LAS VEGAS (KTNV) — Southwest Gas is responding to a massive outcry from customers in the wake of our 'Darcy, what's the deal?' report on rapidly rising gas bills.
Last week, we shared consumer concerns over gas bills that were at least double or triple from the previous month, costing consumers much more than they bargained for to heat their homes.
Despite recent record profits, Southwest Gas has received approval from the Public Utilities Commission for multiple rate increases, saying the company has been impacted by external factors, and has to recoup its expenses.
"The current cost to provide gas service, capital investments in its own system, depreciation expense, customer growth, changes in operations and maintenance expenses... From a business perspective, does any of that resonate with you?" 13 Chief Investigator Darcy Spears asked homeowner Wayne Bernath.
"No," Bernath responded, "it doesn't. They're just coming up with anything they can say to try to justify, but it's not justifiable--these rate hikes--not that much!"
Southwest Gas holds a monopoly on supplying natural gas to Nevada. After our 'Darcy, what's the deal?' story aired, the utility launched a revised web page about bills.
The new web page cites changes in usage and in the cost of gas as the two main factors in those higher-than-expected gas bills this winter. It explains that the cost of gas has gone up more than 75 percent over the past two years, emphasizing that, "We purchase gas on your behalf, and your cost of gas reflects the price that we actually paid for the gas with no markup or profit to the Company. We are only allowed to earn a return on the investments we make in our system to help ensure the safe and reliable delivery of natural gas service to your home or business. These investments and the return are determined as part of a General Rate Case and approved by our regulator."
Both cost increases and decreases are rolled out over time.
While the cost of gas has gone down, current bills reflect past purchases made when prices were higher.
But the company says there is some good news: those recently reduced gas costs are beginning to be reflected in customer bills.
If you want to add your voice to those asking 'Darcy, what's the deal?', a peaceful protest is planned for Monday outside the Southwest Gas headquarters at 8360 S. Durango Dr. from 10 a.m. to noon.
Organizers plan to ask the utility to cut customers a break on bills by cutting its profits.
