Graham County

Arizona Rate Case Update

Graham County Customers,

On April 23, 2021, Graham County Utilities, Inc. (GCU) and Southwest Gas Corporation (SWG) filed an application with the Arizona Corporation Commission (ACC) for approval to transfer assets of GCU to SWG. This was approved, effective December 28, 2021.  As a result of Decision (78364), SWG extended its service territory to include former GCU customers and retained GCU rates and charges as required by the Commission Decision.
 
On December 3, 2021, Southwest Gas filed a general rate case with the ACC, which included a proposal to move former GCU customers to  Southwest Gas’ ACC authorized rates and charges. This proposal was approved by the ACC on January 10, 2023.  What this means is that Graham County customers will transition to Southwest Gas’ authorized rate schedules and tariffs beginning on February 1, 2023 however, most customers will see this change on their March bill.
 
The rates approved will increase the monthly bill of the typical single-family residential customer with average annual usage of 29 therms by $11.28, from $43.61 to $54.89, or 25.87 percent. 

Additionally, the ACC approved an expansion of the Company’s Low Income Ratepayer Assistance (LIRA) program. This important program provides a discounted monthly basic service charge and a 30% reduction on the “per therm” rate and has now been expanded to year-round and program eligibility is increased to 250 percent of federal poverty level.
 
For assistance with questions please call 800-237-0848
 
For additional details see: Dockets G-01551A-21-0092, G-02527A-21-0092, and Decision 78364. Also see Docket G-01551A-21-0368 and Decision No. 78845.

Low Income Ratepayer Assistance (LIRA)

LIRA provides a discounted monthly basic service charge and a 30% reduction on the “per therm” rate and has now been expanded to year-round and program eligibility is increased to 250 percent of federal poverty level.
 
 

Customer-Owned Yard Line (COYL) Program

You may be eligible to participate in our COYL leak inspection and replacement program. The COYL program is another way we can help keep your family, property and neighborhood safe. Call 800-654-2765 to see if your property qualities for a free line leak inspection.
 
 

Regulatory Expense Surcharge

Effective March 1, 2023, a Regulatory Expense Surcharge will collect the rate case expense up to $400,000 incurred in the 2021 Arizona General Rate Case. The balance will be recovered over a 48-month period.  It will apply to Arizona customers only. The surcharge is $0.01 per customer and will appear as a line item on the bill.
 

G-5 Single Family Residential Service

Line Item Amount
Basic Service Charge per Month $10.70
Delivery Charge per Therm: All Usage $1.01138

G-10 Single Family Low-Income Residential Gas

Line Item Amount
Basic Service Charge per Month $7.50
Delivery Charge per Therm: All Usage $0.51519

G-80 Natural Gas engine Water Pumping Service

Line Item Amount
Basic Service Charge per Month  
Off-Peak Season (October-March)
$0.00
Peak Season (April-September)
$125.00
Delivery Charge per Therm: $0.23850

G-25 General Gas Service

Line Item Amount
Basic Service Charge per Month  
Small
$27.50
Medium
$43.50
Large 1
$80.00
Large 2
$470.00
Delivery Charge per Therm:  
Small, All Usage  (000-600 therms/year)
$1.33521
Medium, All Usage (601-7,200 therms/year)
$0.57641
Large 1, All Usage (7201-50,000 therms/year)
$0.47722
Large 2, All Usage (50,001-180,000 therms/year)
$0.35646
Frequently Asked Questions
How will this affect my bill?
We estimate that the average residential customer in Graham County using 29 therms per month will experience an increase of approximately $11.28 a month, this includes a decrease in the basic service charge from $19.00 to $10.70.

Graham County customers have been paying ACC authorized rates and charges that were last approved for GCU in 2018.
When will I see this change on my bill?
These new rates are effective February 1, 2023, however most customers will see this change on the March bill.
Why does Southwest Gas need to adjust my rates?
To start recovering the costs associated with the Company’s investment of $677 million in Arizona since 2019 and to update authorized rates so that they reflect changes in the level of operating expenses.
 
Additionally, the Company’s proposal incorporates Graham County into the Company’s overall rates and tariffs. This reflects investments necessary for the provision of safe and reliable service in the newly acquired areas in Graham County.