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PUCNV grants limited regulatory accounting for Southwest Gas line-locate costs, declines damage-prevention charge
Summary
The Public Utilities Commission of Nevada voted to allow Southwest Gas to establish regulatory accounting for line-locate expenses effective Jan. 1, 2025, while denying the company's requested damage-prevention cost mechanism; a public commenter warned of multi-million-dollar costs to Southern Nevada ratepayers.
The Public Utilities Commission of Nevada voted to grant in part and deny in part Southwest Gas Corporation's application to establish regulatory accounting treatment for line-locate activity expenses (Docket No. 25-01017), and to require recovery to be addressed in the company's next general rate case with an effective date of Jan. 1, 2025. The commission also declined Southwest Gas's request to implement a separate damage-prevention cost mechanism.
The commission's draft order, adopted as modified, approves regulatory accounting treatment for line-locate expenses but recommends the company use a line-locate quality metric developed by regulatory operations staff; the order directs recovery details to be specified in the next general rate case. The commission's vote carried unanimously.
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