Churchill County legal -17126

BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA

Application of Southwest Gas Corporation for authority to )

increase its retail natural gas utility service rates for ) Docket No. 21-09001

Southern and Northern Nevada. )

_____________________________________________ )

NOTICE OF APPLICATION FOR AUTHORIZATION

TO INCREASE RATES AND CHARGES FOR NATURAL GAS SERVICE

AND

NOTICE OF PREHEARING CONFERENCE

On September 1, 2021, Southwest Gas Corporation (“SWG”) filed an application with the Public Utilities Commission of Nevada (“Commission”), designated as Docket No. 21-09001 (“Application”),

for authority to increase its retail natural gas utility service rates for Southern and Northern Nevada.

This Application is filed pursuant to the Nevada Revised Statutes (“NRS”) and the Nevada Administrative Code (“NAC”), Chapters 703 and 704, including but not limited to NRS 704.110 and 704.992.

Pursuant to NAC 703.5274, SWG requests that certain information it has filed with the Application under seal be deemed confidential and not be publicly disclosed for a period of three (3) years following a

final decision from the Commission on this Application.

This Notice serves only to notify the public that the Commission has received the above-referenced filing. It is the responsibility of interested persons to review the filing and monitor the proceedings

to determine their desired levels of involvement based on how this matter may impact their unique situations. The details provided below are for informational purposes only and are not meant to be an allinclusive

overview of the filing. The Commission will make a determination at an open meeting regarding whether to grant the relief requested, which may have an impact on consumers. The Commission

may consider and adopt alternative proposals not contained within the filing, but which are related to the subject matter of the filing and supported by substantial evidence.

SWG’s proposed annual revenue increase for the Southern Nevada division is approximately $26.1 million, or a 5.60 percent increase; the proposed annual revenue increase for the Northern Nevada

division is approximately $4.4 million, or a 3.81 percent increase. In support of this request, SWG states that its existing rates and charges do not provide SWG with sufficient revenue to allow it a fair

and reasonable return on its investment. SWG states that the primary circumstances and conditions justifying its requested relief include: (1) a change in the cost of capital; (2) updating costs related to

capital investments, including but not necessarily limited to Gas Infrastructure Replacement Projects, service expansion to Mesquite, Nevada, and the Customer Data Modernization Initiative (“CDMI”); (3)

incremental operations and maintenance expense related to the CDMI; (4) increases in expenses due to capital investment, operations and maintenance, wages, benefits, and inflation; (5) the regulatory

asset related to the COVID-19 pandemic; and (6) updated customer counts and customer volumes.

The effect of the proposed request for increased revenues on each class of customer or class of service in the Southern service territory is as follows:

The effect of the proposed request for increased revenues on each class of customer or class of

service in the Southern service territory is as follows:

Southern Nevada

Customer Class Monthly Average Proposed Increase/

Bill Decrease

Present Proposed Amount/ Percent

Rates Rates Month (%)

Single-Family Residential $45.57 $48.96 $3.39 7.44%

Multi-Family Residential $28.82 $30.27 $1.45 5.03%

Residential Air Conditioning $450.08 $467.97 $17.89 3.97%

General Gas Service

G-1 $113.72 $115.74 $2.02 1.78%

G-2 $791.42 $800.98 $9.56 1.21%

G-3 $3,339.70 $3,411.88 $72.18 2.16%

G-4 $13,801.94 $14,232.93 $430.99 3.12%

Air Conditioning $745.19 $754.04 $8.85 1.19%

Water Pumping $18,941.17 $20,743.42 $1,802.25 9.51%

Compress $3,493.61 $3,248.14 ($245.47) (7.03%)

Electric Generation $3,724.50 $4,316.17 $591.67 15.89%

Street/ Outdoor Lighting $37.52 $39.66 $2.14 5.70%

The effect of the proposed request for increased revenues on each class of customers or class of

service in the Northern service territory is as follows:

Northern Nevada

Customer Class Monthly Average Proposed Increase/

Bill Decrease

Present Proposed Amount/ Percent

Rates Rates Month (%)

