(Las Vegas, NV) — Southwest Gas has a plan to replace plastic pipelines throughout the southern part of Nevada, but the cost could be passed on to customers.
KXNT talked with Eric Witkoski of the Attorney General’s Office and was told the method of gathering the funds for construction needs to be reevaluated.
“They (Southwest Gas) have asked for a annual rate adjustment for pipeline investment. In our opinion that is not normally how it is recovered under the Nevada utility rate-making.”
The Nevada Bureau of Consumer Protection opposes that and Witkoski says the cost, if the plan is approved, will be passed on to residents.
“They would be able to spend up to $40 million a year and pass those costs on to ratepayers. That is not the normal regulatory process for those kinds of investments, in our opinion.
The AG’s office is continuing to look at the proposal with a hearing set for September with the Public Utilities Commission.
The cost of the rate increase would be an average of .15-.16 cents a month.