News
October 28, 2025
Southwest Gas wants to ‘modernize’ how it sets rates. Critics fear risks to customers
A little-noticed bill that passed in the eleventh hour of this year’s legislative session could open the door for Nevada’s largest natural gas utility to overhaul how its rates are designed — potentially allowing rates to automatically go up without...
**Southwest Gas Wants to ‘Modernize’ How It Sets Rates. Critics Fear Risks to Customers**
A new law passed at the tail end of the recent legislative session in Nevada is raising eyebrows and sparking debate over the future of natural gas rates for hundreds of thousands of customers. Southwest Gas, the state’s largest natural gas provider, is seeking to “modernize” the way it designs its rates, but consumer advocates and watchdogs are expressing serious concerns about the potential impact on household budgets.
The legislation, passed with relatively little public attention, could pave the way for Southwest Gas to implement a system where rates automatically increase without requiring the same level of regulatory scrutiny as before. Critics fear this could lead to unpredictable and potentially unaffordable gas bills for Nevadans.
Currently, changes to utility rates typically require approval from the Public Utilities Commission of Nevada (PUCN), a process designed to ensure fairness and transparency. This process involves public hearings and allows consumer advocates to challenge proposed rate hikes, scrutinizing the utility's expenses and justifications. The new law, however, could allow Southwest Gas to bypass some of these safeguards, implementing automatic rate adjustments based on pre-determined factors.
Southwest Gas argues that modernizing its rate structure is necessary to ensure the long-term stability and reliability of its service. The company contends that a more flexible system will allow it to better respond to fluctuations in gas prices and infrastructure costs, ultimately benefiting customers by avoiding larger, less predictable rate increases in the future.
However, opponents worry that the proposed changes could shift the balance of power in favor of the utility, leaving consumers vulnerable to unchecked price hikes. They argue that the current regulatory process, while sometimes slow and cumbersome, provides crucial protections for ratepayers, ensuring that utilities are held accountable for their spending and that rate increases are justified.
The exact details of how Southwest Gas intends to utilize the new law are still unclear, and the company will likely need to submit proposals to the PUCN for approval. This will provide an opportunity for public input and debate, giving consumer advocates and concerned citizens a chance to voice their concerns and advocate for safeguards to protect ratepayers. The coming months will be crucial in determining the ultimate impact of this legislation on the wallets of Nevadans who rely on natural gas for heating and other essential needs.
A new law passed at the tail end of the recent legislative session in Nevada is raising eyebrows and sparking debate over the future of natural gas rates for hundreds of thousands of customers. Southwest Gas, the state’s largest natural gas provider, is seeking to “modernize” the way it designs its rates, but consumer advocates and watchdogs are expressing serious concerns about the potential impact on household budgets.
The legislation, passed with relatively little public attention, could pave the way for Southwest Gas to implement a system where rates automatically increase without requiring the same level of regulatory scrutiny as before. Critics fear this could lead to unpredictable and potentially unaffordable gas bills for Nevadans.
Currently, changes to utility rates typically require approval from the Public Utilities Commission of Nevada (PUCN), a process designed to ensure fairness and transparency. This process involves public hearings and allows consumer advocates to challenge proposed rate hikes, scrutinizing the utility's expenses and justifications. The new law, however, could allow Southwest Gas to bypass some of these safeguards, implementing automatic rate adjustments based on pre-determined factors.
Southwest Gas argues that modernizing its rate structure is necessary to ensure the long-term stability and reliability of its service. The company contends that a more flexible system will allow it to better respond to fluctuations in gas prices and infrastructure costs, ultimately benefiting customers by avoiding larger, less predictable rate increases in the future.
However, opponents worry that the proposed changes could shift the balance of power in favor of the utility, leaving consumers vulnerable to unchecked price hikes. They argue that the current regulatory process, while sometimes slow and cumbersome, provides crucial protections for ratepayers, ensuring that utilities are held accountable for their spending and that rate increases are justified.
The exact details of how Southwest Gas intends to utilize the new law are still unclear, and the company will likely need to submit proposals to the PUCN for approval. This will provide an opportunity for public input and debate, giving consumer advocates and concerned citizens a chance to voice their concerns and advocate for safeguards to protect ratepayers. The coming months will be crucial in determining the ultimate impact of this legislation on the wallets of Nevadans who rely on natural gas for heating and other essential needs.
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