices reflected in their bills. Following the upcoming rate decrease in April, Southwest Gas estimates a monthly savings of $18.27 in Northern Nevada and $9.54 in Southern Nevada for the average residential customer; with additional changes in the cost of gas being passed on through future quarterly gas cost adjustments.
There are two primary components on customers’ bills: the Gas Cost and the Delivery Charge. The Gas Cost is based on natural gas usage. The Delivery Charge primarily reflects a base rate for the cost of providing safe and reliable natural gas service to homes and businesses. These base rates are established after a general rate case.
The primary driver for fluctuations in customer bills is related to the cost of gas. Southwest Gas is committed to managing costs to ensure customers continue to receive safe, reliable, and affordable service. Despite the significant investments the Company has made in Nevada to help support growth and the ongoing demand for natural gas service, the costs the Company has control over (the Delivery Charge component) have remained stable over the past 15 years and have increased at a rate less than inflation.
Customers are encouraged to visit www.swgas.com/understandbill for answers to the most frequently asked questions and transparent and robust information regarding how bills are calculated and how usage, cooler weather, and market prices for natural gas can all contribute to the fluctuations customers may see in their bill month-to-month or year-to-year.
