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Southwest Gas customers confused & angry over rate hikes: How experts say to save money

Southwest Gas says the cost of gas to customers will drop in the coming months, but customers are not convinced amid massive rate hikes.
Dr. Ben Leffel
Posted at 6:51 PM, Mar 05, 2024
and last updated 2024-03-05 21:51:27-05

LAS VEGAS (KTNV) — Southwest Gas says natural gas bills will drop in the coming months, but several customers tell Channel 13, after months of massive rate hikes, they're not convinced.

Many say they're confused and fed up with how high their gas bills have risen. One expert telling Channel 13, customer action might be needed to make a change.

Thousands of Southwest Gas customers have taken to social media to complain about rate hikes, many telling Channel 13 their bills have doubled or tripled in cost over the past few months, even without using more gas.

"Even with us barely using it as little as we possibly can, it's still insane," said Southwest Gas customer Makayla Lownik.

Ben Leffel is a professor at UNLV, he keeps track of Southwest Gas rates.

"How long are they, consumers, going to stand those kind of rate hikes before switching to solar and using incentives for that," said Leffel.

He says if customers switch from natural gas to electric appliances and solar options, that large number of departures would put pressure on the utility, but the incentives need to be there.

"It would be advisable for solar companies to use this as a marketing opportunity and also for the local government to encourage use of and provisions of incentives," said Leffel

However, according to the Public Utilities Commission, the amount of money a customer receives back for the energy they produce using solar, has dropped by 20%. In 2017 it was at 95% of the retail rate, but now it's at 75%.

Now, Southwest Gas says their rates will be dropping soon. The company claims the cost of natural gas to customers will drop by 15% starting in April and could drop by 50% in July, however, the Public Utilities Commission approved multiple rate increases for Southwest Gas, including one expected to go into effect in April.

The company also reported its highest annual earnings in 2023.

Amid the confusion, Leffel says customers should demand rate transparency, he says they've got the details.

"They can do it. They have that information. They should share it. It's a legitimate concern to an energy consuming audience, myself included," said Leffel.

Channel 13 will continue to fight for answers as to why your bills change, and update you on any changes with Southwest Gas rates.