Single-Family Residential $76.66 $80.15 $3.49 4.55%

Multi-Family Residential $47.58 $50.07 $2.49 5.23%

Residential Air Conditioning $73.31 $80.11 $6.80 9.28%

General Gas Service

G-1 $139.42 $145.27 $5.85 4.20%

G-2 $1,155.96 $1,172.55 $16.59 1.44%

G-3 $5,672.28 $5,930.61 $258.33 4.55%

G-4 $18,015.81 $17,561.68 ($454.13) (2.52%)

Air Conditioning $351.42 $342.97 ($8.45) (2.40%)

Water Pumping $119.25 $122.46 $3.21 2.69%

Compress $54.75 $62.33 $7.58 13.84%

Electric Generation $1,654.63 $1,605.16 ($49.47) (2.99%)

Street/ Outdoor Lighting $50.60 $51.30 $0.70 1.38%

In addition to SWG’s request for an increase of its retail natural gas rates, SWG also seeks authority to continue the general revenues decoupling methodology pursuant to NAC 704.9716(5); approval

of proposed revisions to Nevada Gas Tariff No. 7, including clarifying changes to rule Nos. 1 and 16; and a determination of prudency of gas infrastructure replacement (“GIR”) projects that have been

approved for inclusion in the GIR mechanism.

The proposed revenue increases contained in the Application are proposals of SWG and may be contested by parties who will be granted intervener status. At the hearing, revenue requirements,

rate(s) of return, cost of service studies, and rate designs may be adopted which are different from those which have been proposed, resulting in rates that are higher or lower than those contained in SWG’s

request.

The Commission may approve rates as proposed or decrease or increase rates as necessary to provide that such rates are just and reasonable.

Interested and affected persons may file petitions for leave to intervene pursuant to NAC 703.578 through 703.600 at either of the Commission’s offices on or before WEDNESDAY, OCTOBER 6,

2021.

A person who wishes to participate as a commenter may file written comments pursuant to NAC 703.491. A commenter is not a party of record and shall not take any action that only a party of record

may take. Pursuant to NAC 703.500, only parties of record are entitled to enter an appearance, introduce relevant evidence, examine and cross-examine witnesses, make arguments, make and argue

motions and generally participate in the proceeding.

NOTICE IS HEREBY GIVEN that, pursuant to NAC 703.655, the Commission has scheduled a PREHEARING CONFERENCE in this docket to be held as follows:

TUESDAY, OCTOBER 12, 2021

1:00 p.m.

Dial in by your location:

(775) 687-0999 (Northern Nevada)

(702) 486-5260 (Southern Nevada)

Parties will appear and otherwise participate in the prehearing conference remotely via telephone. Members of the public can access the prehearing conference at the time noticed herein via the

Commission’s live stream link on its website at http://puc.nv.gov.

Parties in this matter must obtain an access code for this telephonic prehearing conference by emailing Commission Administrative Attorney Jared Aranda at jaranda@puc.nv.gov no later than

MONDAY, OCTOBER 11, 2021, at 2:00 p.m. Parties should provide the title/role in associated business or organization and business address for each person who intends to participate in the hearing.

The purpose of the prehearing conference is to formulate and simplify issues involved in this proceeding and set a hearing and procedural schedule. At the prehearing conference, the Commission

may take any action authorized by NAC 703.655. The Commission is not responsible for providing clerical or administrative assistance or materials to parties during Commission proceedings. If such

assistance is necessary, parties must make other arrangements for this type of assistance.

The Application is available for public viewing on the Commission’s website at: http://puc.nv.gov and at the offices of the Commission: 1150 East William Street, Carson City, Nevada 89701 and 9075

West Diablo Drive, Suite 250, Las Vegas, Nevada 89148.

A person must request in writing to be placed on the service list for this proceeding to receive any further notices in this matter.

By the Commission,

__________________________________

TRISHA OSBOURNE,

Assistant Commission Secretary

Dated: Carson City, Nevada

9/15/21

(SEAL)

Pub: September 22, 2021 Ad #17126