Corporation Commission increases rates for Southwest Gas

After a recent rate increase in December of 2021, the Arizona Corporation Commission recently added yet another rate increase for Southwest Gas in Tucson. What does this rate increase mean for customers of Southwest Gas? 

This rate increase will raise rates by $16.7 million annually. This means an increased rate of 7.6% for the average customer- adding to about $3. The commission also allowed Southwest Gas to expand their Low Income Ratepayer Assistance program. Previously the 30% discount was in effect from November to April, but with this rate increase they are extending it to apply year round.

Commissioners Tovar, Myers, Thompson, and Marquez-Peterson shared their thoughts with the Tucson.com reporter David Wichner. Democrat Anna Tovar was the only commissioner who voted no on the issue, on the grounds that customers can’t afford a rate increase due to the current economy. The other commissioners who voted yes on the rate increase all shared the sentiment that they do not enjoy voting for a rate increase but that they want to “ensure the reliability and stability of the gas system as a critical underpinning of the state economy”. 

SWEEP, Southwest Energy Efficiency Project, greatly opposed the rate increase, stating that the commission did not approve consumer safeguards for future investments. Justin Brant, Utility Program Director for SWEEP, stated “...the Commission ignored the significant subsidy that Southwest Gas’s customers pay, as well as sound planning principles that Arizona’s electricity utilities already conduct on a regular basis. Without transparent and open infrastructure planning, the Commission will continue to have blindspots in its decision-making and we can expect rate increases like those approved today to continue.”