Southwest Gas reports high profits amid higher rates for customers - KLAS - 8 News Now

Southwest Gas reports high profits amid higher rates for customers

LAS VEGAS (KLAS) — At a time with rising Southwest Gas bills, the company reported its highest annual earnings during their fourth quarter financial results conference call Wednesday morning.

The utility company’s consolidated net income totaled $150.9 million dollars for 2023. It brought in $79.2 million in the last quarter alone. Executives said the boost is in part due to more customers and rate increases to pay for infrastructure.

“Driven primarily by $56 million in increased recovery on prior investments in our Arizona utility infrastructure, and for the first part of the year by our previous Nevada rate change,” CFO Rob Stefani said.

Southwest Gas said customer rates partly increased because natural gas costs them more to buy, and that extra cost gets passed on to consumers. However, the company continued and said they don’t make money off that part of customers’ bill.

Yet, they are predicting record profits in 2024 as well.

“We expect a significant increase in gross margin driven by forecasted customer growth and a rate increase in Nevada,” President and CEO Karen Haller said. “In all we expect these changes will provide for strong utility earnings in 2024.”

There are several charges on customers’ bills including gas cost, which is based on your usage, as well as a delivery charge, which is the cost of providing service.

Southwest Gas profits off the second part, which can be adjusted as many as four times a year. The company plans to increase it by as much as 10% in April, which would be about $8.14 more for the average household in Southern Nevada.

The Public Utilities Commission is considering that hike and will likely deliberate for another four to six weeks.

The other items are surcharges from federal, state, and local taxes. Again, these high figures are coming at high rates.

The Energy Information Administration reported decreasing natural gas prices for 2023, and a continued dip for this year.

But because of the company’s rolling average, you wouldn’t see that reflected in your bill for another year.