Southwest Gas, PUCN explain why Las Vegas utility bills are heating up
LAS VEGAS (KLAS) — Southwest Gas and the Public Utilities Commission of Nevada are shedding light on the rise in utility bills, but a lot of people aren’t satisfied.
The utility company pointed to usage and the high price of natural gas purchased a year ago. Now, Southwest Gas is requesting more money to cover expenses.
While spokespeople told 8 News Now the “expenses” refer to capital improvement projects, the company’s request with the PUCN indicated wages and benefits could also be included.
Several homeowners are frustrated with having to fork out more for executive salaries.
“A 35% increase is significant, it is ridiculous,” Summerlin resident Eric Nelson said. He and his wife tried their best to watch their usage. Despite their efforts and use of one less therm, Nelson noticed close to a $130 jump from January 2023 to 2024.
He said he sees the logic in increases, but not the justification.
“Is the management team getting compensated excessively?” Nelson questioned. According to the company’s 2023 proxy statement, several executives earned millions of dollars last year. Overall, Southwest Gas ended 2023’s last quarter with $19 million more than 2022’s.
Homeowners aren’t celebrating.
North Las Vegas resident Lindy Baker said she wrote to the PUCN and requested the commissioners audit the utility company. That, after her bill spiked from $56 in November, $181 in December and $199 in January before it climbed to $220 in February.
Southwest Gas blamed the increase on the rise in prices for natural gas. Their emailed statement and website explained they experienced a “75% increase in the cost of natural gas over the past two years.” The company said consumers pay what they paid for natural gas at the time, without extra profits.
Southwest Gas also said gas cost adjustments are going down. A spokesperson explained October and January saw reductions of over 9% and they expect more in the future.
If their request is approved by the PUCN, the average homeowner in the Las Vegas Valley will pay 10%, or just over $8 more a month.
Southwest Gas requested the increase in September under Docket No. 23-09012. It stated, “The total proposed annual revenue increase accounts for changes in the cost of service since the last general rate case and the inclusion in rate base of Gas Infrastructure Replacement projects previously approved by the Commission.”
It continued, “Southwest Gas’ request for increased revenues reflects additional costs of utility operations, not including gas costs, largely attributed to: (1) the inclusion in base rates of capital expenditures; (2) changes in the cost of capital; (3) increases in expenses due to capital investment, operations and maintenance, wages, benefits, and inflation; and, (4) changes in the number of customers and customer volumes.”
When 8 News Now questioned the expenses tied to wages, Southwest Gas said their request to adjust rates reflects investments they’ve made in their system and any approved adjustments wouldn’t take effect until April.
The PUCN explained utilities can recover incurred costs, including labor costs, through rates charged to their customers.
The general rate case increase will affect residential and commercial customers. Hearings will be held the week of Feb. 26. While public comment will not be available, complaints are accepted online and via mail. Be sure to reference the attached docket number if writing in, Docket No. 23-09012.
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