Southwest Gas Corporation - DSM Adjustor Filing

On Friday, January 28, 2011, Southwest Gas Corporation ("SWG" or "Company") filed anapplication(link is external) ("Application") with the Arizona Corporation Commission ("ACC" or "Commission") requesting  approval to revise the rate collected through its demand-side management ("DSM") adjustor mechanism.

In its Application, SWG seeks approval to revise the rate collected through the DSM adjustor mechanism from $0.00200 cents per therm to $0.00345 cents per therm. The Company believes this revision is appropriate as it best reflects the costs it anticipates incurring during the proposed rate effective period from April 1, 2011 through March 31, 2012.

On Monday, March 7, 2011, RUCO filed a motion to intervene(link is external) in the matter.

On Tuesday, March 15, 2011, ACC Staff filed a Proposed Order(link is external) recommending the DSM adjustor rate not be reset and that it remain at its current level of $0.0200 per therm.

ACC Staff's memorandum on the matter stated that although factors cited by SWG in its filing are likely to increase DSM program participation, and to require increased spending, Staff believes that a higher DSM adjustor rate is not indicated at this time.   ACC Staff went on to say that an existing over-collection and an approximately $1.2 million that would be recovered through the current DSMAC adjustor rate will provide Southwest with funding to significantly expand its DSM participation and activity levels prior to the rate case revamp.  In the event that an under-collection occurs, it could be trued-up during the next reset, or in the rate case.

The five sitting ACC Commissioners voted to adopt ACC Staff's proposed order during the Regular Open Meeting held on Tuesday, March 29, 2011 at 1200 W. Washington in Phoenix.