Spokane-based Avista Corp. said Wednesday it sold its small South Lake Tahoe natural gas distribution business to Las Vegas-based Southwest Gas Corp. for $15 million. The sale price is subject to “closing adjustments,” and the closing depends on regulatory approvals, including the California Public Utilities Commission.

The gas utility system in South Lake Tahoe serves more than 18,000 customers who will in the future be served out of the Las Vegas gas utility’s Carson City, NV, office. Southwest has been serving the greater Lake Tahoe area for 40 years. Avista bought the South Lake Tahoe utility system from CP National Corp. in 1991.

The sale allows Avista to “continue to focus on core businesses and rebuild its financial strength,” according to Scott Morris, president of Avista Utilities. The latest focus is to concentrate on its traditional Pacific Northwest assets, Morris said.

Southwest’s CEO Jeff Shaw said the sale is in the “best interests” of the utility customers because of its existing distribution service to adjacent communities in the Lake Tahoe area. He promised a continuation of “safe, reliable” natural gas service. Southwest said it currently serves about 105,000 customers in northern Nevada, including 30,000 in the Lake Tahoe Basin.

The gas-only utility serves 1.5 million customers mostly in Nevada and Arizona, and some in California’s less-populated desert and mountain regions.

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