Vegas

Las Vegas, NV-based Southwest Gas Corp. Monday reported increased consolidated profits for 2004, with $56.8 million net income for the year, or $1.61/share, compared with $38.5 million, or $1.14/share, in 2003. Fourth quarter 2004 results were also up ($40.4 million, or $1.12/share, compared to $34.5 million, or $1.01/share in the last quarter of 2003).

Las Vegas-based Southwest Gas Corp. Wednesday warned its customers in the northern half of Nevada about potentially high retail gas rates this winter. The gas-only distribution utility attributed the higher gas costs principally to the fact that wholesale gas demand is growing faster than new supplies, keeping the prices at historically high levels. The utility, which also has gas utility operations in California and Arizona, said it expects bills for the average residential customer using 96 therms to climb from $86 last December 2003 to $122 this December. The figures include a pending increase now before the Public Utilities Commission of Nevada.

Las Vegas-based Southwest Gas Corp. Wednesday warned its customers in the northern half of Nevada about potentially high retail gas rates this winter. The gas-only distribution utility attributed the higher gas costs principally to the fact that wholesale gas demand is growing faster than new supplies, keeping the prices at historically high levels. The utility, which also has gas utility operations in California and Arizona, said it expects bills for the average residential customer using 96 therms to climb from $86 last December 2003 to $122 this December. The figures include a pending increase now before the Public Utilities Commission of Nevada.

In what the regulators consider a prudent way of eliminating long, costly litigation, Las Vegas, NV-based Southwest Gas Corp. Friday reached agreement with the Arizona Corporation Commission’s (ACC’s) pipeline safety division in the aftermath of Feb. 2 residential natural gas explosion that damaged part of a home, but spared the residents. An ACC spokesperson announced the agreement.

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.

Las Vegas, NV-based Southwest Gas Corp. Thursday asked Nevada state regulators for separate rate hikes totaling $76.5 million for its north and south customers to cover increasing gas costs, with the bulk of the hike proposed for customers in the southern half of the state who do not have access to Canadian gas.

Unlike its other private-sector utility neighbor, Las Vegas-based Southwest Gas Corp. Monday had its credit ratings affirmed (BBB-) and its outlook improved to “stable” by Standard & Poor’s Ratings Services (S&P), which noted that the natural gas utility has about $1.1 billion in debt outstanding. Nevertheless, it faces the prospect of continued frequent rate increase filings on top of a recently received cumulative $41 million general rate hike in Arizona and Nevada.

Las Vegas, NV-based Southwest Gas Corp. Monday reported its second quarter loss had to be increased, following settlement earlier in the month of the pending litigation surrounding its failed merger with ONEOK Inc., the holding company for Oklahoma Natural Gas Co. Southwest said its second quarter loss was now $20.6 million, or 63 cents/share, compared with $11.1 million, or 35 cents/share, recorded for the same period a year earlier.

Oneok Inc. announced Friday it has reached a definitive agreement to pay Las Vegas-based Southwest Gas Corp. $3 million in settlement of a lawsuit between the two parties. The action was almost the final one in a legal wrangle that has gone on for three years among the two companies and Southern Union. On Wednesday Southwest Gas agreed to pay Southern Union $17.5 million to settle a lawsuit involving Southern Union’s failed plan to buy the gas company (see Daily GPI, Aug. 8).