Southwest Gas receives smaller rate increase

Regulators give Southwest Gas smaller rate increase

Oct. 25, 2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

PHOENIX (AP) - Southwest Gas Corp. got part of what it asked for.

The Arizona Corporation Commission approved a $21.6 million rate increase on Wednesday, $15.5 less than the company requested but more than the commission's staff or the Residential Utility Consumer Office recommended.

The new rates take effect with November's bills.

An administrative law judge had found that Southwest Gas was entitled to an increase of $25 million, but the commission didn't agree. The commissioners also seta rate of return of 7.21 percent rather than the 8.32 percent the administrative law judge recommended.

For a residential customer, the rate increase will raise the basic month service charge to $8 from $7 and will boost an average monthly winter bill to $33.15 for the gas used, compared with $29.69 before the increase, the commission said.

The commission's decision protected low-income customers from rate increases, however. The monthly charge of $7 remains the same and the discount that now applies to the first 100 therms will be applied to the first 150, in effect a rate reduction.

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