UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 13, 2011
SOUTHWEST GAS CORPORATION
(Exact name of registrant as specified in its charter)
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California
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1-7850
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88-0085720
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(State or other jurisdiction of
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(Commission
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(I.R.S. Employer
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incorporation or organization)
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File Number)
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Identification No.)
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5241 Spring Mountain Road
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Post Office Box 98510
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Las Vegas, Nevada
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89193-8510
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number, including area code: (702) 876-7237
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01 Other Events.
On December 13, 2011, the Arizona Corporation Commission (“ACC”) voted to approve a settlement agreement in the Southwest Gas Corporation ("Southwest") general rate case filed in November 2010. A copy of Southwest’s press release (dated December 14, 2011) announcing the approval of the rate case settlement is attached hereto as Exhibit 99. The settlement, which was filed with the ACC in July 2011, consisted of two options: one providing for partial decoupling (Alternative A) and one with a full decoupling provision (Alternative B). The ACC approved Alternative B, which includes a $52.6 million revenue increase, a 9.5% return on common equity, a monthly weather normalization provision, and an annual true-up for non-weather margin variances from authorized amounts per customer. The provisions of the approved settlement are effective January 1, 2012.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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SOUTHWEST GAS CORPORATION
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Date: December 15, 2011
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/s/ GREGORY J. PETERSON
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Gregory J. Peterson
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Vice President/Controller and
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Chief Accounting Officer
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EXHIBIT INDEX
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Exhibit
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No.
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Description
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99
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Press Release – Southwest Gas Rate Case Settlement Approved.
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December 14, 2011
Media Contact: Ann Seiden, (602) 395-4045
Shareholder Contact: Ken Kenny, Las Vegas, NV (702) 876-7237
FOR IMMEDIATE RELEASE
SOUTHWEST GAS RATE CASE SETTLEMENT APPROVED
ACC decision sets new rates, adopts revenue decoupling
Phoenix, AZ. — Yesterday, the Arizona Corporation Commission voted to approve the settlement agreement in the Southwest Gas General Rate Case filed in November 2010. The agreement was negotiated and broadly supported by settling parties, which included representatives of the low-income and energy efficiency communities, as well as Arizona Corporation Commission (ACC) staff.
“We are very pleased with the ACC decision in this case. We believe the outcome is in the public interest and carefully balances the needs of our customers and community partners,” said Jeff Shaw, Chief Executive Office.
The approved settlement agreement modernizes Southwest Gas’ rate structure through a “decoupling” mechanism that allows the company to further pursue energy efficiency savings opportunities for customers.
“Through decoupling, our company’s interests are now better aligned with our customers’ in terms of energy efficiency,” said John Hester, Senior Vice President of Regulatory Affairs and Energy Resources. “We are pleased to be able to help our customers achieve long-term energy and financial savings while producing positive environmental impacts.”
The approved settlement authorizes a rate increase of $52.6 million, which will equate to an average residential customer bill increase of approximately $3.33/month and $0.59/month on the average low-income customer bill.
Also notable is a requirement for the company to identify certain opportunities for cost savings that total $2.5 million annually. Southwest Gas is also prohibited from filing a general rate case that would result in changes to customer rates prior to 2017.
More information:
What is decoupling?
http://www.swgas.com/tariffs/aztariff/decoupling/
Decoupling: myths & facts
http://www.swgas.com/tariffs/aztariff/decoupling/myths.php
Southwest Gas provides natural gas service to 1.8 million customers in Arizona, Nevada, and California.
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