Southwest Gas home customers in Tucson and across Arizona will see average monthly increases of less than $3 after regulators slashed the company's request.
David Wichner Most home customers of Southwest Gas in Arizona will see an average monthly increase of less than $3 starting in February, while low-income customers may see lower bills under new rates approved by state regulators on Tuesday.
The commission agreed to allow Southwest Gas to expand its Low Income Ratepayer Assistance program by extending the 30% discount to apply year-round, instead of from November through April now, and to increase the income eligibility threshold to 250% of the Federal Poverty Level, from 200% currently.
Newly elected commission member Nick Myers said he doesn’t like voting for rate increases but wants to ensure the reliability and stability of the gas system as a critical underpinning of the state economy. Too much, too soon?Even so, the rate increase presented to the commission is much less than the 11.6% increase Southwest Gas originally requested in December 2021 — about a year after its last rate increase.
Tim Hogan, a lawyer with the Center for Law in the Public Interest representing SWEEP, cited a consultant’s study showing the Southwest Gas system is in good shape compared to similar utilities. Southwest Gas contends that gas demand is rising overall and its system improvements are needed to ensure safe and reliable service.
SWEEP argued that there is a growing transition away from natural gas use and supports electrification with power supplied by renewable resources to protect the environment and public health. The lawmakers said any major policy changes should be vetted in a wider stakeholder process and noted that the Legislature has moved to protect natural gas development in the state.
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