Southwest Gas Seeks Rate Adjustments in Nevada, Impacting Millions of Customers
The Public Utilities Commission of Nevada (PUCN) is reviewing an application filed by Southwest Gas Corporation on November 14, 2025, that proposes adjustments to a range of rates impacting both residential and business customers across the state. The proposed changes, designated as Docket No. 25-11012, cover mechanisms for recovering costs related to interest expenses, gas costs, system shrinkage, imbalance charges, general revenues, conservation efforts, and contract transitions.
Rate Adjustment Details and Potential Impact
Southwest Gas is requesting adjustments to several key components of its rate structure. These include the Variable Interest Expense Recovery (VIER) Mechanism, Unrecovered Gas Cost Expense (UGCE), and rates for system shrinkage – the difference between gas delivered and accounted for. The company also seeks to modify charges related to imbalance commodity and reservation, as well as adjustments to General Revenues, Conservation and Energy Efficiency (CEE) programs, and the Contract Transition Adjustment Provision (CTAP).
According to the filing, the proposed changes are designed to reflect current market conditions and ensure the company can continue to provide reliable gas service. A senior official stated that the adjustments are “necessary to maintain the financial health of the company and continue investing in infrastructure improvements.”
Specific Rate Proposals by Region
The proposed rate changes vary between Southern and Northern Nevada. For Southern Nevada customers, Southwest Gas proposes the following adjustments per therm:
- VIER: Average Variable Interest Rate of ($0.00047) and Accumulation of Deferred Interest of $0.00460.
- UGCE: $0.02684
- Shrinkage: $0.00004 for high-pressure service and $0.00130 for low-pressure service.
- Imbalance Charges: Commodity charge of $0.32344 and reservation charge of $0.04697.
- GRA (Residential): Single-family: $0.09438; Multi-family: $0.04625.
- CEE: $0.00676
In Northern Nevada, the proposed rates per therm are:
- UGCE: $0.01171
- Shrinkage: $0.00093
- Imbalance Charges: Commodity charge of $0.30799 and reservation charge of $0.40801.
- GRA (Residential): Single-family: $0.12159; Multi-family: $0.08305.
- CEE: $0.01003
The company also proposes a Southern Nevada CTAP rate change from $0.00082 to $0.00047 per therm. Southwest Gas confirmed it will not modify the Southwest Gas Transmission Company Volumetric Charge in Southern Nevada, nor will it alter the Move2Zero block pricing or thermal equivalent.
Projected Bill Impacts for Customers
Southwest Gas estimates the overall effect of these changes will be an increase in annualized revenues of $5,500,970, representing a 1.27% increase in Southern Nevada, and $7,288,475, or a 7.69% increase, in Northern Nevada. The projected impact on average monthly bills is as follows:
Southern Nevada
| Rate Jurisdiction | Current Bill | Proposed Bill | Change |
|---|---|---|---|
| Single-Family Residential | $42.38 | $43.57 | $1.19 |
| Multi-Family Residential | $26.06 | $26.42 | $0.36 |
| General Service – 1 | $79.64 | $92.39 | $12.75 |
| General Service – 2 | $540.01 | $552.36 | $12.35 |
| General Service – 3 | $2,280.48 | $2,451.17 | $170.69 |
| General Service – 4 | $21,088.23 | $18,702.92 | ($2,385.31) |
Northern Nevada
| Rate Jurisdiction | Current Bill | Proposed Bill | Change |
|---|---|---|---|
| Single-Family Residential | $59.91 | $66.30 | $6.39 |
| Multi-Family Residential | $37.46 | $40.51 | $3.05 |
| General Service – 1 | $113.44 | $121.95 | $8.51 |
| General Service – 2 | $828.90 | $858.74 | $29.84 |
| General Service – 3 | $4,503.93 | $4,478.32 | ($25.61) |
| General Service – 4 | $23,867.26 | $23,040.01 | ($827.25) |
Next Steps and Public Involvement
Interested parties have until Wednesday, December 17, 2025, to file petitions for leave to intervene. A prehearing conference is scheduled for Monday, January 5, 2026, at 11:00 a.m. at the Public Utilities Commission of Nevada offices in Las Vegas and Carson City, and via Microsoft Teams. Details for accessing the Microsoft Teams meeting can be obtained by contacting Administrative Attorney Adam Baker at [email protected] by Monday, December 29, 2025, at 2:00 p.m. The application is available for public review on the PUCN website: https://puc.nv.gov and at the Commission’s offices in Carson City and Las Vegas. Individuals wishing to receive further notices regarding this proceeding must request to be added to the service list.
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