LAS VEGAS (KTNV) — Last year, I showed you how NV Energy tried to pass along costs for luxury hotels, meals, alcohol, limo rides, and even a trip to London.
Now, the Attorney General's Bureau of Consumer Protection said Southwest Gas is making similar requests as it seeks approval to raise your monthly gas bill.
WATCH: Should Nevada ratepayers be on the hook for Southwest Gas executive perks?
Southwest Gas wants the Nevada Public Utilities Commission to approve a revenue boost of about $66 million, which is a 12% increase. The average single-family bill could go up by about $7 each month.
Buried inside the rate case are business expenses the company wants permission to recover from ratepayers. The Bureau of Consumer Protection and utility watchdog groups review those requests to determine whether the costs actually benefit customers.
"They don't catch everything is the problem, and it's not the consumer advocate's fault. It's really not a level playing field," said Keriann Conroy, a research associate with the nonprofit Energy Policy Institute. "The utility is really at an unfair advantage here and it is on the backs of ratepayers. They're using the ratepayer dime to really build their own business."
The BCP is questioning a number of expenses included in Southwest Gas's rate hike request.
During a July PUC consumer comment session in Las Vegas, residents, seniors on fixed income and community advocates pushed back against the proposed increase, citing both cost and a lack of transparency. Those same transparency concerns were raised by BCP Regulatory Manager Nichole Loar.
In testimony filed with the PUC, Loar identified what she called "inappropriate charges" and recommended regulators reject hundreds of thousands of dollars that Southwest Gas wants to recover from ratepayers. In all, Loar flagged about $1.8 million in expenses.
Among them, a $5,088 dinner at Durango Steakhouse for former president and CEO Karen Haller. BCP records show 13 guests attended and more than $1,000 was spent on alcohol.
Another dinner, this one at Ocean Prime in CityCenter, cost nearly $3,000. It included 18 guests and more than $2,000 in alcohol.
The BCP said Southwest Gas later reduced both charges after "several rounds of negotiations", bringing them down to $390 and $450.
Under investor relations expenses, the BCP said Southwest Gas also sought recovery for:
- High-end hotel stays and dinners at a beach resort in Marco Island, Florida
- A two-night stay costing nearly $2,200 at Manhattan's Lotte New York Palace Hotel for Southwest Gas President and CEO Justin Brown
- Another two-night stay for Brown costing over $1,500 at Boston's Ritz-Carlton.
Records also show charges for executive transportation plus $810,000 for attorneys on retainer and financial consultants.
After requesting complete expense reports and receipts, Loar told regulators she did not receive all of the documentation she requested.
"It was brought up multiple times that there were issues in itemized expenses, expenses in certain documentation, and it took months for Southwest Gas to even address those charges, let alone documentation, which in many circumstances, they did not provide that documentation," Conroy said.
Southwest Gas said it did not hide any information, only withholding documents it believed were not relevant to the BCP's audit. The company said it's working to improve its process so all necessary information is included for review.
The BCP, meanwhile, is pushing for a standardized filing process or stronger state laws.
"There are states in the country that have passed legislation that actually prohibit certain costs from even making its way into the rate case, so that would take all the burden off the consumer advocate," Conroy said.
Southwest Gas told 13 Investigates that to reduce some of the costs it's seeking to recover, it capped meal charges at $30 per person and removed all alcohol expenses.
It also says it has set a $100 cap on transportation charges and removed more than $380,000 in attorney fees unrelated to Southern Nevada.
Company officials said they will continue providing information and responding to requests.
The PUCN is now reviewing Southwest Gas's application and deciding which expenses should be passed on to customers. If approved, the proposed rate increase would take effect in October.