This move, driven by favorable market conditions and lower natural gas prices, aims to offset other rate increases and provide immediate savings to customers across the state.
In a move set to provide tangible financial relief to thousands of households, Southwest Gas Corporation announced Monday that its Nevada customers will see a noticeable reduction in their natural gas bills starting July 1, 2025. This positive development stems from the Public Utilities Commission of Nevada (PUCN) approving a significant decrease in the Deferred Energy Account Adjustment (DEAA) component, effectively passing on the benefits of falling natural gas prices directly to consumers.
The impact on customer bills will vary based on geographic location within Nevada. Starting July 1, Southern Nevada customers are expected to see a $0.20 DEAA credit rate per therm applied to their bills. For those residing in Northern Nevada, the credit rate will be even more substantial, at $0.25 per therm.
This latest adjustment is the result of a collaborative effort between Southwest Gas, the Regulatory Operations Staff (Staff) of the PUCN, and the Bureau of Consumer Protection (BCP). Together, they reached an agreement that led to the Commission’s approval to implement an increased DEAA credit rate. This maneuver is designed to counteract the impact of two other adjustments also set to take effect on July 1: the Annual Rate Adjustment (ARA) and the Base Tariff Energy Rate (BTER) increases. By proactively implementing a larger DEAA credit, Southwest Gas aims to ensure that customers feel the benefit of lower market prices immediately.
When factoring in this new DEAA credit alongside the ARA and BTER increases, the estimated monthly savings for a single-family residential customer, based on annual average monthly usage, are significant. Southern Nevada residents can anticipate saving approximately $10.56 per month, while Northern Nevada customers are projected to save around $18.39 per month. These savings represent a tangible reduction in household expenses, particularly welcome in today's economic climate.
The DEAA serves as a crucial regulatory mechanism, meticulously tracking the ebb and flow between the actual cost Southwest Gas incurs to procure natural gas and the amount it recovers from its customers. When the cost of natural gas on the wholesale market decreases, as has been the recent trend, the DEAA allows for a credit to be applied to customer bills, ensuring that consumers are not overcharged.
