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PUCNV approves limited regulatory accounting for Southwest Gas line-locate costs, denies proposed damage-prevention charge
Summary
The Public Utilities Commission of Nevada approved regulatory-accounting treatment for Southwest Gas’s line-locate expenses effective Jan. 1, 2025, while declining the company’s requested damage prevention cost mechanism; a public commenter warned the regulatory asset would cost Southern Nevada ratepayers about $3.5 million annually.
The Public Utilities Commission of Nevada on a unanimous vote approved partial relief to Southwest Gas Corporation in docket 25-01017, granting regulatory-accounting treatment for line-locate expenses effective Jan. 1, 2025, but denied the company’s proposed damage prevention cost mechanism.
The action allows Southwest Gas to record certain line-locate expenses as a regulatory asset and include an amount for recovery in its next general rate-case filing. The commission’s order also recommends the company use a line-locate quality metric described by regulatory operations staff to encourage timely locates; Southwest Gas agreed in rebuttal testimony to forgo the damage prevention cost mechanism at this…
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