Southwest Gas rates increased this month for Southern Nevadans
Southern Nevadans can expect a higher gas bill next month, after Southwest Gas Corp. raised its rates Oct. 1.
The exact increase will vary based on a customer’s usage, but it will impact 706,000 Southwest Gas customers in Southern Nevada, according to Sean Corbett, manager of corporate communications for Southwest Gas.
The rate increase — expected to last through the end of this year — is composed of changes to the base tariff energy rate and the deferred energy account adjustment.
Southwest Gas is expected to see $42.6 million in revenue from the higher rates, but Corbett said it’s not additional profit but based on the increased cost of gas.
The company said inflationary pressures are impacting energy prices as well as demand and international events such as the war in Ukraine.
“Recent gas price increases have been caused by a combination of increased domestic demand for natural gas supplies and increased worldwide demand for U.S. produced natural gas to help meet worldwide energy demand,” Corbett said in an email to the Review-Journal. “Worldwide energy demand has been exacerbated by the Russian invasion of Ukraine which has caused an increased demand for U.S. produced natural gas supplies to meet European energy requirements.”
Customers living in single-family homes will see an increase of 7.3 percent, or an additional $3.94 to their average monthly bill. The increase is slightly lower for customers in multi-family homes like condos and apartments, which is 6.5 percent, or an average hike of $2.16 per month.
Commercial customers should see an increase ranging from a 7.4 percent to 11.9 percent increase, which could translate anywhere from $11.50 to $4,832 in additional costs.
“While we cannot predict what the future may bring, international events could likely continue to impact natural gas costs for the immediate future,” Corbett said.
It’s the second consecutive rate hike, according to Corbett.
The recent hike by Southwest Gas marks another added cost for Southern Nevadans, after NV Energy recently announced higher rates for its customers. Last month, the utility firm said customers could anticipate an average increase of 6.74 percent to their electricity bill.
If customers are facing financial hardships, Southwest Gas said residents can learn about assistance programs by calling 877-860-6020 or visiting its website swgas.com.
Contact Sean Hemmersmeier at shemmersmeier@reviewjournal.com. Follow @seanhemmers34 on Twitter.