Churchill County Legal -17126 | Serving Carson City for over 150 years

BEFORE THE NEVADA PUBLIC SERVICES BOARD

Request for authorization from the Southwest Gas Corporation to)

increase its retail natural gas utility tariffs for) File No. 21-09001

Southern and Northern Nevada. )

_____________________________________________)

NOTICE OF AUTHORIZATION REQUEST

TO INCREASE TARIFFS AND TARIFFS FOR NATURAL GAS SERVICE

AND

PRE-HEARING CONFERENCE NOTICE

On September 1, 2021, Southwest Gas Corporation (“SWG”) filed an application with the Public Utilities Commission of Nevada (“Commission”), referred to as file number 21-09001 (“Application”),

for approval to increase prices for its retail natural gas utilities for southern and northern Nevada.

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

In accordance with NAC 703.5274, SWG requests that certain information it filed with the sealed application be considered confidential and not publicly disclosed for a period of three (3) years after a

final decision of the Commission on this request.

This notice serves only to inform the public that the Commission has received the above-noted filing. It is up to the interested persons to examine the deposit and to follow the procedure.

to determine their desired levels of participation based on the impact this issue may have on their particular situation. The details provided below are for informational purposes only and are not intended to be exhaustive.

preview of the file. The Council will decide at a public meeting whether or not to grant the requested relief, which could have an impact on consumers. The Commission

may consider and adopt alternative proposals which are not in the dossier, but which are related to the subject-matter of the dossier and supported by substantial evidence.

SWG’s proposed annual revenue increase for the Southern Nevada division is approximately $ 26.1 million, an increase of 5.60%; the proposed annual income increase for northern Nevada

division is about $ 4.4 million, an increase of 3.81 percent. In support of this claim, SWG states that its current rates and charges do not provide sufficient income to allow it a fair

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

capital investments including, but not limited to, gas infrastructure replacement projects, service expansion to Mesquite, Nevada, and the Customer Data Modernization Initiative (“CDMI”); (3)

additional operating and maintenance expenses related to CDMI; (4) increases in expenditure due to capital investment, operation and maintenance, wages, benefits and inflation; (5) regulation

asset linked to the COVID-19 pandemic; and (6) the number of clients and client volumes updated.

The effect of the proposed revenue increase request on each class of customer or class of service in the South service territory is as follows:

The effect of the proposed revenue increase demand on each customer class or customer class

the service in the South service territory is as follows:

Southern Nevada

Client category Average monthly increase proposed /

Lower bill

Current proposed amount / percentage

Rates Monthly rates (%)

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%)

Electricity generation $ 3,724.50 $ 4,316.17 $ 591.67 15.89%

Street / exterior lighting $ 37.52 $ 39.66 $ 2.14 5.70%

The effect of the proposed revenue increase demand on each customer class or customer class

service in the northern service territory is as follows:

Northern Nevada

Client category Average monthly increase proposed /

Lower bill

Current proposed amount / percentage

Rates Monthly rates (%)

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%

Electricity generation $ 1,654.63 $ 1,605.16 ($ 49.47) (2.99%)

Street / exterior lighting $ 50.60 $ 51.30 $ 0.70 1.38%

In addition to SWG’s request for an increase in its retail tariffs for natural gas, SWG is also requesting authorization to continue the general revenue decoupling method in accordance with NAC 704.9716 (5); approval

proposed revisions to Nevada Gas Tariff # 7, including clarification of changes to Rules # 1 and 16; and a determination of the prudence of gas infrastructure replacement projects (“RIF”) which have been

approved for inclusion in IRM mechanism.

The proposed revenue increases contained in the application are proposals of SWG and may be challenged by parties who will be granted intervenor status. At the hearing, the income requirements,

rates of return, cost of service studies and tariff designs may be adopted that are different from those proposed, resulting in higher or lower rates than those contained in the SWGs

request.

The Commission may approve the proposed rates or decrease or increase the rates as necessary to ensure that these rates are just and reasonable.

Interested and affected persons may submit requests for authorization to intervene in accordance with NAC 703.578 to 703.600 at one of the offices of the Commission no later than WEDNESDAY 6 OCTOBER,

2021.

Anyone wishing to participate as a commentator may submit written comments in accordance with NAC 703.491. A commentator is not a registered party and should not take any action that only a registered party

can take. In accordance with NAC 703.500, only parties to the case have the right to appear, present relevant evidence, examine and cross-examine witnesses, present arguments, present and argue

motions and generally participate in the proceedings.

NOTICE IS HEREBY GIVEN that, in accordance with NAC 703.655, the Commission has scheduled a PRE-HEARING CONFERENCE in this file to be held as follows:

TUESDAY 12 OCTOBER 2021

1:00 p.m.

Connect according to your location:

(775) 687-0999 (Northern Nevada)

(702) 486-5260 (southern Nevada)

The parties will appear and otherwise participate in the pre-hearing conference remotely by telephone. Members of the public may access the pre-hearing conference at the time specified herein through the

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

Parties to this case should obtain an access code for this pre-hearing conference call by emailing Commission Administrative Attorney Jared Aranda at [email protected] no later than

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

The purpose of the pre-hearing conference is to articulate and simplify the issues raised in this proceeding and to establish a hearing and procedural schedule. At the pre-hearing conference, the Commission

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

assistance is required, the parties should 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 Commission’s offices: 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 that proceeding in order to receive further notice in this matter.

For the Commission,

__________________________________

TRISHA OSBOURNE,

Deputy secretary of the committee

Dated: Carson City, Nevada

09/15/21

(SEAL)

Publication: September 22, 2021 Advert # 17126

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