TUCSON, Ariz. (13 News) – Southwest Gas customers will see an increase in their bills after the Arizona Corporation Commission approved an increase.
Customers will pay more on their gas bills because of the work being done by Southwest Gas to maintain its system and keep up with inflation. But the utility said that bills are lower than they used to be because gas is cheaper now than before.
“Item three passes as amended, 5-0,” said ACC Chair Kevin Thompson.
The average single-family home will see its Southwest Gas bill go up about $3.60 a month, which is less than what the utility wanted, but the utility said that it needs an increase to address challenges like pipe replacement
Opposition from the Residential Utility Consumer Office at the hearing questioned if Southwest Gas replaced pipes more quickly than necessary.
“Yes, safety, we applaud the company’s efforts on safety, but that’s not the same as getting a blank check. It’s got to be consistent with the company’s risk profile,” said Dan Pozefsky, an attorney for the Residential Utility Consumer Office.
“All of the company’s replacement activity historically is based on risk and really that is at the core of what we’re doing and why we’re doing it,” said Vincent Vitatoe, associate general counsel for Southwest Gas.
The ACC approved a rate increase that is a third less than what Southwest Gas requested and directed the utility to prioritize more funding to help low-income customers, such as those who fall behind in their bills.
“I really hope that you’ll be able to prioritize those programs for the low and fixed-income and actually help the most vulnerable in our population and not necessarily home developers and people who can afford energy rebates and weatherization on their own,” Thompson said.
The increase is already in effect and factors in a rebate from the utility’s cost-balancing account that has been overcollecting since the cost of gas fell.
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