Southwest Gas Customers to See Rate Decrease

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News Summary

The Public Utilities Commission of Nevada has approved a rate decrease for Southwest Gas that will take effect on July 1, benefitting residential customers in both Southern and Northern Nevada. Average monthly gas bills are projected to drop by over $13 in the south and $22 in the north, providing financial relief to households amidst rising living costs. The decrease follows recent shifts in the natural gas market and includes a Deferred Energy Account Adjustment credit for customers.

Las Vegas

The Public Utilities Commission of Nevada (PUCN) has approved a significant rate decrease for Southwest Gas customers, a change that will take effect on July 1, 2025. This decision is expected to lessen the financial burden on residential customers in both Southern and Northern Nevada, with average monthly gas bills dropping by over $13 for Southern residents and $22 for those in the north.

Details of the Rate Decrease

On June 23, 2025, the PUCN voted to amend the rates Southwest Gas charges for natural gas, reflecting a shift in market conditions. The adjustment means that customers in Southern Nevada who use an average of 37 therms per month will see their bills decrease by more than $13. In Northern Nevada, where average consumption is about 57 therms per month, customers can expect a reduction of around $22.

Deferred Energy Account Adjustment (DEAA)

As part of the rate change, Southwest Gas will implement a Deferred Energy Account Adjustment (DEAA) credit. Southern Nevada customers will receive a credit rate of 20 cents per therm, anticipated to generate savings of approximately $10.56 monthly for an average single-family home. For Northern Nevada customers, the DEAA credit will be 25 cents per therm, aligning with the changed market prices for natural gas.

Explanation for the Rate Adjustment

The rate decrease has been attributed to recent fluctuations in the natural gas market, which have resulted in lower purchasing costs for utilities like Southwest Gas. This decision is in line with the PUCN’s commitment to ensure customers benefit from positive shifts in market conditions.

Impact on Customers

The overall sentiment surrounding this rate adjustment is one of relief for customers, who will see lower gas expenses during a time when many are facing increasing living costs. The adjustments aim to directly reflect the decrease in wholesale natural gas prices and provide financial relief to consumers.

Background on PUCN Mandate

The Public Utilities Commission of Nevada is responsible for regulating utility services across the state. One of its key roles includes overseeing the rates charged by public utility companies like Southwest Gas, ensuring that prices remain fair and reflect market conditions. By implementing rate adjustments like the one approved on June 23, the commission aims to protect consumers and promote the efficient operation of utility services.

Future Projections

While the current rate decrease is beneficial, the PUCN continues to closely monitor market conditions to ensure that further price adjustments are made as necessary. The ongoing goal is to maintain affordability for consumers while still ensuring that utility providers can operate sustainably.

Conclusion

The vote by the PUCN to lower Southwest Gas rates marks a significant change for Nevada residents as they prepare for the new rate structure starting July 1, 2025. With both average monthly bills poised for declines, the decision is anticipated to enhance the financial well-being of many households across the state.

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