Las Vegas-based Southwest Gas Corp. Monday filed with Nevada regulators for a $27.5 million general rate increase. The utility cited its need to “recover increasing operating costs and to change the way its rates are structured” for its natural gas distribution utility operations in the state, the largest of the three-state utility operations it maintains.

The request amounts to about an $18.9 million annual increase, or 6.2%, in southern Nevada, and $8.6 million, or 9.4%, in northern Nevada. The utility is asking for the increases to be effective in September.

Citing an increase of 70,000 customers since it last rate case, Southwest Gas, which now serves 530,000 homes and businesses in Nevada, is proposing to increase monthly service charges substantially as a means of recovering all of its costs and having a better opportunity to earn its authorized rate of return. The utility said it the application that despite controlling costs and increasing productivity, it has been unable to earn its authorized returns from the Nevada Public Utilities Commission.

“A major part of the company’s request is to improve the recover of its fixed costs by implementing new basic service charges,” said Roger Montgomery, Southwest’s pricing vice president, in a prepared statement. The utility is hoping the increased monthly charges will allow it to earn its authorized returns.

In southern Nevada, Southwest is proposing summer/winter customer charges of $11.20/month and $14.50/month, respectively; in northern Nevada, it is proposing $13.75/month in the summer and $22.50/month in the winter.

Southwest Gas is asking for rates of return of 8.03% and 9.18% for southern and northern Nevada, respectively. The company said this compares to current earning levels of 5.92% in southern Nevada and 4.19% in northern Nevada, which it characterized as “well below its present authorized levels.”

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