LAS VEGAS, May 31, 2018 /PRNewswire/ -- Southwest Gas
Holdings, Inc. (NYSE: SWX) today announced that Southwest Gas
Corporation ("Southwest") filed a general rate case with the Public
Utilities Commission of Nevada ("Commission"), Docket No.
18-05031. The case requests a statewide overall general rate
increase of approximately $32.5
million, which reflects any reduced tax liability associated
with the Tax Cuts and Jobs Act of 2017. Southwest Gas
Holdings, Inc. also announced that the Commission voted to approve
an order granting Southwest's proposal to extend natural gas
service to Mesquite, Nevada
pursuant to Nevada legislation (Senate Bill 151). The
Commission's order approves a capital investment of approximately
$28 million. Below are summary
details of both regulatory initiatives.
2018 Nevada General
Rate Case
Southwest's general rate case filing includes the following
proposals:
- $14.4 million increase in
revenues or approximately 3.8% in southern Nevada and 1.9% in
northern Nevada (excluding gas infrastructure replacement ("GIR")
mechanism related projects), which reflects changes in Southwest's
cost of service since the last general rate case.
- $18.1 million increase in
revenues or approximately 5.2% in southern Nevada and 1.1% in
northern Nevada associated with adding previously approved GIR
related projects to rate base.
- Increase in depreciation rates by approximately $3.8 million.
- Increase in rate base of $283
million for southern Nevada and $26
million for northern Nevada. Of the combined
$309 million increase in rate base,
$163.6 million is related to adding
GIR related projects to rate base.
- Return on common equity of 10.3% relative to a 49.3% common
equity capitalization ratio.
- Implementation of a pension tracker designed to track and
adjust rates to reflect changes in pension expense between rate
cases.
- Adjustment to the existing GIR rate as part of the rate case in
lieu of filing a separate GIR rate application later this
year. If approved, this adjustment is estimated to result in
incremental surcharge revenue of $6.5
million for southern Nevada and $136,000 for northern Nevada.
- No changes in Southwest's rate design or basic service charge
and continuing the general revenues adjustment mechanism (full
revenue decoupling).
Southwest expects a final decision and new rates to become
effective no later than January 1,
2019, as the Commission has 210 days to issue an order.
Mesquite Expansion
The Commission's order approving Southwest's expansion to
serve Mesquite, Nevada includes
the following findings:
- Approved capital investment of approximately $28 million.
- Approved construction of approximately 17 miles of approach
main and an additional 20 miles of distribution pipeline.
- The Senate Bill 151 Rate will be designed to recover 98.5% of
the related revenue requirement from existing southern Nevada
customers and 1.5% from customers in Mesquite.
- Southwest's service territory will be expanded to include the
City of Mesquite and the portions
of Lincoln County, Nevada that are
necessary for the installation of the approach main.
- Approved virtual pipeline proposal, which consists of
constructing a portion of the distribution system and serving
certain customers using compressed natural gas until the approach
main and permanent gas supply is available.
- Anticipate being able to provide natural gas service to certain
customers in Mesquite using
virtual pipeline as early as the first half of 2019.
Southwest Gas Holdings, Inc. has two business
segments:
Southwest provides natural gas service to over 2 million
customers in Arizona, California, and Nevada.
Centuri Construction Group, Inc. is a comprehensive
construction services enterprise dedicated to meeting the growing
demands of North American utilities, energy, and industrial
markets. Centuri derives revenue from installation,
replacement, repair, and maintenance of energy distribution systems
and developing industrial construction solutions.
Forward-Looking Statements:
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements include, without limitation,
statements regarding Southwest Gas Holdings, Inc. (the "Company")
and the Company's expectations, hopes or intentions regarding the
future. These forward-looking statements can often be
identified by the use of words such as "will", "predict",
"continue", "forecast", "expect", "believe", "anticipate",
"outlook", "could", "target", "project", "propose", "intend",
"plan", "seek", "estimate", "should", "may" and "assume", as well
as variations of such words and similar expressions referring to
the future. In addition, the statements under the heading
"2018 Nevada General Rate Case" that
are not historic, constitute forward-looking statements. A
number of important factors affecting the business and financial
results of the Company could cause actual results to differ
materially from those stated in the forward-looking
statements. These factors include, but are not limited to,
the timing and amount of rate relief, changes in rate design,
customer growth rates, the effects of regulation/deregulation,
tax reform and related regulatory decisions, the actual
expenditures to be incurred in order to expand service to
Mesquite, Nevada, future
earnings trends, seasonal patterns, and the impacts of stock
market volatility. In addition, the Company can provide no
assurance that its discussions about future operating margin and
capital expenditures of Southwest will occur. Factors that
could cause actual results to differ also include (without
limitation) those discussed under the heading "Risk Factors" in the
Company's most recent Annual Report on Form 10-K and in the Company
and Southwest's current and periodic reports filed from time to
time with the Securities and Exchange Commission. The
statements in this press release are made as of the date of this
press release, even if subsequently made available by the Company
on its website or otherwise. The Company does not assume any
obligation to update the forward-looking statements provided to
reflect events that occur or circumstances that exist after the
date on which they were made.
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SOURCE Southwest Gas Holdings, Inc.