Home Residential Services Resource Center Understanding Your Bill Arizona Bills & Gas Prices FAQ
What You Need to Know
There are three main factors that could affect your gas bill:
- Changes in usage
- Changes in the cost of gas which impacts customer gas cost rates
- Changes in the delivery charge
Your usage changes month-to-month, typically you use more gas in cooler months to heat your home, water, and cook meals.
Natural gas, like any commodity, is subject to price fluctuations based on a variety of factors, including supply and demand. We purchase gas on your behalf, and your gas cost rates reflect the price that we actually paid for that gas. Arizona gas cost rates are adjusted monthly.
The delivery charge reflects a base rate component which includes the cost of operating the natural gas utility in Arizona and recovering our investment in the natural gas distribution system in the state. That component of the delivery charge only changes as a result of a base rate increase, which occurs approximately every few years. Our regulators scrutinize and approve changes to that rate prior to implementation.
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If you find yourself in need of aid to cover utility bills or are seeking more effective ways to manage your budget, we're here to help.
Learn more about changes in residential natural gas pricing history at U.S. Energy Information Administration.
Find more information about
Arizona Rates & Regulation
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View historical gas costs and average bills for Arizona in the chart below.
Arizona Average Bill
The Delivery Charge and the Gas Cost comparison for the average single-family residential monthly bill in Arizona from 2012-2024. The Delivery Charge has remained stable while the Gas Cost has fluctuated over the last 12 years.
We hope this information helps provide a simple explanation for what can be a very complicated process and helps you better understand how your bills are calculated and how usage, cooler weather, and market prices for natural gas can all contribute to fluctuations customers may see in their bills.
Understanding Your Bill
Why does my bill change every month?
Three main factors could affect changes in your bill: changes in usage, changes in the cost of gas, and changes in the delivery charge.
Your usage can depend on several factors. Wintertime and cooler temperatures will be the primary contributors to increased usage—things like your thermostat setting, the number of family members or guests in your home, the number of loads of laundry you wash and dry, the number and length of hot showers, or the use of natural gas appliances such as fireplaces or pool heaters. Your home's energy efficiency is another factor. Leaks and cracks around windows and doors and the type of insulation your home has may contribute to increased gas usage to maintain your home's comfortable temperature.
If your usage is similar but your bill has increased, the difference can be related to the cost of gas, which impacts gas cost rates. The price of natural gas, like other commodities, is affected by supply and demand. We purchase gas on behalf of our customers – the price you pay is the same as we paid, with no markup or profit to the Company. Changes in the gas cost rates are made monthly to help mitigate large variations that may occur in the natural gas market.
The delivery charge reflects a base rate component which includes the cost of operating the natural gas utility in Arizona and recovering our investment in the natural gas distribution system in the state. That component of the delivery charge only changes as a result of a base rate increase, which occurs approximately every two years. Our regulators scrutinize and approve the charge prior to implementation.
What are the different charges I see on my bill?
Your bill includes two primary charges: the Gas Cost and the Delivery Charge.
The Gas Cost component of your bill is based on the cost of gas which impacts the gas cost rates, and your usage. Natural gas, like any commodity, is subject to price fluctuations based on a variety of factors, including supply and demand. We purchase gas on your behalf, and your gas cost rates reflect the price that we actually paid for that gas. Southwest Gas bills customers on a per-therm basis. Based on your natural gas usage, your total therms used each month may increase or decrease.
The Delivery Charge reflects a base rate component which includes the cost of providing safe and reliable natural gas service in Arizona and recovering our investment in the natural gas distribution system in the state. That component of the Delivery Charge is only adjusted after it has been scrutinized and approved through a General Rate Case regulatory proceeding.
The remaining costs are comprised of surcharges for specific previously approved programs and federal, state, and local taxes.
Gas Costs
Why does the cost of gas change?
The price of natural gas, like other commodities, can rise and fall and is affected by supply and demand and other external factors like weather events, policy changes, and other economic factors.
We purchase gas on behalf of our customers, and your cost of gas reflects the price paid for the gas with no profit to the Company. Southwest Gas adjusts its Arizona gas cost rates monthly.
Does Southwest Gas profit from the gas I use in my home?
No. We purchase gas on your behalf, and the price you pay reflects what we paid - there is profit to the Company.
We are only allowed to earn a return on the investments we make in our system to help ensure the safe and reliable delivery of natural gas service to your home or business. Our regulators scrutinize and approve these investments and the return as part of a General Rate Case.
Delivery Charge
What is a General Rate Case?
Southwest Gas is a regulated utility and only earns a return on our investments that are approved by our regulators. We are not allowed to adjust the delivery charge without regulatory approval.
The Company makes significant investments in our distribution system to ensure our customers can rely on their natural gas service. Unlike traditional companies, regulated utilities can only recoup those investments after they have been scrutinized and approved through the regulatory process of a General Rate Case.
We will continue to prioritize efforts to operate efficiently and find cost savings initiatives to ensure we are working on your behalf to manage expenses and ensure just and prudent costs for providing safe and reliable energy service to our communities.
How does a General Rate Case affect me?
February 2024, we proposed a base rate adjustment to the Arizona Corporation Commission (ACC), seeking approval to adjust rates to reflect the current level of operating expenses and recover the cost of our investment in Arizona to improve safety and reliability and support growth in the State.
Our last base rate adjustment was effective in February 2023, and current customer rates reflect costs from 2020. The increase was reflected in the delivery charge, an increase of 13 cents per therm.
Southwest Gas is very committed to managing our costs to ensure you continue to receive safe, reliable, and affordable service. Despite the significant investments we have made in Arizona to help support growth and the ongoing demand for natural gas service, we have managed costs with the result of keeping our costs of providing service relatively flat over time, and the primary driver for volatility in customer bills is related to the cost of gas.
Will I be notified if rates change?
Yes. Southwest Gas provides written notice to customers of delivery charge rate changes. We notify customers of these changes through bill inserts in compliance with applicable laws and regulations.
If you have any additional questions about this information call us at
877-860-6020
or visit
swgas.com/contactus
Customer Assistance
Is there any way I can lower my bill?
Simple efforts like being mindful of thermostat settings, installing weather stripping around doors and windows, and replacing air filters can all help keep winter bills down.
Some homeowners and renters may even qualify to receive assistance with money-saving home improvements to increase the energy efficiency of their homes at no cost.
We encourage all residential customers to take advantage of the energy savings portal on our website. Here, you can find personalized tips on how to lower your energy use and compare your energy use to similar or comparable homes.
For more energy-efficiency tips and information visit
swgas.com/savemoney
What if I need help paying my bill?
We are here to help and have a variety of payment and assistance programs available.
You can sign up for the Equal Payment Plan to help manage your payments and monthly budget. We also offer assistance programs, including a 30% per therm discount for qualified low-income customers, emergency assistance programs through Bills Assistance and Energy Share, and an Installment Plan for those with outstanding bills.
For more information about these and other programs call us at 877-860-6020 or visit swgas.com/azassist
Special Assistance Programs
Southwest Gas offers money-saving options for residential customers who qualify for assistance. To find out if you meet the criteria for these programs, choose your location below.
Energy-Saving Tips
When you're spending more time at home, your energy use may increase. On average, natural gas can save your household $1,132/year when compared to other homes that use electricity to heat, cook, and dry clothing.
Residential Rebates
Save money when you use high-efficiency natural gas appliances. Get rebates on qualified appliances and equipment in your area.
